Oil Prices Dragged Down by Likely Growth in U.S. Stockpiles; January Brent crude on London's ICE Futures exchange fell $0.29 to $47.85 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
International oil prices been falling for three straight sessions, largely weighed by dimming prospects that major oil producers will reach a deal to cut production by the month-end as originally planned.
Full text: Crude-oil futures retreated in early Asian trade Wednesday on expectations that U.S. crude inventories were bolstered significantly last week, exacerbating the global glut that has kept prices in the doldrums for over two years. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $46.30 a barrel at 0238 GMT, down $0.37 in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell $0.29 to $47.85 a barrel. U.S. crude stockpiles are said to have swelled by 9.3 million barrels for the week ended Oct. 28, according to industry group American Petroleum Institute. The growth, if confirmed by the U.S. Energy Information Administration later Wednesday, would mark the biggest single-week growth since March. Analysts cite strong imports and low refinery utilization as reasons for the increase. At 468.2 million barrels, U.S. crude oil inventories are above the 448-million-barrel inventory at this time last year, the EIA said last week. The API also tipped a 3.6-million-barrel decrease in gasoline stocks and a 3.1-million barrel decline in distillate inventories. "The overall impact may be cushioned by larger-than-expected draws in the products," said Tim Evans, a Citi Futures analyst. International oil prices been falling for three straight sessions, largely weighed by dimming prospects that major oil producers will reach a deal to cut production by the month-end as originally planned. In September, leaders of the Organization of the Petroleum Exporting Countries met and agreed to curtail the group's production, possibly by 200,000 to 700,000 barrels a day. The goal was to pump up prices by removing some unwanted barrels from the market. The move nudged prices up initially, but with more countries asking to be exempt from the cut, the market fears that even if an agreement is ratified at the Nov. 30 meeting in Vienna, the deal would be weak and overall production would still rise. "Traders are selling on the assumption that there is now no prospect of OPEC implementing an effective production ceiling in the near future," said Ric Spooner, chief market analyst at CMC Markets. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 171 points to $1.4670 a gallon, while December diesel traded at $1.5035, 134 points lower. ICE gas oil for November changed hands at $435.25 a metric ton, down $1.50 from Tuesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil; Inventory; Price increases; Futures; Supply & demand
Location: United States--US
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1834607608
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834607608?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Business News: GE Capital Will Finance Oil Deal
Author: Murphy, Maxwell
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Nov 2016: B.5B.
Abstract:
General Electric Co. won't have to look far for the $7.4 billion it needs to finance the oil-and-gas division's combination with Baker Hughes Inc. Its GE Capital unit will provide the loan.
Full text: General Electric Co. won't have to look far for the $7.4 billion it needs to finance the oil-and-gas division's combination with Baker Hughes Inc. Its GE Capital unit will provide the loan. For the near term, GE will essentially be paying interest to itself, which won't add additional incremental interest costs, said finance chief Jeffrey Bornstein on a Monday conference call to discuss the deal. GE will own 62.5% of the combined company while Baker Hughes shareholders will receive that $7.4 billion as a dividend and own the remainder. "We will utilize the excess debt and liquidity we have in GE Capital, which results in no incremental interest cost for the company through 2019," he said on the call. But as GE works to further shrink its once massive capital arm, it isn't quite as simple as a round-trip intracompany transaction. The debt ultimately becomes part of the parent company's liabilities. "As part of the unwind of GE Capital, GE itself either assumed or guaranteed all the GE Capital debt," said Robert Schulz, who rates GE debt for S&P Global Ratings. "They are actually liable for that debt," he added, which is why S&P assumes that debt actually belongs to the industrial parent for ratings purposes. By selling assets, GE Capital bulked up its balance sheet with cash. "They have this excess cash there, and it's earning very little," he said, which makes using those funds to finance the transaction attractive. Mr. Schulz earlier Monday affirmed GE's investment grade "AA-" credit rating. A GE spokeswoman directed requests for comment to its conference call remarks, and said Mr. Bornstein wasn't immediately available. A GE Capital spokesman referred all comment to the parent company. Funding the deal raised questions about GE tapping into $20 billion to $25 billion in excess liquidity it has previously referred to in its December 2015 outlook. Mr. Borenstein told analysts Monday that the $7.4 billion "does tap into that," and that GE will do a transaction with GE Capital to provide the leverage for the deal." And because the company already is incurring the interest cost, if you will, of that debt inside the enterprise, through 2019, the incremental interest cost to the company for the debt will essentially be zero," he said. Investors have been hoping GE will use the capacity to fund shareholder returns, particularly share repurchases. "We've been talking about the excess debt as a drain on nonoperating carry costs" for GE, said Steven Winoker, who follows GE equity for Bernstein Research. Credit: By Maxwell Murphy
Subject: Funding; Acquisitions & mergers
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: General Electric Co; NAICS: 332510, 334290, 334512, 334519
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.5B
Publication year: 2016
Publication date: Nov 2, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1834686862
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834686862?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Business News: Oil Industry Shows Signs of Improvement
Author: Kent, Sarah; Williams, Selina
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Nov 2016: B.3.
Abstract:
Royal Dutch Shell PLC and BP PLC posted better-than-expected third-quarter profits, joining other big oil companies in showing progress in adapting to a world of cheaper crude as prices edge back from lows earlier in the year.
Full text: LONDON -- Royal Dutch Shell PLC and BP PLC posted better-than-expected third-quarter profits, joining other big oil companies in showing progress in adapting to a world of cheaper crude as prices edge back from lows earlier in the year. The European companies' results supported a cautious optimism creeping into the oil industry after more than two years of lower profits or losses in a sector once known as a cash machine. BP and Shell both said they expect oil supply and demand to come back into balance after a glut that pushed prices down by more than 50%. Both companies said they had made progress in stabilizing profits even during a third quarter when prices averaged less than $46 a barrel. This year and last "was about restoring balance," BP Chief Financial Officer Brian Gilvary said during a call with analysts. Shell returned to a profit, posting the equivalent of $1.4 billion in net income for the third quarter of 2016 after reporting a net loss of $6.1 billion a year earlier. BP reported net earnings of $1.7 billion, up 35% from $1.2 billion. BP and Shell's results were a positive signal in a mixed season of earnings. French oil company Total SA last week said its third-quarter profit almost doubled from a year earlier to nearly $2 billion, a gain the company's chief executive, Patrick Pouyanne, attributed to deep cost cuts. In the U.S., Chevron Corp. returned to the black after recording losses for three straight quarters, aided by measures to cut spending and costs. Its earnings, however, were still down 35% compared with the third quarter of 2015. Exxon Mobil Corp., the world's largest publicly traded oil producer, registered its eighth-straight quarter of year-over-year profit decline, illustrating how efforts to manage the price downturn remain a work in progress. Oil prices generally were lower in the third quarter of 2016 compared with a year earlier, averaging $45.86 a barrel for Brent crude, the international benchmark. After trading at heights of $100 a barrel or more for much of 2011 to 2014, oil succumbed to a global oversupply that has kept prices depressed. Most big oil companies are working to reduce costs in an uncertain price environment. Shell said next year it expects to spend $25 billion on finding and developing new oil and natural-gas reserves, at the lower end of a spending range it disclosed this year to investors. BP said it planned capital spending in 2016 of $16 billion, down from the $17 billion to $19 billion previously forecast. Exxon slashed its capital and exploration spending 45% in the third quarter from a year earlier. The third-quarter results for Shell and BP were significant for both companies after a tumultuous few years. For Shell management, the sharp increase in profit marked a victory, demonstrating for the first time the value the company's acquisition of BG Group earlier this year. BP's results were the first unmarked by significant charges related to the company's fatal blowout in the Gulf of Mexico in 2010. The company is trying to move on from the accident after putting a final cost on the disaster of $61.6 billion over the summer. Any recovery could still be precarious as members of the Organization of the Petroleum Exporting Countries are struggling to hammer out a plan for a modest output cut before a Nov. 30 meeting in Vienna. Their failure to agree is keeping a lid on oil prices that staged a modest recovery last month, and optimism within the industry remains cautious. Credit: By Sarah Kent and Selina Williams
Subject: Net losses; Financial performance; Energy industry; Company reports
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: BP PLC; NAICS: 211111, 324110, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2016
Publication date: Nov 2, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1834741612
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834741612?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Maersk's Profit Tumbles on Weak Freight Rates, Low Oil Prices; Danish conglomerate continues to be hurt by slowing global trade and shipping overcapacity
Author: Paris, Costas; Chopping, Dominic
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
A.P. Moller-Maersk A/S's third-quarter profit plunged 43% as weak freight rates and low oil prices continued to batter the Danish shipping-and-oil company's results. Chief Executive Soren Skou said in an interview that shipping freight rates bottomed out at the end of the first quarter and are slowly rising partly due to the withdrawal of Korea's Hanjin Shipping Co. Hanjin, the world's seventh biggest player, filed for bankruptcy protection in August.
Full text: A.P. Moller-Maersk A/S's third-quarter profit plunged 43% as weak freight rates and low oil prices continued to batter the Danish shipping-and-oil company's results. Maersk's shares sank more than 7% in Copenhagen on Wednesday. Investors fear that the shipping industry--the company's biggest market--remains caught in its deepest down-cycle in 30 years. Maersk Line, the company's shipping unit and the world's biggest container operator, swung to a loss of $122 million, from a $243 million profit a year ago. Net profit for the company dropped to $429 million from $755 million a year earlier, as revenue fell 9% to $9.18 billion. Analysts had forecast a profit of $496 million on revenue of $9.39 billion, according to FactSet estimates. Maersk kept its full-year profit projection at below $1 billion, significantly lower than last year's $3.1 billion profit, due to developments in the global economy, container freight rates and weak oil prices. Chief Executive Soren Skou said in an interview that shipping freight rates bottomed out at the end of the first quarter and are slowly rising partly due to the withdrawal of Korea's Hanjin Shipping Co. Hanjin, the world's seventh biggest player, filed for bankruptcy protection in August. "Spot rates out of China reached their lowest levels in March and now they have almost doubled," Mr. Skou said. "From the second quarter to the third quarter we have seen a general rise in rates of 5.5% and we see the trend continuing in the fourth quarter." Mr. Skou said a wave of consolidation sweeping the industry is set to continue. "Nobody could have expected how fast it's happening. It's dramatic change," Mr. Skou said. "In 1996 the top three carriers had 17% combined market share. By next year the top three carriers will have 43% market share, and it's not going to stop there." Maersk also has an oil business, which is drastically cutting costs to adjust to falling oil prices. "Maersk Oil has done a great job to bring down its costs and the break even point to $40 a barrel and is making a good profit with today's prices," Mr. Skou said. Maersk Line, the group's biggest unit and responsible for more than half of its revenue, laid off 4,000 workers, or 17% of its staff, in 2015. But Mr. Skou said no further layoffs are currently planned. Maersk Line moves about 15% of global seaborne freight and is seen as a barometer of global trade. The company said the container volume it shipped for the quarter was up 11% from a year earlier. The industry average is growth of between 2% and 3%. "They are rapidly winning market share," said Lars Jensen, CEO of SeaIntelligence Consulting in Copenhagen. "Their competitors must now choose to either relinquish it [market share] to Maersk or reignite a price war, which they probably can't afford. When freight rates eventually go up, Maersk will benefit the most." Container ships move 98% of the world's manufactured goods, from iPhones and toys to designer dresses and heavy machinery. But slowing global trade and a glut of shipping capacity in the water, estimated at 30% above demand, have pushed freight rates to levels barely covering fuel, driving most operators deeply into the red. Global trade is forecast to grow by just 1.7% this year, marking the slowest pace since the 2008 financial crisis, according the World Trade Organization. Freight rates have averaged less than $700 a container a month since the start of last year on the benchmark Asia-to-Europe trade route with the break-even point at $1,400. Shipping executives estimate the top 20 operators will post combined losses of as much as $10 billion this year. The downturn has prompted a rare wave of consolidation among the industry's top 20 operators and so far pushed a handful of companies out of business. Maersk said last week it will be chartering six of Hanjin's biggest ships. Japan's top three shipping companies--Nippon Yusen KK, Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha--said on Monday they would merge container operations to fight the industry's downturn through synergies. Maersk initiated in September a wide-ranging reshuffle that will see the company split into two businesses , one focusing on transport and logistics and the other on energy. Implementation is progressing and further details will be provided at the group's capital markets day next month, it said. Maersk Oil is one month into a three-month review of its organization as it adjusts to the low oil price environment and makes changes to both its portfolio and long-term growth plans. The unit managed to slash costs by a fifth in the quarter and it said it can now break even with an oil price below $40 a barrel, having previously needed prices at between $40 and $45 a barrel. Maersk Oil contributed a profit of $146 million, up from $32 million a year earlier. Write to Costas Paris at costas.paris@wsj.com and Dominic Chopping at dominic.chopping@wsj.com Related Reading * Maersk CEO Soren Skou: Freight Rates Are Rising * Shipping Giant Maersk to Split Into Two Divisions (Sept. 22) * Hyundai Merchant Marine Among Five Bidders for Hanjin's U.S.-Route Assets * Maersk, MSC to Charter Nine Former Hanjin Ships Credit: By Costas Paris and Dominic Chopping
Subject: Corporate profits; Prices; Shipping industry; Market shares
Company / organization: Name: Maersk Oil; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1834770487
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834770487?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Falls on 'Most Bearish Report of All Time'; Crude-oil inventory surges the most in 34 years of data, extending selloff
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
OPEC members Iran, Nigeria and Libya have already secured exemptions from the agreement because they have faced petroleum-output disruptions. Because of these concerns international oil prices have been falling for three straight sessions.
Full text: Oil prices extended their slump after data showed the biggest weekly U.S. crude surplus on record, the latest sign of the hurdles facing traders banking on higher prices. The supply data prompted investors to reduce expectations that two years of oversupply in the oil markets is coming to an end. U.S. prices immediately shed nearly $1 a barrel and losses spread into gasoline and diesel futures. U.S. crude futures fell $1.33, or 2.9%, to $45.34 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.28 a barrel, or 2.7%, to $46.86 a barrel on ICE Futures Europe. Both posted their seventh loss in eight sessions and lowest settlement since Sept. 27. "You could easily make the argument it's the most bearish report of all time," said Bob Yawger, director of the futures division of Mizuho Securities USA. "There's nothing to support the market." The U.S. Energy Information Administration said crude-oil stockpiles rose by 14.4 million barrels in the week ended Oct. 28--the largest weekly increase in 34 years of data collected by the EIA. Analysts polled by The Wall Street Journal expected a more modest increase of 1 million barrels. U.S. oil has now fallen 12% in just two weeks since hitting a one-year high on Oct. 19. It is the latest in a series of sharp retreats to hit the market this year every time prices hit around $50 a barrel. Many traders consider that a ceiling because supplies are still so strong, coming from both cost-cutting shale-oil drillers in the U.S. and national oil companies abroad fighting for customers. Traders are skeptical about plans from global exporters to cut production. Russian data released Wednesday showed a new post-Soviet era output record, and U.S. government data showed weekly imports climbed to a four-year high. Oil's sharp fall in recent weeks marks the return of some of the volatility that had characterized the market earlier this summer. Even as equity markets have largely stabilized since March, commodities and currencies have usually kept up their wild swings. This is oil's third retreat from $50 toward $40 within five months, a shift often characterized by moves larger than 10% within just a few weeks. Many other markets had become placid as traders became focused on very few events, and grew certain of both a rate increase coming only in December and the strong likelihood of Hillary Clinton beating Donald Trump in the U.S. presidential election, said Alain Bokobza, head of global asset allocation at Société Générale SA in Paris. But one thing those beliefs did do is spur a dollar rally throughout October, which heaps more volatility on oil markets that are traditionally volatile. A rising dollar makes dollar-denominated commodities like oil more expensive for traders who are based in countries using other currencies, and those commodities often fall as the dollar rises. That often-strong connection went dormant for several months, but appeared to pick up in mid-October when the dollar kept rising and a month-long rally in oil began to reverse. Oil was also highly influenced by the Organization of the Petroleum Exporting Countries, which had said in late September it would consider an agreement on output cuts later that year. That made oil one of the few assets impacted by two of the biggest events to captivate the markets, OPEC deal-making and rate decisions coming from the fed. "The volatility (in oil) never goes away. It can be high or higher," Mr. Bokobza said. Even bullish traders had been skeptical of OPEC, but many were also pointing to other signs that the oil market had fundamentally changed regardless of what OPEC did. Before last week, U.S. stockpiles had drained seven out of the eight prior weeks, and other major storage hubs showed signs they were falling from record highs, too. It had many bullish traders convinced oversupply may have already ended, extending oil's rally. Last week's record storage addition puts U.S. crude stockpiles now back nearly at the levels they were before that string of drawdowns, about 480 million barrels, according to the EIA. That, combined with continued bickering from OPEC members and uncertainty over the presidential election has caused Gresham Investment Management LLC to sell bullish oil positions this week. "The two elements of what lifted prices up are now in question," said Jonathan Berland, managing director at the firm, which manages about $7.8 billion and specializes in commodities. Gasoline futures lost 3.62 cents, or 2.4%, to $1.4479, a one-month low. Diesel futures lost 5.04 cents, or 3.3%, to $1.4665 a gallon, also a one-month low. Alison Sider contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Crude oil prices; Supply & demand; Crude oil; Inventory; Gasoline prices; Pipelines
Location: United States--US
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: American Petroleum Institute; NAICS: 813910, 541820; Name: Colonial Pipeline Co; NAICS: 486910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
Section: Markets
Publisher: Dow Jones & Com pany Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1834843528
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834843528?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Ex-BlackRock Fund Manager Mark Lyttleton Pleads Guilty to Insider Trading; Charge relates to 2011 trades involving EnCore Oil and Cairn Energy
Author: Margot, Patrick
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
"In his role in the fundamental equity team at BlackRock, Mr. Lyttleton was able to discover and act on inside information either by working on the deals concerning the stocks or being party to conversations conducted by colleagues," the Financial Conduct Authority--the U.K. regulator prosecuting the case--said in a statement.
Full text: LONDON--Mark Lyttleton, a former BlackRock Inc. fund manager, pleaded guilty to two counts of insider trading Wednesday, admitting using information from his job to make personal trades. Mr. Lyttleton, an equities fund manager at BlackRock for more than a decade, was charged for trades involving two stocks, EnCore Oil PLC and Cairn Energy PLC, in 2011. EnCore Oil was being acquired by another oil company at the time, while Cairn Energy was selling a stake in its Indian unit. "In his role in the fundamental equity team at BlackRock, Mr. Lyttleton was able to discover and act on inside information either by working on the deals concerning the stocks or being party to conversations conducted by colleagues," the Financial Conduct Authority--the U.K. regulator prosecuting the case--said in a statement. The FCA said the trades were made through an overseas asset manager trading on behalf of a company registered in Panama. It previously said that Swiss authorities carried out searches in Switzerland in relation to the case. A lawyer for Mr. Lyttleton didn't immediately return calls. Mr. Lyttleton, 45 years old, was arrested along with his wife in April 2013, a month after resigning from BlackRock. BlackRock isn't part of the investigation and its clients weren't involved, the asset-management company said previously. No charges were brought against Mr. Lyttleton's wife. Mr. Lyttleton will be sentenced on Dec. 21. Insider trading carries a sentence of up to seven years in prison in the U.K. Mr. Lyttleton managed as much as $4 billion for BlackRock clients before his arrest. After leaving the fund group, he became a life coach and mentor, according to his LinkedIn page . On the page, he said being arrested was the low point of his life and that he now wanted to help people "be the best versions of themselves." Write to Margot Patrick at margot.patrick@wsj.com Credit: By Margot Patrick
Subject: Investment advisors; Insider trading
Location: United Kingdom--UK
Company / organization: Name: Cairn Energy PLC; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1834871883
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1834871883?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Bond Prices Hold Gains After Fed Keeps Rates Unchanged; Oil prices, uncertainty over the presidential election heighten appeal of havens
Author: Goldfarb, Sam
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
Government bonds were hit by waves of selling in October in part because of improved global economic data, rising inflation expectations, concern about less bond buying by major central banks and discussion about increased spending from governments that would require more debt issuance.
Full text: U.S. government bonds continued their recent rally Wednesday, benefiting from anxiety over the presidential election as the Federal Reserve stayed on track to raise interest rates in December. The Fed, as expected, left interest rates steady at the conclusion of a two-day policy meeting. But it sent new signals that it could raise rates next month, pointing to signs that inflation is rising and saying the case for raising rates "has continued to strengthen." In late-afternoon trading, the yield on the benchmark 10-year Treasury note was 1.799%, compared with 1.822% Tuesday. The yield on the two-year note, which is highly sensitive to changes in the Fed's policy outlook, was 0.821%, compared with 0.829% Tuesday. Yields fall when bond prices rise. The Fed's decision was "pretty much as expected," said Mary Ann Hurley, vice president of fixed income trading in Seattle at D.A. Davidson & Co. "We knew that they were going to punt the ball into the December meeting, which is what they did do." Bond yields moved only a little higher after the Fed's statement, suggesting investors didn't gain much insight into the direction of monetary policy. Yields, though, had dropped earlier in the day, as investors continued to shift money into haven debt amid signs of a tightening presidential race between the Democratic nominee Hillary Clinton and Republican nominee Donald Trump. Although Mrs. Clinton was previously expected to win handily, polls have tightened recently, forcing investors to price in the possibility of a victory by Mr. Trump, who is widely viewed as the candidate more likely to bring uncertainty to government policies. Stocks, which fell last month, have come under further pressure, while bond prices have climbed for three consecutive days after falling sharply last week. Government bonds were hit by waves of selling in October in part because of improved global economic data, rising inflation expectations, concern about less bond buying by major central banks and discussion about increased spending from governments that would require more debt issuance. The rationale behind higher yields seemed to be supported earlier this week, when China and the U.S. both reported encouraging manufacturing data. But uncertainty caused by the election is now "counteracting any bright spots that we're seeing in the economy," said Jody Lurie, director in the fixed-income strategy and research department at Janney Montgomery Scott LLC in Philadelphia. Also providing a boost to bonds has been a decline in oil prices , which has weighed on stock prices and tempered the recent increase in inflation expectations, analysts said. Investors are looking ahead to Friday's nonfarm payrolls report, which could further bolster the odds of a December rate rise if it shows continued strength in the labor market. A private survey showed on Wednesday that businesses across the country added 147,000 workers in October, the smallest increase since May. However, the September total was raised to 202,000 from 154,000. Fed-funds futures, which are used to speculate on central bank policy, showed Wednesday afternoon that investors and traders see a 72% chance of an increase by the conclusion of the Fed's December meeting, according to CME Group. The odds were 74% Tuesday. Write to Sam Goldfarb at sam.goldfarb@wsj.com More on Markets * Dollar Selloff Continues Amid Election Fears * Oil Prices Edge Down as Production Deal Prospects Fade * Stocks Fall on Election Jitters * Gasoline Futures Pull Back As Colonial Pipeline Remains Shut * Selloff in Corporate Credit Might Be Opportunity Credit: By Sam Goldfarb
Subject: Interest rates; Prices; Investments; Nominations; Government bonds
Location: United States--US
People: Clinton, Hillary Trump, Donald J
Company / organization: Name: D A Davidson & Co; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); Ne w York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1834953127
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission o f copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude Oil Stockpiles Rise Sharply; Crude-oil stockpiles jumped by 14.4 million barrels, according to the EIA
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
U.S. crude oil stockpiles increased much more than expected for the week ended Oct. 28, while fuel supplies declined, according to data released Wednesday by the Energy Information Administration.
Full text: U.S. crude oil stockpiles increased much more than expected for the week ended Oct. 28, while fuel supplies declined, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles jumped by 14.4 million barrels to 482.6 million barrels, which puts them at the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 1 million barrels on the week. Oil stored at the Cushing, Okla., delivery point for U.S. stocks, increased by 89,000 barrels to 58.5 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 2.2 million barrels to 223.8 million barrels. Analysts were expecting inventories to fall by 1.1 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 1.8 million barrels to 150.1 million barrels, but are "well above" the upper limit of the average range, the EIA said. Analysts had expected supplies to fall by 1.6 million barrels from a week earlier. Refining capacity utilization unexpectedly fell by 0.4 percentage point from the previous week to 85.2%. Analysts were expecting utilization levels to rise by 0.5 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1834958343
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Donna Karan's Zen Comeback; Designer bets on a mix of stretchy clothing, Haitian housewares, essential oils at her Urban Zen brand; a laid-back L.A. location
Author: Binkley, Christina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
Versions of those are now on the racks at Urban Zen, only now in materials such as silk, jersey, suede and soft shearling that reflect today's sporty-casual 21st century fabrics and styles. The furnishings, tableware and art are all for sale, but the price tags aren't obvious.
Full text: Los Angeles Donna Karan, once the consummate New Yorker, opened a West Coast flagship for her Urban Zen brand here last week. The designer left her namesake label and its DKNY offshoot last year. Now she's considering buying a home in L.A. or possibly Malibu as well. "Now I think DKLA sounds great," she says with a grin. Ms. Karan is doubling down on Urban Zen, making it an updated remix of her many pursuits and interests, from comfy but luxurious clothing to health and wellness. "Everything is just bubbling up, now that she can focus all her attention on Urban Zen," says Aliza Licht, a former publicist for the now-closed Donna Karan brand who worked with the designer for 17 years. With the Urban Zen clothing collection, Ms. Karan is rebooting some of the familiar mainstays of her career for modern lives. Her collections, like her 1980s "seven easy pieces," include a tailored jacket that can turn leggings into a chic business suit, a wrap-and-tie dress, a version of the "cold shoulder" top that Hillary Clinton wore as first lady. Versions of those are now on the racks at Urban Zen, only now in materials such as silk, jersey, suede and soft shearling that reflect today's sporty-casual 21st century fabrics and styles. Those who have followed her efforts for earthquake recovery in Haiti can shop for Haitian-made accessories and housewares. The store--one of five spread from Manhasset to Aspen--also offers essential oils--part of her interest in holistic wellness. Urban Zen, founded in 2007, is known as an apparel and lifestyle label, but Ms. Karan says she hopes to create a hotel-condominium-dining-conference center focused on wellness. It would cater to older people who want extra services but don't want to move into a retirement community, she says. Aging is something Ms. Karan, who is 68, has on her mind. Friends and former colleagues say she has always pursued ideas triggered by her own needs, starting with her own label in the 1980s, which launched with clothes she designed for herself and her friends. "When I started DKNY, I needed a pair of bluejeans," says Ms. Karan. "I'm a very selfish person." "It was always about her, the woman," says Patti Cohen, who worked with Ms. Karan marketing her brands for more than 30 years. The new Los Angeles Urban Zen store sits on a tiny side street off Santa Monica Boulevard in West Hollywood. It isn't fashion central--either to the tourists on Rodeo Boulevard or the locals who shop at Melrose Place or the Grove. Instead, it reflects Ms. Karan's strategy to get shoppers away from their mobile phones and the rushed mentality of power shopping. She says she chose the location because it offered what she wants from a bricks-and-mortar store--a hospitable experience for her community. "It's off the beaten track," she says. "I want people to stop by here." It takes some effort to find the merchandise. The store's entrance leads into a leafy courtyard furnished with a vast teak dining table and other seating areas. A large stainless steel kitchen opens onto the courtyard. It currently serves mainly tea and coffee, free of charge, but the plan is to one day have a chef and serve soup, salads and other fare. The furnishings, tableware and art are all for sale, but the price tags aren't obvious. The clothing collection is in two bungalows that open onto the courtyard, one furnished like a living room with a coffee table and couches (also for sale). Several customers hang about for more than an hour, trying on clothes, resting, and wandering the store. Ms. Karan, curled on a couch, speaks to them like a girlfriend: "You don't need the scarf because you got that (shawl)," she warns a woman who is lingering over several items. Current style trends may be blowing in her favor. Her Urban Zen collections are stretchy, comfortable luxury clothing that is flexible enough to wear to yoga class but dressy enough to top off with a jacket and head to the office. That is the definition of today's athleisure, though she shakes her head at the much-used term. She says she launched Urban Zen in 2007 because LVMH (which purchased the Donna Karan label in 2001 and sold it last summer) declined to produce the yoga wear she wanted to wear. "They didn't do yoga at DKNY, which is crazy, I told them," she says. See-now-buy-now has been a hot topic for the past year, with Tom Ford and Burberry launching their fall 2016 collections in September when most brands were launching spring 2017. "I've been doing that for 10 years," says Ms. Karan. During her New York fashion week presentation in September, some guests stopped at her store next door to try on the collection's cape dresses, jodhpurs, and luxe shearling gilets. Ms. Karan plans to hold conferences at the Los Angeles store for programs such as her Urban Zen Integrative Therapy Program, which incorporates eastern healing techniques and other holistic methods with western medicine at hospitals including UCLA Medical Center. "She's made her mark in fashion. Now she's about making a difference in the world," says Gabby Karan, Ms. Karan's daughter. "It's her philosophy of living." Write to Christina Binkley at christina.binkley@wsj.com Credit: By Christina Binkley
Subject: Clothing
People: Clinton, Hillary
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
column: On Style
Section: Life
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835079217
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835079217?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Market Says No, But Math Says Yes on Baker Hughes Deal; The lack of a benchmark share price for General Electric's oil-and-gas business makes it tougher to value the offer to Baker Hughes owners, but it seems like a deal worth accepting
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
Add in Baker Hughes shareholders' portion of the net present value of anticipated synergies and one gets over $75 a share or a 38% premium to today's price. Since The Wall Street Journal broke news of the talks last week, Baker Hughes shares only briefly topped $60, and have since tumbled to $53.50.
Full text: Once bitten, twice shy, might describe Baker Hughes shareholders right now. A little less cynicism is in order. Back in November 2014, when Halliburton proposed a merger worth $78.62 a share to the owners of Baker Hughes, it took nearly a year of horrid business conditions and deal skepticism for the share price to fall below its preoffer price of $50.98. That proposed merger finally fell apart this spring as antitrust concerns proved insurmountable. Baker Hughes's consolation prize was a chunky $3.5 billion break fee, but it suffered, too, as management's ability to restructure in a major industry slump had been curtailed. Five months later, General Electric's offer to combine its oil-and-gas unit with Baker Hughes soured far more quickly. It took less than 30 hours for the shares to drop below their predeal price. Was it something they said? Martin Craighead, chairman and CEO of Baker Hughes, proclaimed that "the new company will be an industry leader, well positioned to compete in the oil-and-gas industry while pushing the boundaries of innovation for our customers." He used nearly identical language to describe the Halliburton deal two years ago. This is what one says to assuage both shareholders and customers. Instead, the market seems to be questioning the value of what Baker Hughes shareholders will get in the deal. Such thinking could lead shareholders to vote against it. That would be a mistake. In the case of Halliburton's cash-and-stock offer it was easy to calculate its value minute by minute. Baker Hughes's discount to that number merely reflected the odds of the deal being blocked or voted down. With GE's offer on more solid ground from a regulatory standpoint, the problem may be the fact that its value doesn't have as firm an anchor. There is no minute-by-minute valuation of the energy business that sits inside of GE. The math on the deal is slightly fuzzy, but it builds in a nice margin of safety. For example, if one takes the financial engineers behind the deal at their word then the lower boundary of GE Energy's value is around $28 billion. That figure is based on a multiple of enterprise value to earnings before interest, taxes, depreciation and amortization. Combined with Baker Hughes's predeal market value that comes to $44 a share for current shareholders plus a dividend of $17.50. Add in Baker Hughes shareholders' portion of the net present value of anticipated synergies and one gets over $75 a share or a 38% premium to today's price. Since The Wall Street Journal broke news of the talks last week, Baker Hughes shares only briefly topped $60, and have since tumbled to $53.50. A more skeptical approach might trim the value of expected synergies by one-quarter and apply a less flattering price to sales multiple to GE's business based on public peers such as National Oilwell Varco and FMC Technologies. That still gets one to $68 a share or 26% upside. Another way to slice the valuation is by taking companies' estimate of combined free cash flow for 2018, which is seen as a recovery year for the industry. Applying Baker Hughes's historical multiple of price to free cash flow two fiscal years in the future over the past decade and then adding in the dividend makes the offer worth about $87 a share. While all three valuations are worth voting for, there are reasonable objections to the deal. Baker Hughes shareholders would own the rump of a publicly listed company controlled by GE. Such equity stubs usually fetch a discount to peers. And, in the likely scenario that GE eventually carries out a tax-free spinoff of the remaining 62.5% to its shareholders, investors who don't want to own an oil services company would flee, temporarily weighing on the shares' value. Taking GE's deal is better than going it alone, but reaping its full value may require patience. Those who have stuck with Baker Hughes over the past two years have plenty of it. Write to Spencer Jakab at spencer.jakab@wsj.com Credit: By Spencer Jakab
Subject: Oil service industry; Cash flow; Stockholders
People: Craighead, Martin
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835090779
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Copyright: (c) 2016 Dow Jones & Compan y, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Transocean Reports Sharply Lower Quarterly Profit, Revenue; Driller hit by oil price slump
Author: Armental, Maria
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2016: n/a.
Abstract:
The Switzerland-based company, which boasts the world's largest fleet of offshore drilling rigs, spent billions of dollars to expand its fleet right before oil prices collapsed.
Full text: Oil driller Transocean Ltd.'s quarterly profit dropped sharply again as revenue was nearly halved amid an oil rut that has devastated the sector. Still, the quarterly results beat expectations, driving up its beaten-down stock by 1.2% to $9.40 in after-hours trading. The Switzerland-based company, which boasts the world's largest fleet of offshore drilling rigs, spent billions of dollars to expand its fleet right before oil prices collapsed. Over all, Transocean's third-quarter profit fell 26% to $244 million, or 62 cents a share. Excluding certain items, profit fell to 25 cents a share from 87 cents a share a year earlier, but ahead of the 17 cents in the previous quarter. Revenue declined to $903 million, a 44% drop from a year earlier and 4% from the previous quarter. It marks the second straight quarter that Transocean's revenue fell below the billion-dollar mark. Meanwhile, expenses fell 41% to $668 million. Analysts surveyed by Thomson Reuters had projected 14 cents a share on $861.9 million in revenue. Rig utilization was 49%, up from 47% in the previous quarter but sharply down from the 70% Transocean reported in the year-ago period. Contract backlog, meanwhile, stood at $12.2 billion as of the October fleet report, down from $13.7 billion in July. The bulk of the backlog is in the ultra-deepwater, Chief Executive Jeremy D. Thigpen said in September at a trade conference sponsored by Barclays. Mr. Thigpen said at the time that he expects the market to turn around in the second half of next year and "lead to something material" in 2018 with utilization and day rates picking up in 2019. Transocean ended the quarter with $2.53 billion in cash and $8.26 in debt. The merger with Transocean Partners, the master limited partnership it had formed in 2014, is expected to close in the fourth quarter. Transocean is counting on the deal to shore up its liquidity. Write to Maria Armental at maria.armental@wsj.com Credit: By Maria Armental
Subject: Financial performance; Master limited partnerships
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 2, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835110168
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835110168?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Asia Oil Futures Up; Sentiment Weighed by Higher U.S. Crude Inventories; January Brent crude rose $0.64 to $47.50 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Nov 2016: n/a.
Abstract:
According to the WSJ Dollar Index, the dollar was last down 0.14% at 87.77.
Full text: Crude oil prices rose in early Asia trade due to bargain hunting and a weakening U.S. dollar, but market sentiment remains cautious after data showed U.S. crude inventories made their largest gains in more than 30 years last week. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $45.87 a barrel at 0220 GMT, up $0.53 in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose $0.64 to $47.50 a barrel. Prices were aided by a weaker dollar after the U.S. Federal Reserve kept interest rates steady. According to the WSJ Dollar Index, the dollar was last down 0.14% at 87.77. As oil is traded in dollars, a weaker dollar means less expensive oil for traders using different currencies. Despite this, the market is still mainly steered by bears who are discouraged by the prospect of a longer period of oversupply, as the latest Energy Information Administration data showed U.S. crude inventories and production were climbing. U.S. crude stocks surged by 14.4 million barrels in the week ended Oct. 28, marking the largest weekly climb since the EIA's recordkeeping began on this matter in 1982. That growth has intensified worries that the global overhang could be reducing at a slower pace than expected. Analysts surveyed by The Wall Street Journal had expected an increase of 1 million barrels. Growth was mainly driven by strong imports--which averaged 9 million barrels a day last week, up by 2 million barrels from the week before, the EIA said. It added that over the past four weeks, crude-oil imports to the U.S. averaged 7.7 million barrels a day, an increase of 7% from a year earlier. "With the seasonal refinery maintenance, it is easy to see how the backlog built up," said Stuart Ive, a client manager at OM Financial. Other analysts also noted that many of the cargoes delivered to the U.S. last week were delayed shipments due to earlier inclement weather. What worries investors, however, is resilience in U.S. production, which rose by 18,000 barrels per day to 8.52 million barrels a day. That increase underscores the unparalleled efficiency of U.S. shale producers shows that the market could remain oversaturated with unwanted barrels for longer, said Gao Jian, an energy analyst at SCI International "This also means that U.S. shale producers are not spooked by the prices in the $45-$50 range," said Mr. Gao. The prolonged decline in oil prices, spurred by overproduction, have dented profit margins of major oil and gas companies. Many of them have scaled back spending in the upstream sector. Even heavyweight oil producers, such as Saudi Arabia, are faced with national budget problems as revenue from exports dries up. To alleviate the overhang of supplies, the members of the Organization of the Petroleum Exporting Countries in late September decided to curtail production by 200,000 to 700,000 barrels a day. The decision is expected to be ratified at the next OPEC meeting on Nov. 30. But many market participants have little faith that the final agreement will be make a material impact on global production as more countries are seeking exemptions. Adding to jitters is Russia's vague stance on whether it will join OPEC in limiting its production. Most recent data showed Russia's oil production surged to another post-Soviet-era high in October by rising to 11.2 million barrels. It was reported that Russia's production may even edge higher in 2017 as new oil patches come online. Without Russia on board and the U.S. ramping up output, OPEC members will have less reason to cut production, analysts say. OPEC's November monthly oil report is scheduled to be released on Nov. 11. It will include data such as production figures by individual members and world demand growth. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 39 points to $1.4518 a gallon, while December diesel traded at $1.4757, 92 points higher. ICE gasoil for November changed hands at $428.50 a metric ton, up $6.00 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Inventory; Petroleum production; Natural gas utilities
Location: United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 3, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835177890
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835177890?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Style & Travel -- On Style: Donna Karan Doubles Down on Her Urban Zen Brand --- Designer bets on comfy clothing, essential oils, Haitian housewares; a laid-back new L.A. store
Author: Binkley, Christina
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Nov 2016: D.3.
Abstract:
Versions of those are now on the racks at Urban Zen, only now in materials such as silk, jersey, suede and soft shearling that reflect today's sporty-casual fabrics and styles. The furnishings, tableware and art are all for sale, but the price tags aren't obvious.
Full text: Los Angeles -- Donna Karan, once the consummate New Yorker, opened a West Coast flagship for her Urban Zen brand here last week. The designer left her namesake label and its DKNY offshoot last year. Now she's considering buying a home in L.A. or possibly Malibu as well. "Now I think DKLA sounds great," she says with a grin. Ms. Karan is doubling down on Urban Zen, making it an updated remix of her many pursuits and interests, from comfy yet luxurious clothing to health and wellness. "Everything is just bubbling up, now that she can focus all her attention on Urban Zen," says Aliza Licht, a former publicist for the now-closed Donna Karan brand who worked with the designer for 17 years. With the Urban Zen clothing collection, Ms. Karan is updating some of the familiar mainstays of her career for modern lives. Her collections, like her 1980s "seven easy pieces," include a tailored jacket that can turn leggings into a chic business suit, a wrap-and-tie dress, a version of the "cold shoulder" top that Hillary Clinton wore as first lady. Versions of those are now on the racks at Urban Zen, only now in materials such as silk, jersey, suede and soft shearling that reflect today's sporty-casual fabrics and styles. Those who have followed her efforts for earthquake recovery in Haiti can shop for Haitian-made accessories and housewares. The store -- one of five spread from Manhasset, N.Y., to Aspen, Colo. -- also offers essential oils -- part of her interest in holistic wellness. Urban Zen, founded in 2007, is known as an apparel and lifestyle label, but Ms. Karan says she hopes to create a hotel-condominium-dining-conference center focused on wellness. It would cater to older people who want extra services but don't want to move into a retirement community, she says. Aging is something Ms. Karan, who is 68, has on her mind. Friends and former colleagues say she has always pursued ideas triggered by her own needs, starting with her own label in the 1980s, which launched with clothes she designed for herself and her friends. "When I started DKNY, I needed a pair of bluejeans," says Ms. Karan. "I'm a very selfish person." "It was always about her, the woman," says Patti Cohen, who worked with Ms. Karan marketing her brands for more than 30 years. The new Los Angeles Urban Zen store sits on a tiny side street off Santa Monica Boulevard in West Hollywood. It isn't fashion central -- either to the tourists on Rodeo Boulevard or the locals who shop at Melrose Place or the Grove. Instead, it reflects Ms. Karan's strategy to get shoppers away from their mobile phones and the rushed mentality of power shopping. She says she chose the location because it offered what she wants from a bricks-and-mortar store -- a hospitable experience for her community. "It's off the beaten track," she says. "I want people to stop by here." It takes some effort to find the merchandise. The store's entrance leads into a leafy courtyard furnished with a vast teak dining table and other seating areas. A large stainless steel kitchen opens onto the courtyard. It currently serves mainly tea and coffee, free of charge, but the plan is to one day have a chef and serve soup, salads and other fare. The furnishings, tableware and art are all for sale, but the price tags aren't obvious. The clothing collection is in two bungalows that open onto the courtyard, one furnished like a living room with a coffee table and couches (also for sale). Several customers hang about for more than an hour, trying on clothes, resting, and wandering the store. Ms. Karan, curled on a couch, speaks to them like a girlfriend: "You don't need the scarf because you got that (shawl)," she warns a woman who is lingering over several items. Current style trends may be blowing in her favor. Her Urban Zen collections are stretchy, comfortable luxury clothing that is flexible enough to wear to yoga class but dressy enough to top off with a jacket and head to the office. That is the definition of today's athleisure, though she shakes her head at the much-used term. She says she launched Urban Zen in 2007 because LVMH (which purchased the Donna Karan label in 2001 and sold it last summer) declined to produce the yoga wear she wanted to wear. "They didn't do yoga at DKNY, which is crazy, I told them," she says. See-now-buy-now has been a hot topic for the past year, with Tom Ford and Burberry launching their fall 2016 collections in September when most brands were launching spring 2017. "I've been doing that for 10 years," says Ms. Karan. During her New York fashion week presentation in September, some guests stopped at her store next door to try on the collection's cape dresses, jodhpurs, and luxe shearling gilets. Ms. Karan plans to hold conferences at the Los Angeles store for programs such as her Urban Zen Integrative Therapy Program, which incorporates eastern healing techniques and other holistic methods with western medicine at hospitals including UCLA Medical Center. "She's made her mark in fashion. Now she's about making a difference in the world," says Gabby Karan, Ms. Karan's daughter. "It's her philosophy of living." Credit: By Christina Binkley
Subject: Clothing
Location: Los Angeles California
People: Clinton, Hillary
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: D.3
Publication year: 2016
Publication date: Nov 3, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835294263
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835294263?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Record U.S. Supply Sinks Crude Prices --- Oil futures fall 2.9% to $45.34 on what may be 'most bearish report of all time'
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Nov 2016: C.1.
Abstract:
Wednesday's is the latest in a series of sharp retreats to hit the market after prices hit around $50 a barrel, reflecting abundant supplies from cost-cutting U.S. shale-oil drillers and national oil companies abroad.
Full text: Oil prices tumbled anew, after the biggest weekly U.S. crude surplus on record dealt a fresh setback to traders banking on higher prices. Crude-oil stockpiles rose 14.4 million barrels in the week ended Oct. 28 -- the largest weekly increase in 34 years of data collected by the U.S. Energy Information Administration. Analysts polled by The Wall Street Journal expected an increase of one million barrels. The news unraveled bets that oversupply in the oil markets is coming to an end after a two-year run-up. U.S. crude-oil futures fell $1.33, or 2.9%, to $45.34 a barrel on the New York Mercantile Exchange, their seventh loss in eight sessions. "You could easily make the argument it's the most bearish report of all time," said Bob Yawger, director of the futures division of Mizuho Securities USA. The oil market's suddenly bearish tone, following a monthslong stretch in which prices have risen more than many analysts predicted, helped send U.S. stocks to another loss. The Dow industrials dropped 77.46 points to 17959.64, and the S&P 500 posted its seventh decline in a row, retreating 0.65% to 2097.64. It is the S&P's longest losing streak since Nov. 25, 2011. U.S. oil now has fallen 12% in just two weeks since hitting a one-year high on Oct. 19. Wednesday's is the latest in a series of sharp retreats to hit the market after prices hit around $50 a barrel, reflecting abundant supplies from cost-cutting U.S. shale-oil drillers and national oil companies abroad. Traders are skeptical about plans from global exporters to cut production. Russian data released Wednesday showed a new post-Soviet-era output record, and U.S. government data showed weekly imports climbed to a four-year high. Credit: By Timothy Puko
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: C.1
Publication year: 2016
Publication date: Nov 3, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835308873
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Falls to Fresh One-Month Low on Jump in Inventories; Selling on record crude stockpile build of 14.4 million barrels continues
Author: McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Nov 2016: n/a.
Abstract:
The main focus over recent months has been when oil demand will catch up with supply after a glut that has already gone on for two years, and whether the members of the Organization of the Petroleum Exporting Countries will reach consensus on a deal to cut output .
Full text: Crude oil prices fell for the fifth day in a row on Thursday as market sentiment remained pessimistic following data showing U.S. crude inventories made their largest gains in more than 30 years last week. U.S. crude futures settled down 68 cents, or 1.5%, at $44.66 a barrel on the New York Mercantile Exchange, closing at the lowest level since Sept. 23. Brent crude, the global oil benchmark, lost 51 cents, or 1.1%, to $46.35 a barrel. On Wednesday, the U.S. Energy Information Administration said crude-oil stockpiles rose by a record 14.4 million barrels for the week ended Oct. 28. The report sent prices lower and highlighted concerns over excess supply in the global oil market. Selling on the record inventory build continued Thursday, said Andy Lebow, senior partner at Commodity Research Group. "A lot of the bullish undercurrents to this market have been removed to a certain extent. We're still reeling from yesterday's stock build," he said. The main focus over recent months has been when oil demand will catch up with supply after a glut that has already gone on for two years, and whether the members of the Organization of the Petroleum Exporting Countries will reach consensus on a deal to cut output . The latest EIA report was a discouraging sign for supply and demand rebalancing. Growth was mainly driven by strong imports--which averaged nine million barrels a day last week, two million barrels more than the week before, the EIA said. It added that over the past four weeks, crude-oil imports to the U.S. averaged 7.7 million barrels a day, an increase of 7% from a year earlier. "With the seasonal refinery maintenance, it is easy to see how the backlog built up," said Stuart Ive, a client manager at OM Financial. Other analysts also noted that many of the cargoes delivered to the U.S. last week were delayed shipments because of earlier inclement weather. The prolonged decline in oil prices, spurred by overproduction, has dented profit margins of major oil and gas companies. Many of them have scaled back spending in the upstream sector. Even heavyweight oil producers, such as Saudi Arabia, are faced with national budget problems as revenue from exports dries up. The price slide has also encouraged producers to pump as much oil as possible with output from producers including Russia at record levels. To alleviate the overhang of supplies, OPEC members in September decided to curtail production by 200,000 to 700,000 barrels a day. The decision is expected to be ratified at the next OPEC meeting on Nov. 30, but discord among OPEC members on potential exemptions for some countries has raised doubts about whether a deal will come through. "The main focus remains whether OPEC can do something, I think they will, I think they have to," said Ole Hansen, head of commodity strategy at Saxo Bank. Gasoline futures settled down 1.6% at $1.4245 a gallon, and diesel futures settled down 0.6% at $1.4582 a gallon. Stephanie Yang contributed to this article. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Sarah McFarlane and Jenny W. Hsu
Subject: Crude oil prices; Supply & demand; Cartels; Natural gas utilities
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 3, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835421031
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835421031?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Marathon Oil's Quarterly Results Beat Projections as Loss Narrows Sharply; Marathon Oil's loss narrowed sharply in the latest quarter, helped by higher-than-projected production and lower costs.
Author: Armental, Maria
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Nov 2016: n/a.
Abstract:
Reeling from depressed prices, Marathon has cut production, slashed spending and sold stock and non-core assets to focus on "lower risk, higher return U.S. resource plays" and shore up its finances.
Full text: Marathon Oil Corp.'s loss narrowed sharply in the latest quarter, helped by higher-than-projected production and lower costs. The Houston exploration-and-production company said it plans to increase rig activity by about 50% by year's end, while staying within its planned $1.3 billion capital-spending budget. Shares, up 1.5% this year, rose 1.6% to $12.99 in after-hours trading. Reeling from depressed prices, Marathon has cut production, slashed spending and sold stock and non-core assets to focus on "lower risk, higher return U.S. resource plays" and shore up its finances. On Wednesday, Marathon raised the low end of its 2016 exploration and production forecast. It now projects 335,000 to 345,000 net barrels of oil equivalent a day. It also narrowed its oil-sands-mining synthetic crude oil production projection to a range of 45,000 to 50,000 net oil barrels a day. Over all, Marathon's loss narrowed sharply to $192 million, or 23 cents a share. Excluding rig-termination payments and other items, the adjusted loss fell to 11 cents a share from 20 cents a year earlier. Revenue fell 7% to $1.23 billion. The results beat analysts' projections, according to Thomson Reuters. Exploration expenses fell to $83 million from $585 million a year earlier, while overall expenses declined 40% to $1.43 billion. Sales volume fell 8.5%, while net production available for sale fell 7%. Write to Maria Armental at maria.armental@wsj.com Credit: By Maria Armental
Subject: Crude oil; Petroleum production
Location: United States--US
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Marathon Oil Corp; NAICS: 486110, 324110, 211111, 213112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 3, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835463290
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835463290?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Encana Swings to Profit, Helped by Cost-Cutting Efforts; Like its peers, Canadian oil and natural gas company has been hit hard by slumping prices
Author: McKinnon, Judy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Nov 2016: n/a.
Abstract:
Encana, whose four key oil-and-gas plays are in the Eagle Ford and Permian shale basins in Texas and the Duvernay and Montney basins in Western Canada, said it lowered its net debt in the latest quarter by about $2 billion from the previous quarter. Since the end of 2014, it has cut debt by more than $3.5 billion, it said.
Full text: Encana Corp. on Thursday posted a third-quarter profit as cost-cutting efforts helped the oil and gas producer offset lower production. Calgary, Alberta-based Encana, which has been selling off assets to sharpen its focus on four core oil-and-gas plays and shore up its balance sheet, said it lowered its operating and transportation and processing costs by 30% compared with the year-earlier quarter. "Our relentless focus on driving efficiency into every corner of the business is increasing our margins and delivering significant cash flow growth," Chief Executive Doug Suttles said in a release. Like its peers in the oil patch, Encana has been hit hard by slumping oil and gas prices, leading it to cut jobs and shed assets to trim costs. In July, it closed the sale of assets in northwestern Alberta and Colorado for around $1.1 billion, and bolstered its balance sheet in September with a share offering that raised more than $1 billion. Earlier this year, it said it was laying off 20% of its workforce. Encana, whose four key oil-and-gas plays are in the Eagle Ford and Permian shale basins in Texas and the Duvernay and Montney basins in Western Canada, said it lowered its net debt in the latest quarter by about $2 billion from the previous quarter. Since the end of 2014, it has cut debt by more than $3.5 billion, it said. In the quarter ended Sept. 30, Encana said it earned $317 million, or 37 cents a share. A year earlier, it lost $1.2 billion, hurt by a hefty impairment charge. Adjusted to exclude items, it said its operating profit was $32 million, or 4 cents a share, compared with an operating loss of $24 million, or 3 cents a year earlier. The Thomson Reuters mean estimate was for an operating loss of 5 cents a share. Encana said its natural-gas production fell 14% in the latest quarter from a year earlier, while oil-and-gas liquids production dropped 17%. It said its realized gas price was down about 46%, while its realized liquids price improved almost 7%. Write to Judy McKinnon at judy.mckinnon@wsj.com Credit: By Judy McKinnon
Subject: Financial performance; Balance sheets; Profits; Natural gas
Location: Colorado Calgary Alberta Canada
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 3, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835487674
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
No Oil Price Rebound on Horizon; Banks in WSJ survey predict Brent crude will average $56 a barrel next year
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Nov 2016: n/a.
Abstract:
"Oil markets are likely to tread water for a while longer... the direction of oil prices into year-end will be largely determined by the success, or failure, of OPEC's meeting," say analysts at J.P. Morgan.
Full text: With oil prices trading near multiweek lows, analysts believe next year won't be much better. A survey of 14 investment banks by The Wall Street Journal predicts that oil prices will stay below $60 a barrel in 2017 . Last summer, many of the same banks were predicting oil prices would rise to more than $70 a barrel this year--a level that has now been deferred to 2018. Brent, the international oil-price gauge, traded at $47.28 a barrel midday Thursday . Prices fell to their lowest since September on Wednesday following data showing a record increase in U.S. crude stockpiles. Meanwhile, an OPEC deal to curb production looks in jeopardy ahead of the oil cartel's meeting at the end of this month. With a global glut of crude showing few signs of abating, those factors have dragged prices down in recent days after last month's rally took them briefly above $50 a barrel. "October's increase was fueled by expectations but the hard facts show the rally wasn't sustainable," said Carsten Fritsch, analyst at Commerzbank. "Next year prices will rise only slightly." The banks in the survey predict that Brent crude will average $56 a barrel next year, unchanged from last month's survey. They expect West Texas Intermediate, the U.S. oil gauge, to average $54 a barrel next year, down a dollar from the previous survey. U.S. data on Wednesday showed that crude stockpiles jumped by more than 14 million barrels last week--the largest weekly climb on record. Oil production also rose, for a second week in a row. Shale oil firms in the U.S . have been ramping up drilling since the beginning of the summer. Many producers believe drilling in some U.S. regions can be profitable even with oil prices in their current range of $40 to $50 a barrel. What's more, U.S. firms have drilled thousands of wells they have yet to tap, called "drilled but uncompleted" wells, or DUCs in the industry parlance. Many of those are now being greenlit, meaning they would start producing crude soon, analysts say. The number of DUCs across the seven major U.S. shale oil basins fell in September to 5,069, down by more than 500 from January's historic high, according to official data. "If U.S. output starts to rise again, this would only add to the oversupply and delay the rebalancing of the market," Mr. Fritsch said. Oil investors are also looking to a pivotal meeting by the Organization of the Petroleum Exporting Countries at the end of this month, where the organization is going to try to clinch a production cut deal. "Oil markets are likely to tread water for a while longer... the direction of oil prices into year-end will be largely determined by the success, or failure, of OPEC's meeting," say analysts at J.P. Morgan. In September, OPEC agreed to curtail the group's production, by 200,000 to 700,000 barrels a day. The goal was to pump up prices by removing some unwanted barrels from the market. The OPEC news initially gave a boost to prices, with crude breaking above the key $50-a-barrel level. But at technical talks last week, OPEC officials failed to finalize a proposal scheduled to be submitted to OPEC's 14 member nations meeting in Vienna on Nov. 30. Instead, Iraq and Iran's insistence on exemptions emerged as a big sticking point, as those members refused to agree to cut their burgeoning output. Producers outside of the organization, including Russia, have also balked at joining the efforts. "Discussions meant to increase confidence in a deal come Nov. 30 have instead added skepticism," analysts at Morgan Stanley wrote in a report. "OPEC remains at an impasse." Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Crude oil prices; Petroleum production; Oil shale; Price increases
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 3, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835536197
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835536197?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Can Fracking Bans Succeed in Oil and Gas Country? All Eyes Are on Monterey; Campaigns against hydraulic fracturing rarely win in places where crude and natural gas are produced, prompting a pitched national battle over a Nov. 8 California ballot measure
Author: Harder, Amy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Nov 2016: n/a.
Abstract:
Monterey County for Energy Independence, which opposes it, has outspent backers roughly 30 to 1, according to election filings through Oct. 22, spending nearly $5.5 million; it is funded almost entirely by Chevron Corp. and Aera Energy LLC, a joint venture between Exxon Mobil Corp. and Royal Dutch Shell PLC.. Among the legally binding bans passed in Pennsylvania over the past few years, none are in areas where companies are producing in the Marcellus Shale natural-gas formation in any large quantity, according to a Wall Street Journal analysis of government data of active wells and a tally of bans compiled by anti-fracking group Food and Water Watch.
Full text: Corrections & Amplifications: Steve McIntyre manages roughly 12,000 acres of vineyard farms. An earlier version of this article incorrectly stated he owns the acreage. (Nov. 3, 2016) SALINAS, Calif.--The movement to ban fracking is winning victories across the U.S. Yet the campaign has largely failed to win where it matters most--in places oil and natural gas are produced. A Nov. 8 ballot measure will test that pattern in Monterey County, famed for its farms and scenic coastline. Two counties bordering Monterey, San Benito and Santa Cruz, have banned fracking, although neither has a sizable oil industry. Monterey's San Ardo oil field has been churning out crude for nearly 70 years, and the county has no ban. Measure Z, an initiative on Monterey County's ballot, seeks to ban fracking and new wells, and to restrict how oil companies use water byproducts. The measure is being closely watched by national groups on both sides. Its supporters have received donations and other help from national environmental groups. Monterey County for Energy Independence, which opposes it, has outspent backers roughly 30 to 1, according to election filings through Oct. 22, spending nearly $5.5 million; it is funded almost entirely by Chevron Corp. and Aera Energy LLC, a joint venture between Exxon Mobil Corp. and Royal Dutch Shell PLC.. The fight has reached an intense pitch in Monterey County, home to activists in both the environmental movement and oil industry. It divides along what locals call the "lettuce curtain." On one side are inland farm regions, with fields ranging from lettuce to wine grapes, where voters tend to be politically more conservative and to oppose Measure Z. On the other are residents living nearer the coast, often liberal-leaning politically, who tend to favor the ban. Public opinion is increasingly turning against hydraulic fracturing, in which water and sand laced with chemicals are injected underground to unlock oil and natural gas, along with other extraction techniques. A March Gallup poll found 51% of Americans opposed fracking, up 11 points from a survey a year earlier. Of hundreds of anti-fracking and similar measures across the country, almost all are where there is little or no oil or gas production. New York banned fracking in 2014 but doesn't have a sizable oil industry, though that move did head off any potential growth of the sector there. Vermont banned fracking in 2012 but has no commercial natural gas or oil resources. Where fossil fuels are produced in any significant quantity by any method, such measures have generally failed. In Colorado, activists couldn't gather enough signatures to get two anti-fracking measures on the ballot this year. Voters in Denton, Texas, passed a binding measure against fracking, but the state quickly passed a law banning local bans . Among the legally binding bans passed in Pennsylvania over the past few years, none are in areas where companies are producing in the Marcellus Shale natural-gas formation in any large quantity, according to a Wall Street Journal analysis of government data of active wells and a tally of bans compiled by anti-fracking group Food and Water Watch. Monterey County has a storied place on the American landscape, with Big Sur's cliff-side Highway 1, acres of green fields that inspired John Steinbeck and the 1967 Monterey Pop festival featuring the likes of Jimi Hendrix. It is also California's 4th-largest oil-producing county, although there are currently no fracking operations in the county. Chevron and Aera dominate production that totaled nearly 22,000 barrels a day in March. Measure Z would shut down Monterey's oil production, industry officials said, by barring not just fracking but also new oil or gas wells and by requiring companies to stop using wells and ponds to dispose of water produced from underground as a drilling byproduct. "Measure Z bans oil production in the county because it does not leave any way to manage the produced water," said Dallas Tubbs, a Chevron engineer, speaking at the San Ardo field. Aera referred inquiries to the opposition group it co-funds, whose spokeswoman, Karen Hanretty, said the measure if passed would likely be overturned in court. The Monterey debate centers on how oil companies handle water they pull up. Chevron recycles one-third of its water. That process, called reverse osmosis, yields a liquid called brine consisting of a high concentration of naturally occurring minerals that must be disposed. Measure Z's backers say drillers should be required to treat and recycle all of it rather than inject it back underground. They worry that water reinjected into the ground could contaminate the area's drinking water. "I'm not against fracking per se, I'm against contaminating the water," said Ted Walter, 57, co-owner of Passionfish, a restaurant in Pacific Grove along the coast, who has appeared in ads backing Measure Z and calls the San Ardo oil fields "ugly." Chevron's officials say they aren't sure it is technically possible to recycle all the water byproduct, but that in any case it is financially prohibitive. "We've been operating in this field for 70 years," Chevron's Mr. Tubbs said. "We monitor the groundwater monthly. The groundwater is as clean today as it was 70 years ago." Regulators haven't found contamination related to reinjection in Monterey--something both Ms. Hanretty of the industry-funded opposition group and Measure Z backers agree on. Steve McIntyre, who manages roughly 12,000 vineyard acres in the county, opposes Measure Z. A board member of the Big Sur Land Trust, he said he is a registered independent, supports renewable energy and is proud his vineyard has been certified "sustainable." He said he also supports the way the oil industry operates, emphasizes America's dependence on oil and believes the anti-fracking measure is a cover for a broad assault on fossil fuels. "Let's not be misleading here," said Mr. McIntyre, 59 years old. "I believe they are using fracking as a hot button to get under people's skin and get them excited." The opponents group has aired ads showing a handsome veteran and a chiseled rancher extolling local energy. Monterey's county auditor in a report projected potential lost jobs of 730 if the measure passes. Joe Gunter, mayor of Salinas, Steinbeck's hometown in the county, is among local officials opposing the measure. Supporters of Measure Z include Sen. Bernie Sanders, who spoke at a rally supporting it, as did Dolores Huerta, a famed farm-labor activist. Anti-fracking activists marched with a large puppet of a condor in the Labor Day parade. Measure Z proponent Andy Hsia-Coron, a 59-year-old retired teacher living near Monterey Bay, at a recent taco fundraiser laid out the arguments for the measure: climate change and clean water. "Oil is hindering the effort in terms of both moving toward renewable energy and safe environmental practices," he said. Of the water reinjection, he said, "eventually what they put down there will find its way to other parts of the county." Both sides have done internal polling, which they decline to share. Many on both sides expect the vote to be close. "If they win in Monterey, it sets a precedent," said Amy Myers Jaffe, executive director for energy and sustainability at the University of California, Davis. "It would show there's real political force behind this movement." Write to Amy Harder at amy.harder@wsj.com Credit: By Amy Harder
Subject: Natural gas; Referendums; Petroleum industry; Petroleum production; Hydraulic fracturing
Location: California Monterey County California
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Aera Energy LLC; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 3, 2016
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835669116
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835669116?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Optimistic on Oil Output Deal by End of November; OPEC says observers have been 'too quick to judge the organization'
Author: Williams, Selina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Nov 2016: n/a.
Abstract:
LONDON--After several days of falling oil prices, the Organization of the Petroleum Exporting Countries on Thursday expressed confidence that it would finalize an agreement to curb output later this month and dismissed critics who questioned its influence.
Full text: LONDON--After several days of falling oil prices, the Organization of the Petroleum Exporting Countries on Thursday expressed confidence that it would finalize an agreement to curb output later this month and dismissed critics who questioned its influence. The unusual statement from the 14-member OPEC comes as oil prices have declined almost 8% since last weekend, when a series of meetings at the cartel's headquarters ended in a deadlock. The group pledged at a September meeting in Algiers to cut production by as much as 2%, but left the details of which countries will trim and by how much until its next Nov. 30 gathering of oil ministers. "We remain deeply optimistic about the possibility that the Algiers agreement will be complemented by precise, decisive action among all producers," said the commentary section of the cartel's monthly magazine, "OPEC Bulletin." OPEC's statement came a day after the U.S. government said American oil held in storage last week had made the largest gains in over 30 years, suggesting the oversupply that far exceeds demand wouldn't disappear soon. Oil-industry traders and analysts have openly mocked OPEC's ability to follow through on its deal in Algiers. Brent, the international benchmark for oil sold internationally, closed as high as $53.14 in the weeks after the Algiers agreement, but it has fallen in recent days, declining to $46.27 in London trading on Thursday afternoon. Analysts have cut forecasts for oil prices, predicting they will rise in the next year but stay below $60 a year in 2017, according to a survey of 14 investment banks by The Wall Street Journal. Last summer, many of the same banks were predicting oil prices would rise to more than $70 a barrel this year--a level they now say won't be reached until 2018. In a note on Wednesday, Barclay's analysts said OPEC was partly to blame for the fall in prices because of its record production. "Neither OPEC's president nor its member countries have the ability to turn around the market sentiment ship around in the next three weeks," Barclays said. Scott Sheffield, the retiring chief executive of Pioneer Natural Resources Co., questioned whether OPEC's members will reach a deal on production and then stick to it. "I give OPEC a 40% chance of coming to an agreement," Mr. Sheffield said Wednesday while talking to analysts during his last quarterly earnings call as Pioneer's CEO. "If OPEC fails in this agreement we could easily see another year in the low $40s." OPEC warned "industry observers" against being "too quick to judge or criticize the organization or its members." "Over the years, we have seen how wildly inaccurate their predictions have been," it said. "What many of them have failed to recognize is that OPEC's great strength is its global reach and its diversity." The Algiers agreement to cut production has faltered over the position of some OPEC members. Four countries--Iran, Iraq, Nigeria and Libya--have requested exemptions from the cuts. Iran and Iraq's insistence proved the biggest sticking point in talks in Vienna over the weekend. Iran wants to keep pumping until it reaches 4.2 million barrels a day, while Iraq says it needs to keep producing to generate revenues for an intensifying war against Islamic State. The cartel has also struggled to get nations outside OPEC, such as Russia, the world's largest oil producer, to commit to specific curbs. Russia, which is currently producing at record highs, has said it won't even freeze output unless OPEC provides detailed figures of its own cuts. Other non-OPEC producers declined to commit to cuts over the weekend after speaking with the cartel in Vienna. OPEC reiterated Thursday that it needs non-OPEC producers to reduce production. "OPEC cannot be expected to go it alone," according to the statement. Erin Ailworth contributed to this article. Write to Selina Williams at selina.williams@wsj.com Credit: By Selina Williams
Subject: Cartels; Agreements; Crude oil prices
Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 3, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835705038
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835705038?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Out of Africa: The Continent's Best Modern Furniture; From upcycled oil drums to culture-clash chairs, the best of the continent's contemporary design
Author: Greenbaum, Augusta
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Nov 2016: n/a.
Abstract:
London artist Yinka Ilori, born of a Nigerian couple, fused his and his parents' cultures by covering a scavenged British cafe chair with colorful geometry inspired by ceremonial Nigerian textiles in a piece called Ijoko Alejo ("Guest Chair," part of a 2015 art installation).
Full text: Although the new book "Africa Rising" (Gestalten) asks that Africa be regarded as a continent of distinct countries, not one vague idea, the works of design it features share a characteristic: storytelling. "Gold" is the name that designer and manufacturer Hamed Ouattara, a Burkina Faso resident, pointedly gave his cabinet, made of recycled materials such as oil barrels. "The piece is about how one man's trash can become another man's treasure," he said. Of the case's art deco-flavored facade, inspired by traditional ancestral textiles, the Paris-educated designer added, "I would say art deco is African." London artist Yinka Ilori, born of a Nigerian couple, fused his and his parents' cultures by covering a scavenged British cafe chair with colorful geometry inspired by ceremonial Nigerian textiles in a piece called Ijoko Alejo ("Guest Chair," part of a 2015 art installation). "I always felt jealous that [my parents] had this bold heritage," said Mr. Ilori. The Sefefo Color Series Dining Table also speaks to cultural cross-pollination. For this table of panga panga wood, Botswana designer Peter Mabeo and his team applied traditional woodworking to Spaniard Patricia Urquiola's design, adding energetic yellow paint at her suggestion to the hand-fluted pedestal. "It is an expression of relationships between people from different parts of the world," said Mr. Mabeo. Credit: By Augusta Greenbaum
Subject: Design; Textiles; Art deco
Location: Africa Burkina Faso
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 3, 2016
Section: Real Estate
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835798634
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835798634?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Optimistic on Oil Output Deal by End of November; OPEC says observers have been 'too quick to judge the organization'
Author: Williams, Selina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
LONDON--After several days of falling oil prices, the Organization of the Petroleum Exporting Countries on Thursday expressed confidence that it would finalize an agreement to curb output later this month and dismissed critics who questioned its influence.
Full text: LONDON--After several days of falling oil prices, the Organization of the Petroleum Exporting Countries on Thursday expressed confidence that it would finalize an agreement to curb output later this month and dismissed critics who questioned its influence. The unusual statement from the 14-member OPEC comes as oil prices have declined almost 8% since last weekend, when a series of meetings at the cartel's headquarters ended in a deadlock. The group pledged at a September meeting in Algiers to cut production by as much as 2%, but left the details of which countries will trim and by how much until its next Nov. 30 gathering of oil ministers. "We remain deeply optimistic about the possibility that the Algiers agreement will be complemented by precise, decisive action among all producers," said the commentary section of the cartel's monthly magazine, "OPEC Bulletin." OPEC's statement came a day after the U.S. government said American oil held in storage last week had made the largest gains in over 30 years, suggesting the oversupply that far exceeds demand wouldn't disappear soon. Oil-industry traders and analysts have openly mocked OPEC's ability to follow through on its deal in Algiers. Brent, the international benchmark for oil sold internationally, closed as high as $53.14 in the weeks after the Algiers agreement, but it has fallen in recent days, declining to $46.27 in London trading on Thursday afternoon. Analysts have cut forecasts for oil prices, predicting they will rise in the next year but stay below $60 a year in 2017, according to a survey of 14 investment banks by The Wall Street Journal. Last summer, many of the same banks were predicting oil prices would rise to more than $70 a barrel this year--a level they now say won't be reached until 2018. In a note on Wednesday, Barclay's analysts said OPEC was partly to blame for the fall in prices because of its record production. "Neither OPEC's president nor its member countries have the ability to turn around the market sentiment ship around in the next three weeks," Barclays said. Scott Sheffield, the retiring chief executive of Pioneer Natural Resources Co., questioned whether OPEC's members will reach a deal on production and then stick to it. "I give OPEC a 40% chance of coming to an agreement," Mr. Sheffield said Wednesday while talking to analysts during his last quarterly earnings call as Pioneer's CEO. "If OPEC fails in this agreement we could easily see another year in the low $40s." OPEC warned "industry observers" against being "too quick to judge or criticize the organization or its members." "Over the years, we have seen how wildly inaccurate their predictions have been," it said. "What many of them have failed to recognize is that OPEC's great strength is its global reach and its diversity." The Algiers agreement to cut production has faltered over the position of some OPEC members. Four countries--Iran, Iraq, Nigeria and Libya--have requested exemptions from the cuts. Iran and Iraq's insistence proved the biggest sticking point in talks in Vienna over the weekend. Iran wants to keep pumping until it reaches 4.2 million barrels a day, while Iraq says it needs to keep producing to generate revenues for an intensifying war against Islamic State. The cartel has also struggled to get nations outside OPEC, such as Russia, the world's largest oil producer, to commit to specific curbs. Russia, which is currently producing at record highs, has said it won't even freeze output unless OPEC provides detailed figures of its own cuts. Other non-OPEC producers declined to commit to cuts over the weekend after speaking with the cartel in Vienna. OPEC reiterated Thursday that it needs non-OPEC producers to reduce production. "OPEC cannot be expected to go it alone," according to the statement. Erin Ailworth contributed to this article. Write to Selina Williams at selina.williams@wsj.com Related * Oil Falls to Fresh One-Month Low on Jump in Inventories Credit: By Selina Williams
Subject: Cartels; Agreements; Crude oil prices
Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835846350
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835846350?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Slightly Up; Skepticism Lingers Over OPEC Deal; January Brent crude rose $0.10 to $46.45 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
Global crude futures veered upward in early Asia trade Friday following the overnight decline, but market sentiment remains cautious as major oil producers have made little progress on the proposed production cut deal.
Full text: Global crude futures veered upward in early Asia trade Friday following the overnight decline, but market sentiment remains cautious as major oil producers have made little progress on the proposed production cut deal. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $44.76 a barrel at 0303 GMT, up $0.10 in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose $0.10 to $46.45 a barrel. "The slight price correction is a technical rebound caused by speculators engaging in some short-covering after such a drastic fall in oil," said Jonathan Chan, an energy analyst at Phillip Futures. Oil markets have been under a dark cloud for over two years due to a persistent overhang caused by producers who are pumping at top speed to secure their market shares. Lower oil prices have resulted in net losses for many oil and gas companies. Even large cash-rich producers such as Saudi Arabia have complained about the shortfall in oil revenue. To revive prices, members of the Organization of the Petroleum Exporting Countries in September reached a preliminary pact to cap the group's output to between 32.5 to 33 million barrels a day. The goal is to finalize and ratify the pact at the next OPEC meeting on November 30. Market watchers have warned that even if an accord is finalized, implementation of production quotas would be flimsy at best because cartel leaders lack the authority to penalize members who don't comply. OPEC members have a spotty record of producing beyond their limits and are not always forthcoming about their output levels. Several countries are already lobbying to be exempt from deal, arguing their production in recent years have been blunted by sanctions and militant attacks. The rising skepticism has dragged on oil prices which have fallen over 8% this week so far. OPEC released a statement Thursday to pump up sentiment stating that it remains deeply optimistic about the possibility that the Algiers agreement will be complemented by precise, decisive action among all producers. Another wild card is Russia which has been vague about its intent to join the production cut deal. Recent meetings between Russian oil officials and their OPEC counterparts have yielded no clear pledges. Russia's oil production touched a new post-Soviet high last month. Some analysts say for the sake of protecting the group's credibility, the cartel will deliver an accord by month-end, but the content would be largely "watered down", said BMI Research. "By watered down we mean either there will be a coordinated effort to 'freeze' production - other than the exempt Libya and Nigeria and Iran with a four million barrels a day cap," the firm said. Another scenario is that the production target could be raised above 33 million barrels a day, to a level where core Gulf producers will only need to make small cuts, it said. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 57 points to $1.4188 a gallon, while December diesel traded at $1.4596, 14 points higher. ICE gasoil for November changed hands at $424.50 a metric ton, up $2.00 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Cartels; Net losses; Futures; Petroleum production; Natural gas utilities
Location: Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835852350
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835852350?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Global Finance: OPEC Optimistic On Oil-Output Deal
Author: Williams, Selina
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Nov 2016: C.3.
Abstract:
The Organization of the Petroleum Exporting Countries expressed confidence on Thursday that it would complete an agreement to curb output later this month and dismissed critics who questioned its influence.
Full text: LONDON -- The Organization of the Petroleum Exporting Countries expressed confidence on Thursday that it would complete an agreement to curb output later this month and dismissed critics who questioned its influence. The unusual statement from the 14-member OPEC comes as oil prices have declined almost 8% since last weekend, when a series of meetings at the organization's headquarters ended in a deadlock. The group pledged at a September meeting in Algiers to cut production by as much as 2%, but left the details of which countries will trim and by how much until its Nov. 30 gathering of oil ministers. "We remain deeply optimistic about the possibility that the Algiers agreement will be complemented by precise, decisive action among all producers," said the commentary section of the group's monthly magazine, "OPEC Bulletin." OPEC's statement came a day after the U.S. government said U.S. oil held in storage last week rose the most in more than 30 years, suggesting the oversupply that far exceeds demand wouldn't disappear soon. Oil-industry traders and analysts have openly mocked OPEC's ability to follow through on its deal in Algiers. Brent crude, the international benchmark for oil sold internationally, closed as high as $53.14 in the weeks after the Algiers agreement, but it has fallen in recent days. It lost 51 cents, or 1.1%, on Thursday to $46.35 a barrel on ICE Futures Europe. U.S. crude futures fell 68 cents, or 1.5%, to $44.66 a barrel on the New York Mercantile Exchange. Analysts have cut forecasts for oil prices, predicting they will rise in the next year but stay below $60 a year in 2017, according to a survey of 14 investment banks by The Wall Street Journal. Last summer, many of the same banks were predicting oil prices would rise to more than $70 a barrel this year -- a level they now say won't be reached until 2018. In a note on Wednesday, Barclays analysts said OPEC was partly to blame for the fall in prices because of its record production. "Neither OPEC's president nor its member countries have the ability to turn around the market-sentiment ship in the next three weeks," Barclays said. Scott Sheffield, the retiring chief executive of Pioneer Natural Resources Co., questioned whether OPEC's members will reach a deal on production and then stick to it. "I give OPEC a 40% chance of coming to an agreement," Mr. Sheffield said Wednesday while talking to analysts during his last quarterly earnings call as Pioneer's CEO. "If OPEC fails in this agreement, we could easily see another year in the low $40s." OPEC warned "industry observers" against being "too quick to judge or criticize the organization or its members." Credit: By Selina Williams
Subject: Price increases; Crude oil; Petroleum production
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: C.3
Publication year: 2016
Publication date: Nov 4, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835901441
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835901441?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Slide on Doubts About OPEC; The U.S. market remains oversupplied
Author: Puko, Timothy; Baxter, Kevin; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
Oil prices dropped to a six-week low, extending a week-long slide amid more skepticism about production cuts from the Organization of the Petroleum Exporting Countries.
Full text: Oil prices dropped to a six-week low, extending a week-long slide amid more skepticism about production cuts from the Organization of the Petroleum Exporting Countries. Light, sweet crude for December delivery settled down 59 cents, or 1.3%, at $44.07 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 77 cents, or 1.7%, to $45.58 a barrel on ICE Futures Europe. Losses of about $5 a barrel each gave both benchmarks their worst weekly dollar declines since the first quarter of 2015. Both benchmarks lost about 10% for the week on reports of OPEC members squabbling about how a deal for production cuts would work, and on a record 14.4-million-barrel rise in U.S. stocks. Oil prices have now fallen for six straight sessions and nine of the last 10. News reports about disagreements between OPEC members continued Friday, stoking fears that ongoing talks about production cuts won't lead to a deal at the group's meeting in Vienna on Nov. 30. OPEC production increased so much in October that even the cut under discussion would merely keep output in line with Goldman Sachs Group's expectations from before the announcement, the bank said earlier this week. Prices are down more than 14% since hitting one-year highs in mid-October, fully canceling out a rally that started the day OPEC announced its deal. "We've seen a complete reversal in the OPEC outlook," said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. "It went from being an extremely optimistic outlook for the OPEC meeting...to one that is now very bearish." The dollar, which briefly rose Friday but then edged lower, also fueled early losses for oil. It edged higher after data showing steady jobs growth in the U.S. supported the argument for the Federal Reserve to raise rates in coming weeks. A higher dollar often forces oil and other dollar-traded commodities to fall because it makes them more expensive for traders based in other currencies. "The dollar absolutely spiked on that report," said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. "It has played a huge role in limiting crude's rally" in the last month. The often strong connection between the dollar and oil had gone dormant for several months, but appeared to pick up in mid-October when the dollar kept rising and a month-long rally in oil began to reverse. That has helped volatility to return to the oil market, which is now under indirect pressure from the presidential election and the Federal Reserve, and direct pressure from OPEC. The cartel is trying to convince market participants it is capable of implementing and enforcing quotas on its members. Recent comments from OPEC that it remains "deeply optimistic" it can deliver promised cuts hasn't had any impact on the market. "It's far from certain" the group can follow through on a deal, said Craig Bethune, senior portfolio manager at Manulife Asset Management in Toronto, which manages $334 billion. Some analysts say that for the sake of protecting the group's credibility, the cartel will deliver an accord by month-end, but the content would be "watered down," according to BMI Research. After shedding recent gains, oil prices aren't likely to stabilize, according to Germany's Commerzbank. In a note, analysts said market participants are likely to adopt a "wait and see" approach until OPEC meets on Nov. 30. OPEC's largest producer, Saudi Arabia, decided to raise prices for all of its crude grades to Asia on Thursday in a move that was read in some quarters as a peace offering signaling an end to the market defense strategy it has employed over the last two years. However, the global oil benchmarking agency S&P Platts said it was a strong Asian physical market that was behind the move, with booming Chinese refining margins a major driver. Gasoline lost 4.59 cents, or 3.2%, to $1.3786, its eighth loss in 10 sessions and lowest settlement since Sept. 23. It lost 7.63 cents or, 5.2%, for the week, its second-straight losing week. Diesel lost 2.79 cents, or 1.9%, to $1.4303 a gallon, its seventh loss in nine sessions and lowest settlement since Sept. 27. It lost 12.73 cents, or 8.2%, for the week, its biggest weekly loss by dollar value since December 2015. Write to Timothy Puko at tim.puko@wsj.com , Kevin Baxter at Kevin.Baxter@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Timothy Puko, Kevin Baxter and Jenny W. Hsu
Subject: Crude oil prices; Cartels
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835959999
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835959999?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Big Oil CEOs Pledge $1 Billion to Fund Low-Carbon Technology; Move responds to pressure on climate goals but environmentalists say it isn't enough
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
The announcement came on the same day that a climate treaty negotiated in Paris last year by more than 200 countries to cap emissions and curb global warming comes into force, potentially limiting the use of fossil fuels such as oil and gas.
Full text: LONDON--Ten of the world's biggest oil companies plan to invest an average of $100 million annually over the next 10 years in low-carbon technologies, the companies said Friday. The Oil and Gas Climate Initiative, which includes state-owned Saudi Arabian Oil Co., Royal Dutch Shell PLC and BP PLC, said its investments will initially focus on carbon capture and storage technology and efforts to reduce methane emissions from the oil-and-gas industry. Those efforts could significantly improve the prospects for the sector in a lower-emission world. The pledged funding is the latest sign of the oil industry's efforts to respond to pressure from governments, activists and increasingly investors. The announcement came on the same day that a climate treaty negotiated in Paris last year by more than 200 countries to cap emissions and curb global warming comes into force, potentially limiting the use of fossil fuels such as oil and gas. Environmental groups said the oil companies' pledge of $1 billion over a decade wasn't close to enough and represents a tiny fraction of the group's annual spending on finding and producing fossil fuels. It is a pledge of $10 million a year for each company, said Jeremy Leggett, chairman of the Carbon Tracker Initiative. "Given that the world has to mobilize trillions of dollars a year for clean energy within that time frame, if the Paris goal is to be realized, this is quite simply nowhere near good enough," he said. The consortium said the joint fund is just the beginning of its efforts and comes on top of investments each company is making individually in alternative energy and lower-emission technology. "We're doing a lot. We're doing billions when you combine all the other activities we've got, and this is just the start," BP Chief Executive Bob Dudley said. The companies are increasingly looking toward a future in which demand for their core products--oil and gas--could begin to wane. Total SA owns one of the largest solar companies in the world and earlier this year bought French battery maker Saft Group SA. Shell has created a "new energies" division to invest in renewables and low carbon power, and even Saudi Arabia is looking into developing solar power within the Kingdom. Shell Chief Financial Officer Simon Henry caused a stir earlier this week when he said the company believes demand for oil could stop growing within the next two decades and as soon as five years. Known as "peak demand," the arrival of the day when consumer demand for oil begins falling has become a central worry for the fossil-fuel industry. "We've long been of the opinion that demand will peak before supply," Mr. Henry told analysts Tuesday. "And that peak may be somewhere between five and 15 years hence, and it will driven by efficiency and substitution." The Oil and Gas Climate Initiative was created in 2014 with United Nations backing to find ways the industry can support efforts to tackle climate change while continuing to produce its reserves. Its members include giant state companies and Europe's biggest oil producers, but not the biggest American companies, such as Exxon Mobil Corp. and Chevron Corp. Together they pump about a fifth of the world's oil and gas output. Each company has its own strategy, but technologies such as carbon capture and storage--which grabs carbon dioxide produced from industrial processes and funnels it back underground--and efforts to reduce methane emissions from gas production are crucial to extending the life of some of the industry's assets. That is why the oil companies are focusing their collective efforts in these areas rather than alternative energy sources such as renewable technology. "Quite often the pushback that we get is, 'Why don't you put a lot of money behind these types of technologies?' and I think really the competencies, the resources, the effort that we can bring to the party are better focused on the other 82% of the energy system," Shell CEO Ben van Beurden said. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Fossil fuels; Emissions; Carbon sequestration; Climate change
People: Henry, Simon Dudley, Bob
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Total SA; NAICS: 447190, 324110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1835964048
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835964048?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Canada's Trade Deficit Swells in September; Imports surged on expenditures for Hebron offshore oil project
Author: Kim Mackrael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
The September trade data comes several days after Statistics Canada said the country's gross domestic product rose 0.2% in August from the previous month, matching economists' expectations on strong growth in the mining, quarrying and oil-and-gas sector.
Full text: OTTAWA--Canada's trade deficit widened to a record high in September as imports surged on the purchase of equipment for an offshore oil project on the country's east coast. Canada posted a trade deficit in September of 4.08 billion Canadian dollars ($3.05 billion), Statistics Canada said Friday. That was significantly larger than the C$1.7 billion deficit economists expected, according to Royal Bank of Canada. The previous month's trade data were revised to show a deficit of C$1.99 billion, slightly larger than the previous C$1.94 billion estimate. Canadian imports surged 4.7% in September to C$47.63 billion on a sharp increase in the industrial machinery, equipment and parts sector. Statistics Canada attributed the gain to a large import of a module from South Korea, which it said was destined for the Hebron offshore oil project in the east coast province of Newfoundland and Labrador. Import volumes were up 2.3% in the month, the data agency said. Meanwhile, exports edged up 0.1% to reach C$43.55 billion in September, marking the fourth straight monthly gain. On a volume basis, exports were down 0.8% from the previous month. Higher exports of aircraft and other transportation equipment and parts were offset, in part, by lower exports of metal and non-metallic mineral products, Statistics Canada said. Excluding energy products, exports were down 0.2% in September. The Bank of Canada warned recently that exports have "persistently lagged" behind its forecasts. Policy makers hoped a weaker Canadian dollar would boost foreign demand, but export data so far this year has disappointed. A lower profile for exports, which the central bank has now incorporated into its growth forecast, could trim Canada's real gross domestic product by about 0.6% by the end of 2018, Governor Stephen Poloz said last month. The September trade data comes several days after Statistics Canada said the country's gross domestic product rose 0.2% in August from the previous month, matching economists' expectations on strong growth in the mining, quarrying and oil-and-gas sector. Write to Kim Mackrael at kim.mackrael@wsj.com Credit: By Kim Mackrael
Subject: Canadian dollar; Trade deficit; International trade
Location: Canada South Korea
People: Poloz, Stephen
Company / organization: Name: Statistics Canada; NAICS: 926110; Name: Royal Bank of Canada; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Documenttype: News
ProQuest document ID: 1835994291
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1835994291?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Former Saudi Oil Minister Highlights Tough Road Ahead for OPEC; Ali al-Naimi reveals more about his failure to forge agreement on production cuts
Author: Williams, Selina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
Write to Selina Williams at selina.williams@wsj.com * OPEC Optimistic on Oil Output Deal by End of November (Nov. 3) * OPEC Deadlocks Over Iran, Iraq Oil Production (Oct. 29) * OPEC Agrees on Need to Cut Oil Output (Sept. 28) * New Saudi Energy Minister Khalid al-Falih an Insider Signifying Policy Continuity (May 7) * Saudi Arabia Dismisses Its Powerful Oil Minister Ali al-Naimi (May, 7) * OPEC Leaves Production Target Unchanged (Nov.\n
Full text: LONDON--Former Saudi Oil Minister Ali al-Naimi broke his silence six months after his abrupt departure from his job, revealing more about his failure to forge an agreement to cut output at a 2014 OPEC meeting. Mr. Naimi's comments highlighted how difficult it will be for the Organization of the Petroleum Exporting Countries to finalize a production-cut deal later this month . The cartel agreed in September to pull back output by as much as 2% but left the details unspecified for implementing those changes. Mr. Naimi, once considered a master of OPEC's complex politics, said none of the cartel's members were willing to cut production back in November 2014, when the group gathered as oil prices plunged on concerns about an oversupply of oil. He said he asked all 11 oil ministers from OPEC countries individually about cutting production. "All the answers were no. The expectation was: 'Traditionally you--Saudi Arabia--cut.' [I said] we won't do that anymore, that's it," he told a packed auditorium of former OPEC grandees, delegates and analysts at the Chatham House think tank. After the meeting, the oil price collapsed further, touching historic lows of below $27 a barrel by January of 2016. Oil prices have yet to return to $100 a barrel and are barely even trading at half that now. The price rout has sent shock waves throughout the oil industry, crushing profits at the world's biggest oil companies, which have been forced to slash billions of dollars of spending and lay off hundreds of thousands of employees. Mr. Naimi said he doesn't regret his change in tactics in 2014, saying, "I think that still is the right decision." Mr. Naimi, who is promoting a new memoir, didn't address his departure from the oil ministry in May after over 20 years as its leader. The change ushered in a new minister , Khalid al-Falih, who has taken a softer tone with OPEC and helped forge the production-cut deal in September. The cartel is still struggling to hammer out a plan. Iran and Iraq have demanded exemptions from the cuts, deadlocking preparatory talks in Vienna last weekend. Iran wants to keep pumping until it reaches 4.2 million barrels a day, while Iraq says it needs to keep producing to generate revenues for an intensifying war against Islamic State. The cartel has also struggled to get nations outside OPEC, such as Russia, the world's largest oil producer, to commit to specific curbs. Russia--currently producing at record highs--has said it won't even hold output steady unless OPEC provides detailed figures of its own cuts. "I don't know what's going to happen now. I hope they [OPEC] agree," Mr. Naimi said. "The idea that OPEC can cut production to influence the market without all the producers working together is futile." Write to Selina Williams at selina.williams@wsj.com * OPEC Optimistic on Oil Output Deal by End of November (Nov. 3) * OPEC Deadlocks Over Iran, Iraq Oil Production (Oct. 29) * OPEC Agrees on Need to Cut Oil Output (Sept. 28) * New Saudi Energy Minister Khalid al-Falih an Insider Signifying Policy Continuity (May 7) * Saudi Arabia Dismisses Its Powerful Oil Minister Ali al-Naimi (May, 7) * OPEC Leaves Production Target Unchanged (Nov. 27, 2014) Credit: By Selina Williams
Subject: Cartels; Crude oil prices; Petroleum production
Location: Iraq Iran Saudi Arabia
People: Naimi, Ali I
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836005623
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836005623?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Out of Africa: The Continent's Best Modern Furniture; From upcycled oil drums to culture-clash chairs, the best of the continent's contemporary design
Author: Greenbaum, Augusta
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
London artist Yinka Ilori, born of a Nigerian couple, fused his and his parents' cultures by covering a scavenged British cafe chair with colorful geometry inspired by ceremonial Nigerian textiles in a piece called Ijoko Alejo ("Guest Chair," part of a 2015 art installation).
Full text: Although the new book "Africa Rising" (Gestalten) asks that Africa be regarded as a continent of distinct countries, not one vague idea, the works of design it features share a characteristic: storytelling. "Gold" is the name that designer and manufacturer Hamed Ouattara, a Burkina Faso resident, pointedly gave his cabinet, made of recycled materials such as oil barrels. "The piece is about how one man's trash can become another man's treasure," he said. Of the case's art deco-flavored facade, inspired by traditional ancestral textiles, the Paris-educated designer added, "I would say art deco is African." London artist Yinka Ilori, born of a Nigerian couple, fused his and his parents' cultures by covering a scavenged British cafe chair with colorful geometry inspired by ceremonial Nigerian textiles in a piece called Ijoko Alejo ("Guest Chair," part of a 2015 art installation). "I always felt jealous that [my parents] had this bold heritage," said Mr. Ilori. The Sefefo Color Series Dining Table also speaks to cultural cross-pollination. For this table of panga panga wood, Botswana designer Peter Mabeo and his team applied traditional woodworking to Spaniard Patricia Urquiola's design, adding energetic yellow paint at her suggestion to the hand-fluted pedestal. "It is an expression of relationships between people from different parts of the world," said Mr. Mabeo. Credit: By Augusta Greenbaum
Subject: Design; Textiles; Art deco
Location: Africa Burkina Faso
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Real Estate
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836010930
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836010930?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Rises by Nine -- Baker Hughes; The total has generally been rising since the beginning of summer
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by nine in the past week to 450, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector.
Full text: The number of rigs drilling for oil in the U.S. rose by nine in the past week to 450, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count fell sharply. The oil-rig count has generally been rising since the beginning of summer. The nation's gas-rig count rose by three to 117 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell by one from last week to 21, which is 11 fewer than a year ago. On Friday, crude-oil prices fell as investor skepticism grew stronger about production cuts from the Organization of the Petroleum Exporting Countries. OPEC has been trying to formulate a deal to cut production , but reports of record output during October have stoked concern. Oil prices were 0.7% lower at $44 a barrel in recent trading Friday. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836048577
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836048577?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
InterOil Seeks New Path to Exxon Deal After Yukon Approval Overturned; Phil Mulacek, InterOil shareholder, had objected to transaction
Author: Steele, Anne
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
InterOil Corp. on Friday said a Yukon appeals court overturned approval for its tie-up with Exxon Mobil Corp. but said it will find a new path to closing the deal.
Full text: InterOil Corp. on Friday said a Yukon appeals court overturned approval for its tie-up with Exxon Mobil Corp. but said it will find a new path to closing the deal. Shares of InterOil dropped 5.8% to $45.75 in Friday trading. Exxon shares slipped 0.1% to $83.57. The Court of Appeal of Yukon upheld the appeal lodged by Phil Mulacek and overturned the Supreme Court of Yukon's approval of the pending transaction with Exxon on Oct. 7. InterOil said it believes the current agreement "represents compelling value for all InterOil shareholders" and InterOil and ExxonMobil are considering the ruling and determining a different path. Exxon Mobil won a bidding war to buy U.S.-listed InterOil for an estimated $2.5 billion after Oil Search Ltd. dropped out of the process in late July. The boards of Exxon and InterOil unanimously approved terms of the $45-a-share agreement that has the potential for an additional cash payment. At the time, the deal was expected to close in September, subject to shareholder and regulatory review. Write to Anne Steele at Anne.Steele@wsj.com Credit: By Anne Steele
Subject: Court decisions
Location: United States--US
Company / organization: Name: Oil Search Ltd; NAICS: 213111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836084378
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836084378?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Chief Outlines Progress Toward Oil-Output-Cut Deal; Secretary-general Mohammad Barkindo says member nations reach consensus on using production figures from outside agencies
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.
Abstract:
Members of the Organization of the Petroleum Exporting Countries have agreed to use a unified set of independent production data for output cuts, lifting a key hurdle toward the implementation of a landmark output agreement, the group's chief said Friday in an interview with The Wall Street Journal.
Full text: Members of the Organization of the Petroleum Exporting Countries have agreed to use a unified set of independent production data for output cuts, lifting a key hurdle toward the implementation of a landmark output agreement, the group's chief said Friday in an interview with The Wall Street Journal. The development came at a meeting of OPEC technical experts last weekend and is an important step for the group toward completing a production-cut deal on Nov. 30, when the 14-nation cartel meets in Vienna, Secretary-General Mohammed Barkindo said. OPEC, which controls about 40% of global oil production, agreed in September to cut up to 2% of its output to curb a global oversupply of petroleum and raise crude prices. Iraq and other OPEC members had balked at using production figures that OPEC calls "secondary sources"--information compiled by the International Energy Agency, the U.S. Energy Information Administration, Argus Media and other independent organizations. These groups come up with oil-production numbers for OPEC members and other nations by gathering information from shippers, oil traders, government export data and other sources. Iraq and others had wanted their own official government production figures to be used instead. They have said the independent sources' production numbers are often incorrect. Friday, though, the 14 members of OPEC have "agreed to use [secondary sources] in monitoring compliance," Mr. Barkindo said. He left some wiggle room for the group's members by adding that there was "more or less" an agreement. Mr. Barkindo also said Iraq had agreed to work with secondary sources to get its numbers revised. "They have already started engaging with the [secondary sources]," he said. "It can't resolved at once and they understand that." OPEC still has a long way to go before completing the deal. Iran, Libya and Nigeria also want exemptions from cutting production altogether, though Iraq and Iran could go along with a commitment to hold their production steady depending on the level. The EIA and Argus didn't respond immediately to requests for comment and the IEA couldn't immediately comment. The Iraqi oil ministry didn't respond to a request for comment. Mr. Barkindo also said Saudi Arabia, the group's largest producer, had signaled it would keep up with its pledge to be part of the Algiers deal. "Both the Saudis and [other member countries] worked very [hard] to build the consensus that produced the Algiers Accord," Mr. Barkindo said. The kingdom remains "committed to its implementation in a collective, fair, equitable and transparent manner," he said. Selina Williams contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com Related * Former Saudi Oil Minister Highlights Tough Road Ahead for OPEC * OPEC Optimistic on Oil Output Deal by End of November (Nov. 3) * OPEC Fails to Finalize Proposal to Implement Production Cut (Oct. 29) Credit: By Benoit Faucon
Subject: Cartels; Quotas; Petroleum production
Location: Iraq
Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 4, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836091954
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836091954?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OFF DUTY --- Design & Decorating: African Scene --- From upcycled oil drums to culture-clash chairs, the best of the continent's modern design
Author: Greenbaum, Augusta
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Nov 2016: D.11.
Abstract:
London artist Yinka Ilori, born of a Nigerian couple, fused his and his parents' cultures by covering a scavenged British cafe chair with colorful geometry inspired by ceremonial Nigerian textiles in a piece called Ijoko Alejo ("Guest Chair," part of a 2015 art installation).
Full text: Although the new book "Africa Rising" (Gestalten) asks that Africa be regarded as a continent of distinct countries, not one vague idea, the works of design it features share a characteristic: storytelling. "Gold" is the name that designer and manufacturer Hamed Ouattara, a Burkina Faso resident, pointedly gave his cabinet, made of recycled materials such as oil barrels. "The piece is about how one man's trash can become another man's treasure," he said. Of the case's art deco-flavored facade, inspired by traditional ancestral textiles, the Paris-educated designer added, "I would say art deco is African." London artist Yinka Ilori, born of a Nigerian couple, fused his and his parents' cultures by covering a scavenged British cafe chair with colorful geometry inspired by ceremonial Nigerian textiles in a piece called Ijoko Alejo ("Guest Chair," part of a 2015 art installation). "I always felt jealous that [my parents] had this bold heritage," said Mr. Ilori. The Sefefo Color Series Dining Table also speaks to cultural cross-pollination. For this table of panga panga wood, Botswana designer Peter Mabeo and his team applied traditional woodworking to Spaniard Patricia Urquiola's design, adding energetic yellow paint at her suggestion to the hand-fluted pedestal. "It is an expression of relationships between people from different parts of the world," said Mr. Mabeo. Credit: By Augusta Greenbaum
Subject: Design; Textiles; Art deco
Location: Africa Burkina Faso
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: D.11
Publication year: 2016
Publication date: Nov 5, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836127539
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836127539?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Business News: Oil Firms to Fund Low-Carbon Tech
Author: Kent, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Nov 2016: B.4.
Abstract:
The announcement came on the same day that a climate treaty negotiated in Paris last year by more than 200 countries to cap emissions and curb global warming came into force, potentially limiting the use of fossil fuels such as oil and gas.
Full text: LONDON -- Ten of the world's biggest oil companies plan to invest an average of $100 million annually over the next 10 years in low-carbon technologies, the companies said Friday. The Oil and Gas Climate Initiative, which includes state-owned Saudi Arabian Oil Co., Royal Dutch Shell PLC and BP PLC, said its investments will initially focus on carbon capture and storage technology and efforts to reduce methane emissions from the oil-and-gas industry. Those efforts could significantly improve the prospects for the sector in a lower-emission world. The pledged funding is the latest sign of the oil industry's efforts to respond to pressure from governments, activists and, increasingly, investors. The announcement came on the same day that a climate treaty negotiated in Paris last year by more than 200 countries to cap emissions and curb global warming came into force, potentially limiting the use of fossil fuels such as oil and gas. Environmental groups said the oil companies' pledge of $1 billion over a decade wasn't enough and represented a tiny fraction of the group's annual spending on finding and producing fossil fuels. It is a pledge of $10 million a year for each company, said Jeremy Leggett, chairman of the Carbon Tracker Initiative. "Given that the world has to mobilize trillions of dollars a year for clean energy within that time frame, if the Paris goal is to be realized, this is quite simply nowhere near good enough," he said. The consortium said the joint fund is just the beginning of its efforts and comes on top of investments each company is making individually in alternative energy and lower-emission technology. "We're doing a lot. We're doing billions when you combine all the other activities we've got, and this is just the start," BP Chief Executive Bob Dudley said. The companies are increasingly looking toward a future in which demand for their core products -- oil and gas -- could begin to wane. Total SA owns one of the largest solar companies in the world and earlier this year bought French battery maker Saft Group SA. Shell has created a "new energies" division to invest in renewables and low carbon power, and even Saudi Arabia is looking into developing solar power within the kingdom. Shell Chief Financial Officer Simon Henry caused a stir earlier in the week when he said the company believes demand for oil could stop growing within the next two decades and as soon as five years. Known as "peak demand," the arrival of the day when consumer demand for oil stops growing has become a central worry for the fossil-fuel industry. "We've long been of the opinion that demand will peak before supply," Mr. Henry told analysts Tuesday. "And that peak may be somewhere between five and 15 years hence, and it will driven by efficiency and substitution." The Oil and Gas Climate Initiative was created in 2014 with United Nations backing to find ways the industry can support efforts to tackle climate change while continuing to produce its reserves. Credit: By Sarah Kent
Subject: Fossil fuels; Emissions; Climate change; Carbon; Energy industry
People: Henry, Simon Dudley, Bob
Company / organization: Name: Total SA; NAICS: 447190, 324110, 211111; Name: Saudi Arabian Oil Co; NAICS: 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.4
Publication year: 2016
Publication date: Nov 5, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836128423
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836128423?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rebound; Focus on U.S. Elections; January Brent crude rose $0.40 to $45.98 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Nov 2016: n/a.
Abstract:
Crude futures advanced in early Asia trade Monday on a technical rebound after falling to a six-week low overnight, as investors anxiously await the outcome of the U.S. presidential elections this week.
Full text: Crude futures advanced in early Asia trade Monday on a technical rebound after falling to a six-week low overnight, as investors anxiously await the outcome of the U.S. presidential elections this week. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $44.54 a barrel at 0214 GMT, up $0.47 in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose $0.40 to $45.98 a barrel. U.S. voters will on Tuesday decide between former Secretary of State Hillary Clinton and businessman Donald Trump as their next president. Some analysts believe Mrs. Clinton, who has shown support for clean energy, may remove billions of dollars worth of subsidies for oil and gas companies, making it less lucrative for them to keep pumping. The move could eliminate some of the overhang that has kept oil prices suppressed for more than two years. "Clinton victory on Tuesday could help risk assets such as oil rebound sharply," said Gordon Kwan, head of oil and gas research at Nomura. Other market watchers have said a Trump presidency could see a increase in U.S. oil supplies as he favours the U.S. being more energy independent. In a latest twist, the Federal Bureau of Investigation Sunday said a review of new evidence gave it no reason to reverse its earlier recommendation that Hillary Clinton not face charges related to her email practices while secretary of state. "The fact that the FBI is not going after Clinton is firming up the direction of the race," said Grace Liu, the head of research at Guotai Junan International, adding that the latest development should support the global equity and commodities markets. Societe Generale said in a note that global prices would not see any sharp swings no matter who clinches the victory on Tuesday, given the oil markets is still grappling with a surplus. The major event for most oil investors is whether producers both inside and outside of the Organization of the Petroleum Exporting Countries would be able to reach a production agreement later this month. OPEC members made some progress towards the landmark production deal over the weekend by agreeing to use a unified set of independent production data for output cuts. The agreement removes a major sticking point among members who have argued their production levels were often misrepresented by the OPEC data which put them at an unfair baseline. "Eventually, if a deal isn't agreed on 30 November, the potential that OPEC exports could gain further is a risk for the markets," said Barclays in a note, adding that individual country details still remain "challenging to agree upon." Apart from the U.S. elections, oil investors will also be watching for the U.S. weekly crude inventory data on Wednesday and the U.S. oil-rig count on Friday. In the latest week ended November 4, the number of active oil rigs in the U.S. rose by nine to a total of 450, according to industry group Baker Hughes. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 66 points to $1.3852 a gallon, while December diesel traded at $1.4403, 100 points higher. ICE gasoil for November changed hands at $419.00 a metric ton, up $1.25 from Friday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Futures; Natural gas utilities; Price increases; Presidential elections; Cartels
Location: United States--US Asia
People: Trump, Donald J
Company / organization: Name: Societe Generale; NAICS: 522110, 522120, 523110, 523120; Name: ICE Futures; NAICS: 523210; Name: Guotai Junan International; NAICS: 523120; Name: Federal Bureau of Investigation--FBI; NAICS: 922120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 7, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836488585
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836488585?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rise on Hopes of Output Accord; Expectations Hillary Clinton can secure the U.S. presidency also supports prices
Author: Alison Sider Kevin Baxter; Jenny W. Hsu; Alison Sider Kevin Baxter; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Nov 2016: n/a.
Abstract:
Oil prices were up along with the broader market Monday, after the FBI said it had not found new evidence to warrant charges against presidential candidate Hillary Clinton, and amid renewed hope that the world's major oil producers will come to an agreement regarding production cuts.
Full text: Oil prices were up along with the broader market Monday, after the FBI said it had not found new evidence to warrant charges against presidential candidate Hillary Clinton, and amid renewed hope that the world's major oil producers will come to an agreement regarding production cuts. U.S. crude futures rose 82 cents, or 1.86%, to $44.89 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 57 cents, or 1.25%, to $46.15 a barrel. Analysts said oil was also benefiting from increased appetite for risky assets amid growing confidence that Hillary Clinton could prevail over Donald Trump in Tuesday's presidential election. Equity markets have also rallied as investors interpreted the FBI's announcement as favorable to Mrs. Clinton's chances and removing a key element of uncertainty. "The stock market likes it, and the oil market likes it as well," said Phil Flynn, senior market analyst at The Price Futures Group. But strength in the U.S. dollar limited oil's rise. The WSJ Dollar Index, which measures the dollar against other currencies, rose 0.53% Monday. A stronger dollar can make oil, which is traded in dollars, more expensive for buyers using foreign currencies. Also bolstering oil markets Monday, the Organization of the Petroleum Exporting Countries reaffirmed its commitment to cutting output. OPEC Secretary-General Mohammed Barkindo said Monday that the cartel remains committed to the tentative accord the group reached in Algiers in September, and that Russia remains on board with the plan to limit output. The statements followed reports of disagreements between OPEC members that stoked fears that the continuing talks about production cuts won't lead to a deal at the group's meeting in Vienna on Nov. 30. Both crude benchmarks lost about 10% last week on growing skepticism about a deal and a record 14.4-million-barrel rise in U.S. oil stocks. "Now the whispers sound like there is going to be a deal," said Chip Hodge, senior managing director at John Hancock Financial Services. "There's a lot of talk, and until we actually see an agreement, speculation moves things up or down." Analysts said the market may have been too hasty to write off the prospects for a deal. "OPEC often reaches agreements in a fairly noisy way and, like many organizations, it rarely reaches a definitive deal before a deadline," Standard Chartered analyst Paul Horsnell wrote in a client note. Gasoline prices fell to their lowest price since late September, after the Colonial Pipeline, a major fuel conduit to the East Coast, restarted Sunday, less than a week after a fatal explosion and fire. Many analysts had initially expected the outage to last longer and gasoline futures surged following the incident, but reversed those gains throughout last week. Gasoline futures settled down 0.76 cents, or 0.55%, to $1.371 a gallon. Diesel futures rose 1.03 cents, or 0.27%, to $1.4406 a gallon. Summer Said and Ahmed Al Omran contributed to this article. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Kevin Baxter and Jenny W. Hsu
Subject: Gasoline prices; Price increases
Location: United States--US
People: Trump, Donald J Clinton, Hillary
Company / organization: Name: Federal Bureau of Investigation--FBI; NAICS: 922120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 7, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836600021
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836600021?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Dow Jumps 371 Points After FBI Says It Won't Charge Clinton; S&P 500 snaps nine-day losing streak; oil and dollar rise, while havens yen, gold fall
Author: Kuriloff, Aaron; Gold, Riva
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract: None available.
Full text: * S&P 500 up 2.2% after nine straight sessions of losses * Gold falls, 10-year Treasury yield rises above 1.8% as investors sell havens * CBOE Volatility Index down after longest-ever stretch of gains Investors rushed back into U.S. stocks, sending the S&P 500 to its biggest gain since March. It was the latest sign of heightened volatility heading into the U.S. presidential election, with Monday's rally ending the S&P 500's nine-day skid --its longest losing streak in almost 36 years. While few investors and analysts expect swings to vanish after the votes are counted, several said it was a moment of relief in a contentious election season, and that a healthier economy and improving corporate earnings would likely support stocks in the longer term. The Dow Jones Industrial Average soared 371.32 points to its highest close since Oct. 10. Oil and the dollar jumped, while investors sold havens including gold and the yen after the Federal Bureau of Investigation said no new evidence was found to warrant charges against Democratic candidate Hillary Clinton. Several investors and analysts said the announcement improved Mrs. Clinton's chances against Republican Donald Trump and removed an element of uncertainty in the event that she was elected. The CBOE Volatility Index, which is based on the price of options that investors tend to buy when they are fearful of stock-market declines, fell 17% Monday. The "fear gauge" rose for the previous nine days in its longest stretch of gains on record as polls tightened. "Regardless of how you feel about either of the candidates, there's no doubt that a Clinton victory would involve less uncertainty than a Trump victory," said David Kelly, chief global strategist at J.P. Morgan Asset Management. "Markets hate uncertainty, so if it looks more likely that Clinton will win, then I think that's what we're seeing in terms of the rally." The Dow Jones Industrial Average gained 2.1% to 18259.60. The S&P 500 climbed 46.34 points, or 2.2%, to 2131.52--its highest close since Oct. 27, the day before the FBI said it was reviewing new emails related to its investigation of Mrs. Clinton's private server. The Nasdaq Composite added 119.80 points, or 2.4%, to 5166.17. It was the biggest one-day percentage gain for all three indexes since March 1. Investors sold havens. The dollar rose 1.3% against Japan's yen to ¥104.47, gold for November delivery fell 1.9% to $1,278.30 an ounce, and the yield on the 10-year Treasury note, which moves inversely to the price, rose to 1.826% from 1.783% Friday. Some investors said that a win by Mrs. Clinton could leave markets relatively calm and the Federal Reserve on track to raise interest rates in December. The WSJ Dollar Index, which measures the dollar against a basket of 16 other currencies, rose 0.5%, snapping its six-day losing streak, its longest since early March. However, several analysts cautioned that investors shouldn't grow too confident, recalling how Britain's June referendum on European Union membership caught many off guard . The S&P 500 rose 1.3% on June 23 , before the Brexit results came in. The index then fell more than 5% over the next two sessions after the U.K. voted to leave the EU. "The Brexit vote has been a very bad experience for a lot of people in the markets, and everybody has this in mind," said Bastien Drut, strategist at Amundi Asset Management. "The week before Brexit, the vote was very tight in opinion polls, and everyone wants to avoid negative surprises like we had for the U.K." The S&P 500 declined 0.9% on average the day after a presidential election in data going back to 1928, according to WSJ Market Data Group. The Dow industrials' gain on Monday was its best performance on the day before a presidential election since 1932. In one sign of caution, Monday's rise in equities spurred investors to hedge with options. Options volumes on the most-active exchange-traded funds that track the S&P 500, Nasdaq-100 and emerging-market stocks were higher than their one-month averages, data from Trade Alert showed. The cost of puts on the ETFs were at highs versus the cost of calls, the data show. Puts give traders the right to sell shares at a certain price, while calls given them the right to buy. Meanwhile, the cost of puts versus calls on the SPDR Gold Trust, an ETF that tracks physical gold, was near the lowest in the past year, signaling investors were bullish on the precious metal, according to Trade Alert data. A recent fall in oil prices also has kept investors on edge. U.S. crude rose 1.9% to $44.89 a barrel Monday as riskier investments rebounded broadly, but prices are down 13% from a recent high of $51.60 reached on Oct. 19. The S&P 500's losing streak surprised some analysts and investors, who said the outlook for U.S. stocks is solid. Corporate earnings are improving, and the U.S. economy has showed fresh signs of strength. The Dow Jones Transportation Average, often seen as a bellwether because it includes companies that move the goods and raw materials powering the U.S. economy, closed at its highest level of 2016. On Friday, the October U.S. jobs report showed wage growth accelerated to its strongest pace since the recession. Gross domestic product advanced at a 2.9% annual inflation-adjusted rate in the third quarter, the strongest quarterly reading in two years, the Commerce Department said late last month. And with about 86% of companies in the S&P 500 having reported, earnings are on track to grow 2.7% in the third quarter from the year-earlier period, according to FactSet, after five consecutive quarters of contraction. "By Thursday or Friday of this week, finally the wretched election will be over and people will be focused on the economy and finding a very different economic picture than the one they stopped paying attention to over the summer," said Mr. Kelly. Gunjan Banerji contributed to this article. Write to Aaron Kuriloff at aaron.kuriloff@wsj.com and Riva Gold at riva.gold@wsj.com Credit: By Aaron Kuriloff and Riva Gold
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836802757
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836802757?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices in Narrow Range Ahead of U.S. Presidential Vote; January Brent crude rose $0.02 to $46.17 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract:
"The market has largely priced in a Clinton victory so if she wins, we would see marginal effects on oil prices," said Vyanne Lai, an analyst at National Australia Bank, adding most market participants are banking on Mrs. Clinton to embrace an open-trade policy that could help improve the global flow of oil and gas trades.
Full text: Oil prices moved in a narrow range in early Asia trade Tuesday as investors adopted a wait-and-see approach before U.S. voters head to the polls to elect a new president. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $44.78 a barrel at 0253 GMT, down $0.11 in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose $0.02 to $46.17 a barrel. Results of the U.S. presidential contest between Hillary Clinton and Donald Trump are expected to be begin coming in midmorning Wednesday Asia time. "The market has largely priced in a Clinton victory so if she wins, we would see marginal effects on oil prices," said Vyanne Lai, an analyst at National Australia Bank, adding most market participants are banking on Mrs. Clinton to embrace an open-trade policy that could help improve the global flow of oil and gas trades. However, if Mr. Trump pulls a surprise upset, global markets, including equities and commodities, could see sharp gyration, she added. Oil investors are also keeping a close eye on progress of a production-cut deal among members of the Organization of the Petroleum Exporting Countries and its nonmember counterparts, such as Russia. The deal could potentially help eliminate 200,000 to 700,000 barrels a day from OPEC producers, which would help accelerate the rebalance in the market. It remains to be seen if Russia, the world's biggest energy producer, would join the accord. Some media are reporting that OPEC Secretary-General Mohammed Barkindo said Russia will be "on board" and is expected to throw its weight behind the deal to be ratified at the Nov. 30 meeting in Vienna. Russia, however, hasn't released any official statement. "Our expectation is that the difficulty in reaching a specific deal means that compromises will be needed to achieve even a nominal agreement, reducing the likely impact of the result," said Tim Evans, a Citi Futures energy analyst. One of the possible major hurdles hampering an agreement is the longstanding tension between Saudi Arabia and Iran. Iran has argued that it deserves to be exempt from any production-curb deal because it was subject to sanctions until January. The country has said any curtailment of its production before it is able to catch up to its presanction level would put it at an unfair disadvantage. "The Middle East mistrust between Saudi and Iran threatens to sink any agreement after the Saudis allegedly told Iran, 'sign or we turn the taps up higher,'" said Stuart Ive, a client manager at OM Financial. Oil investors will also be watching the weekly U.S. oil inventories and production data for week ended Nov.4. In the previous week, U.S. inventories rose to a three-decade high of more than 14 million barrels, largely due to imports. The official data will be out on Wednesday. China's October crude imports rose 9.3% on-year to 28.79 million barrels, the second lowest volume of the year as many refiners underwent maintenance last month. China is one of the world's biggest energy consumers and often rivals the U.S. as the top energy importer. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 47 points to $1.3663 a gallon, while December diesel traded at $1.4414, 8 points higher. ICE gasoil for December changed hands at $421.50 a metric ton, up $3.75 from Monday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Agreements; International trade; Inventory; Futures
Location: Iran Russia United States--US Asia
People: Trump, Donald J
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836812743
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836812743?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Warns Oil Prices Will Stay Low for Longer; OPEC says its share of the global market will increase as U.S. output from shale fields slows down
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract:
The Organization of the Petroleum Exporting Countries will account for much of the world's growing oil production over the next two decades, however, and its share of the global market will increase as U.S. output from shale fields slows down, the 14-nation cartel says in its annual World Oil Outlook.
Full text: Crude-oil prices will rebound much less than expected in the next four years, OPEC said Tuesday, because supply and demand haven't reacted as strongly to the current oil slump as strongly as originally expected. The Organization of the Petroleum Exporting Countries will account for much of the world's growing oil production over the next two decades, however, and its share of the global market will increase as U.S. output from shale fields slows down, the 14-nation cartel says in its annual World Oil Outlook. The outlook represents the cartel's best estimates of the medium- and long-term fortunes of the oil industry. It comes as the crude market faces a challenging period of stubbornly low prices that remain down over 60% from their levels in mid-2014, and OPEC is heading into a meeting Nov. 30 where it will allocate production cuts designed to lift prices. But OPEC's outlook is dour for oil investors, saying it now assumes prices will rise by $5 a barrel in the medium term, reaching $60 a barrel in nominal terms by 2020. That is $20 a barrel less than the baseline figure of $80 a barrel it used in 2015 for the beginning of the next decade. This year, OPEC said it expects prices to average about $40 a barrel for the cartel's basket of crudes, a combination of each type of grade produced by its member countries. OPEC's basket generally trades for less money than the international benchmark Brent, which was trading below $46 a barrel on Wednesday evening in London. Those loose prices haven't boosted consumer demand as much as OPEC once thought, the report said. The cartel blamed the lingering impact of the financial crisis and high taxes on oil products. "Scars from the economic crisis such as high household debt levels, fiscal imbalances and high unemployment, combined with industry investment cuts, have limited the propensity to consume," it said. Global demand for oil will now increase by 1 million barrels a day more than foreseen last year to 99.2 million barrels a day in 2021, OPEC said. Low oil prices will also lead to a production decline for the cartel's rivals, allowing OPEC to capture more market share. The share of OPEC crude in the global liquids supply is expected to increase from around 34% today to around 37% by 2040, it said. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Supply & demand; Propensity to consume; Crude oil prices; Petroleum production
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836885701
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836885701?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Stocks Soar as FBI Clears Clinton --- Nine-day losing streak by S&P 500 is snapped; oil, dollar jump, while havens gold and yen fall
Author: Kuriloff, Aaron; Gold, Riva
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]08 Nov 2016: C.1.
Abstract:
"The week before Brexit, the vote was very tight in opinion polls, and everyone wants to avoid negative surprises like we had for the U.K." The S&P 500 declined 0.9% on average the day after a presidential election in data going back to 1928, according to WSJ Market Data Group.\n
Full text: Investors rushed back into U.S. stocks, sending the S&P 500 to its biggest gain since March. It was the latest sign of heightened volatility heading into the U.S. presidential election, with Monday's rally ending the S&P 500's nine-day skid -- its longest losing streak in almost 36 years. While few investors and analysts expect swings to vanish after the votes are counted, several said it was a moment of relief in a contentious election season, and that a healthier economy and improving corporate earnings would likely support stocks in the longer term. The Dow Jones Industrial Average soared 371.32 points to its highest close since Oct. 10. Oil and the dollar jumped, while investors sold havens including gold and the yen after the Federal Bureau of Investigation said no new evidence was found to warrant charges against Democratic candidate Hillary Clinton. Several investors and analysts said the announcement improved Mrs. Clinton's chances against Republican Donald Trump and removed an element of uncertainty in the event that she was elected. The CBOE Volatility Index, which is based on the price of options that investors tend to buy when they are fearful of stock-market declines, fell 17% Monday. The "fear gauge" rose for the previous nine days in its longest stretch of gains on record as polls tightened. "Regardless of how you feel about either of the candidates, there's no doubt that a Clinton victory would involve less uncertainty than a Trump victory," said David Kelly, chief global strategist at J.P. Morgan Asset Management. "Markets hate uncertainty, so if it looks more likely that Clinton will win, then I think that's what we're seeing in terms of the rally." The Dow Jones Industrial Average gained 2.1% to 18259.60. The S&P 500 climbed 46.34 points, or 2.2%, to 2131.52 -- its highest close since Oct. 27, the day before the FBI said it was reviewing new emails related to its investigation of Mrs. Clinton's private server. The Nasdaq Composite added 119.80 points, or 2.4%, to 5166.17. It was the biggest one-day percentage gain for all three indexes since March 1. Investors sold havens. The dollar rose 1.3% against Japan's yen to 104.47 yen, gold for November delivery fell 1.9% to $1,278.30 an ounce, and the yield on the 10-year Treasury note, which moves inversely to the price, rose to 1.826% from 1.783% Friday. Some investors said that a win by Mrs. Clinton could leave markets relatively calm and the Federal Reserve on track to raise interest rates in December. The WSJ Dollar Index, which measures the dollar against a basket of 16 other currencies, rose 0.5%, snapping its six-day losing streak, its longest since early March. However, several analysts cautioned that investors shouldn't grow too confident, recalling how the results of Britain's June referendum on European Union membership caught many off guard. The S&P 500 rose 1.3% on June 23, before the Brexit results came in. The index then fell more than 5% over the next two sessions after the U.K. voted to leave the EU. "The Brexit vote has been a very bad experience for a lot of people in the markets, and everybody has this in mind," said Bastien Drut, strategist at Amundi Asset Management. "The week before Brexit, the vote was very tight in opinion polls, and everyone wants to avoid negative surprises like we had for the U.K." The S&P 500 declined 0.9% on average the day after a presidential election in data going back to 1928, according to WSJ Market Data Group. The Dow industrials' gain on Monday was its best performance on the day before a presidential election since 1932. In one sign of caution, Monday's rise in equities spurred investors to hedge with options. Options volumes on the most-active exchange-traded funds that track the S&P 500, Nasdaq-100 and emerging-market stocks were higher than their one-month averages, data from Trade Alert showed. The costs of puts on the ETFs were at highs versus the cost of calls, the data show. Puts give traders the right to sell shares at a certain price, while calls given them the right to buy. Meanwhile, the cost of puts versus calls on the SPDR Gold Trust, an ETF that tracks physical gold, was near the lowest in the past year, signaling investors were bullish on the precious metal, according to Trade Alert data. Asian stock markets were mostly flat early Tuesday, as investors stayed cautious over the presidential race. Japan's Nikkei was down 0.2%, while Australia's S&P/ASX 200 fell 0.1% and South Korea's Kospi was flat. In China, Hong Kong's Hang Seng Index was up 0.3% and the Shanghai Composite Index added 0.2%. --- Gunjan Banerji and Kenan Machado contributed to this article. Credit: By Aaron Kuriloff and Riva Gold
Subject: Dow Jones averages; Stock prices; Daily markets (wsj)
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: C.1
Publication year: 2016
Publication date: Nov 8, 2016
column: Monday's Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836885995
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836885995?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Saudi Government to Pay Money Owed to Private Companies by Year's End; Kingdom is trying contain fallout from the slide in oil revenue
Author: Parasie, Nicolas
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract:
Saudi Arabia's economy, which derives about three-quarters of its revenue from oil exports, has been hit hard by the drop in energy prices since the middle of 2014. Besides burning through its reserves, the government this year has raised $27.5 billion in debt and loans through international markets to support its finances, after posting a record $98 billion budget deficit last year.
Full text: DUBAI--Saudi Arabia's government has pledged to pay the money it owes to the country's private companies by the end of December, the kingdom's latest effort to contain economic fallout from the slide in oil revenue. A Saudi government body, headed by the country's deputy crown prince Mohammed bin Salman, said it has put together "a package of solutions" to "complete payments of amounts owed to the private sector," the official Saudi Press Agency reported late Monday. It didn't provide financial details on how much it owes the private sector. The government said it stopped awarding contracts for a large number of projects where "the scale of spending was not compatible with the economic and developmental returns hoped for them." The value of these projects would have reached 1 trillion riyals ($267 billion), the statement said. Saudi Arabia's economy, which derives about three-quarters of its revenue from oil exports, has been hit hard by the drop in energy prices since the middle of 2014. Besides burning through its reserves, the government this year has raised $27.5 billion in debt and loans through international markets to support its finances, after posting a record $98 billion budget deficit last year. The kingdom has been trying to rein in spending by canceling or delaying large infrastructure projects, which has pushed some of the country's biggest privately held construction companies such as the Saudi Binladin Group and Saudi Oger that largely depend on government work to the brink of bankruptcy. The government's inability to complete payments to its contractors also threatened to create a snowball effect on numerous subcontractors, smaller companies and cause a spike in loan delinquencies, putting further pressure on the domestic banks which are already grappling with the impact of the economic slowdown. "It is, therefore, a positive development from a growth perspective that this issue is being addressed," said Giyas Gokkent, an economist at the Middle East and North African Department of the Washington D.C.-based Institute of International Finance. Mr. Gokkent, however, said that depending on the size of these overdue payments, Saudi Arabia's fiscal deficit for 2016, currently projected by the IIF to be at around 13% of the country's gross domestic product, may increase. Saudi Arabia earlier this year released over $1 billion in payments to its biggest construction firm, Saudi Binladin, to help quell a simmering labor crisis, according to people familiar with the matter. Those payments were specifically designed to help tens of thousands of mostly Asian, stranded laborers, the result of massive layoffs in the construction sector, return to their home countries. In Monday's statement, Saudi Arabia acknowledged payments to the private sector had been delayed in light of the "sharp decline" in oil revenue. Saudi authorities also said as a result of the fall in oil revenue they would continue "rearranging priorities of spending, according to their significance and efficiency," a reference to possibly more spending cuts on big future projects, according to bankers and economists. The government also called for more efficiency and better oversight in handing out new contracts, a move that would help the state "save tens of billions" without being more specific. These measures coincide with an ambitious economic reform program, spearheaded by the deputy crown prince, that aims to wean the kingdom off its oil dependence. Bankers welcomed the move by the authorities to make the payments. "If it really happens, that's fantastic news," said a Saudi-based banking executive. "We'll believe it when we see it," he added. Saudi Arabia's Tadawul stock market's main index closed 2.1% higher on Tuesday. Gains were across the board but building and construction firms were among the weaker performing sectors. Write to Nicolas Parasie at nicolas.parasie@wsj.com RELATED ARTICLES * Saudi King Appoints New Finance Minister (Oct. 31) * Saudi Arabia's Bond Marketing Efforts Pay Off (Oct. 28) * Saudi Arabia Releases $1 Billion to Help Laid-Off Migrant Workers (Oct. 2) * Kingdom Comedown: Falling Oil Prices Shock Saudi Middle Class (Sept. 23) * Saudi Arabia Approves Economic Reform Program (April. 25) Credit: By Nicolas Parasie
Subject: Budget deficits; Economic conditions; Gross Domestic Product--GDP; Economic reform
Location: Saudi Arabia
People: Mohamed bin Salman, Prince of Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836945863
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836945863?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Total to Finance Iran Project With Euros to Avoid U.S. Sanctions; French oil company taking 50.1% stake in South Pars offshore gas venture
Author: Landauro, Inti
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract: None available.
Full text: PARIS--French oil company Total SA said it would avoid U.S. sanctions on Iran by using its own euro-denominated cash to finance the first Western energy deal in the Islamic Republic since international restrictions over its nuclear program were lifted this year. "This confirms we have a capacity to work with the Iranian government and that there is reciprocal trust," Total's Chief Executive Patrick Pouyanné said Tuesday. Total agreed to develop the 11th phase of the giant offshore gas South Pars field for the next 20 years. The French company will take a 50.1% stake in the venture that will develop and operate the project. China National Petroleum Corp. will take a 30% stake and the Iranian state-owned oil company will take the rest. The deal was signed Tuesday as Iran ramps up efforts to attract foreign companies to develop oil-and-gas fields following the lifting of international sanctions over its nuclear program in January. American sanctions over terrorism and weapons remain in place, however, slowing the pace of investment in Iran this year. The timing of the announcement surprised some analysts because it came on Election Day in the U.S. before Total or Iran knows who the next American president will be. Republican Donald Trump has vowed to re-evaluate the deal that lifted sanctions on Iran, while Democrat Hillary Clinton has supported the agreement. "Our working assumption has been that no deals would be signed with Iran until visibility on who the new U.S. President was," UBS said in a note on Thursday. Total has a long history in Iran and a record of doing business in places where U.S. sanctions limit the ability to raise financing in American dollars. For instance, Total is a key partner in a Russian natural-gas field with OAO Novatek, one of several Russian companies sanctioned by the U.S., in a $27 billion investment that involved delicate negotiations to secure Chinese financing . Mr. Pouyanné said Total will avoid the remaining sanctions still applied on Iran by the U.S. by using its own cash to finance its share of the investment. The Iranian government will pay Total in gas condensates, which the company can then sell on the international markets, bypassing the Iranian financial system. Mr. Pouyannè said he has appointed a full-time official who will make sure all the steps in the development respect international sanctions. The project's first phase--the drilling of as many as 30 wells in the Persian Gulf and offshore facilities--will require a $2 billion investment. A second phase, expected when the wells are producing, will require an additional $2 billion investment, Mr. Pouyanné said. An Iranian official estimated the project's worth at $4.8 billion, down from an earlier estimate of $6 billion investment. Mr. Pouyanné said the investment would be $4 billion only. The project is expected to start producing natural gas in 2020. Total's share of the project would represent about 60,000 barrels of oil equivalent a day. The Iran deal comes at an important time for China's state-owned CNPC and its listed subsidiary PetroChina Co., both of which are eager to expand their overseas presences as domestic oil production and reserves fall. That has contributed to lower total sales for the company, China's biggest oil and gas company by revenue. Additionally, China's energy giants are more eager today than ever to tap abundant natural gas reserves abroad as part of the government's push to increase access to the cleaner-burning fuel. China's pollution and climate goals call for it to substitute huge volumes of coal with natural gas in the coming years. Brian Spegele in Beijing contributed to this article. Write to Inti Landauro at inti.landauro@wsj.com Past Coverage * Iran to Sign $6 Billion Gas-Field Deal With Total, CNPC * Oil-Trading Firms Remain Cautious on Iran Until All U.S. Sanctions Lifted (April 13) * Iranian Aircraft Deals Ready for Takeoff as Sanctions End (Jan. 19) * Iran's Sanctions End as Deal Takes Effect (Jan. 16) Credit: By Inti Landauro
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836956592
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836956592?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Blackstone Ends Southeast Asia Venture as Oil Deals Dry Up; Blackstone had committed $800 million to Tamarind Energy
Author: Macfarlane, Alec
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract:
[...]Repsol elected to hang onto those assets.
Full text: HONG KONG--Blackstone Group LP has scrapped a Southeast Asian energy venture after it couldn't find attractive deals in the region. The New York-based private-equity giant had committed $800 million to back Tamarind Energy Ltd., an entity created by former executives of Canada's Talisman Energy Inc., to seek deals across the region two years ago. The money was never deployed and Blackstone and Tamarind parted ways in August, according to people familiar with the matter. Private-equity investors have struggled to find oil and gas deals across Asia as few sizable assets have become available at attractive prices. The region's state oil companies have also remained aggressive buyers, leading to more competition for assets. A similar venture backed by rival KKR & Co.--Mandala Energy Ltd.--has inked less than $200 million of deals in Southeast Asia since getting under way in March 2015. A person familiar with Mandala says the company has a mandate to do deals both small and large and has made good progress. The slide in oil prices that began in November 2014 raised hopes for a spate of deal making, but didn't generate a huge number of investment opportunities as potential sellers such as global majors and national oil companies--who weren't overburdened with debt and haven't needed to offload assets in a hurry to repay creditors--hung onto assets rather than selling on the cheap. Oil and gas deal making in Asia has historically been a fraction of U.S. volume. The U.S. is home to a large number of smaller independent oil explorers that took out big loans at higher oil prices to snatch up assets. Just $5.4 billion of mergers and acquisitions took place in the oil-and gas-exploration and production sector in Asia-Pacific last year, a 64% decline from 2014, according to energy consultancy Wood Mackenzie. This compares to $38.3 billion in North America. Major oil companies including Chevron Corp. and Royal Dutch Shell PLC in Asia are expected to boost those figures over the next year as they move to shed some assets viewed as noncore, but so far this year just $4.2 billion of deals have been done in the region. "Some private-equity players were just too early, and the appetite for distressed asset sales wasn't there yet," said Angus Rodger, a Singapore-based research director at Wood Mackenzie. Tamarind was set up in July 2014 with the goal of creating a significant upstream company that would buy aging oil and gas fields and deploy new technology to boost their yields. To win deals, it aimed to build relationships with governments and state-run firms, which dominate Southeast Asia's energy industry. Tamarind's executives brought a number of potential deals to Blackstone, but they were unable to clinch them. Blackstone and Tamarind discussed buying Santos Ltd.'s Southeast Asian assets valued at up to $750 million, one of the people said, but the Australian company later opted instead to raise money through a rights offering. A spokesman for Santos declined to comment. Given the Tamarind team's former roles at Talisman Energy, Blackstone had hoped Tamarind would be well positioned to buy Talisman's Southeast-Asian assets after the company was acquired by Spanish oil company Repsol SA for $8.3 billion in December 2014, the people said. In the end, Repsol elected to hang onto those assets. In some cases, efforts to partner with state-run firms didn't go according to plan. Tamarind tried to partner with Malaysia Petroliam Nasional Bhd., known as Petronas, but couldn't because Tamarind didn't have the scale or local presence required to qualify as a partner for Petronas. A spokesman for Petronas declined to comment. Blackstone's hiring of Karen Agustiawan, a well-connected oil veteran who previously led Indonesian state-owned PT Pertamina, wasn't enough to secure deals in that country. Ms. Agustiawan and Tamarind's team in Indonesia presented a number of potential deals to Blackstone, but they were too small to get Blackstone's interest, according to a person familiar with the matter. Tamarind Energy Chief Executive Ian Angell said he is continuing to operate the company as Tamarind Management Sdn Bhd. after ending the partnership with Blackstone. Tamarind Management has secured new funding, he said, although declined to disclose the new backers. Since parting ways with Blackstone in August, Tamarind Management has teamed up with Australia's Triangle Energy (Global) Ltd. and agreed to work with Sydney-based South Pacific Resources Ltd. to develop an oil and gas field in Papua New Guinea. Write to Alec Macfarlane at Alec.Macfarlane@wsj.com Credit: By Alec Macfarlane
Subject: International finance; Equity; Energy industry; Private equity
Location: Canada United States--US Southeast Asia
Company / organization: Name: Kohlberg Kravis Roberts & Co LP; NAICS: 523920; Name: Talisman Energy Inc; NAICS: 211111; Name: Tamarind Energy Ltd; NAICS: 211111; Name: Petronas; NAICS: 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Blackstone Group LP; NAICS: 523110; Name: Chevron Corp; NAICS: 324110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836956773
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836956773?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Settle Higher After a Turbulent Trading Day as U.S. Votes; Analysts expect crude to move in narrow band until outcome of U.S. presidential election is clear
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract:
The official data is set for Wednesday, while the American Petroleum Institute, an industry group, said late Tuesday its own data for the week showed a 4.4-million-barrel increase in crude supplies, a 3.6-million-barrel decrease in gasoline stocks and a 4.3-million-barrel decline in distillate inventories, according to a market participant.
Full text: Oil prices settled higher after a turbulent day of trading on Tuesday, with market participants remaining cautious as voters went to the polls in the U.S. presidential election. U.S. crude futures prices gained 9 cents, or 0.2%, to $44.98 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 11 cents, or 0.24%, to $46.04. Crude markets swung from gains to losses and back on light trading awaiting election results. Mark Waggoner, president of Excel Futures, said many traders were holding back, waiting on the election results before taking positions. "It's been a weird day today--very quiet for the most part. I think what's happening [is that] people are just squaring positions, trying to think about who's going to win," he said. In recent sessions, risky assets such as stocks and oil have risen as Democratic presidential candidate Hillary Clinton pulled ahead in the polls, with many investors believing that a victory for Mrs. Clinton would bring stability to markets. Crude prices snapped a six-session losing streak on Monday, following the stock market higher, after the Federal Bureau of Investigation said it hadn't uncovered new evidence to warrant charges Mrs. Clinton. Investors interpreted that as favorable to Mrs. Clinton's chances. The dollar also surged on Monday, as investors have grown more confident that Mrs. Clinton would win the presidency. But strength in the U.S. dollar is often a headwind for oil, since it makes the commodity more expensive for buyers who deal in other currencies. After surging Monday, the dollar wavered somewhat on Tuesday, with the WSJ Dollar Index edging up less than 0.1%. Market participants are also weighing the chances the Organization of the Petroleum Exporting Countries will be able to finalize a deal to limit output. OPEC officials reaffirmed the cartel's commitment to a tentative agreement to cut production on Monday, helping boost prices, but analysts and traders still are watching commentary from OPEC and non-OPEC producers closely ahead of the cartel's Nov. 30 meeting. "Clearly the election remains top of mind, but we have a large event at the end of November that oil markets are focused on," said Chris Kettenmann, chief energy strategist at Macro Risk Advisors. Market participants are also waiting to see whether U.S. crude supplies will build again after last week's record addition to stockpiles. The official data is set for Wednesday, while the American Petroleum Institute, an industry group, said late Tuesday its own data for the week showed a 4.4-million-barrel increase in crude supplies, a 3.6-million-barrel decrease in gasoline stocks and a 4.3-million-barrel decline in distillate inventories, according to a market participant. In its short term energy outlook on Tuesday, the EIA said U.S. production will fall more slowly than it had expected. The agency revised its forecast for 2016 and 2017 output up by 100,000 barrels a day in each year. Gasoline futures prices fell 0.18 cents, or 0.13%, to $1.3692 a gallon. Diesel futures rose 0.05 cent, or 0.03%, to $1.4411. Kevin Baxter contributed to this article. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Election results; Supply & demand; Stock exchanges; American dollar; Investments
Location: United States--US
People: Clinton, Hillary
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820; Name: Federal Bureau of Investigation--FBI; NAICS: 922120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1836966958
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1836966958?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Could For Once Prove Election Sensitive; J.P. Morgan forecasts fall in crude should Donald Trump win
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract: None available.
Full text: For the oil price, the U.S. election trumps OPEC this week. While analysts have focused on the sensitivity of stocks, bonds, currencies and other assets to the U.S. election, oil is expected to be no less sensitive to Tuesday's result. Broadly, a victory for Donald Trump could hurt the oil price, while triumph for Hillary Clinton could boost it, according to most analysts and investors. At J.P. Morgan, analysts predict that Brent could fall to $43 a barrel on Wednesday if Mr. Trump wins, while a Clinton victory could boost crude to $48 a barrel. Tuesday, Brent crude was 0.1% lower at $46.09 a barrel, Still, it isn't necessarily straight forward. Some elements of Mr. Trump's election promises could be bullish for oil. Any impact on oil from the election could likely be overwhelmed by continuing developments at the Organization of the Petroleum Exporting Countries, and the most important influence on the market -- supply. "The general consensus is that the economy would suffer more under Trump than Clinton therefore in case Clinton is elected we should see oil prices rallying," said Tamas Varga, oil analyst at brokerage PVM. "The rally won't last long, though, as the underlying fundamental picture is awfully bearish." Risk off Most investors believe a Trump victory would hit riskier investments, from equities to corporate bonds and oil, given his opposition to international trade deals and what analysts say is a lack of clarity in his policies. Together, they could put a brake on global economic growth and pull down the oil price, they say. Oil often tracks big moves in shares , and has in recent days followed equity markets higher. On the other hand, the dollar is expected to plummet if Mr. Trump wins. That could boost the price of greenback-denominated oil, which then becomes cheaper to buy for those who hold other currencies. The environment Mrs. Clinton is expected to support the sort of global climate accords that can dampen demand for crude in favor of renewable energy. Mr. Trump meanwhile has talked of tearing up the Paris climate accord. Any fall in demand would be bad news for the oil price in the long term. Mrs. Clinton is also expected to support stricter regulations on fracking in the U.S., rules that Mr. Trump could ease, said Mike Wittner, oil analyst at Société Générale. Still, any increase in supply could be limited, as only a small percentage of shale oil comes from the U.S. federal lands that would be covered by such regulations. Geopolitics Some analysts believe that a Trump victory will increase geopolitical tensions and note the Republican candidate's hostility to Iran, a major oil producer which has just returned to global crude markets. That could boost oil. Past U.S. elections History indicates that U.S. elections don't have a lasting impact on oil prices. Most changes in U.S. administration have occurred at the same time as broader changes in the global economy or the supply of oil on which markets have focused, Barclays said in a research note. When George Bush won against Democrat Al Gore in 2000, concerns about the global economy and OPEC had more of an impact on oil prices than the election. When Barack Obama beat Republican John McCain in 2008, prices were dropping fast in the global the financial crisis. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837021626
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837021626?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
After Pledging Cuts, OPEC Countries Pump Record Amounts of Oil; Ensuing crude selloff canceled out rally that had followed deal to cut production in late September
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract:
A survey of 14 investment banks by The Wall Street Journal predicts that oil prices will stay below $60 a barrel in 2017, a year when many of the same banks had predicted oil prices would rise above $70.
Full text: Corrections & Amplifications: Production increased so much in October that OPEC's originally proposed cuts would keep output in line with estimates from before the announcement, analysts at Goldman Sachs Group said last week. An earlier version of this article incorrectly stated that the analysts spoke this week. Major oil-producing nations are pumping at full tilt ahead of their pledge to reduce output later this month, a big reason why the oil market has given up all of its recent gains. The Organization of the Petroleum Exporting Countries has ramped up production to record levels beyond 33.5 million barrels a day, according to S&P Global Platts. Russia has added about 500,000 barrels a day of output in the past two months, while the combined production of Libya and Nigeria brought another 500,000 barrels of new supply, according to the investment bank Simmons & Co. International. That rising crude production has been pummeling U.S. oil prices, which are down 13% in less than three weeks. Prices settled up 0.2% at $44.98 a barrel on Tuesday. The selloff cancels out the large rally that had followed an announcement in late September that OPEC members had agreed to a deal to cut crude production for the first time in eight years. Russia has also talked of joining the agreement. Now, some analysts say that the rising output raises questions about whether the oil-producing nations are serious about reaching a deal to limit output. "They are addicted to producing," said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. Production increased so much in October that even OPEC's originally proposed cuts would merely keep output in line with estimates from before the announcement, analysts at Goldman Sachs Group said last week. When OPEC reached a deal, the group had to cut 200,000 to 700,000 barrels a day from its August production levels to drop output to a target of 32.5 million to 33 million barrels a day. After the production increases, the cartel would have to cut another 340,000 barrels a day from October levels to meet that goal. New projects coming online from outside OPEC also are likely to blunt the impact of any cut, Goldman Sachs added. ClipperData, which tracks oil ships, shows a record 48.4 million barrels a day of seaborne exports in October, up nearly 13% from a year ago. That is likely to keep markets glutted and stockpiles bloated as buyers receive those cargoes in the weeks to come, analysts said. The excess supply is making its way into the U.S., where imports of crude have climbed to a four-year high at nine million barrels a day. It pushed U.S. stockpiles to their biggest weekly increase in 34 years of government record-keeping, up 14.4 million barrels for the week ended Oct. 28, according to the U.S. Energy Information Administration. That figure greatly exceeded the one-million-barrel increase that energy analysts had anticipated, and led an executive at Mizuho Securities USA to declare it possibly "the most bearish report of all time" for the oil market. Oil's retreat has reinforced doubts about crude prices enjoying a sustained rebound. A survey of 14 investment banks by The Wall Street Journal predicts that oil prices will stay below $60 a barrel in 2017, a year when many of the same banks had predicted oil prices would rise above $70. Even OPEC now expects an increase to just $60 a barrel by 2020, $20 a barrel less than what it had predicted just a year ago, it said Tuesday. The price slump also is reverberating through the stock market, where energy has gone from among the best-performing sectors to the worst. S&P 500 energy companies are up a market-best 14% year to date, but gave up more than 2% in the last week alone, trailing only telecommunications and information technology as the worst sectors. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Crude oil prices; Investment banking; Production increases
Location: Russia United States--US
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837034925
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837034925?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Calm Seas Precede Looming Storm for Oil Tankers; Crude-oil tanker rates have done surprisingly well in recent weeks, but a glut of new vessels and brimming inventories will trump any modest increase in demand
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract: None available.
Full text: A funny thing happened after oil exporters reached what seemed like a landmark agreement to cut output in September: they shipped crude with abandon. The number of very large crude carriers (VLCCs) booked to travel from the Middle East to Asia reached the highest in five years in mid-October, according to JBC Energy. The temporary bump in oil prices--they have since moved sharply into reverse since the Organization of the Petroleum Exporting Countries has failed to agree on actual production cuts--made each barrel sold worth more. But shipowners are still feeling swell. Rates for VLCCs reached around $45,000 to $50,000 a day or about 50% higher than some companies projected for this normally soft time of year. While that was good news for operators such as Euronav NV, Frontline Ltd and Teekay Tankers Ltd., the industry looks likely to go from relative feast to famine. Demand growth appears far short of the level needed to absorb the highest number of tanker orders in a decade last year. Consider the numbers: When analysts translate crude demand growth into tanker demand, the figure must be applied to seaborne trade only of about 37 million barrels daily. Deutsche Bank transportation analyst Amit Mehrotra estimated earlier this year that incremental demand would be enough to justify an additional 31 VLCCs in 2016 and about 18 per year from 2017 through 2020. That compares with 72 VLCCs ordered by shipowners last year and an average of 40 in the two years before that. While orders plunged to just 14 VLCCs so far this year, the damage has been done. It takes 1½ to two years for shipyards to deliver. Furthermore, few ships will hit the 20-year mark soon when they tend to be scrapped. Deutsche's demand estimates also don't take into account a possible drawdown in inventories. The International Energy Agency estimates that commercial and government stockpiles in the developed world are enough to cover about 100 days of petroleum product imports, nine days more than three years ago. And then there is China's mushrooming strategic petroleum reserve. J.P. Morgan estimated earlier this year that 15% of China's imports were flowing to this SPR earlier this year. Stopping or slowing the process would soften tanker rates. The final refuge of oil tanker bulls is so-called floating storage --a rare occurrence when physical crude becomes too cheap relative to futures expiring in several months. Brief opportunities have opened up in the past when the difference has become high enough that it was worthwhile for traders to lease supertankers to store barrels on the water and simultaneously sell the same barrels at a profit in several months, tying up capacity. This expensive arbitrage is on the cusp of profitability after crude's recent retreat, but nearly not enough to soak up tanker supply. The upshot for owners is lean times ahead with a possible turnaround in a couple of years as deliveries shrivel and older ships get scrapped. But their share prices reflect lean times with five crude tankers owners off by an average of 65% in the notoriously boom-and-bust industry in the past year. Tempted bottom-pickers may want to wait for shipping rates to collapse before shopping for potential bargains, though. Credit: By Spencer Jakab
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837048374
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837048374?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Energy Information Administration Raises Forecast for 2017 U.S. Oil Production; EIA expects U.S. oil output to average 8.84 million barrels a day in 2016 and 8.73 million barrels a day in 2017
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract:
The agency said increased drilling activity in west Texas' Permian basin will boost production in that region, partially offsetting declines in other parts of the country.
Full text: U.S. government forecasters anticipate U.S. oil production will fall more slowly than expected, led by a ramp-up in drilling in west Texas. The Energy Information Administration, in its monthly short-term energy outlook, boosted its forecasts of U.S. oil output this year and next. The EIA expects U.S. oil output to average 8.84 million barrels a day this year and 8.73 million barrels a day next year, up from its prior forecasts of 8.73 million in 2016 and 8.59 million in 2017. The higher production forecast comes from new data showing that U.S. oil output increased more than 50,000 barrels a day from July to August, to 8.744 million barrels. Previously, the EIA estimated production would decline in August. U.S. oil production has dropped from an average of 9.4 million barrels a day last year. But the EIA's expectations for U.S. oil output have crept up this year as oil prices have increased. Crude futures hit their highest levels in more than a year in October, after the Organization of the Petroleum Exporting Countries agreed in principle to limit output. But prices have fallen off amid persistent doubts that such a deal will come to fruition. The EIA also said production gains from countries such as Russia and Brazil, as well as the resiliency of U.S. producers, could threaten crude's recent gains. "Although the outlook for global consumption of petroleum products remains relatively robust because of generally positive global economic data, the potential for additional crude oil supplies in the global market could push prices lower," the EIA wrote. The agency said increased drilling activity in west Texas' Permian basin will boost production in that region, partially offsetting declines in other parts of the country. More than 60% of the 125 oil rigs put to work in the past five months have been in the Permian, according to oilfield firm Baker Hughes Inc. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Cartels; Petroleum production; Price increases; Supply & demand
Location: United States--US Texas
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837058718
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837058718?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further rep roduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude Oil Inventories Seen Increasing in DOE Data; The survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2016: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 4.4-million-barrel increase in crude supplies, a 3.6-million-barrel decrease in gasoline stocks and a 4.3-million-barrel decline in distillate inventories, according to a market participant.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 12 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 900,000 barrels, on average, in the week ended Nov. 4. Nine analysts expect stockpiles to rise and three expect them to fall. Forecasts range from a decrease of 4.8 million barrels to an increase of 4.5 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to fall by 0.6 million barrels on average, according to analysts. Three analysts expected stockpiles to rise while nine expected them to fall. Estimates range from a decrease of 3 million barrels to an increase of 3 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 1.9 million barrels. All 12 analysts expect stockpiles to decrease. Forecasts range from a decline of 3 million barrels to a decline of 125,000 barrels. Refinery use is seen increasing 0.5 percentage point to 85.7% of capacity, based on EIA data. Nine analysts expect an increase, one expects a decrease, and two didn't report expectations. Forecasts range from a decrease of 0.5 percentage point to an increase of 1 percentage point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 4.4-million-barrel increase in crude supplies, a 3.6-million-barrel decrease in gasoline stocks and a 4.3-million-barrel decline in distillate inventories, according to a market participant. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Inventory; Price increases; Supply & demand
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837065280
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837065280?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Petrobras to Cut Gasoline and Diesel Prices; State-run oil company had been using its near-monopoly in the fuel market to shore up its cash flows for more than a year
Author: Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Nov 2016: n/a.
Abstract: None available.
Full text: RIO DE JANEIRO--Brazilian state-run oil company Petróleo Brasileiro SA said Tuesday it has decided to reduce prices for gasoline and diesel, after more than a year of using its near-monopoly in the domestic fuel market to shore up its cash flows. Petrobras' board decided to reduce the price of diesel and gasoline sold at its Brazilian refineries by 10.4% and 3.1%, respectively, the company said in a press release, adding that the price cuts reflect a drop in international oil prices in recent weeks. Petrobras burned billions of dollars in cash from 2011 to 2014 by subsidizing fuel prices in the domestic market. Now burdened with the global oil industry's largest pile of debt, the company since last year has sold gasoline and diesel at a hefty markup. But Petrobras executives fear that doing so for too long could threaten the company's dominant market share in Brazil by encouraging other firms to import fuels. "The combination of falling prices for oil and derivatives...and the reduction in the company's share of sales to the domestic market have impacts on the capacity utilization of Petrobras' assets, particularly in refining, on inventory levels and also on import and export flows," the company said in the press release. "These variables justified a larger correction in prices. Write to Paul Kiernan at paul.kiernan@wsj.com Credit: By Paul Kiernan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 9, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837113352
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837113352?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Down as Early US Election Results Trickle In; January Brent crude fell $0.11 to $46.04 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Nov 2016: n/a.
Abstract:
According to data from the American Petroleum Institute, U.S. crude stocks grew by 4.4 million barrels in the week ended Nov. 4, extending the uptrend from last week's 14.4 million-barrel expansion.
Full text: Global crude futures eased Wednesday morning in Asia trade as investors waited until the U.S. presidential election outcome is clear to take positions. The result of the contest between Democrat Hillary Clinton and Republican Donald Trump is expected to be called Wednesday Asia time, possibly by early afternoon. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $44.76 a barrel at 0022 GMT, down $0.22 in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell $0.11 to $46.04 a barrel. Action in commodities will be dictated by the U.S. election results, ANZ Research said. Many analysts say a Clinton victory could see an initial celebration rally of 2% to 3% in global oil prices because her presidency would represent a continuation of existing U.S. foreign and trade polices, and there would be fewer surprises. However, the buying spree may be short-lived, given Mrs. Clinton's vocal support for renewable energy. "In the long run, a Clinton presidency could actually accelerate the takeover of crude oil by clean energy such as solar and others," said Nelson Wang, a CLSA energy analyst. Oil prices are also being weighed down by the prospect that the world's crude supply is ballooning, despite pledges by major producers to cut production. In late September, the 14-member Organization of the Petroleum Exporting Countries reached a tentative pact to limit the group's output to between 32.5 million and 33 million barrels a day. The pact is scheduled to be ratified on Nov. 30 at OPEC's next meeting in Vienna. According to S&P Global Platts, OPEC has ramped up production to record levels beyond 33.5 million barrels a day. Moreover, since the September meeting, contention among OPEC members has risen as some producer nations asked to be exempt from the deal. Iraq said it deserves to pump at will as it needs to fund its continuing war against Islamic State. Russia, the world's largest energy producer and a non-OPEC player, has added about 500,000 barrels a day of output in the last two months, according to investment bank Simmons & Co. Intl. It isn't clear whether Russia would join OPEC's production cut. Market watchers say without Russia's commitment to cut or freeze production, OPEC members would be less inclined to scale back their own. The rise in global crude production has been pummeling U.S. oil prices, which are down more than 14% in less than three weeks. Adding to jitters is the continuous growth in U.S. domestic crude stockpiles. According to data from the American Petroleum Institute, U.S. crude stocks grew by 4.4 million barrels in the week ended Nov. 4, extending the uptrend from last week's 14.4 million-barrel expansion. API data also tip a 3.6-million-barrel decrease in gasoline stocks and a 4.3-million-barrel decline in distillate inventories, according to a market participant. "In the near term, oil prices will still be mainly driven by rhetoric from OPEC members and the fundamentals of the world's oil supply," said Vyanne Lai, an analyst at National Australia Bank. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--was unchanged at to $1.3692 a gallon, while December diesel traded at $1.4386, 25 points lower. ICE gasoil for November changed hands at $419.75 a metric ton, up $2.00 from Tuesday's settlement. Credit: By Jenny Hsu
Subject: Crude oil prices; Crude oil; Cartels; Futures
Location: Russia United States--US Asia
People: Trump, Donald J Clinton, Hillary
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 9, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837113361
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Reverse Losses as Financial Market Tumult Recedes; 'Euphoria' noted as stock market bounces back
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Nov 2016: n/a.
Abstract:
Crude prices plunged along with the broader market as investors fled from risky assets in the immediate aftermath of Donald Trump's surprise victory in the U.S. presidential election, but tides turned as the stock market bounced back.
Full text: Crude oil prices reversed earlier losses as tumult in financial markets receded and the stock market rallied. U.S. crude futures rose 29 cents, or 0.65%, to $45.27 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 32 cents or 0.7%, to $46.36 a barrel. Crude prices plunged along with the broader market as investors fled from risky assets in the immediate aftermath of Donald Trump's surprise victory in the U.S. presidential election, but tides turned as the stock market bounced back. "There's a euphoria in the market and people are buying," said Mark Waggoner, president of Excel Futures. "People were sitting on the sidelines, and are now jumping in." Crude wavered between gains and losses in choppy trading earlier in the day. Prices fell following new federal data that showed U.S. oil stockpiles swelled more than expected and producers kept pumping before following the stock market higher. U.S. crude prices rebounded from a seven-week low over $43 a barrel Tuesday night to their highest settlement value in a week. "Once we established a new weekly high, you got some buying and short covering," said John Saucer, vice president of research and analysis at Mobius Risk Group. U.S. inventories of crude oil rose by 2.43 million barrels in the week ended Nov. 4, according to the Energy Information Administration. That is above the 900,000 barrel increase forecast by analysts and traders surveyed by The Wall Street Journal, but less than the sizable 4.4 million barrel build reported Tuesday night by the American Petroleum Institute, an industry group. "It perpetuates the build situation, but it's not as bearish as API," said Bob Yawger, director of the futures division for Mizuho Securities USA. Still, Mr. Yawger said the weekly data is "not the most important thing for the next 48 hours because of the election curveball we've been pitched." Wednesday's data comes a week after a record 14.4 million barrel increase in stockpiles last week--the largest weekly addition in 34 years of federal data. Total stockpiles of crude oil and refined products fell by 7 million barrels. Gasoline supplies fell by 2.841 million barrels, compared with a 600,000 barrel draw forecast by analysts and traders. Analysts attributed the draw in part to the disruption of the Colonial Pipeline, a major fuel conduit from the Gulf Coast to the East Coast that was offline most of last week following an explosion. Diesel supplies fell by 1.948 million barrels. Gasoline futures lost 1.2 cents, or 0.88%, to $1.3572 a gallon. Diesel futures were flat at $1.4411 a gallon. Energy experts are still weighing what Mr. Trump's foreign and energy policies could mean for oil markets in the long term. Some said he would be likely to scale back regulations and facilitate more drilling--policies that U.S. energy firms would favor. But others cautioned that such policies could end up keeping oil prices low by unleashing more supply into a world already awash in crude. "It probably ends up not being all that supportive for prices because supply will be ample," said Bill O'Grady, chief market strategist at Confluence Investment Management. "But the oil companies themselves will be thrilled." Kevin Baxter contributed to this article Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Crude oil prices; Crude oil; Futures
Location: United States--US
People: Trump, Donald J
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 9, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837116297
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837116297?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Business News: In Iran, Sanctions Avoided --- French oil firm Total to fund energy project with its own money, sidestepping penalties
Author: Landauro, Inti
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Nov 2016: B.3.
Abstract:
French oil company Total SA said it would avoid U.S. sanctions on Iran by using its own euro-denominated cash to finance the first Western energy deal in the Islamic Republic since international restrictions over its nuclear program were lifted this year.
Full text: PARIS -- French oil company Total SA said it would avoid U.S. sanctions on Iran by using its own euro-denominated cash to finance the first Western energy deal in the Islamic Republic since international restrictions over its nuclear program were lifted this year. "This confirms we have a capacity to work with the Iranian government and that there is reciprocal trust," Total Chief Executive Patrick Pouyanne said on Tuesday. Total agreed to develop the 11th phase of the offshore South Pars gas field for the next 20 years. The company will take a 50.1% stake in the venture that will develop and operate the project. China National Petroleum Corp. will take a 30% stake and the Iranian state-owned oil company will take the rest. The deal was signed Tuesday as Iran ramps up efforts to attract foreign companies to develop oil-and-gas fields after the lifting of international sanctions over its nuclear program in January. American sanctions over terrorism and weapons remain in place, however, slowing the pace of investment in Iran this year. The timing of the announcement surprised some analysts because it came on Election Day in the U.S., before Total or Iran knows who the next American president will be. Republican presidential candidate Donald Trump has vowed to re-evaluate the deal that lifted sanctions on Iran, while Democrat Hillary Clinton has supported the agreement. Mr. Pouyanne said Total will avoid the remaining sanctions still applied on Iran by the U.S. by using its own cash to finance its share of the investment. The Iranian government will pay Total in gas condensates, which the company can then sell on the international markets, bypassing the Iranian financial system. The project's first phase -- offshore facilities and the drilling of as many as 30 wells in the Persian Gulf -- will require a $2 billion investment. A second phase, expected when the wells are producing, will require an additional $2 billion investment, Mr. Pouyanne said. An Iranian official estimated the project's worth at $4.8 billion, down from an earlier estimate of $6 billion. Mr. Pouyanne said the investment would be $4 billion. The project is expected to start producing natural gas in 2020. Total's share of the project would represent about 60,000 barrels of oil equivalent a day. --- Brian Spegele in Beijing contributed to this article. Credit: By Inti Landauro
Subject: Oil fields; Sanctions; Natural gas; Foreign investment
Location: Iran France
Company / organization: Name: China National Petroleum Corp; NAICS: 211111; Name: Total SA; NAICS: 447190, 324110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2016
Publication date: Nov 9, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837156718
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837156718?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Global Finance: Blackstone in Asia Setback --- Regional oil-and-gas venture ends, stymied by lack of deals at attractive prices
Author: Macfarlane, Alec
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Nov 2016: C.3.
Abstract:
[...]Repsol elected to hang onto those assets.
Full text: HONG KONG -- Blackstone Group LP has scrapped a Southeast Asian energy venture after it couldn't find attractive deals in the region. The New York-based private-equity giant had committed $800 million to back Tamarind Energy Ltd., an entity created by former executives of Canada's Talisman Energy Inc., to seek deals across the region two years ago. The money was never deployed, and Blackstone and Tamarind parted ways in August, people familiar with the matter said. Private-equity investors have struggled to find oil-and-gas deals across Asia as few sizable assets have become available at attractive prices. The region's state oil companies also have remained aggressive buyers, leading to more competition for assets. A similar venture backed by rival KKR & Co. -- Mandala Energy Ltd. -- has signed less than $200 million of deals in Southeast Asia since getting under way in March 2015. A person familiar with Mandala said the company has a mandate to do large and small deals and has made progress. The slide in oil prices that began in November 2014 raised hopes for deal making but didn't generate a large number of investment opportunities. Potential sellers such as global and national oil companies -- which weren't overburdened with debt and haven't needed to unload assets to repay creditors -- hung onto assets rather than selling on the cheap. Oil-and-gas deal making in Asia has been a fraction of U.S. volume. The U.S. is home to several smaller independent oil explorers that took out big loans at higher oil prices to snatch up assets. Just $5.4 billion of mergers and acquisitions took place in the oil-and-gas exploration and production sector in Asia-Pacific last year, a 64% decline from 2014, according to energy consultancy Wood Mackenzie. That compares with $38.3 billion in North America. Major oil companies including Chevron Corp. and Royal Dutch Shell PLC in Asia are expected to boost those figures over the next year as they move to shed some assets viewed as noncore, but so far this year deals valued at just $4.2 billion have been done in the region. "Some private-equity players were just too early, and the appetite for distressed-asset sales wasn't there yet," said Angus Rodger, a Singapore-based research director at Wood Mackenzie. Tamarind was set up in July 2014 to create a significant upstream company that would buy aging oil and gas fields and deploy new technology to boost their yields. To win deals, it aimed to build relationships with governments and state-run firms, which dominate Southeast Asia's energy industry. Tamarind's executives brought several potential deals to Blackstone but were unable to clinch them. Blackstone and Tamarind discussed buying Santos Ltd.'s Southeast Asian assets valued at as much as $750 million, one of the people said, but the Australian company later opted to raise money through a rights offering. A spokesman for Santos declined to comment. Given the Tamarind team's former roles at Talisman Energy, Blackstone had hoped Tamarind would be well positioned to buy Talisman's Southeast Asian assets after the company was acquired by Spanish oil company Repsol SA for $8.3 billion in December 2014, the people said. In the end, Repsol elected to hang onto those assets. In some cases, efforts to partner with state-run firms didn't go according to plan. Tamarind tried to partner with Malaysia Petroliam Nasional Bhd., known as Petronas, but couldn't because Tamarind didn't have the scale or local presence required to qualify as a partner for Petronas. A spokesman for Petronas declined to comment. Credit: By Alec Macfarlane
Subject: Energy industry
Location: Southeast Asia
Company / organization: Name: Blackstone Group LP; NAICS: 523110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: C.3
Publication year: 2016
Publication date: Nov 9, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837157431
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837157431?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Rising Oil Production Blunts Any Cuts
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Nov 2016: C.4.
Abstract:
A survey of 14 investment banks by The Wall Street Journal predicts that oil prices will stay below $60 a barrel in 2017, a year when many of the same banks had predicted oil prices would rise above $70.
Full text: Major oil-producing nations are pumping at full tilt ahead of their pledge to reduce output later this month, a big reason why the oil market has given up all of its recent gains. The Organization of the Petroleum Exporting Countries has ramped up production to record levels beyond 33.5 million barrels a day, according to S&P Global Platts. Russia has added about 500,000 barrels a day of output in the past two months, while the combined production of Libya and Nigeria brought another 500,000 barrels of new supply, according to the investment bank Simmons & Co. International. That rising crude production has been pummeling U.S. oil prices, which are down 13% in less than three weeks. Prices settled up 0.2% at $44.98 a barrel on Tuesday. The selloff cancels out the large rally that had followed an announcement in late September that OPEC members had agreed to a deal to cut crude production for the first time in eight years. Russia has also talked of joining the agreement. Now, some analysts say that the rising output raises questions about whether the oil-producing nations are serious about reaching a deal to limit output. "They are addicted to producing," said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. Production increased so much in October that even OPEC's originally proposed cuts would merely keep output in line with estimates from before the announcement, analysts at Goldman Sachs Group said last week. When OPEC reached a deal, the group had to cut 200,000 to 700,000 barrels a day from its August production levels to drop output to a target of 32.5 million to 33 million barrels a day. After the production increases, the cartel would have to cut another 340,000 barrels a day from October levels to meet that goal. New projects coming online from outside OPEC also are likely to blunt the impact of any cut, Goldman Sachs added. ClipperData, which tracks oil ships, shows a record 48.4 million barrels a day of seaborne exports in October, up nearly 13% from a year ago. That is likely to keep markets glutted and stockpiles bloated as buyers receive those cargoes in the weeks to come, analysts said. The excess supply is making its way into the U.S., where imports of crude have climbed to a four-year high at nine million barrels a day. It pushed U.S. stockpiles to their biggest weekly increase in 34 years of government record-keeping, up 14.4 million barrels for the week ended Oct. 28, according to the U.S. Energy Information Administration. That figure greatly exceeded the one-million-barrel increase that energy analysts had anticipated, and led an executive at Mizuho Securities USA to declare it possibly "the most bearish report of all time" for the oil market. Oil's retreat has reinforced doubts about crude prices enjoying a sustained rebound. A survey of 14 investment banks by The Wall Street Journal predicts that oil prices will stay below $60 a barrel in 2017, a year when many of the same banks had predicted oil prices would rise above $70. Even OPEC now expects an increase to just $60 a barrel by 2020, $20 a barrel less than what it had predicted just a year ago, it said Tuesday. The price slump also is reverberating through the stock market, where energy has gone from among the best-performing sectors to the worst. S&P 500 energy companies are up a market-best 14% year to date, but gave up more than 2% in the last week alone, trailing only telecommunications and information technology as the worst sectors.
Credit: By Timothy Puko
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: C.4
Publication year: 2016
Publication date: Nov 9, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837157898
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837157898?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Volatility Hits Commodity Prices; Coal sector is among those that could benefit from Trump's win; picture for oil isn't straightforward
Author: Kantchev, Georgi; Mcfarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Nov 2016: n/a.
Abstract: None available.
Full text: Investors and analysts predicted further volatility for commodities from gold and oil to coal following Donald Trump's election victory . The effects could range from a boost to these U.S. dollar-denominated markets because of a weaker greenback to potential benefits for copper as a result of a possible rise in infrastructure spending. Mr. Trump's opposition to international trade deals, and what analysts said is a lack of clarity in his policies, could slow global economic growth and pull down commodities prices, some market participants said. "Uncertainty about who is going to be president has now been replaced with risk, and that will hit every asset class, including commodities," said Neil Williams, chief economist at Hermès Investment Management. Crude-oil prices declined along with other markets as investors fled from risky assets in the immediate aftermath of Mr. Trump's victory in the U.S. presidential election, but tides turned as the stock market bounced back. U.S. crude ended up 29 cents, or 0.6%, at $45.27 a barrel, and Brent, the global gauge, gained 32 cents, or 0.7%, to $46.36. J.P. Morgan analysts predicted Brent could be trading at $43 a barrel within a week of the Trump victory. The picture for oil isn't straightforward. Some analysts said a Trump presidency will increase geopolitical tensions and noted the president-elect's hostility to Iran, a major oil producer, which has just returned to global crude markets. New sanctions on Iran could curb the enthusiasm of foreign companies looking to invest in Iran's energy sector, according to analysts at RBC Markets, and so hit supply. But Mr. Trump is also expected to dial down regulation of the U.S. fracking industry, while his hostility to global climate deals could be a positive for the fossil-fuel industry. A Trump presidency is expected to help the U.S. coal industry with a potential reversal of environmental regulations that have seen closures of U.S. coal-power plants and stymied demand for the fuel. Still, these measures could both increase demand for coal and its supply, meaning the effect on the commodity's price is unclear. Mr. Trump could also introduce subsidies for U.S. miners, said Tom Pugh, an analyst at Capital Economics. "He's pledged to revive the coal industry, which implies support for failing mines, so you could get a big boost to the supply side, so the industry is a winner," he said. Any impact on oil could be overwhelmed by developments at the Organization of the Petroleum Exporting Countries, the most important influence on market supply. Meanwhile, gold has benefited the most from Mr. Trump's election run. Gold futures in New York settled down 80 cents at $1,272.60 a troy ounce on Wednesday, having initially surged as investors sought havens. Analysts have begun to question whether the Federal Reserve will cut U.S. interest rates in December, as was expected. A postponement could be bullish for gold, which doesn't offer a yield and so becomes less competitive against assets that do. The U.S. election result pushed analysts to revise their predictions for gold. Capital economics now expects the metal to climb to $1,400 an ounce by year-end, a $100 rise from its last prediction. The picture is more mixed for industrial metals. Overall, investors said they believe the U.S. election results may hurt metals ranging from copper to tin, given that Mr. Trump's often-protectionist statements raise worries about a hit to global trade. This could also hurt global economic growth, to which metals such as copper and aluminum are especially sensitive. J.P. Morgan Chase & Co. predicts that copper will decline to $4,760 a ton, down from $5,393.50 a ton early Wednesday. "His protectionism is clearly bad for the economy, and that hurts demand for commodities," Mr. Williams of Hermès said. Still, others foresee a potential silver lining for copper. Mr. Trump's promise to increase infrastructure investment could be a bullish development for the metal, said Ole Hansen, head of commodity strategy at Saxo Bank. On Wednesday, copper futures rose 3.4% to $2.4590 a pound on the Comex division of the New York Mercantile Exchange, after Mr. Trump reiterated that promise in his first postelection speech. Another potential plus for all commodities is any weakness in the dollar, which most resources are priced in, making them cheaper for those investors who hold other currencies. The shifting dollar helped move some agricultural commodities such as grains and coffee on Wednesday. The Wall Street Journal Dollar Index, which tracks the greenback against a basket of other currencies, initially slumped after Mr. Trump's victory before trading higher later in the day. Write to Georgi Kantchev at georgi.kantchev@wsj.com and Sarah Mcfarlane at sarah.mcfarlane@wsj.com Credit: By Georgi Kantchev and Sarah Mcfarlane
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 9, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837170522
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837170522?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil, Coal Seen as Winners With Trump Victory; Donald Trump promised to cut regulations on the coal and oil sectors, and end U.S. participation in global efforts to curb climate change
Author: Kent, Sarah; Faucon, Benoit; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Nov 2016: n/a.
Abstract:
Republican Donald Trump's election as U.S. president promises relief for U.S. coal miners, a boost for American oil players and fresh uncertainty for Western energy companies' plans to return to Iran, as he seeks to undo eight years of Obama administration energy policy.
Full text: Republican Donald Trump's election as U.S. president promises relief for U.S. coal miners, a boost for American oil players and fresh uncertainty for Western energy companies' plans to return to Iran, as he seeks to undo eight years of Obama administration energy policy. Mr. Trump was often vague on specifics on energy policy but his aim was clear. He said he would pull back regulations that weighed on coal and petroleum sectors, end U.S. participation in global efforts to curb climate change and review a deal to lift sanctions on oil-rich Iran Mr. Trump's energy ideas are "basically the antithesis of the current administration's," said consultancy JBC Energy. His surprise election sent energy stocks down on Wednesday morning, as BP PLC fell 1.5% in London trading, while Royal Dutch Shell declined by 1% PLC. The FTSE 350 oil and gas index fell 1.2% in early trading. Mr. Trump's victory should be viewed as positive for U.S. oil companies, said Alexandre Andlauer, head of oil and gas at Alphavalue. The president-elect has promised to ease regulations, lift limits on mining and drilling on federal land and promote the construction of energy-related infrastructure such as controversial oil and gas pipelines. "In relative terms, the oil and gas industry is a clear winner with the new president. Pipeline players and suppliers first, then all shale players, followed by the conventional ones" said Mr. Andlauer. "U.S. oil companies have a better future today than yesterday." Some of the most dramatic changes Mr. Trump promised were in the coal sector, which has been hit by a wave of bankruptcies that included the country's biggest miner Peabody Energy Corp. Mr. Trump has promised to reverse this decline by repealing a host of energy and environmental regulations that have hit the sector. "We will put our coal miners and our steelworkers back to work, where they want to be," Mr. Trump told a business-friendly audience at the Detroit Economic Club earlier this year. But many of those promises may be challenging to fulfill. A new president can't easily undo existing regulations and many of the coal industry's troubles go beyond U.S. policy to rest on world-wide market trends that are likely to persist regardless of any actions Mr. Trump may take as president. Mr. Trump's support for coal could come at the expense of U.S. natural-gas producers, whose flood of new output in recent years has hurt the coal industry. Supporting domestic coal production could free some gas for export, meaning more liquefied natural gas going to crowded markets such as Europe. That could also further depress prices for LNG, of which there is a large oversupply globally. Uncertainty over Mr. Trump's foreign policy is another significant wild card for the energy industry. He was an intense critic of Mr. Obama's deal to lift international sanctions on Iran in exchange for curbs on the country's nuclear program, calling for doubling or tripling sanctions on the Islamic Republic to force more concessions. Energy companies had been waiting for the results of the U.S. election before making a move into Iran because there are still American sanctions over terrorism and weapons they don't want to run afoul of. One exception was French oil giant Total SA, which on Tuesday announced a $4.8 billion deal to develop an Iranian natural-gas field in the Persian Gulf. An executive at another European company trying to enter Iran's oil fields said it would make it difficult for his company to quickly follow on Total's footsteps now that Mr. Trump has been elected "Everything is going to slow down," the executive said. "It's going to be wait-and-see." Write to Sarah Kent at sarah.kent@wsj.com , Benoit Faucon at benoit.faucon@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Sarah Kent, Benoit Faucon and Kevin Baxter
Subject: Coal industry; Sanctions; Presidents; Natural gas; Energy policy; Coal; Energy industry
Location: United States--US Iran
Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Detroit Economic Club; NAICS: 813910; Name: Peabody Energy Corp; NAICS: 212112; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 9, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837206207
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837206207?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Stockpiles Rise; Fuels Decline; Crude-oil stockpiles rose by 2.4 million barrels in the latest week, according to the EIA
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Nov 2016: n/a.
Abstract:
U.S. crude oil stockpiles increased more than expected for the week ended Nov 4, but fuel supplies declined sharply, according to data released Wednesday by the Energy Information Administration.
Full text: U.S. crude oil stockpiles increased more than expected for the week ended Nov 4, but fuel supplies declined sharply, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles rose by 2.4 million barrels to 485 million barrels, which is near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 900,000 barrels on the week. Oil stored at the Cushing, Okla., delivery point for U.S. stocks, increased by 28,000 barrels to 58.5 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 2.8 million barrels to 221 million barrels. Analysts were expecting inventories to fall by 600,000 barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 1.9 million barrels to 148.6 million barrels, but are still "well above" the upper limit of the average range, the EIA said. Analysts had correctly forecast supplies to fall by 1.9 million barrels from a week earlier. Refining capacity utilization surged by 1.9 percentage point from the previous week to 87.1%. Analysts were expecting utilization levels to rise by a more modest 0.5 percentage points. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 9, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837305610
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837305610?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Lower; Overhang and OPEC Uncertainty Weigh; January Brent crude fell $0.11 to $46.25 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Nov 2016: n/a.
Abstract:
Oil prices, along with global equities and other commodities, were volatile after Republican candidate Donald Trump pulled a stunning upset in the U.S. presidential race on Wednesday.
Full text: Oil prices moved lower in Thursday morning Asian trade as investors shifted their attention back to the lingering supply overhang and concerns that major oil producers can deliver an effective deal to rein in production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $45.04 a barrel at 0244 GMT, down $0.23 in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell $0.11 to $46.25 a barrel. Oil prices, along with global equities and other commodities, were volatile after Republican candidate Donald Trump pulled a stunning upset in the U.S. presidential race on Wednesday. Prices sank to month lows but risk-aversion sentiment soon ebbed, followed by a rebound. "Investors have brushed aside the shock of the Trump victory in the U.S. election and surged higher," said ANZ Research. However, with many of his policy measures still unknown, volatility is expected to be high in the coming days, it said. Asia equities markets were broadly higher today with the Hang Seng Index up 2%, Korea's Kospi gaining 1.9%, and Japan's Nikkei surging 5.7%. Gold, a safe-haven asset, edged up 0.6% at $1,286.70 an ounce, retreating from above $1,300/oz seen after Trump's victory was announced. A Trump presidency could spell lower oil prices for longer given his strong support for U.S. frackers. The president-elect has favoured plans to lift restrictions on tapping energy reserves, approve the Keystone XL pipeline, and cancel billions in payment to the United Nations climate-change programs. The move will likely buoy crude production in the U.S., analysts said. U.S. crude production is already on an uptrend as producers are eager to capture the rising prices. The Energy Information Administration this week raised the forecast on U.S. crude output, saying production would fall slower than expected, led by a ramp-up in drilling in west Texas. The agency now expects U.S. oil output to average 8.84 million barrels a day this year and 8.73 million barrels a day next year, up from its earlier forecasts of 8.73 million in 2016 and 8.59 million in 2017. In the week ended November 4, U.S. crude inventories rose by 2.4 million barrels. Production also rose by 170,000 barrels to 8.7 million barrels a day, according to the latest EIA data. Some analysts say crude demand growth might also be at risk. With Mr. Trump and his party critical of international trade, "uncertainty may act as a drag on important economies in Latin America and Asia," said consultancy FGE. Going forward, the oil market will look to the Organization of the Petroleum Exporting Countries for direction. The cartel is set to meet on Nov. 30 to approve a plan to cap the group's production to between 32.5 to 33 million barrels a day. However, skeptics say even if an agreement is achieved, enforcement of individual production quotas would be weak. Furthermore, with many key producers already pumping close to peak capacity, freezing at this levels won't help abate the overhang anytime soon. "With record October output from both Russia and OPEC producers already pushing back the calendar on when the global market might rebalance," said Tim Evans, a Citi Futures analyst. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 21 points to $1.3551 a gallon, while December diesel traded at $1.4378, 33 points lower. ICE gasoil for December changed hands at $421.50 a metric ton, up $2.00 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Futures; Crude oil prices; Price increases; Crude oil
Location: United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: United Nations--UN; NAICS: 928120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 10, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837450452
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837450452?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Monterey Ballot Vote Is Rare Victory for Anti-Fracking Movement in Oil Country; Measure Z bans fracking and new wells in California county
Author: Harder, Amy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Nov 2016: n/a.
Abstract:
Industry officials warned that Measure Z would shut down Monterey's oil production, with its ban on new wells and its requirement that companies to stop using wells and ponds to dispose of water produced as a drilling byproduct.
Full text: The national anti-fracking movement scored a victory in California this week as voters in Monterey County approved a ballot measure to ban fracking in one of the state's biggest oil-producing counties. Two counties bordering Monterey, San Benito and Santa Cruz, had banned the contentious extraction method, although neither had a sizable oil industry. Monterey's San Ardo oil field, in contrast, has been churning out crude for nearly 70 years, making Monterey the fourth-largest oil-producing county in California. Measure Z, an initiative on Monterey County's ballot, bans fracking and new wells and restricts how oil companies use water byproducts. The measure passed Tuesday by a 56%-44% margin While Monterey doesn't have any actual fracking--a process by which sand and chemicals are injected underground to unlock oil and gas--the term has become a proxy to encompass all oil and gas drilling. Industry officials warned that Measure Z would shut down Monterey's oil production, with its ban on new wells and its requirement that companies to stop using wells and ponds to dispose of water produced as a drilling byproduct. The Monterey vote represents a rare win for the anti-fracking movement in oil country. Of the hundreds of anti-fracking and similar measures across the U.S., almost all were enacted in places where there is little or no oil or gas production. Vermont banned fracking in 2012, despite having no commercial natural gas or oil resources, and New York followed suit in 2014 . While New York doesn't have a sizable oil industry, the ban did head off any potential growth of the sector there. Where fossil fuels are produced in any significant quantity by any method, such measures have generally failed. In Colorado, activists couldn't gather enough signatures to get two anti-fracking measures on the ballot this year. Voters in Denton, Texas, passed a binding measure against fracking, but the state quickly passed a law prohibiting local bans. Texas is the nation's largest producer of oil and natural gas, according to the U.S. Energy Information Administration. As for the Monterey ban, "it's clearly significant because it's not theoretical," said Amy Myers Jaffe, executive director for energy and sustainability at the University of California, Davis. Environmentalists and some other residents living close to wells worry about water contamination from fracking, and they are also concerned about the broader climate change impacts of oil and gas drilling. The Monterey ballot initiative fight was closely watched by national groups on both sides. Supporters received donations and other help from national environmental groups. Monterey County for Energy Independence, which opposed the measure, outspent backers roughly 30 to 1, according to election filings through Oct. 22, spending nearly $5.5 million. That group is funded almost entirely by Chevron Corp. and Aera Energy LLC, a joint venture between Exxon Mobil Corp. and Royal Dutch Shell PLC. Anti-fracking groups applauded the measure's passage this week. "We congratulate the people of Monterey County for banning fracking and protecting California's water, agriculture and public health," said Adam Scow, California director for Food & Water Watch. "This campaign proves that everyday people can defeat Big Oil's millions, even in a place where it is actively drilling." Mr. Scow said he hoped Monterey's action generates momentum for a statewide ban. A spokeswoman for the industry-funded campaign against the measure said it could hurt the county's economy. "Hundreds of local jobs and millions of dollars in local revenue have been put at risk," Karen Hanretty said. "It is unfortunate that proponents of Measure Z were not forthcoming about the real intent of Measure Z and its impact on 70 years of safe and responsible oil production in Monterey County." Ms. Hanretty didn't comment on whether the companies would sue, but one of the arguments put forth by the group during the campaign was that lawsuits against the measure could bankrupt the county. A spokeswoman for Chevron said the company was evaluating its options "to protect our rights in Monterey County." A spokeswoman for Aera Energy, the other major operator in the San Ardo oil field, said the firm was also exploring legal options. Write to Amy Harder at amy.harder@wsj.com Credit: By Amy Harder
Subject: Natural gas; Petroleum industry; Petroleum production; Referendums
Location: United States--US California New York
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 10, 2016
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837552962
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837552962?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Oil Output Expected to Remain High in November, Says IEA; Cartel faces tough challenge deciding how to cut output at this month's meeting
Author: Williams, Selina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Nov 2016: n/a.
Abstract:
In September, the Organization of the Petroleum Exporting Countries agreed in Algiers to reduce the amount of oil it pumps by as much as 2% to tackle a global glut in oil supply in an effort to prop up sagging oil prices.
Full text: OPEC's oil production rose to record highs in October and is expected to remain elevated this month, a top industry watchdog reported Thursday, highlighting the challenge the cartel will face hammering out a plan to cut output at its meeting later this month. In September, the Organization of the Petroleum Exporting Countries agreed in Algiers to reduce the amount of oil it pumps by as much as 2% to tackle a global glut in oil supply in an effort to prop up sagging oil prices. But since then the group's members have failed to agree on how much each country would trim output, reaching a deadlock at recent preparatory talks in Vienna. In its closely watched monthly report on the oil market, the International Energy Agency said OPEC crude output rose by a 230,000 barrels a day to a record high of 33.83 million barrels a day in October, well in excess of the high-end of its proposed output range. Such a level of production would imply that the group would need to cut by between 830,000 barrels a day to 1.33 million barrels a day to reach the ceiling range it agreed in Algiers. "We can't predict the outcome of the November 30 meeting, but we can see the scale of the task ahead," said the IEA, which advises industrialized nations on their energy policy. OPEC's crude output rose for the fifth consecutive month in October after production recovered in Nigeria and Libya and flows from Iraq hit an all-time high of 4.59 million barrels a day. OPEC's task of trimming global oil supplies is further challenged by producers outside the cartel, such as Russia, Brazil, Canada and Kazakhstan, which are also ramping up the amount they produce, the IEA said. "This means that 2017 could be another year of relentless global supply growth similar to that seen in 2016," the IEA said. The potential for increased oil supplies comes as the IEA kept its outlook for world oil demand growth this year and next unchanged at 1.2 million b/d as economic activity has been muted, despite the more than two-year slump in oil prices. The collapse in oil prices from more than $100 a barrel in mid-2014 to below $50 currently has roiled the oil sector, forcing companies to cut spending and jobs and hammering the economies of OPEC producers, notably Venezuela, that rely on oil revenue. Write to Selina Williams at selina.williams@wsj.com Credit: By Selina Williams
Subject: International markets; Supply & demand; Cartels; Crude oil prices; Petroleum production
Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 10, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837553534
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837553534?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall as IEA Reports Record OPEC Production; Group's member nations set to meet Nov. 30 to approve plan to cap output
Author: McFarlane, Sarah; Hsu, Jenny W; Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Nov 2016: n/a.
Abstract:
"The IEA didn't change its forecast in terms of global oil demand, so the growth outlook is fairly lackluster," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. "That means that the issue of excess supply that permeates markets currently is going to extend into next year."
Full text: Oil prices fell Thursday after the International Energy Agency reported record production from Organization of the Petroleum Exporting Countries members and subdued expectations for demand growth. Light, sweet crude for December delivery settled down 61 cents, or 1.4%, at $44.66 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 52 cents, or 1.1%, to $45.84 a barrel on ICE Futures Europe. The IEA's monthly report showed OPEC members pumped a record 33.83 million barrels a day in October , making the scale of the output cut needed to stabilize prices being discussed by the group's members later in November look increasingly challenging. "The IEA didn't change its forecast in terms of global oil demand, so the growth outlook is fairly lackluster," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. "That means that the issue of excess supply that permeates markets currently is going to extend into next year." OPEC is set to meet Nov. 30 to approve a plan to cap the group's production to between 32.5 million to 33 million barrels a day. But traders have been selling in recent weeks as output surged despite the promises of a cut. Even if an agreement is signed, enforcement of individual production quotas could be weak. With many key producers already pumping close to peak capacity, freezing output at these levels wouldn't help abate the overhang soon, according to many bearish traders. "They're trying to come up with a deal, but pumping more oil out than it ever had," said Mark Waggoner, president of brokerage Excel Futures. "It just doesn't make any sense to me." A Trump presidency could also lead to lower oil prices for longer given his strong support for fracking in the U.S. The president-elect has favored plans to lift restrictions on tapping energy reserves , approve the Keystone XL pipeline, and cancel billions in payment to the United Nations climate-change programs. The move will likely buoy crude production in the U.S., analysts said. U.S. crude production is already on an uptrend as producers are eager to capture the rising prices. The Energy Information Administration this week raised the forecast on U.S. crude output , saying production would fall slower than expected, led by a ramp-up in drilling in west Texas. The agency now expects U.S. oil output to average 8.84 million barrels a day this year and 8.73 million barrels a day next year, up from its earlier forecasts of 8.73 million in 2016 and 8.59 million in 2017. That, combined with the output from international exporters has spread pessimism about the end of oversupply. "The optimism continues to wane," said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. "And the pessimism continues to expand. And the trading community sells all rallies aggressively." Gasoline futures lost 1.95 cents, or 1.4%, to $1.3377, its seventh-straight losing session and lowest settlement since Sept. 6. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com , Jenny W. Hsu at jenny.hsu@wsj.com and Timothy Puko at tim.puko@wsj.com Credit: By Sarah McFarlane, Jenny W. Hsu and Timothy Puko
Subject: Crude oil prices; Cartels; Pessimism
Location: United States--US
People: Trump, Donald J
Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: United Nations--UN; NAICS: 928120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 10, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837566116
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837566116?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Crescent Point Loss Narrows on Cost-Cutting Efforts; The Canadian oil producer said capital costs in its latest quarter were 12% lower than its final quarter of 2015
Author: McKinnon, Judy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Nov 2016: n/a.
Abstract:
Crescent Point Energy Corp. reported a smaller third-quarter loss on Thursday, as cost-cutting efforts helped offset a drop in production and lower average oil and gas prices.
Full text: Crescent Point Energy Corp. reported a smaller third-quarter loss on Thursday, as cost-cutting efforts helped offset a drop in production and lower average oil and gas prices. The Calgary, Alberta-based oil producer said capital costs in its latest quarter ended Sept. 30 were about 12% lower than its final quarter of 2015, noting that reductions in some areas were as high as 23%. Crescent Point, like other oil and gas producers contending with low oil and gas prices, has focused on cutting costs to shore up its balance sheet. Earlier this year, it pared spending plans and cut its dividend. The company posted a loss of 108.5 million Canadian dollars ($81 million), or 21 Canadian cents, in its latest quarter. That's down from its year-earlier loss of C$201.3 million, or 40 Canadian cents. Adjusted to exclude items, it had a loss of 4 Canadian cents a share, which was better than the 8-Canadian-cent loss analysts polled by Thomson Reuters expected. Cash flow fell 24%, the company said, with overall production down 7% to 160,610 barrels of oil equivalent a day. Average selling prices fell 5% from year-earlier levels on a barrel of oil equivalent basis, largely due to a 19% drop in natural gas prices. Overall operating expenses were down 11% in its latest quarter, due in part to lower production, reduce maintenance activities and improved labor and chemical costs. The company said production results came in ahead of its expectations, which it said puts it on track to meet or exceed its production guidance for the year of 167,000 barrels of oil equivalent a day. Write to Judy McKinnon at judy.mckinnon@wsj.com Credit: By Judy McKinnon
Subject: Financial performance; Losses; Capital costs; Cost reduction; Natural gas prices
Location: Calgary Alberta Canada
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Crescent Point Energy Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 10, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837608171
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837608171?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Shell Plans to Invest $10 Billion in Brazil Over Next Five Years; Foreign oil firms have eyed country with renewed interest since Dilma Rousseff's impeachment
Author: Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Nov 2016: n/a.
Abstract: None available.
Full text: RIO DE JANEIRO--Oil major Shell is planning to continue investing heavily in Brazil as part of a bid to double its global deep water production by the early 2020s. Shell plans to invest $10 billion in the South American nation over the next five years, Wael Sawan, the company's executive vice president for deep water, said in an interview this week. That would come on top of the more than $30 billion in capital the company says it has deployed in Brazil, where it operates 5,500 energy stations and acquired a large number of oil-and-gas assets earlier this year via its takeover of BG Group PLC. "We are by far the largest foreign investor," Mr. Sawan said. "Every single year we will be investing around $2 billion." Foreign oil firms have been eyeing Brazil with renewed interest in recent months since the impeachment of President Dilma Rousseff opened the door for an administration widely seen as more friendly to investors . The new president, Michel Temer, is pushing legislation aimed at encouraging investment in the oil sector as part of broader effort to dig Brazil out of its worst recession in at least a century. Shell held a series of investor presentations in Brazil this week. Chief Executive Ben van Beurden met with Mr. Temer in Brasília on Thursday. "We continue to be encouraged by what we hear, at the government level, at the ministerial level, what we read in the press, what we have in our meetings with government officials," Mr. Sawan said. "The fundamental view that foreign investment is good for the country, and specifically in the oil and gas sector...gives us confidence that we are welcome here." Shell's roughly $50 billion acquisition of BG was driven in large part by its assets off the Brazilian coast. Mr. Sawan said these and other assets in Brazil should produce 400,000 barrels of oil per day in coming years, accounting for much of the 900,000 barrels per day of oil that Shell aims to produce in deep water starting around 2020. Deep water output last year amounted to 450,000 barrels. Company executives say Shell's 103-year presence in Brazil makes them comfortable with the country's often-challenging investment environment. Shell was one of only a few foreign oil firms that bid on a massive offshore oil deposit named Libra that Brazil auctioned off in 2013, snapping up a 20% stake. That auction attracted relatively little interest from private companies because of rules obliging Brazilian state-run oil firm Petróleo Brasileiro SA to operate the oil field. Brazil's Congress voted in October to ease restrictions on foreign investment on such oil fields, known as the pre-salt. Write to Paul Kiernan at paul.kiernan@wsj.com Related Coverage * Petrobras to Cut Gasoline and Diesel Prices (Nov. 7) * Brazil's Lower House Votes to Allow Foreign Investment in Offshore Oil Fields (Oct. 5) * Shell Planning Fresh Spending Cuts In Wake Of BG Deal (June 7) * Oil Slump Sets Scene for Mergers (Jan. 28) Credit: By Paul Kiernan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 10, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837741998
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837741998?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Petrobras Posts Big Loss on Write-downs; Brazilian state-run oil company says reviews, exchange-rate fluctuations contributed charges; analysts had forecast third-quarter profit
Author: Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Nov 2016: n/a.
Abstract: None available.
Full text: RIO DE JANEIRO--Brazilian state-run oil company Petróleo Brasileiro SA reported a massive net loss in the third quarter due to billions of dollars in impairment charges, the latest unexpected blow to a company that investors had hoped was turning a corner after years of struggles. Petrobras posted a net loss of 16.46 billion Brazilian reais ($5.05 billion), likely stunning analysts who had expected the company to turn a 1.52 billion real profit, according to the median estimate in a FactSet survey. Petrobras had posted a loss of 3.76 billion reais in the third quarter of 2015. Behind the ugly bottom line were write-downs of 15.29 billion reais, mostly in the "upstream" division responsible for oil exploration and production, and its "downstream" division responsible for refining and distribution of fuels. Petrobras attributed the write-downs to a "review of projects in the investment portfolio," exchange-rate fluctuations and a "review of the set of premises, such as the price of Brent [crude] and the long-term exchange rate." The company's operating results were further hampered by an employee buyout program as well as 1.182 billion reais in provisions to settle investor lawsuits against the company related to its role in a corruption scandal. The latter issue has cost Petrobras dearly. Since 2014, prosecutors have been uncovering a sprawling scheme whereby Brazil's largest construction companies formed a cartel to overcharge Petrobras for major contracts and paid kickbacks to former executives at the oil company. Thursday's write-downs bring Petrobras's total since 2014 to a staggering 117 billion reais, or around $37 billion at the exchange rates of the time. Now, Petrobras is in a race against the clock to whittle down the global oil industry's tallest mountain of debt: $122.65 billion as of Sept. 30, or nearly triple that of Exxon Mobil Corp., which brings in almost three times the Brazilian company's revenue. To pay off its nearly $50 billion in debt coming due through 2019, Petrobras faces the tricky challenge of selling assets and canceling investments but not causing a major hit to its production. The company reduced its capital expenditures by 26% in the first nine months of 2016 from a year earlier to 41.29 billion reais. Petrobras' sales fell 14% in the third quarter from a year earlier to 70.44 billion reais, which was below expectations. Adjusted earnings before interest, taxes, depreciation and amortization rose 39% to 21.6 billion reais. Credit: By Paul Kiernan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 10, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837780361
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837780361?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Carlyle Hedge Fund's $400 Million African-Refinery Investment Disappears; Carlyle's Vermillion loses $400 million investment tied to Moroccan oil refinery
Author: Jarzemsky, Matt; Chung, Juliet
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Nov 2016: n/a.
Abstract:
Other creditors include BP PLC and Glencore PLC. The loss represents the latest misstep in Carlyle's hedge-fund business, which has suffered declines in commodity and credit investments and investor withdrawals.
Full text: A Carlyle Group LP hedge fund has lost the $400 million it invested last year in a Moroccan oil-refinery deal, according to a securities filing and people familiar with the matter. The hedge fund, known as Vermillion, was to receive a share of revenue at the refinery, which ran into financial trouble and was seized by Moroccan authorities later in 2015, the people said. The refinery, known as Societe Anonyme Marocaine de l'Industrie du Raffinage, or Samir, was put into liquidation this year. In a note in the Washington, D.C., private-equity firm's quarterly filing last week, Carlyle said it believes $400 million in petroleum commodities were "misappropriated by third parties outside the U.S." It didn't identify the soured deal or name the third parties. The note, which hasn't previously been reported on, refers to Samir, the people said. Carlyle has spent $5 million in legal and professional fees trying to get its money back and expects the matter could lead to litigation and "significant additional costs or liabilities," according to the filing. It has also received a redemption request from an unnamed investor as a result of the episode, additional details of which remain murky. Carlyle expects to join a group similar to creditors committees that are formed in U.S. chapter 11 cases, the people said. But the prospects for a recovery of its investment are less clear than they would be in a U.S. bankruptcy proceeding. Other creditors include BP PLC and Glencore PLC. The loss represents the latest misstep in Carlyle's hedge-fund business, which has suffered declines in commodity and credit investments and investor withdrawals. Carlyle is pulling back from the business and plans to focus more on corporate lending. Co-founder William Conway said on an earnings call last month that Carlyle is decreasing its "exposure to shorter-term trading businesses, areas where, frankly, we have not performed well." Carlyle expects to have about $1 billion of hedge-fund assets by year-end, down from $14.7 billion as of the third quarter of 2014. Carlyle and other big private-equity firms moved into hedge funds to diversify beyond their corporate buyout businesses. Carlyle's most-recent foray into hedge funds began in 2010. It bought a majority stake in Claren Road Asset Management, followed later by deals for Emerging Sovereign Group, or ESG, and Vermillion. It also purchased a Canadian fund of hedge-funds firm, Diversified Global Asset Management. Carlyle has since sold back its stake in ESG to that firm's founders, closed DGAM and is in the process of winding down Vermillion, which is now called Carlyle Commodity Management. It is evaluating options for Claren Road, including selling back its stake to the firm's founders or shutting the business down, a person familiar with the matter said. The two former Morgan Stanley executives who oversaw Carlyle's push into hedge funds, Mitch Petrick and Jacques Chappuis, have stepped down from the business. Mr. Petrick remains a senior adviser to Carlyle and Mr. Chappuis has returned to Morgan Stanley. The troubled African commodities deal highlights the risks U.S. investors face in emerging markets with less familiar investor-protection laws. Firms focused on credit and commodities have ventured to Brazil, Greece and other far-flung locales looking for bargains amid soaring prices for some assets in the U.S. and other developed markets. Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com and Juliet Chung at juliet.chung@wsj.com Credit: By Matt Jarzemsky and Juliet Chung
Subject: Hedge funds; Private equity; Investment advisors; Commodities; Asset management
Location: United States--US Washington DC
Company / organization: Name: Claren Road Asset Management; NAICS: 525990; Name: Morgan Stanley; NAICS: 523110, 523120, 523920
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 10, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837785258
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837785258?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Futures Ease in Asia Amid Fresh Signs of Glut; January Brent crude lost 20 cents, or 0.4%, to $45.64 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Nov 2016: n/a.
Abstract:
Oil futures slipped in Asian trade Friday, extending their recent declines amid a persistent crude glut and dimming expectations for a production cut by the Organization of the Petroleum Exporting Countries.
Full text: Oil futures slipped in Asian trade Friday, extending their recent declines amid a persistent crude glut and dimming expectations for a production cut by the Organization of the Petroleum Exporting Countries. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $44.40 a barrel, down 26 cents, or 0.6%, in the Globex electronic session. January Brent crude on London's ICE Futures exchange lost 20 cents, or 0.4%, to $45.64 a barrel. Crude futures built on their earlier losses during the New York trading session, which saw declines of more than 1% in both crude contracts after the International Energy Agency reported a record OPEC production in October. The cartel pumped 33.83 million barrels a day last month, the agency said, a daunting figure that underscores the scale of action needed by the group in order to stabilize prices. OPEC is set to hold a meeting at the end of November, where members are set to approve a plan to cap production between 32.5 million and 33 million barrels a day. Prices have fallen in recent weeks on expectations that the cut will be difficult to pull off. Meanwhile, the election of Donald Trump as the next American president has added additional uncertainty into the oil market. Mr. Trump has pledged to loosen restrictions on U.S. oil production, which could boost output further, send prices lower and further complicate OPEC's role in the oil market . "It is thought Trump ... will push to make the U.S. more self-reliant via shale fields, so negative on the outlook for oil prices if the U.S. ramps up production," said Stuart Ive, private client manager at OM Financial. "This thought could also question OPEC's resolve to cap production levels." Earlier this week, the U.S. Energy Information Administration raised its forecast for U.S. crude output, saying production would fall slower than expected due in part to more drilling in Texas. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 14 points to $1.3391 a gallon, while December diesel traded at $1.4304, 62 points lower. ICE gasoil for December changed hands at $418.75 a metric ton, down $1.25 from Thursday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Futures; Petroleum production; Price increases; Cartels
Location: United States--US New York
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 11, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837810068
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837810068?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Global Finance: Carlyle Fund Loses $400 Million --- Hedge unit Vermillion invested in Moroccan oil-refinery deal last year that went sour
Author: Jarzemsky, Matt; Chung, Juliet
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Nov 2016: C.3.
Abstract:
Other creditors include BP PLC and Glencore PLC. The loss represents the latest misstep in Carlyle's hedge-fund business, which has suffered declines in commodity and credit investments and investor withdrawals.
Full text: A Carlyle Group LP hedge fund has lost the $400 million it invested last year in a Moroccan oil-refinery deal, according to a securities filing and people familiar with the matter. The hedge fund, known as Vermillion, was to receive a share of revenue at the refinery, which ran into financial trouble and was seized by Moroccan authorities later in 2015, the people said. The refinery, known as Societe Anonyme Marocaine de l'Industrie du Raffinage, or Samir, was put into liquidation this year. In a note in the Washington private-equity firm's quarterly filing last week, Carlyle said it believes $400 million in petroleum commodities were "misappropriated by third parties outside the U.S." It didn't identify the soured deal or name the third parties. The note, which hasn't previously been reported on, refers to Samir, the people said. Carlyle has spent $5 million in legal and professional fees trying to get its money back and expects the matter could lead to litigation and "significant additional costs or liabilities," according to the filing. It also has received a redemption request from an unnamed investor as a result of the episode. Carlyle expects to join a group similar to creditors' committees that are formed in U.S. chapter 11 cases, the people said. But the prospects for a recovery of its investment are less clear than they would be in a U.S. bankruptcy proceeding. Other creditors include BP PLC and Glencore PLC. The loss represents the latest misstep in Carlyle's hedge-fund business, which has suffered declines in commodity and credit investments and investor withdrawals. Carlyle is pulling back from the business and plans to focus more on corporate lending. Co-founder William Conway said on an earnings call last month that Carlyle is decreasing its "exposure to shorter-term trading businesses, areas where, frankly, we have not performed well." Carlyle expects to have about $1 billion of hedge-fund assets by year-end, down from $14.7 billion as of the third quarter of 2014. Carlyle and other big private-equity firms moved into hedge funds to diversify beyond their corporate buyout businesses. Carlyle's most-recent foray into hedge funds began in 2010. It bought a majority stake in Claren Road Asset Management, followed later by deals for Emerging Sovereign Group, or ESG, and Vermillion. It also purchased a Canadian fund of hedge-funds firm, Diversified Global Asset Management. Carlyle has since sold back its stake in ESG to that firm's founders, closed DGAM and is in the process of winding down Vermillion, which is now called Carlyle Commodity Management. It is evaluating options for Claren Road, including selling back its stake to the firm's founders or shutting down the business, a person familiar with the matter said. Credit: By Matt Jarzemsky and Juliet Chung
Subject: Losses; Hedge funds
Location: United States--US
Company / organization: Name: Carlyle Group; NAICS: 523110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: C.3
Publication year: 2016
Publication date: Nov 11, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837880552
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837880552?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: Th e Wall Street Journal
Oil Prices Fall on Lower Expectations of OPEC Output Cut; Donald Trump presidency seen likely to boost U.S. oil production
Author: Salvaterra, Neanda; Strumpf, Dan; Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Nov 2016: n/a.
Abstract:
U.S. oil prices extended their losing streak to three weeks, falling to an eight-week low amid a stubborn crude glut and lowered expectations for a production cut by the Organization of the Petroleum Exporting Countries.
Full text: U.S. oil prices extended their losing streak to three weeks, falling to an eight-week low amid a stubborn crude glut and lowered expectations for a production cut by the Organization of the Petroleum Exporting Countries. Light, sweet crude for December delivery settled down $1.25, or 2.8%, at $43.41 a barrel on the New York Mercantile Exchange. It was the largest losses of the week, pushing oil to its biggest losses over three weeks since January. Brent, the global benchmark, fell $1.09, or 2.4%, to $44.75 a barrel on ICE Futures Europe. Brent lost 83 cents, or 1.8% for the week, its fourth losing week in a row. It is Brent's largest decline over four seeks since July and the largest losing streak since August 2015. On Thursday the International Energy Agency reported that OPEC produced a record 33.83 million barrels a day in October. The record comes despite plans to push a new deal for output cuts when OPEC meets Nov. 30. The goal is a cap between 32.5 million and 33 million barrels a day, but as prices have fallen in recent weeks, cutting back to that number appears less attainable. "Everyone's gotten more realistic about what it's going to take OPEC to overcome these insurmountable hurdles," said Peter Donovan, broker for Liquidity Energy LLC in New York. The oil cartel's task of tightening the oil market is made more difficult by rival producers--including Brazil, Canada, Kazakhstan and Russia--all raising output, too. Analysts estimate Russia's oil output went up by 0.42 million barrels a day in October on a year-on-year basis, but the country has signaled a willingness to cooperate on a supply action. Russian Energy Minister Alexander Novak said on Thursday that Moscow could freeze crude production at November levels and said the country still prefers a freeze to production cuts, according to state news agencies. The country has failed to follow through on similar deals in the past. "Everyone is pumping as much as they can right now," said Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC. His firm has profited in recent weeks from spread bets that benefit from falling prices, he said. "Everyone is skeptical that a deal is going to be done." Futures contracts for later months also haven't fallen as quickly as for the near-term contracts, which keeps pressure on those near-term prices, a broker and analyst said. Demand is usually stronger in January than December anyway, dissuaded traders from buying, said Scott Shelton, broker at ICAP PLC. And there is even less incentive to buy if holding the front-month contract longer raises the risk of losing money by paying a large difference to roll December futures into January. "The optics are bad," Mr. Shelton said. The election of Donald Trump as the next American president has also added additional uncertainty into the oil market. Mr. Trump has pledged to loosen restrictions on U.S. oil production, which could boost output further, send prices lower and complicate OPEC's role in the oil market. "It is thought Trump...will push to make the U.S. more self-reliant via shale fields, so negative on the outlook for oil prices if the U.S. ramps up production," said Stuart Ive, private client manager at OM Financial. "This thought could also question OPEC's resolve to cap production levels." Earlier this week, the U.S. Energy Information Administration raised its forecast for U.S. crude output , saying production would fall slower than expected due in part to more drilling in Texas. The number of rigs drilling for oil in the U.S. rose by two in the past week to 452, according to oil-field services company Baker Hughes Inc. Recent increases in the rig count from historically low numbers are already translating into rebounding U.S. production, another factor in oil's decline this autumn, said Jim Ritterbusch, president of Ritterbusch & Associates. Gasoline futures lost 3.24 cents, or 2.4%, to $1.3053, its eighth-straight losing session and lowest settlement since Sept. 2. They lost 7.33 cents, or 5.3%, for the week, their third losing week in a row, which brought the biggest losses over three weeks since January. Diesel futures lost 3.54 cents, or 2.5%, to $1.4012 a gallon, the lowest settlement since Sept. 19. They lost 2.91 cents, or 2% for the week, their third-straight losing week. The 11% losses in that span are the market's largest since December. Laura Mills and Austen Hufford contributed to this article. Write to Neanda Salvaterra at neanda.salvaterra@wsj.com , Dan Strumpf at daniel.strumpf@wsj.com and Timothy Puko at tim.puko@wsj.com Credit: By Neanda Salvaterra, Dan Strumpf and Timothy Puko
Subject: Crude oil prices; Cartels; Petroleum production
Location: United States--US Russia
People: Novak, Alexander
Company / organization: Name: ICAP PLC; NAICS: 523140; Name: New York Mercantile Exchange; NAICS: 523210; Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 11, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837923943
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837923943?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC's Oil Production Cut in Doubt as Output Flows; OPEC members Nigeria, Libya and Iraq drove the bulk of the increase in October
Author: Williams, Selina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Nov 2016: n/a.
Abstract:
According to the report, the group was pumping almost 1 million barrels a day more than what is expects demand for its crude to be next year.
Full text: LONDON--The Organization of the Petroleum Exporting Countries pumped more crude oil last month even as the group geared up to complete a plan to cut output at its meeting at the end of this month in an effort to stabilize oil prices. OPEC's crude oil output increased by 240,000 barrels a day in October to 33.64 million barrels a day, the group said in its monthly oil market report Friday, with Nigeria, Libya and Iraq driving the supply boost. OPEC's October production is now well in excess of the high-end of the output range the group agreed to at a meeting in Algiers in September , highlighting the challenge members will face implementing that deal at its next meeting in Nov. 30 in Vienna. According to the report, the group was pumping almost 1 million barrels a day more than what is expects demand for its crude to be next year. The countries driving the bulk of the increase--Nigeria, Libya and Iraq--are those seeking exemptions from the cut. Without a cut, the world's oil stockpiles are likely to keep building, putting further pressure on oil prices, which are still trading below $50 a barrel , down from the more than $100 levels seen in mid-2014. "Looking ahead, it is important to consider the immediate impact that the assumed global supply/demand balance has on inventories, given the expected demand for OPEC crude in 2017 of 32.7 million barrels a day," OPEC said in its report. "Adjustments in both OPEC and non-OPEC supply will accelerate the drawdown of the existing substantial overhang in global oil stocks and help bring forward the rebalancing of the market," the report said. OPEC's task of trimming global oil supplies is further challenged by producers outside the cartel, such as Russia, Brazil, Canada and Kazakhstan, which are also ramping up the amount they produce. The potential for increased oil supplies comes as OPEC kept its outlook for world oil demand growth next year unchanged at 1.15 million b/d as economic activity has been muted, despite the more than two-year slump in oil prices. The collapse in oil prices from over $100 a barrel in mid-2014 to below $50 currently has roiled the oil sector, forcing companies to cut spending and jobs and hammering the economies of OPEC producers, notably Venezuela, that rely on oil revenues. Write to Selina Williams at selina.williams@wsj.com Credit: By Selina Williams
Subject: Crude oil prices; Supply & demand; Oil consumption; Cartels; Crude oil
Location: Nigeria Libya Iraq
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 11, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1837956170
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1837956170?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Mexico Industrial Output Posts Modest Increase in September; Data points to tepid demand for manufactured goods and lingering declines in oil output
Author: Montes, Juan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Nov 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexico industrial production posted a modest increase in September, highlighting tepid demand for manufactured goods and continued steep declines in oil output. Industrial production, a measure of output at factories, mines, utilities and oil fields, grew just 0.1% on a seasonally adjusted basis from August and was down 1.3% from September 2015, the national statistics agency said Friday. Output had been expected to decline 1.2% from a year before, according to the median estimate of seven economists polled by The Wall Street Journal. Struggling industrial production is behind Mexico's economic slowdown in the past year. The economy shrank 0.3% in the April-June period compared with the first quarter--with growth mainly supported by household consumption. Oil and gas production fell 9% in September from a year earlier. In the last 4 years, state-oil company Petróleos Mexicanos's crude oil output has declined 17.5% or around 440,000 barrels a day. Mexico is the world's eighth largest crude oil producer. Government spending cuts continued to weigh on construction, which increased 1% from a year before. Construction in infrastructure was down 14%. The bright spot was output at utilities, which expanded 2%. Manufacturing production--which accounts for around 16% of Mexico's gross domestic product--rose 0.4% from September 2015 and was 0.1% lower than August in seasonally adjusted terms. Manufacturing in Mexico has been battered by weak export demand, especially from the U.S. Mexico sends nearly 80% of its exports north of the border, while total exports represent around 32% of Mexico's economy. U.S. industrial output grew just 0.1% in September and was down 1% from a year before. Write to Juan Montes at juan.montes@wsj.com Credit: By Juan Montes
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 11, 2016
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838227228
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838227228?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Rose by Two in Latest Week; Baker Hughes says gas-rig count fell by two to 115 in past week
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Nov 2016: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by two in the past week to 452, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector.
Full text: The number of rigs drilling for oil in the U.S. rose by two in the past week to 452, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count fell sharply. The oil-rig count has generally been rising since the beginning of summer. The nation's gas-rig count fell by two to 115 in the past week, according to Baker Hughes. The U.S. offshore-rig count is unchanged from last week at 21, which is 12 fewer than a year ago. Oil prices were 2.5% lower at $43.55 a barrel in afternoon trading Friday. General Electric Co. reached a deal last month to combine its oil-and-gas business with Baker Hughes, creating a publicly traded energy powerhouse that would give GE a cost-effective way to play any recovery in the industry. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Oil service industry
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 11, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838258503
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838258503?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
ICE Considers Limits on Positions in Dubai Oil-Futures Contract; ICE Dubai 1st Line has grown rapidly in recently years, particularly with activity from Asia
Author: McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Nov 2016: n/a.
Abstract:
Exchange operator Intercontinental Exchange Inc. is considering limiting the size of positions investors can take in an influential Dubai oil-futures contract, aligning it with existing limits on Brent, the global benchmark, according to a consultation document.
Full text: Exchange operator Intercontinental Exchange Inc. is considering limiting the size of positions investors can take in an influential Dubai oil-futures contract, aligning it with existing limits on Brent, the global benchmark, according to a consultation document. Trading on ICE Dubai 1st Line, the benchmark for Middle Eastern oil, has grown rapidly in recent years, particularly with activity from Asia. It is the third most traded oil-futures benchmark behind ICE Futures Europe's Brent and CME Group Inc.'s WTI. ICE is proposing a limit of 6,000 lots on the delivery month, equivalent to six million barrels of oil, according to the document, which was submitted to the exchange's members. The proposed changes would apply from the May 2017 contract onward. Firms can apply for exemptions from the expiry limit if they are able to provide a commercial rationale, the document said. A spokesman for ICE confirmed the existence of the document but declined further comment. The document said these moves were aimed at securing the reliability of the Dubai contract. In 2015, investors complained after Chinese buyers scooped up a large portion of the physical market that these derivatives are based upon, sending both physical and futures prices sharply higher. Last August state-owned Chinese companies took up to 37 million barrels, or around 90% of the crude available in the Dubai market, according to data from energy information provider Platts. The futures market is based on Platts' daily assessment price for Dubai crude. Platts has since added two grades of oil to the basket it uses to calculate the Dubai benchmark. Market participants say the larger volume of oil available to calculate the benchmark, along with ICE's move to introduce position limits, will make it less likely any player could become particularly dominant. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Sarah McFarlane
Subject: Futures trading
Location: Dubai United Arab Emirates Asia
Company / organization: Name: Intercontinental Exchange Inc; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 11, 2016
Section: ABC
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838278343
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838278343?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Stree t Journal
China Oil Companies' Push Into U.S. Faces Uncertainty With Trump Victory; Industry experts see contradiction in Trump's pledge to promote drilling and rhetoric against globalization
Author: Spegele, Brian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Nov 2016: n/a.
Abstract:
[...]its companies have been scoping out potential investment in everything from stakes in U.S. oil and natural gas fields to energy infrastructure such as pipelines and export terminals on the Gulf of Mexico coast.
Full text: BEIJING--China's beleaguered oil sector could face fresh challenges following Donald Trump's election as president , with some in the industry warning that a harder U.S. line toward China could stymie potential investment in the U.S. energy patch. State-owned giants such as PetroChina Co. and China Petroleum & Chemical Corp. long viewed the U.S. as the golden egg of their global deal making ambitions, with its huge oil-and-gas reserves and a stable regulatory and political climate. Now Mr. Trump's election is brewing new uncertainty in the energy patch as experts see an inherent contradiction between Mr. Trump's pledge to promote oil-and-gas drilling and his campaign rhetoric decrying globalization. "Nobody knows what he'll do," said a person with ties to China's top oil executives who has promoted the idea of more Chinese energy investment in the U.S. An attorney who works with Chinese energy clients and others across Asia said he began fielding questions soon after Mr. Trump was declared victor. It has been "a constant barrage of questions about what does this really mean," said David Wochner, who leads the policy and regulatory practice at law firm K&L Gates. On one hand, Mr. Trump and his team could likely be convinced of the value to the U.S. economy of exporting more energy, he said. "But as you start to think about Asian investment--Chinese or otherwise--into U.S. energy infrastructure, and taking a stronger role perhaps in the U.S. energy market, and then having the ability to export the commodity to their home country, I think it becomes a bit of a guessing game at this point," he said. As a candidate, Mr. Trump pledged to slap a 45% tariff on Chinese imports and to brand China a currency manipulator. Either one would likely trigger retaliation by China's government, and sour bilateral ties between the countries. In many ways, the U.S. and China are natural partners when it comes to oil and gas. The U.S. has significant export ambitions--particularly of liquefied natural gas that increasingly is made from abundant shale reserves. At the same time, China is already a huge importer , and continues to grow each year. As a result, its companies have been scoping out potential investment in everything from stakes in U.S. oil and natural gas fields to energy infrastructure such as pipelines and export terminals on the Gulf of Mexico coast. That includes big state-owned energy giants and a host of smaller companies that are eager to cement their footprints abroad, say people who advise the companies. No doubt, getting a foot in the door in the U.S. has never been particularly easy for China's energy companies. Most notably is the failed takeover attempt of U.S. oil producer Unocal Corp. by China's state-owned Cnooc Ltd. in 2005. Cnooc's bid at the time suffered from a wave of anti-China sentiment on a wide range of issues including China's trade practices--closely mirroring what Mr. Trump says today. Under the Obama administration, Chinese companies found greater footing. They successfully completed a number of deals, including with U.S. shale pioneer Chesapeake Energy Corp. and others. Today Mr. Wochner advises China's energy companies to engage early with the new administration to form a better sense of how regulations may change. Political analysts say the uncertainty will spur much consternation in Beijing. Mr. Trump's victory likely increases the "level of political risk associated with investing in the United States in the eyes of many Chinese energy executives," said Erica Downs, a China energy expert at the consultancy Eurasia Group. "This will be a disappointment because of the good investment opportunities here." Write to Brian Spegele at brian.spegele@wsj.com Related * In Trump Win, China Hopes for U.S. Retreat (Nov. 9) * China's Oil Giants Shrink Their Spending (Oct. 31) * China's Oil Industry Destined for Big Changes (Aug. 26) * China's Decline in Oil Production Echoes Globally (Aug. 25) * China Oil Imports Rise to Fresh High in February (March 21) Credit: By Brian Spegele
Subject: Political campaigns; Natural gas; Energy industry; Natural gas reserves
Location: China United States--US
Company / organization: Name: China Petroleum & Chemical Corp; NAICS: 211111; Name: K & L Gates LLP; NAICS: 541110; Name: CNOOC Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 13, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838561929
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838561929?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
As Crude Collapsed, Alaska Capitalized on the U.S. Housing Bust; Fund's bid to put oil royalties into diverse investments yields a $300 million gain on rental homes
Author: Dezember, Ryan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Nov 2016: n/a.
Abstract:
Eventually the Alaska trustees came around, persuaded by B. Wayne Hughes, who made a fortune turning self-storage units into Public Storage, a real-estate investment trust with a $37 billion stock-market value.
Full text: Oil-rich Alaska has suffered with the collapse in crude prices. But it offset some losses with a big wager on another market that collapsed: housing. The fund that manages the state's oil royalties four years ago backed a self-storage magnate who was buying hundreds of millions of dollars worth of foreclosed homes. A year later the company went public as American Homes 4 Rent. That company is now the second-largest owner of rental homes in the U.S. with more than 48,000 properties and a lately rising stock price. In September, the oil fund sold the bulk of its American Homes 4 Rent shares at a $300 million profit, making the wager one of Alaska's top-performing investments in recent years, according to securities filings and state records. "Any time we have a large success like that it's a big deal," said Randall Hoffbeck, who heads Alaska's Revenue Department. The unconventional housing bet is part of Alaska's push to diversify the fund, called Alaska Permanent Fund, which invests royalties energy producers pay the state, as it seeks to boost gains amid waning oil revenue. An oil fund like Alaska's is rare in the U.S. Much of Alaska's oil is produced on state land, meaning royalties are paid to state coffers instead of to the federal government or individual landowners, as is typical in the rest of the country. In recent years the fund's investment profits have exceeded all other state income, including oil revenue. That puts Alaska in an enviable position among petrostates such as Saudi Arabia and others in the Middle East that are trying to diversify by investing oil money in publicly traded securities, real estate and other ventures. The Alaska Permanent Fund, which managed $53.9 billion as of Nov. 9, was created in 1976 to bank some of the royalties paid to the state by oil companies following huge crude discoveries in the state's North Slope. Those finds have supported the state's economy for the past four decades, but Alaska's oil production has dwindled in recent years as oil companies turned their attention to reserves--such as shale fields in the continental U.S.--that were easier and cheaper to bring to market. As oil prices have fallen from more than $100 a barrel in mid-2014 to less than $50, Alaska's revenue has declined 80% over the past two years, state officials say. To save cash, Alaska has eliminated hundreds of jobs, ended educational programs and even cut back on snow plowing. Gov. Bill Walker in September announced the unprecedented--and unpopular--step of cutting in half the annual dividend payment the Permanent Fund paid to residents. The Fund sent each resident a $1,022 check this year, for a total cost of about $696 million. Alaska has also been making more large bets that are unrelated to its typical investments, such as stocks, bonds and allocations to private-equity funds. A recent success was a $129 million investment in Seattle biopharmaceutical startup Juno Therapeutics Inc. Alaska this year sold about one-third of its stake in the company for $335 million; it still holds shares worth more than $500 million. Not all wagers have worked so well. The fund's $385 million stake in a London-listed fund that invests in energy deals alongside private-equity firm Riverstone Holdings LLC has lost value during the energy bust. In 2012 the fund's managers were particularly eager to capitalize on the "epic dislocation in the housing market," said Steve Moseley, who joined the fund in late 2013 to manage certain investments including the housing bet. The fund's trustees were initially skeptical about buying thousands of homes, according to minutes from the group's meetings. One trustee said it felt more like buying a concept rather than assets. Owning and renting single-family homes had been primarily a local, mom-and-pop business. But Wall Street jumped in after the financial crisis when millions of Americans lost their homes to foreclosure and huge numbers of homes could be bought for less than they cost to build. Blackstone Group LP, Starwood Capital Group and others raced to courthouse steps to buy foreclosed homes in bulk. Eventually the Alaska trustees came around, persuaded by B. Wayne Hughes, who made a fortune turning self-storage units into Public Storage, a real-estate investment trust with a $37 billion stock-market value. He was looking for cash to make a big housing bet. "It was a bold and unusual move," Mr. Moseley said of the trustees' decision to join Mr. Hughes, "and they put real money behind it." Mr. Hughes, now 83 and the chairman of American Homes 4 Rent, told Permanent Fund officials he wanted to identify the most desirable tenants and then find the sort of homes they would want to live in, according to fund meeting minutes. He focused on families with school-age children and annual incomes of around $85,000. The Alaska fund eventually wagered more on his idea, buying additional shares in American Homes 4 Rent's 2013 initial public offering and launching a separate $200 million venture with the company to buy upscale homes. Overall, the fund invested $925 million with Mr. Hughes, and continues to hold about 1.7 million shares as well as its interest in the high-end rental venture. After a few years of essentially flat trading, its shares have risen around 23% this year, giving Alaska an opportunity to pocket some of its gains. Write to Ryan Dezember at ryan.dezember@wsj.com Credit: By Ryan Dezember
Subject: Private equity; Housing; Investments; Royalties; Petroleum production; Equity funds; Oil & gas royalties
Location: United States--US
Company / organization: Name: Alaska Permanent Fund Corp; NAICS: 525110; Name: American Homes 4 Rent; NAICS: 531110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 13, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838572999
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838572999?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Does the Oil-and-Gas Industry Still Need Tax Breaks? Those in favor say the incentives have benefited a sector critical to the U.S. economy; those opposed say that by playing favorites, the deductions shift the tax burden to others
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Nov 2016: n/a.
Abstract:
[...]they crashed. U.S. independent producers--which lean the most heavily on the tax deductions and credits--have been hit hardest. Since 2015, more than 100 oil-and-gas producers have filed for bankruptcy.
Full text: U.S. oil-and-gas companies receive billions of dollars in federal tax incentives annually linked to activities such as tapping new wells. Do these incentives benefit consumers, or are they simply gifts that unfairly favor the fossil-fuel industry? The White House clearly is in the camp that wants the tax breaks reduced. Not only has President Barack Obama repeatedly called for a repeal of much of the oil-and-gas industry's favorable tax treatment, his budget proposal for fiscal 2017 included a new $10-a-barrel fee on oil to help fund low-carbon infrastructure projects. Those calling for an end to the breaks say oil-and-gas firms have made huge profits over the years and have more than enough incentive to continue doing business. They say Washington needs to end special carve-outs to overhaul the corporate tax code. Industry supporters see it differently. They say tax incentives have fueled investments in unconventional production, which has led to abundant supplies of oil and gas and lower prices for consumers. They believe the debate isn't really about taxes, but rather about climate-change crusaders wanting to punish the fossil-fuel industry. Mark J. Perry, a scholar at the American Enterprise Institute and a professor of economics in the School of Management at the University of Michigan-Flint, makes the case for keeping the industry's favorable tax treatment. Arguing against him is Ryan Alexander, president of Taxpayers for Common Sense, an advocacy group that monitors government spending. YES: The Breaks Have Benefited a Sector Critical to the U.S. Economy By Mark J. Perry The call to eliminate tax deductions for the oil and natural-gas industry is no less absurd today than it was in 2013, the last time the issue was a headline-maker. These incentives have encouraged domestic investment in energy production and enabled U.S. companies to compete with overseas rivals, allowing the American petroleum industry to flourish. But the tax breaks haven't just been good for oil-and-gas firms; they've also led to billions of dollars in savings for American consumers and businesses from lower energy costs. Have no illusions about it: Tax incentives are essential for unconventional oil-and-gas production, and there would have been no shale revolution without them. Incentives such as the intangible drilling deduction and the special percentage depletion allowance encouraged energy firms to invest hundreds of billions of dollars in the advanced technologies needed to tap shale formations richly endowed with oil and natural gas. Tax breaks also enabled producers to unlock sizable deposits of oil and gas in ultradeep waters. Together, these investments have put the U.S. on the path to becoming energy independent, a hopeless quest only 15 years ago. Oil powers more than 90% of the transportation sector, while natural gas heats almost half of our homes, powers much of the manufacturing sector and now generates the largest share of our electricity. Considering oil and gas are indispensable to our economy, we should be looking for ways to encourage more production, not looking for ways to punish producers. The truth is, the fight over the industry's tax deductions isn't really a fight about taxes. Rather it's a debate about the importance and future of fossil-fuel production in the U.S. For climate crusaders who view oil and gas as a problem instead of the lifeblood of our economy, rejiggering the tax code is seen as a catalyst for restructuring the energy economy. They began their assault on oil-and-gas producers under the guise of punishing the industry for "windfall profits." In 2013, critics called for eliminating industry tax credits and deductions, maintaining that $100-a-barrel oil was here to stay. It was inconceivable that the industry could ever again face lean times. But oil prices did fall. In fact, they crashed. Two years of low energy prices have wreaked havoc on the industry. U.S. independent producers--which lean the most heavily on the tax deductions and credits--have been hit hardest. Since 2015, more than 100 oil-and-gas producers have filed for bankruptcy. More than 1,000 drilling rigs have been idled in recent years, and more than 100,000 American workers let go. Profits for major firms in the industry have suffered. In the second quarter of this year, Exxon Mobil Corp. reported its smallest profit for any quarter since 1999 and Chevron Corp. and ConocoPhillips each had a loss of more than $2 billion in the first half of this year. Not surprisingly, criticism over industry profits has vanished as quickly as the peak-oil theory. The underlying cause of the debate is now fully in the open. The anti-fossil-fuel crowd is either dangerously ignorant of the importance of fossil fuels to the U.S. economy, or so blinded by its climate crusade it doesn't care that the attempt to put oil-and-gas producers at a disadvantage is essentially an attack on Americans' standard of living. Thanks to an abundance of domestic oil and gas, the amount U.S. consumers spend on energy has fallen below 4% of total consumer expenditures this year for the first time in history, according to the U.S. Bureau of Economic Analysis . In dollar terms, lower energy costs over just the past few years have translated into hundreds of billions of dollars in savings for American households, dwarfing any taxpayer savings that could be achieved by repealing oil-and-gas tax breaks. Tax reform might be fair if legitimate tax-deductible expenses were to be eliminated across the board for all industries that currently take them--including farmers, auto makers, food producers, drug companies and software firms--and if that were to be accompanied by reductions in the corporate tax rates that applied to a broader tax base. But singling out the elimination of legitimate tax-deductible production expenses for one of America's most essential industries--an industry critical to job creation, affordable energy and even our nation's national security--is the kind of misguided thinking we can't afford. Dr. Perry is a scholar at the American Enterprise Institute and a professor of economics in the School of Management at the University of Michigan-Flint. He can be reached at reports@wsj.com . NO: By Playing Favorites, They Shift the Tax Burden to Others By Ryan Alexander The tax breaks that Congress provides on income derived from or devoted to certain activities are designed to encourage that specific activity. But what they end up doing is distorting economic decision making and rewarding activity that would occur even without the special treatment. The oil-and-gas industry is a perfect example. It has enjoyed special tax preferences since the start of the modern income tax in the early 20th century. Yet despite the cyclical nature of oil-and-gas markets, the industry has made huge profits over the years and proved that demand for its products is more than enough incentive to continue doing business. We don't need--and can't afford--to continue to provide these incentives to this industry. Like all tax breaks, oil and gas exclusions are costly to the U.S. Treasury and shift the tax burden to others, either through higher current tax rates or borrowing that will increase taxes on future generations. Let's focus on two of the largest oil and gas tax breaks--the intangible drilling-costs deduction and the special percentage depletion allowance--and how they exemplify the kind of special carve-outs Congress needs to eliminate if it is to reform the corporate tax code. These special breaks offer producers significantly more generous capital cost write-offs than those available to other U.S. taxpayers. The intangible drilling costs deduction allows qualified oil-and-gas companies to immediately deduct all costs for designing and fabricating drilling platforms, including "wages, fuel, repairs, hauling and supplies related to drilling wells and preparing them for production." Companies in other industries that construct plants, equipment or other productive assets generally must capitalize all of the associated costs over time, typically based on the asset's useful life. By targeting subsidies to oil and gas, tax rules like this disadvantage other businesses that make equally important contributions to our economy. The Joint Committee on Taxation estimates that repealing it would save taxpayers $13 billion over 10 years. Then there's the special percentage depletion allowance, which allows some oil-and-gas companies to deduct more than they invest in an asset, the very definition of a tax shelter. Natural-resource developers can claim a depletion deduction for the costs of acquiring a proportion of a resource as it is depleted. The special allowance gives independent producers a flat deduction of 15% of their gross income from the first 1,000 barrels-a-day of production. Although the deduction is generally limited to the value of a property's production, nothing prevents a producer from deducting more than its investment in the property. As a result, oil-and-gas producers or royalty owners may pay zero tax on their income on certain properties. Owners of marginal wells are provided with even more generous rules. Repealing this allowance would save taxpayers more than $12 billion over 10 years, the Joint Committee on Taxation estimates. Industry supporters may say tax breaks and deductions are what spurred unconventional forms of oil-and-gas production that led to lower energy prices for American consumers. I would say market forces--including $100-a-barrel oil and technological advances--were the main drivers of the hydraulic-fracturing production boom that brought us shale oil, not broad undisciplined tax subsidies. What's more, the industry's tax deductions don't just go to companies that take risks. They are available regardless of whether a well is being developed with proven technology, drilled in proven formations or would be highly profitable without the favorable tax treatment. Would energy prices increase for most Americans if the tax breaks were eliminated? It's unlikely--even if the repeal caused some marginally economic properties in the U.S. to go unexploited. World supply and demand determine oil and gas prices, and what we have seen in the current drop of oil prices is that Saudi Arabia effectively determines the price of oil--even in the U.S. The oil-and-gas industry likes to say it's being unfairly singled out when its tax subsidies are cited as examples of our broken tax system, or that anti-fossil-fuel groups are trying to punish it to advance clean energy. Taxpayers for Common Sense sees it differently. We believe Congress effectively is picking fossil-fuel investments as the winners, while leaving other investments as relative losers. Eliminating the industry's special deductions and breaks would help Congress broaden the tax base and lower the overall corporate tax rate, a widely supported goal of tax reform. Ms. Alexander is president of Taxpayers for Common Sense, an advocacy group that monitors government spending. She can be reached at reports@wsj.com . Journal Report * Insights from The Experts * Read more at WSJ.com/EnergyReport More in Innovations in Energy * Nuclear Power and Lower Emissions * Is OPEC Still Relevant? * Should Mileage Standards Be Eased? * Oil Prices' Economic Impact * Deregulate All Electric Utilities? * How to Finance New Energy Tech Previously in Energy * The Coming U.S. Price on Carbon * Not So Fast: A Carbon Price Isn't Near * Imagine an Electric Bill of...Zero * Ban Ki-Moon on Enforcing the Paris Accord * Does the U.S. Need a Large Petroleum Reserve? * Oil, Earthquakes and Liability
Subject: Tax deductions; Tax incentives; Competition; Windfall profits; Depletion allowances; Tax cuts; Natural gas utilities; Gas industry
Location: United States--US
People: Obama, Barack
Company / organization: Name: University of Michigan-Flint; NAICS: 611310; Name: American Enterprise Institute for Public Policy Research; NAICS: 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 13, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838650524
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838650524?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Fluctuate Amid Dimming OPEC Expectations; January Brent crude rose three cents to $44.78 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Nov 2016: n/a.
Abstract:
Oil futures tilted between gains and losses in Asia trading Monday, as traders continued to cast doubts on the odds of a production cut later this month by the Organization of the Petroleum Exporting Countries.
Full text: Oil futures tilted between gains and losses in Asia trading Monday, as traders continued to cast doubts on the odds of a production cut later this month by the Organization of the Petroleum Exporting Countries. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $43.38 a barrel, down three cents or less than 0.1%, in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose three cents to $44.78 a barrel. Crude prices have been in retreat for weeks now in the lead-up to the Nov. 30 OPEC meeting, as doubts have intensified over the cartel's ability to strike a deal. At the same time, some analysts have said that Donald Trump's victory in last week's U.S. election makes a deal even less likely given the possibility of a revitalized domestic energy industry. "The new dynamic of a highly favorable legislative and most likely fiscal environment for the U.S. upstream and midstream is a parameter that OPEC members would have not have factored in when the proposed cut was introduced," analysts at BMI Research wrote in a note to clients. "We believe they will take a 'wait-and-see' approach during this meeting until the U.S. energy policies become clearer in 2017." OPEC members had proposed capping output to between 32.5 million and 33 million barrels a day in their meeting in Algeria late September, down from a record 33.83 million pumped in October. Separately, data from China's statistical agency released Monday showed another fall in Chinese crude production in October. The country produced 16.05 million tons, or about 3.8 million barrels a day, down 11% from a year ago. So far this year, China's oil output has fallen 6.7%, due in large part to lower investment in aging fields. In refined fuel markets, Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 53 points to $1.3000 a gallon, while December diesel traded at $1.3971, 41 points lower. ICE gasoil for December changed hands at $408.75 a metric ton, up $2.00 from Friday's settlement. Credit: By Dan Strumpf
Subject: Cartels; Crude oil; Crude oil prices
Location: China United States--US Asia
People: Trump, Donald J
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838637405
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838637405?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Are Low Oil Prices Good for the Economy? Some say yes because low prices give consumers more money and cut manufacturing costs. Others say the damage to the oil sector cancels out the benefits.
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Nov 2016: n/a.
Abstract:
Some say that the effect is positive, lowering prices at the gas pump for consumers, as well as the cost of doing business for many companies that rely on oil. Stephen Moore, an economist at Freedom Works, economic adviser to President-elect Donald Trump, and co-author of "Fueling Freedom: Exposing the Mad War on Energy," makes the case for the overall benefits of low oil prices.
Full text: Oil prices have been on a wild ride lately. From late 2010 to late 2014, U.S. crude traded between roughly $80 and $110 a barrel. Then came a plunge. Earlier this year, they were down to around $26--but then soared to $50 in early June, signaling that a longstanding oil glut might be waning. The recovery that many experts predicted didn't materialize, however. Prices recently eased below $50 once again. What comes next? Oil prices are now expected to hover between $40 and $50 for longer than many had forecast; some don't see a major increase in prices coming for two years. One of the factors holding down the price: The boom in shale oil, which now accounts for half of the supply in the U.S. market. But is a lower price good or bad for the economy? Some say that the effect is positive, lowering prices at the gas pump for consumers, as well as the cost of doing business for many companies that rely on oil. Others argue that any such benefits are minor, and are outweighed by the negative effects on the U.S. oil industry--which has become a big part of the economy. Stephen Moore, an economist at Freedom Works, economic adviser to President-elect Donald Trump, and co-author of "Fueling Freedom: Exposing the Mad War on Energy," makes the case for the overall benefits of low oil prices. Arguing against him is Christiane Baumeister, an assistant professor in the department of economics at the University of Notre Dame. YES: It Gives Consumers More Money and Cuts Manufacturing Costs By Stephen Moore The greatest stimulus to the U.S. economy in the past two years has been the steep decline in oil prices. Two years ago, the price of oil was $105 a barrel. Today it is closer to $45--about a 60% decline. Think about the boon to American consumers. In 2014, gasoline cost more than $4 a gallon at the pump in many areas of the country. Now the price is closer to $2.50 a gallon. Here's a rule of thumb. Every one-penny reduction in gas prices puts more than $1 billion a year into the hands of consumers for them to save or to spend on other things. So, that $1.50 reduction in the price at the pump has been a $150 billion a year stimulus plan. What other policy could possibly carry that kind of economic wallop? And when's the last time you saw someone at the gas pump complaining about low gas prices? Some will say that putting extra cash in consumers' pockets doesn't really help the economy because they don't necessarily spend what they save at the pump. But that's great: Savings and investment are the seed corn of a prosperous economy--not consumption. It isn't just motorists who benefit mightily from low energy prices. Energy is the fundamental input in everything we produce in America. The chair you are sitting in. The breakfast you ate this morning. The car you drive. The computer you power up. That means American manufacturers have lower production costs when prices of oil and gas (and coal, for that matter) fall. And because energy prices have fallen faster in the U.S. than in other countries--natural gas is half as expensive in the U.S. as in Europe and Asia--low energy prices are a competitive advantage to almost all America companies. The blessings of low oil prices are doubly felt in the U.S. because we still import hundreds of billions of dollars of oil a year. The big losers from low energy prices are Iran, Saudi Arabia, Russia, ISIS and OPEC. Couldn't happen to a nicer group of people. Now, it is true that many of my friends in the oil and natural-gas industry are hurting, and the stocks of these companies have been hammered. The good news is that technology is improving all the time. The current low oil prices were brought to you by fracking and other new drilling technologies that have made the shale oil and gas revolution a reality. And because those production technologies keep getting better and better, oil and gas companies are learning to make money even with oil at $40 to $50 a barrel. Necessity really is the mother of invention. What about the argument that oil production is a big part of the American economy now, so the shocks to the oil industry cancel out the benefits felt elsewhere? That argument doesn't hold up. As a nation, we are sufficiently diversified to withstand oil slumps. Even Texas has seen growth as oil prices have fallen. Some naysayers also think that the big reason the price of oil is down is that the economy is down--so a low price isn't a good thing. Yes, there are good and bad reasons that oil prices fall. The good reason is the supply rises. The bad is a weak economy. We don't want the world to go into a depression to keep oil prices low. But more supply is always a good thing because it reduces the fundamental economic challenge of scarcity. I also keep hearing that low energy prices are bad news for stocks. Maybe in the very short run. But remember: The two biggest booms in the stock market in U.S. history were in the 1980s and 1990s. In both of those decades, oil prices fell and fell and fell. The worst decade since the Great Depression for stocks was the 1970s, and that was when the oil price soared from $3 to $30 a barrel. We can also put aside the inane idea that America is running out of oil. It was only a few years ago that Barack Obama said in a speech at Georgetown University: "The United States of America cannot afford to bet our long-term prosperity, our long-term security, on a resource [oil] that will eventually run out." Paul Krugman wrote in 2010 that "commodity markets...are telling us that we're living in a finite world." And they both have Nobel Prizes! In reality, America isn't running out of cheap oil, we are running into it. If we continue to promote cheap, abundant and reliable made-in-America energy, the U.S. within six years can become not just energy independent, but the energy dominant country in the world. That's spectacularly good news for not just our national economy, but our national security as well. Mr. Moore is an economist at Freedom Works, economic adviser to President-elect Donald Trump, and co-author of "Fueling Freedom: Exposing the Mad War on Energy." He can be reached at reports@wsj.com . NO: The Damage to the Oil Sector Cancels Out the Positives By Christiane Baumeister Ever since the oil crises of the 1970s, the conventional wisdom holds that oil-price increases are bad for the economy. This suggests that lower oil prices should be good news for the economy. Not necessarily. There is no question that falling oil prices have brought down the cost of production for industries that depend heavily on oil, or that they've increased the disposable income available to households. What matters in the end, however, is the overall effect of lower oil prices on the U.S. economy. And that effect has been negligible. A drop in the retail price of gasoline acts like a tax cut from the point of view of gasoline consumers. Having extra money in their pockets means that households are able to spend that money on other goods and services, which stimulates the economy, directly via increased consumption and to some extent indirectly through investment unrelated to oil. The trouble here is figuring out just how much purchasing power--and actual purchasing--comes from lower prices. For one thing, it cannot be taken for granted that refineries will always pass on their cost savings to consumers at the pump, so lower oil prices don't always translate into lower prices for drivers. On the consumer side, instead of spending the windfall income from lower gasoline prices, households might use it to pay off debts or increase savings. As for cutting the cost of doing business for manufacturers that use oil, it's true that any modern economy "runs on energy." But energy costs tend to be small relative to other costs in production, with the exception of a few industries that use crude oil as feedstock. So, businesses aren't really saving that much under low oil prices. More broadly, whatever stimulus the economy has gotten from lower prices has been canceled out by the damage done to the oil sector. Oil has become a much larger portion of the American economy, so the economy is much more vulnerable to oil-price declines. While the oil industry thrives when prices are high and positively contributes to growth of the domestic economy, it pulls the economy down when oil prices slump. The result: The recent drop in oil prices has meant a net zero effect on real growth in the gross domestic product. Also remember that the overall economic effects of lower prices depend on the environment in which a major change in prices occurs. Part of the recent oil-price drop is due to increased supply. However, there has also been a decrease in demand because of slowing growth in the global economy. Even if lower oil prices had a modestly positive effect instead of a neutral one, it would make almost no difference in the face of such a powerful global trend. Some argue that lower oil prices give American companies a competitive advantage internationally. But consider that a weakened global economy is driving down demand for U.S. exports. What's more, the appreciation of the U.S. dollar against almost all of its trading partners makes exports more expensive--and thus less attractive. There's also the argument that low energy prices are good for the U.S. economy because they hurt the economies of countries with which we are not on good terms at the moment. Good along which dimension? Because low oil prices undermine the fiscal stability in countries that depend on foreign-exchange earnings from oil exports? Because these budget troubles might threaten political stability? Because they might spur governments to increase oil production to keep revenue from falling further--putting additional downward pressure on the oil price and hence hurting the U.S. economy even more? Because they reduce their imports from the U.S.? The supposed positive effect of low oil prices on the stock market is also dubious. Historically, the correlation between oil prices and stock prices has been both negative and positive. The market is responding not to oil-price fluctuations themselves, but to what's driving those fluctuations. Simply put, when lower oil prices reflect mostly a weaker global economy, stock prices will tend to respond by going down. When lower oil prices are mainly due to good news about plentiful supplies, the market will tend to respond by going up. The bottom line: Low oil prices have only modest effects on real GDP growth, and which direction it goes depends on how much of the stimulating effect from consumption is offset by the loss in investment in the oil sector. Dr. Baumeister is an assistant professor in the department of economics at the University of Notre Dame. Email her at reports@wsj.com . Journal Report * Insights from The Experts * Read more at WSJ.com/EnergyReport More in Innovations in Energy * Nuclear Power and Lower Emissions * Is OPEC Still Relevant? * Should Mileage Standards Be Eased? * Deregulate All Electric Utilities? * The Oil Industry's Tax Breaks * How to Finance New Energy Tech Previously in Energy * The Coming U.S. Price on Carbon * Not So Fast: A Carbon Price Isn't Near * Imagine an Electric Bill of...Zero * Ban Ki-Moon on Enforcing the Paris Accord * Does the U.S. Need a Large Petroleum Reserve? * Oil, Earthquakes and Liability
Subject: Cost control; Natural gas utilities; Oil shale; Price increases
People: Trump, Donald J
Company / organization: Name: University of Notre Dame; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 14, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838641026
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838641026?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Does the Oil-and-Gas Industry Still Need Tax Breaks? Those in favor say the incentives have benefited a sector critical to the U.S. economy; those opposed say that by playing favorites, the deductions shift the tax burden to others
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Nov 2016: n/a.
Abstract:
[...]they crashed. U.S. independent producers--which lean the most heavily on the tax deductions and credits--have been hit hardest. Since 2015, more than 100 oil-and-gas producers have filed for bankruptcy.
Full text: U.S. oil-and-gas companies receive billions of dollars in federal tax incentives annually linked to activities such as tapping new wells. Do these incentives benefit consumers, or are they simply gifts that unfairly favor the fossil-fuel industry? The White House clearly is in the camp that wants the tax breaks reduced. Not only has President Barack Obama repeatedly called for a repeal of much of the oil-and-gas industry's favorable tax treatment, his budget proposal for fiscal 2017 included a new $10-a-barrel fee on oil to help fund low-carbon infrastructure projects. Those calling for an end to the breaks say oil-and-gas firms have made huge profits over the years and have more than enough incentive to continue doing business. They say Washington needs to end special carve-outs to overhaul the corporate tax code. Industry supporters see it differently. They say tax incentives have fueled investments in unconventional production, which has led to abundant supplies of oil and gas and lower prices for consumers. They believe the debate isn't really about taxes, but rather about climate-change crusaders wanting to punish the fossil-fuel industry. Mark J. Perry, a scholar at the American Enterprise Institute and a professor of economics in the School of Management at the University of Michigan-Flint, makes the case for keeping the industry's favorable tax treatment. Arguing against him is Ryan Alexander, president of Taxpayers for Common Sense, an advocacy group that monitors government spending. YES: They have benefited a sector critical to the U.S. economy By Mark J. Perry The call to eliminate tax deductions for the oil and natural-gas industry is no less absurd today than it was in 2013, the last time the issue was a headline-maker. These incentives have encouraged domestic investment in energy production and enabled U.S. companies to compete with overseas rivals, allowing the American petroleum industry to flourish. But the tax breaks haven't just been good for oil-and-gas firms; they've also led to billions of dollars in savings for American consumers and businesses from lower energy costs. Have no illusions about it: Tax incentives are essential for unconventional oil-and-gas production, and there would have been no shale revolution without them. Incentives such as the intangible drilling deduction and the special percentage depletion allowance encouraged energy firms to invest hundreds of billions of dollars in the advanced technologies needed to tap shale formations richly endowed with oil and natural gas. Tax breaks also enabled producers to unlock sizable deposits of oil and gas in ultradeep waters. Together, these investments have put the U.S. on the path to becoming energy independent, a hopeless quest only 15 years ago. Oil powers more than 90% of the transportation sector, while natural gas heats almost half of our homes, powers much of the manufacturing sector and now generates the largest share of our electricity. Considering oil and gas are indispensable to our economy, we should be looking for ways to encourage more production, not looking for ways to punish producers. The truth is, the fight over the industry's tax deductions isn't really a fight about taxes. Rather it's a debate about the importance and future of fossil-fuel production in the U.S. For climate crusaders who view oil and gas as a problem instead of the lifeblood of our economy, rejiggering the tax code is seen as a catalyst for restructuring the energy economy. They began their assault on oil-and-gas producers under the guise of punishing the industry for "windfall profits." In 2013, critics called for eliminating industry tax credits and deductions, maintaining that $100-a-barrel oil was here to stay. It was inconceivable that the industry could ever again face lean times. But oil prices did fall. In fact, they crashed. Two years of low energy prices have wreaked havoc on the industry. U.S. independent producers--which lean the most heavily on the tax deductions and credits--have been hit hardest. Since 2015, more than 100 oil-and-gas producers have filed for bankruptcy. More than 1,000 drilling rigs have been idled in recent years, and more than 100,000 American workers let go. Profits for major firms in the industry have suffered. In the second quarter of this year, Exxon Mobil Corp. reported its smallest profit for any quarter since 1999 and Chevron Corp. and ConocoPhillips each had a loss of more than $2 billion in the first half of this year. Not surprisingly, criticism over industry profits has vanished as quickly as the peak-oil theory. The underlying cause of the debate is now fully in the open. The anti-fossil-fuel crowd is either dangerously ignorant of the importance of fossil fuels to the U.S. economy, or so blinded by its climate crusade it doesn't care that the attempt to put oil-and-gas producers at a disadvantage is essentially an attack on Americans' standard of living. Thanks to an abundance of domestic oil and gas, the amount U.S. consumers spend on energy has fallen below 4% of total consumer expenditures this year for the first time in history, according to the U.S. Bureau of Economic Analysis . In dollar terms, lower energy costs over just the past few years have translated into hundreds of billions of dollars in savings for American households, dwarfing any taxpayer savings that could be achieved by repealing oil-and-gas tax breaks. Tax reform might be fair if legitimate tax-deductible expenses were to be eliminated across the board for all industries that currently take them--including farmers, auto makers, food producers, drug companies and software firms--and if that were to be accompanied by reductions in the corporate tax rates that applied to a broader tax base. But singling out the elimination of legitimate tax-deductible production expenses for one of America's most essential industries--an industry critical to job creation, affordable energy and even our nation's national security--is the kind of misguided thinking we can't afford. Dr. Perry is a scholar at the American Enterprise Institute and a professor of economics in the School of Management at the University of Michigan-Flint. He can be reached at reports@wsj.com . NO: By Playing Favorites, They Shift the Tax Burden to Others By Ryan Alexander The tax breaks that Congress provides on income derived from or devoted to certain activities are designed to encourage that specific activity. But what they end up doing is distorting economic decision making and rewarding activity that would occur even without the special treatment. The oil-and-gas industry is a perfect example. It has enjoyed special tax preferences since the start of the modern income tax in the early 20th century. Yet despite the cyclical nature of oil-and-gas markets, the industry has made huge profits over the years and proved that demand for its products is more than enough incentive to continue doing business. We don't need--and can't afford--to continue to provide these incentives to this industry. Like all tax breaks, oil and gas exclusions are costly to the U.S. Treasury and shift the tax burden to others, either through higher current tax rates or borrowing that will increase taxes on future generations. Let's focus on two of the largest oil and gas tax breaks--the intangible drilling-costs deduction and the special percentage depletion allowance--and how they exemplify the kind of special carve-outs Congress needs to eliminate if it is to reform the corporate tax code. These special breaks offer producers significantly more generous capital cost write-offs than those available to other U.S. taxpayers. The intangible drilling costs deduction allows qualified oil-and-gas companies to immediately deduct all costs for designing and fabricating drilling platforms, including "wages, fuel, repairs, hauling and supplies related to drilling wells and preparing them for production." Companies in other industries that construct plants, equipment or other productive assets generally must capitalize all of the associated costs over time, typically based on the asset's useful life. By targeting subsidies to oil and gas, tax rules like this disadvantage other businesses that make equally important contributions to our economy. The Joint Committee on Taxation estimates that repealing it would save taxpayers $13 billion over 10 years. Then there's the special percentage depletion allowance, which allows some oil-and-gas companies to deduct more than they invest in an asset, the very definition of a tax shelter. Natural-resource developers can claim a depletion deduction for the costs of acquiring a proportion of a resource as it is depleted. The special allowance gives independent producers a flat deduction of 15% of their gross income from the first 1,000 barrels-a-day of production. Although the deduction is generally limited to the value of a property's production, nothing prevents a producer from deducting more than its investment in the property. As a result, oil-and-gas producers or royalty owners may pay zero tax on their income on certain properties. Owners of marginal wells are provided with even more generous rules. Repealing this allowance would save taxpayers more than $12 billion over 10 years, the Joint Committee on Taxation estimates. Industry supporters may say tax breaks and deductions are what spurred unconventional forms of oil-and-gas production that led to lower energy prices for American consumers. I would say market forces--including $100-a-barrel oil and technological advances--were the main drivers of the hydraulic-fracturing production boom that brought us shale oil, not broad undisciplined tax subsidies. What's more, the industry's tax deductions don't just go to companies that take risks. They are available regardless of whether a well is being developed with proven technology, drilled in proven formations or would be highly profitable without the favorable tax treatment. Would energy prices increase for most Americans if the tax breaks were eliminated? It's unlikely--even if the repeal caused some marginally economic properties in the U.S. to go unexploited. World supply and demand determine oil and gas prices, and what we have seen in the current drop of oil prices is that Saudi Arabia effectively determines the price of oil--even in the U.S. The oil-and-gas industry likes to say it's being unfairly singled out when its tax subsidies are cited as examples of our broken tax system, or that anti-fossil-fuel groups are trying to punish it to advance clean energy. Taxpayers for Common Sense sees it differently. We believe Congress effectively is picking fossil-fuel investments as the winners, while leaving other investments as relative losers. Eliminating the industry's special deductions and breaks would help Congress broaden the tax base and lower the overall corporate tax rate, a widely supported goal of tax reform. Ms. Alexander is president of Taxpayers for Common Sense, an advocacy group that monitors government spending. She can be reached at reports@wsj.com . Previously in Energy * The Coming U.S. Price on Carbon * Not So Fast: A Carbon Price Isn't Near * Imagine an Electric Bill of...Zero * Ban Ki-Moon on Enforcing the Paris Accord * Does the U.S. Need a Large Petroleum Reserve? * Oil, Earthquakes and Liability
Subject: Tax deductions; Tax incentives; Competition; Windfall profits; Depletion allowances; Tax cuts; Natural gas utilities; Gas industry
Location: United States--US
People: Obama, Barack
Company / organization: Name: University of Michigan-Flint; NAICS: 611310; Name: American Enterprise Institute for Public Policy Research; NAICS: 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 14, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838641145
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838641145?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Is OPEC Still Relevant in Energy Markets? The group recently agreed to production cuts to try to prop up low oil prices, but left details for later
Author: Cherney, Elena
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Nov 2016: n/a.
Abstract:
By signaling a shift [earlier this year] from pure market-share strategy toward cooperation, OPEC did influence market outcomes by shifting market sentiment and squeezing many of the shorts out and providing support to the oil price, even though there has been no impact on physical balances so far.
Full text: For two years, the Organization of the Petroleum Exporting Countries has appeared powerless to stop a slide in prices that has punished the economies of oil-dependent members, including Saudi Arabia. Such a state of affairs calls into question whether the once-powerful cartel is still a relevant force in today's market. The group reasserted itself in September in Algiers, saying its members agreed to cut production. Details are to be ironed out in Vienna on Nov. 30. But doubts remain as to the likelihood of a meaningful accord. To explore OPEC's ability to act effectively, The Wall Street Journal consulted a panel of experts: Jason Bordoff, professor of professional practice in international and public affairs and founding director, Center on Global Energy Policy, at Columbia University; Helima Croft, head of commodity strategy, RBC Capital Markets; and Bassam Fattouh, director of the Oxford Institute for Energy Studies. Here are edited excerpts. WSJ: Is OPEC still relevant? MR. BORDOFF: In some ways, OPEC is still relevant. It is a very large source of current and future supply and can still affect the market physically and psychologically. Even with strong growth in U.S. tight oil, OPEC supply will be needed in the medium term to meet growth in global oil demand. The recent agreement in Algiers reminds us that the potential for OPEC market management still exists. And OPEC remains relevant because of its ability to affect market sentiment, discourage short sellers and change risk perceptions. But its relevance is a far cry from the public perceptions of OPEC as a dominant cartel. Real market management would require OPEC to be willing to cut production millions of barrels a day, as the Saudis did in the 1980s when they slashed output by more than 75% from over 10 million barrels a day. That is not likely. Effective market management would also require the ability to quickly put additional supplies onto the market to offset price spikes from unexpected supply or demand shocks. Yet OPEC spare capacity, largely held by Saudi Arabia, is at historically low levels, so that buffer doesn't exist. MS. CROFT: I think of 2016 as the year OPEC became relevant again for the market. After OPEC took a pass on pulling barrels to defend prices in November 2014, many market participants completely wrote off the organization as irredeemably obsolete. It was seen as too riddled by internal divisions and conflicting agendas to be able to forge any type of consensus on market-management measures, and admittedly still is seen that way by some market participants. The Iranian-Saudi regional rivalry in particular was continuously cited as an intractable obstacle to an output agreement. A number of oil watchers believed Saudi Arabia was so committed to crushing U.S. shale producers and so financially strong that the leadership wouldn't flinch even if prices dropped to the single digits. Sentiment began to shift when some of the key OPEC players and Russia started talking up the prospects of an output freeze and the need for higher prices. The very public freeze discussions helped kick-start the rally in the first quarter, after prices plunged into the 20s. On multiple occasions, OPEC rhetorically intervened when the oil market was caught in a bear trap and sparked a rally by signaling a willingness to take assertive action. We saw it this August, when the products-driven selloff pushed prices below $40 and OPEC came out with the announcement of the special meeting in Algiers. Even with the continued skepticism, OPEC has largely put in something of a psychological floor in the run-up to its Nov. 30 meeting in Vienna and has demonstrated that the multiple pronouncements of the organization's demise were premature. MR. FATTOUH: By signaling a shift [earlier this year] from pure market-share strategy toward cooperation, OPEC did influence market outcomes by shifting market sentiment and squeezing many of the shorts out and providing support to the oil price, even though there has been no impact on physical balances so far. An agreement to cut output in November will have a key impact on balances and will help speed the rebalancing process, especially because OPEC has been the main contributor to supply growth. Eyes on Vienna WSJ: Is it realistic to think that OPEC members can turn their Algiers consensus into a deal on Nov. 30? MR. BORDOFF: It remains to be seen whether OPEC really has the ability or willingness to curtail supply. Several countries are already exempted from the deal, and there exists deep mistrust within OPEC today, exacerbated by Saudi-Iran tensions, as well as the lack of member adherence to the last cut in December 2008 in Algeria. It is also by no means clear that Russia will join the deal and, even if so, from what level it might agree to freeze or cut output given that its September production surged to a record high. President Vladimir Putin has pledged his support for a coordinated cut, although Rosneft CEO Igor Sechin has opposed it. MR. FATTOUH: Assigning quotas for individual countries has proved to be difficult, and this time is no different. There are countries like Iran and Iraq, which have ambitious plans to increase their productive capacity and believe that other countries have taken their market share over the years. Bringing these countries back within the quota system will prove to be the most challenging. Second, there are countries like the U.A.E. and Kuwait that have already embarked on expansion plans, but perhaps will be more amenable to participate in modest cuts if this is led by Saudi Arabia. Third, there are countries like Nigeria and Libya that have been suffering from output disruptions, but now they are seeing some recovery in their output and they are demanding special treatment. Outside OPEC, the signals from Russia about cooperating on an output freeze or cuts have been conflicting so far, and in the past Russia didn't abide by its output agreements with OPEC. Without collective effort, Saudi Arabia won't act on its own, and without Saudi Arabia being on board, there is no chance for a meaningful OPEC agreement. Modest prospects WSJ: Do these tensions mean that any deal isn't likely to be meaningful? MR. BORDOFF: Even if the strongest version of the Algiers agreement were actually implemented, the price support would be meaningful but still modest relative to the magnitude of the price collapse. There seems to be no prospect of much deeper cuts that would be needed to return prices to their previous levels. OPEC's ability to truly stabilize the market, as it did in the 1980s with deep Saudi production cuts, is further constrained by the emergence of short-cycle U.S. shale-oil supply. The sort of intervention being contemplated in Algiers is quite different from longstanding public perceptions of OPEC as a market stabilizer or cartel. OPEC has shown it can react in modest ways to market emergencies, not act as a true swing supplier--as the Texas Railroad Commission did after World War II or OPEC did in its earlier years. MS. CROFT: I see this as a very modest intervention--putting in a floor for prices and firming the case for $50. This is a bare-bones recovery that provides only a modicum of relief for the most cash-strapped sovereign producers, such as Venezuela, Iraq and Nigeria. But since these countries don't drive the OPEC bus, they will have to make do with the price that the powerful players see as optimal for now. Saudis and Iran WSJ: The consensus on reducing output couldn't have happened without Saudi Arabia softening its opposition to any deal that didn't include Iran. What led the kingdom to shift on this issue? MS. CROFT: The fact the Saudis essentially gave so much ground in Algiers--basically putting no limits on Iranian output--is a pretty remarkable volte-face and in our view speaks to changing internal dynamics in the kingdom. However, I think the fact that Iran is essentially back to presanctions levels and may not be able to put many more barrels on the market also accounts for this newfound pragmatism in Saudi oil policy. MR. FATTOUH: Saudi Arabia is highly reliant on oil revenues, and lower oil prices have had an adverse impact on its economy despite its relatively strong fiscal buffers. Low oil prices are forcing the government to tighten the economy at a quicker pace than perhaps originally anticipated, and there is recognition that although low oil prices have been conducive to kick-start reforms, a persistent low-oil-price environment will make these reforms more difficult politically and socially. Higher oil prices, say toward the $60 level, will give the Saudi government some breathing space. MR BORDOFF: I would note comments Minister Khalid al-Falih just made in London, warning that the dramatic cuts in oil and gas investment due to the price collapse will lead to an underinvestment cycle that could cause prices to spike sharply in the next few years. While Saudi Arabia may not want very low oil prices, it also recognizes very high $100-plus oil prices can curb demand, including by accelerating the shift away from oil toward electric vehicles and other alternatives. Peak demand WSJ: Many analysts are predicting that oil-demand growth will peak and then decline. What impact would that have on OPEC? MS. CROFT: Going forward, global demand will likely remain steady rather than spectacular or slow. We remain much more concerned with peak demand over the coming years rather than peak-supply fears of last decade. The push to reduce global greenhouse-gas emissions provides an additional headwind for demand growth, especially in the developed world. However, what OPEC is hanging its hopes on is emerging-markets demand, especially India. Emerging markets have single-handedly carried global oil demand growth since the recession. India has been the real bright spot and will be the primary driver of demand growth for years to come. Indian gasoline demand is slightly over 500,000 barrels a year, compared with 9 million in the U.S. and 3 million in China. Vehicle penetration rates are in the low teens, compared with 75% to 80% in North America and 30% in Brazil. MR. FATTOUH: If climate-change policies result in lower future oil demand, OPEC options are more limited. OPEC for instance can decide to cut output and increase the oil price and try to capture larger share of oil rent while it can. High oil prices, however, increase the pace of demand reduction, induce government to accelerate their policies, and would encourage supply growth in other parts of the world. OPEC could accelerate its investment pace and increase its output to put downward pressure on the oil price to induce a rebound in global demand and drive out high-cost producers. But such a strategy has a limited impact in terms of increasing OPEC revenues; the increase in oil demand or market share won't compensate for the lower oil price, and hence OPEC oil revenues will fall in such a scenario. Given the limited effectiveness of such investment-and-output policy options, OPEC members recognize that diversifying their economies and income sources is the only long-term viable option. Climate change WSJ: To what degree do you think climate-change regulation, or the specter of it, is pushing OPEC members to diversify their economies? MR. BORDOFF: Even if OPEC leaders don't believe the world is getting off oil anytime soon, they recognize the greater possibility that demand for oil could begin declining far sooner than expected in response to climate policy, technological innovations like electric vehicles, and structural economic shifts in places like China. Ms. Cherney is The Wall Street Journal's global energy editor. Email her at elena.cherney@wsj.com . Journal Report * Insights from The Experts * Read more at WSJ.com/EnergyReport More in Innovations in Energy * Nuclear Power and Lower Emissions * Should Gas-Mileage Standards Be Eased? * Time to Deregulate All Electric Utilities? * The Oil Industry's Tax Breaks * How to Finance New Energy Tech * Oil Prices' Economic Impact Previously in Energy * The Coming U.S. Price on Carbon * Not So Fast: A Carbon Price Isn't Near * Imagine an Electric Bill of...Zero * Ban Ki-Moon on Enforcing the Paris Accord * Does the U.S. Need a Large Petroleum Reserve? * Oil, Earthquakes and Liability Credit: By Elena Cherney
Subject: Agreements; Prices
Location: United States--US Saudi Arabia
Company / organization: Name: RBC Capital Markets; NAICS: 523110; Name: Columbia University; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 14, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838650246
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838650246?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Banking & Finance: Alaska's Bet on Housing Bust Pays Off --- Stung by oil's decline state fund diversified into rental homes to yield $300 million gain --- By Ryan Dezember
Author: Anonymous
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Nov 2016: B.7.
Abstract:
Eventually the Alaska trustees came around, persuaded by B. Wayne Hughes, who made a fortune turning self-storage units into Public Storage, a real-estate investment trust with a $37 billion stock-market value.
Full text: Oil-rich Alaska has suffered with the collapse in crude prices. But it offset some losses with a big wager on another market that collapsed: housing. The fund that manages the state's oil royalties four years ago backed a self-storage magnate who was buying hundreds of millions of dollars worth of foreclosed homes. A year later, the company went public as American Homes 4 Rent. That company is now the second-largest owner of rental homes in the U.S., with more than 48,000 properties and a rising stock price recently. In September, the oil fund sold the bulk of its American Homes 4 Rent shares at a $300 million profit, making the wager one of Alaska's top-performing investments in recent years, according to securities filings and state records. "Any time we have a large success like that, it's a big deal," said Randall Hoffbeck, who heads Alaska's Revenue Department. The unconventional housing bet is part of Alaska's push to diversify the fund, called Alaska Permanent Fund, which invests royalties that energy producers pay the state, as it seeks to boost gains amid waning oil revenue. An oil fund like Alaska's is rare in the U.S. Much of Alaska's oil is produced on state land, meaning royalties are paid to state coffers instead of to the federal government or individual landowners, as is typical in the rest of the country. The Alaska Permanent Fund, which managed $53.9 billion as of Nov. 9, was created in 1976 to bank some of the royalties paid to the state by oil companies following huge crude discoveries in the state's North Slope. Those finds have supported the state's economy for the past four decades, but Alaska's oil production has dwindled in recent years as oil companies turned their attention to reserves -- such as shale fields in the continental U.S. -- that were easier and cheaper to bring to market. As oil prices have fallen from more than $100 a barrel in mid-2014 to less than $50, Alaska's revenue has declined 80% over the past two years, state officials say. To save cash, Alaska has eliminated hundreds of jobs, ended educational programs and even cut back on snow plowing. Gov. Bill Walker in September announced the unprecedented -- and unpopular -- step of cutting in half the annual dividend payment the Permanent Fund paid to residents. The Fund sent each resident a $1,022 check this year, for a total cost of about $696 million. In 2012, the fund's managers were particularly eager to capitalize on the "epic dislocation in the housing market," said Steve Moseley, who joined the fund in late 2013 to manage certain investments including the housing bet. The fund's trustees were initially skeptical about buying thousands of homes, according to minutes from the group's meetings. One trustee said it felt more like buying a concept rather than assets. Owning and renting single-family homes had been primarily a local, mom-and-pop business. But Wall Street jumped in after the financial crisis when millions of Americans lost their homes to foreclosure and huge numbers of homes could be bought for less than they cost to build. Blackstone Group LP, Starwood Capital Group and others raced to courthouse steps to buy foreclosed homes in bulk. Eventually the Alaska trustees came around, persuaded by B. Wayne Hughes, who made a fortune turning self-storage units into Public Storage, a real-estate investment trust with a $37 billion stock-market value. He was looking for cash to make a big housing bet. "It was a bold and unusual move," Mr. Moseley said of the trustees' decision to join Mr. Hughes, "and they put real money behind it." Mr. Hughes, now 83 years old and chairman of American Homes 4 Rent, told Permanent Fund officials he wanted to identify the most desirable tenants and then find the sort of homes they would want to live in, according to fund meeting minutes. He focused on families with school-age children and annual incomes of around $85,000. The Alaska fund eventually wagered more on his idea, buying additional shares in American Homes 4 Rent's 2013 initial public offering and launching a separate $200 million venture with the company to buy upscale homes. Overall, the fund invested $925 million with Mr. Hughes and continues to hold about 1.7 million shares as well as its interest in the high-end rental venture. After a few years of essentially flat trading, its shares have risen about 23% this year, giving Alaska an opportunity to pocket some of its gains. --- Northern State's Other Big Wagers In addition to its rental-home holdings, Alaska has also been making other large bets unrelated to its traditional investments, such as stocks, bonds and allocations to private-equity funds. A recent success for the state was a $129 million investment in Seattle biopharmaceutical startup Juno Therapeutics Inc. Alaska this year sold about one-third of its stake in the company for $335 million; it still holds shares worth more than $500 million. Juno's shares, which closed at $31.68 Friday, are down 28% year to date. Not all wagers have worked so well. The fund's $385 million stake in a London-listed fund that invests in energy deals alongside private-equity firm Riverstone Holdings LLC has lost value during the energy bust. In recent years, the fund's investment profits have exceeded all other state income, including oil revenue. -- Ryan Dezember
Subject: Housing; Oil & gas royalties; Rentals
Location: Alaska
Company / organization: Name: Alaska Permanent Fund Corp; NAICS: 525110; Name: American Homes 4 Rent; NAICS: 531110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.7
Publication year: 2016
Publication date: Nov 14, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838663199
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838663199?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Inch Lower on Supply Concerns; Observers skeptical that OPEC production cuts will happen
Author: Puko, Timothy; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Nov 2016: n/a.
Abstract:
[...]no one believes OPEC will get it together," said Stephen Schork, editor of energy trade publication the Schork Report.
Full text: Oil prices fell to touch a three-month intraday low Monday and closed with slight losses as a brief boost from the U.S. presidential election continues giving way to revived concerns about oversupply. Light, sweet crude for December delivery settled down 9 cents, or 0.2%, at $43.32 a barrel on the New York Mercantile Exchange, the lowest settlement since Sept. 19. U.S. oil fell as low as $42.20 a barrel, the lowest intraday price since mid-August, before a rebound throughout the afternoon. Brent, the global benchmark, fell 32 cents, or 0.7%, to $44.43 a barrel, its lowest settlement since Aug. 10. Most of the negativity comes in one way or another by the Organization of the Petroleum Exporting Countries, analysts said. Most remain deeply skeptical that OPEC will be able to cut production to between 32.5 million and 33 million barrels a day, as it proposed in late September. Several members and potential ally Russia have all increased production dramatically in just the less than two months since then. It demonstrates how aggressively competitive for customers and how reliant on oil revenue those countries, undermining the chances of cooperation that has repeatedly lifted oil prices from lows throughout 2016, analysts said. "That narrative has finally run its course. Finally, no one believes OPEC will get it together," said Stephen Schork, editor of energy trade publication the Schork Report. Oil did pare losses and briefly traded at gains in the afternoon. Reports of OPEC members trying to resolve differences in a push to complete a deal on production cuts likely encouraged bearish traders to get out of the market, brokers said. More money managers have gone into bearish, or short bets, in recent weeks, and they may be apt to bail quickly, sending prices higher, if OPEC gets on course to complete a deal when it meets in Vienna on Nov. 30, they said. "At the end of the day, you have a lot of shorts in the market, and that's going to increase the volatility at any given moment," said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. With OPEC members staking out claims to their share of the market, the cartel increased production to 33.64 million b/d in October, according to Germany's Commerzbank. This has caused global oversupply to reach 950,000 b/d and means that OPEC will have to cut more production than anticipated. Other market watchers believe that OPEC should abandon its pledge to cut production as it becomes more apparent that the proposed cuts are almost impossible to impose and enforce. Bjarne Schieldrop, commodities analyst at Sweden's SEB bank, said that lower oil prices have meant that OPEC has created more demand for its oil. He added that with Libya and Nigeria on the verge of bringing significant additional volumes to the market, it would make more sense to postpone any cuts for now and revisit the situation in 2017. "In our view it is probably a better strategy for OPEC to let its production rise to its natural level [of between 35.5 to 36 million b/d] and let the oil price stay muted for a little while longer, thus avoiding reactivating U.S. shale oil production too early," he said. U.S. oil producers are already responding. They keep putting more rigs into drilling fields and their production, which has been in steady decline for months, rose 2% in the week ended Nov. 4, the U.S. Energy Information Administration said last week. Also the dollar is making a strong move higher since the election. The Wall Street Journal Dollar Index, which tracks the buck against 16 other currencies, is up another 0.8% Monday. A stronger U.S. currency makes dollar-traded oil more expensive for foreign buyers, and so its price tends to fall as the dollar rises. Several other markets, including metals, equities and bonds, have also rallied since the election, and oil's break from those markets so decisively lower demonstrates how concerned oil traders are about oversupply, analysts said. They also pointed to front-month contracts falling further than longer-term futures, which is also typically a sign of glutted markets. "That's all bearish news," said Jim Ritterbusch, president of energy-advisory firm Ritterbusch Associates. Renewed, public commitment from OPEC may be the only catalyst that could staunch losses in the coming weeks, he added. "OPEC really hasn't come out yet with a strong statement that they are going to be able to patch a deal together." Gasoline futures lost 2.75 cents, or 2.1%, to $1.2778, the lowest settlement since Sept. 1 after a nine-session losing streak. Diesel futures lost 1.57 cents, or 1.1%, to $1.3855 a gallon, its lowest settlement since Sept. 14. Write to Timothy Puko at tim.puko@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Timothy Puko and Kevin Baxter
Subject: Crude oil prices; Petroleum production; Crude oil; Supply & demand; Price increases
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838692797
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838692797?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Rebound in Asian Trade as OPEC Jockeying Continues; January Brent rose 59 cents to $45.02 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Nov 2016: n/a.
Abstract:
Oil futures rose in early Asia trading, snapping a three-session losing streak, amid ongoing efforts to shore up a proposed production cut by members of the Organization of the Petroleum Exporting Countries.
Full text: Oil futures rose in early Asia trading, snapping a three-session losing streak, amid ongoing efforts to shore up a proposed production cut by members of the Organization of the Petroleum Exporting Countries. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $43.95 a barrel, up 63 cents in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose 59 cents to $45.02 a barrel. Tuesday's rally marks a reversal from a weekslong decline in crude prices. Traders have been positioning ahead of an OPEC meeting scheduled for Nov. 30, where members are set to discuss a proposed production cut in a bid to shore up oil prices. Market watchers remain skeptical that the cartel will come to an agreement over a proposed cut of between 32.5 million and 33 million barrels a day. Bloomberg reported that several OPEC members were engaged in a last-minute push to overcome divisions between the cartel's biggest producers, which some analysts said contributed to Tuesday's advance. "There are some talks coming from OPEC that members are trying at least to heal the diplomatic divide among individual members," said Peter Lee, an oil analyst at BMI Research. "This is what traders will be looking at--any small sign coming from [OPEC] will be reflected in the price." In contrast to other commodities and risky assets, oil prices have been broadly retreating despite the last week's election victory by Donald Trump. Analysts attribute the dynamic to concern over the scale of the global crude oversupply. In the U.S., the number of rigs drilling in the ground rose 2% in the week ended Nov. 4, the U.S. Energy Information Administration said last week. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 105 points to $1.2883 a gallon, while December diesel traded at $1.3974, 119 points higher. ICE gasoil for December changed hands at $408 a metric ton, up $6.25 from Monday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil prices; Crude oil; Cartels
Location: United States--US Asia
People: Trump, Donald J
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838862744
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838862744?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Refiners Feel the Squeeze as Crude Oil Discount Disappears; Loss of cheap shale crude has removed a key advantage vs. overseas rivals
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Nov 2016: n/a.
Abstract:
For years, the price levels for U.S. and overseas oil moved close to lockstep, often with WTI trading at a premium to Brent because of differences in quality and the cost to transport the crude to the U.S., where gasoline demand is stronger than in Europe. PBF Energy Inc., an independent refiner, bought plants in New Jersey and Delaware from San Antonio-based Valero Energy Corp. Carlyle Group, a private-equity firm, took a stake in a Philadelphia plant, helping form Philadelphia Energy Solutions, with the aim of upgrading it and building a new terminal to unload crude delivered from North Dakota.
Full text: Philadelphia Energy Solutions, operator of the largest oil refinery on the U.S. Atlantic coast, felt confident enough about its prospects last year that it filed to raise $272 million through an initial public offering. But the company ditched those plans in September. It also let go dozens of workers, suspended pension contributions and delayed capital projects, according to a person familiar with the matter. A year can make a big difference, as can a 75% narrowing of the spread between the price of the U.S. crude-oil benchmark West Texas Intermediate and the global benchmark, Brent. That price discount for the U.S. benchmark--which widened to as much as $28 a barrel--had nourished East Coast refiners with cheaper crude, giving them a competitive advantage over imports from their trans-Atlantic rivals. But the discount has narrowed as output by U.S. shale producers declined, and tightened this year to $1.65, on average. "They lost that lifeline of cheap crude," said Robert Campbell, an analyst for Energy Aspects. Philadelphia Energy Solutions declined to comment. Refiners around the country have been hurt by the loss of exceptionally cheap oil, which they transform into fuels that could be sold at prices linked to the global oil benchmark. But East Coast plants--squeezed by competition from abroad and from huge, efficient plants on the Gulf Coast--have always had thinner margins and have been hit hardest. Some had to curtail output amid a record fuel glut that hit the region this summer, a time when drivers typically take to the roads and sop up gasoline supplies. "East Coast refiners are now operating in the same difficult environment that led to closures between 2009 and 2012," said Sandy Fielden, director of oil-and-products research at Morningstar. Delta Air Lines Inc. also has taken a hit. The Atlanta-based airline, which bought a refinery near Philadelphia in 2012 in hopes of reducing its jet-fuel costs, recently said it expects the plant to lose $100 million this year. Two years ago, the airline bragged it could save $2 to $3 a barrel by bringing in 70,000 barrels of oil a day from North Dakota "at a significant discount to what we currently pay for Brent." Phillips 66 and PBF Energy Inc., which own plants in New Jersey and Delaware, have reported that refining margins in the region have halved from a year ago, largely because of the collapse in the crude discount. For years, the price levels for U.S. and overseas oil moved close to lockstep, often with WTI trading at a premium to Brent because of differences in quality and the cost to transport the crude to the U.S., where gasoline demand is stronger than in Europe. That started to change about a decade ago as excess output from U.S. shale fields began to build up in storage tanks. As the glut accumulated, U.S. crude began to trade at a steep discount to its European counterpart. The spread reached its peak in 2011, when the WTI price of $86.80 was nearly $28 below that of Brent. The boost to the East Coast refinery business rescued plants in a part of the country where refineries had been shutting down because they were losing money. Some buyers bet they could pick up these refiners cheaply and turn them around. PBF Energy Inc., an independent refiner, bought plants in New Jersey and Delaware from San Antonio-based Valero Energy Corp. Carlyle Group, a private-equity firm, took a stake in a Philadelphia plant, helping form Philadelphia Energy Solutions, with the aim of upgrading it and building a new terminal to unload crude delivered from North Dakota. For a time, the strategy worked. U.S. crude imports by companies on the Eastern Seaboard plummeted by 54% between 2005 and 2014. But the spread began narrowing in 2012. One factor was new pipelines that helped shale producers reach markets on the Gulf Coast. The collapse of oil prices was another blow. Then in December, the federal government lifted restrictions that had banned most crude exports. That effectively allowed U.S. shale producers to sell excess supply on world markets at higher global prices. While the price gap had already narrowed significantly by the time that the export ban was lifted, analysts say it is one reason why the gap is unlikely to widen to previous levels. Last year, average daily crude imports to the region crept up again for the first time in a decade. Just 135,000 barrels per day rode the rails eastward from North Dakota to the Atlantic in August, according to the most recent federal data, down nearly 66% from a year earlier. "Those days are gone," PBF Energy Chief Executive Tom Nimbley said. "It's very dangerous to be in a position where you're betting on a differential staying the same forever," he said. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Petroleum refineries; Price increases
Location: United States--US North Dakota
Company / organization: Name: PBF Energy; NAICS: 324110; Name: Delta Air Lines Inc; NAICS: 481111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1838987569
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1838987569?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Bounce on Hopes of OPEC Deal; Analysts question whether cartel can in fact rebalance crude market
Author: McFarlane, Sarah; Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Nov 2016: n/a.
Abstract:
"Today's price recovery that has seen Brent climb back to above $45 per barrel comes courtesy of the latest diplomatic attempts by Qatar, Venezuela and Algeria to bring about a compromise at the OPEC meeting," said Commerzbank AG. Oil has taken most of its cues from sentiment on the OPEC deal in recent weeks. [...]the November meeting, headlines should continue to influence prices, analysts said.
Full text: Oil prices bounced off a three-month low, bolstered by speculation that members of OPEC are working out the details of a proposed reduction in crude output. Light, sweet crude for December delivery gained $2.49, or 5.7%, to settle at $45.81 a barrel on the New York Mercantile Exchange on Tuesday, its biggest one-day percentage gain since April. Brent, the global benchmark, rose $2.52, or 5.7% to $46.95 a barrel on ICE Futures Europe. All eyes are now on the Organization of the Petroleum Exporting Countries ahead of the Nov. 30 meeting in which the group aims to agree to a production cut to between 32.5 million and 33 million barrels a day from record levels of 33.83 million barrels a day in October. "All of a sudden now there's hope, and that's why we're seeing the market rebound," said Phil Flynn, senior market analyst at the Price Futures Group. There is a consensus that OPEC will come to an agreement, though the group's ability to rebalance the market, which has been dogged by excess supply for several years, is more in doubt. "Today's price recovery that has seen Brent climb back to above $45 per barrel comes courtesy of the latest diplomatic attempts by Qatar, Venezuela and Algeria to bring about a compromise at the OPEC meeting," said Commerzbank AG. Oil has taken most of its cues from sentiment on the OPEC deal in recent weeks. Until the November meeting, headlines should continue to influence prices, analysts said. "This is typical of OPEC negotiations. 'We have a deal, we don't have a deal,' and it goes till the last minute," Mr. Flynn said. Analysts said concerns over pipelines in countries such as Nigeria helped support a move higher in oil prices. Robbie Fraser, commodity analyst with Schneider Electric, said the possibility that instability and supply disruptions will continue has also made investors more bullish on oil. "It's a pretty big combo in a pretty tight window here," he said, when added onto optimism over an OPEC deal. OPEC is in a difficult position. Any cut would potentially trigger increased production elsewhere, leading to doubts over the effectiveness of the current scale of the agreement. Rising production in nonmembers, including Brazil and Russia, has exacerbated the global supply glut. "We believe the amount of production cut that will be delivered will fall short of helping the market to rebalance in 2017, assuming recovery in Libya and Nigeria and stability in Venezuela," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. The bank expects global stocks to rise in 2017. In contrast with other commodities and risky assets, oil prices had broadly been retreating over the past week, after Donald Trump's victory in the U.S. presidential election. Analysts attribute the recent losses to concern over the scale of the global crude oversupply. In the U.S., the amount of production rose 2% for the week ended Nov. 4, the U.S. Energy Information Administration said last week. Mr. Trump is expected to support the growth of the domestic oil-and-gas industry. Traders will be watching for the latest EIA data to be released at 10:30 a.m. ET on Wednesday for more clarity on the state of oil storage and production. Analysts and traders surveyed by The Wall Street Journal expect inventories to add an average of 1.1 million barrels of oil in the week ended Nov. 11. Refinery use is seen rising 0.8% on average to 87.9% of capacity, according to the survey. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 3.7-million-barrel increase in crude supplies, a 155,000-barrel decrease in gasoline stocks and a 3-million-barrel increase in distillate inventories, according to a market participant. Gasoline futures settled up 4.5% at $1.3350 a gallon, and diesel futures settled up 4.2% at $1.4439 a gallon. Sarah McFarlane and Stephanie Yang Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Stephanie Yang at stephanie.yang@wsj.com Credit: By Sarah McFarlane and Stephanie Yang
Subject: Crude oil prices; Energy economics; International finance
Location: Venezuela
People: Trump, Donald J
Company / organization: Name: Commerzbank AG; NAICS: 522110, 523120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839063457
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839063457?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mexico to Auction 14 Onshore Oil, Gas Blocks in July
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Nov 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--The Mexican government will put 14 oil and gas blocks up for bids in July in its seventh auction of exploration and production areas, which officials expect will draw interest from private Mexican companies. The tender process approved Monday by the country's hydrocarbons regulators offers exploration and production licences for blocks which cover an area of 2,595 square kilometers (1,000 square miles) and are estimated to contain 251 million barrels of crude oil equivalent. They include gas fields in the Burgos basin of northeastern Mexico and oil and gas deposits in the Gulf Coast states of Veracruz and Tabasco. The tender comprises nine blocks containing 25 existing fields and five exploration blocks where no fields have yet been discovered. Energy Minister Pedro Joaquín Coldwell said the areas favor the participation of medium-sized companies and are located close to operations and infrastructure of state oil company Petróleos Mexicanos, which should facilitate logistics such as getting production to its destination. "This is particularly relevant for Mexican companies that have the experience and technical capacity, and some of which are already operating fields awarded in the third auction of round one," he said. It's estimated that the first commercial production from the fields will occur in 2018, and that output could reach a peak of 65,000 barrels a day of oil by 2023 and 112 million cubic feet a day of gas by 2025, he added. Investment for the 14 blocks is estimated at nearly $1 billion. Since Mexico opened is oil industry to private and foreign investment in 2013 to rekindle the country' flagging production, the government has completed three oil auctions, awarding contracts for a number of onshore and offshore developments. Bids for 10 deep-water blocks in the Gulf of Mexico are due Dec. 5. Mexico will also auction 15 exploration and production blocks in shallow waters in March, followed by 12 onshore blocks in April. Bids for the 14 latest blocks are due in July. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839157338
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839157338?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Obama Administration Issues Rules on Methane From Oil, Gas Operations; President-elect Donald Trump has vowed to dismantle Obama's climate agenda
Author: Harder, Amy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Nov 2016: n/a.
Abstract:
"If the goal is to prevent emissions, not impede U.S. energy production, then the BLM should focus on fixing permitting, infrastructure and pipeline delays that slow our nation's ability to capture more natural gas and deliver affordable energy to consumers," the group said.
Full text: WASHINGTON--The Interior Department issued regulations Tuesday to cut methane emissions from oil and natural-gas operations on federal lands, one of the last moves President Barack Obama will make on his expansive climate agenda, which President-elect Donald Trump has vowed to dismantle . The rules are aimed at helping meet an Obama administration goal of cutting the oil-and-gas industry's emissions of methane, a potent greenhouse gas, by as much as 45% from 2012 levels over the next decade. The U.S. government is unlikely to meet that goal because Mr. Trump has been clear that he intends to reverse Mr. Obama's climate agenda and withdraw rules that could restrict oil and natural-gas development. However, the president-elect hasn't explicitly said he would undo this methane rule or another similar one at the Environmental Protection Agency. "This rule to prevent waste of our nation's natural gas supplies is good government, plain and simple," Interior Secretary Sally Jewell said in a statement. "We are proving that we can cut harmful methane emissions that contribute to climate change, while putting in place standards that make good economic sense for the nation." The American Petroleum Institute criticized the regulations by the Interior Department's Bureau of Land Management, saying it wasn't needed. "If the goal is to prevent emissions, not impede U.S. energy production, then the BLM should focus on fixing permitting, infrastructure and pipeline delays that slow our nation's ability to capture more natural gas and deliver affordable energy to consumers," the group said. Meanwhile, the Independent Petroleum Association of America and the Western Energy Alliance, another group representing independents, filed a lawsuit challenging the final rule Tuesday, saying it went beyond the powers Congress had granted the BLM to regulate air quality. "This is an 11th-hour shot by an administration that doesn't fully understand how its rules impact our businesses," said Dan Naatz, the IPAA's senior vice president of government relations and political affairs. Oil-and-gas production has boomed in the U.S. over the past decade thanks to new extraction technologies such as hydraulic fracturing. Still, federal lands account for a small portion of domestic drilling--11% of the nation's natural gas supply and 5% of its oil supply--according to Interior Department data. The Interior Department regulations, first proposed in January 2016, include the first-ever federal limits on flaring, a process in which excess gas, whose primary component is methane, is burned off as carbon dioxide. The rules also include a requirement that companies regularly inspect for methane leaks. With the onset of the energy boom, some companies have taken to flaring or venting gas, emitting the methane itself straight into the atmosphere, if pipelines or other infrastructure aren't immediately available to transport and process it. The new rules would require energy companies to capture the methane and ship it as fuel. Methane has a warming impact on the planet 25 times that of carbon dioxide, though it lasts not nearly as long in the atmosphere, according to the Obama administration. The regulations by the Interior Department are part of a recent sprint throughout the administration to release rules before Mr. Obama leaves the White House. Some of Mr. Obama's major environmental rules have been challenged in court, and Mr. Trump has said he would review all of them and likely work to rescind most of them. Mr. Trump and GOP leaders in Congress have a couple of different avenues to block Mr. Obama's recently completed rules. Congress can use a little-known law called the Congressional Review Act to nullify rules that have been completed within 60 days that Congress is in session, a time period that often extends much longer than a couple of months since lawmakers aren't in session every weekday. Given that the GOP controls both chambers of Congress and will hold White House next year, undoing Mr. Obama's regulatory agenda this way will be one of the easiest avenues. Some legislative experts say rules that could fall under this 60-day window might extend as far back as May, as Congress has been in session so few days in the second half of this year. Nov. 20 has been considered the unofficial deadline by which the Obama administration must issue rules before the window opens for the incoming Trump administration to stop the rules unilaterally. Most regulations require at least 60 days between a rule being final and it going into effect. If a new administration steps in sometime in that 60-day window, the incoming president can put an indefinite hold on the rule's effective date. Lynn Cook contributed to this article. Write to Amy Harder at amy.harder@wsj.com Related * U.S. Officials Say World Climate-Change Efforts to Continue Despite Trump's Views (Nov. 14) * Cheap Gas Tests Trump's Promise to Revive Coal (Nov. 13) * EU Plans to Hold Firm on Global Issues in Wake of U.S. Election (Nov. 13) * Video: Donald Trump to Chart a New Course on Energy and Climate * Oil, Coal Seen as Winners With Donald Trump Victory (Nov. 9) Credit: By Amy Harder
Subject: Natural gas; Emissions; Climate change; Energy industry
Location: United States--US
People: Obama, Barack
Company / organization: Name: Republican Party; NAICS: 813940; Name: Western Energy Alliance; NAICS: 813910; Name: American Petroleum Institute; NAICS: 813910, 541820; Name: Environmental Protection Agency--EPA; NAICS: 924110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 15, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839157526
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839157526?accou ntid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude Oil Inventories Seen Increasing in DOE Data; The survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Nov 2016: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Tuesday its own data for the week showed a 3.7 million-barrel increase in crude supplies, a 155,000-barrel decrease in gasoline stocks and a 3 million-barrel increase in distillate inventories, according to a market participant.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 13 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 1.1 million barrels, on average, in the week ended Nov. 11. Ten analysts expect stockpiles to rise, two expect them to decline and one expects no change. Forecasts range from a decrease of 2 million barrels to an increase of 2.6 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show a decrease of 500,000 barrels on average, according to analysts. Five analysts expect a rise and eight analysts expect a fall. Estimates range from a rise of 2.5 million barrels to a fall of 2.9 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 1.8 million barrels. One analyst expects an increase and 12 expect a decrease. Forecasts range from a decline of 3 million barrels to an increase of 400,000 million barrels. Refinery use is seen rising 0.8 percentage point to 87.9% of capacity, based on EIA data. Ten analysts expect an increase and three did not report expectations. Forecasts range from an increase of 0.4 points to an increase of 1.3 points. The American Petroleum Institute, an industry group, said late Tuesday its own data for the week showed a 3.7 million-barrel increase in crude supplies, a 155,000-barrel decrease in gasoline stocks and a 3 million-barrel increase in distillate inventories, according to a market participant. Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Inventory; Price increases
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839198055
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839198055?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Slip in Asia Following Big Advance
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Nov 2016: n/a.
Abstract:
In refined fuel markets, Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 55 points to $1.3405 a gallon, while December diesel traded at $1.4389, 50 points lower.
Full text: Oil futures eased in early Asia trading Wednesday, as traders took profits following the biggest rally in months. Focus in the market remains on an upcoming meeting of the Organization of the Petroleum Exporting Countries scheduled for Nov. 30, with bets around the outcome driving moves in prices over the last few weeks. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $45.58 a barrel, down $0.23, or 0.6%, in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell 15 cents, or 0.3%, to $46.80 a barrel. Futures declined on the heels of a sharp rally during New York trading hours, which was fueled by rising expectations of an OPEC deal at its upcoming meeting. The 2.5% gain in Nymex crude prices marked their biggest one-day gain since April, while Brent saw its biggest one-session advance since September. "Given the lack of data points, [oil prices] are just trading around OPEC news," said Nelson Wang, oil and gas analyst at CLSA. "They cannot afford not to cut ... they will come up with something at the meeting later this month." OPEC members have proposed trimming collective output to between 32.5 million and 33 million barrels a day. The cartel pumped a record 33.83 million barrels a day in October. The latest diplomatic push is expected later this week, with an upcoming meeting planned between Saudi Arabia's energy minister and his Russian counterpart, according to people familiar with the matter. Traders are also looking ahead to upcoming data on U.S. inventories from the Energy Information Administration, due at 10:30 a.m. ET on Wednesday. That data is expected to show inventories rising 1.1 million barrels in the week ended Nov. 11, according to a survey of analysts by The Wall Street Journal. Refinery use is seen rising 0.8% on average to 87.9% of capacity. The American Petroleum Institute said late Tuesday that oil stockpiles last week rose 3.7 million barrels. Gasoline stocks fell 155,000 barrels, while distillate stocks rose 3 million barrels, according to a market participant. In refined fuel markets, Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 55 points to $1.3405 a gallon, while December diesel traded at $1.4389, 50 points lower. ICE gasoil for December changed hands at $421.25 a metric ton, up $4.25 from Tuesday's settlement. Credit: By Dan Strumpf
Subject: Crude oil; Inventory; Crude oil prices
Location: Asia New York
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839275885
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839275885?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Climb On Hopes of OPEC Reaching a Deal
Author: McFarlane, Sarah; Yang, Stephanie
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]16 Nov 2016: B.17.
Abstract:
"Today's price recovery that has seen Brent climb back to above $45 per barrel comes courtesy of the latest diplomatic attempts by Qatar, Venezuela and Algeria to bring about a compromise at the OPEC meeting," said Commerzbank AG. Oil has taken most of its cues from sentiment on the OPEC deal in recent weeks. [...]the November meeting, headlines should continue to influence prices, analysts said.
Full text: Oil prices bounced off a three-month low, bolstered by speculation that members of OPEC are working out the details of a proposed reduction in crude output. Light, sweet crude for December delivery gained $2.49, or 5.7%, to settle at $45.81 a barrel on the New York Mercantile Exchange on Tuesday, its biggest one-day percentage gain since April. Brent, the global benchmark, rose $2.52, or 5.7% to $46.95 a barrel on ICE Futures Europe. All eyes are now on the Organization of the Petroleum Exporting Countries ahead of the Nov. 30 meeting in which the group aims to agree to a production cut to between 32.5 million and 33 million barrels a day from record levels of 33.83 million barrels a day in October. "All of a sudden now there's hope, and that's why we're seeing the market rebound," said Phil Flynn, senior market analyst at the Price Futures Group. There is a consensus that OPEC will come to an agreement, though the group's ability to rebalance the market, which has been dogged by excess supply for several years, is more in doubt. "Today's price recovery that has seen Brent climb back to above $45 per barrel comes courtesy of the latest diplomatic attempts by Qatar, Venezuela and Algeria to bring about a compromise at the OPEC meeting," said Commerzbank AG. Oil has taken most of its cues from sentiment on the OPEC deal in recent weeks. Until the November meeting, headlines should continue to influence prices, analysts said. "This is typical of OPEC negotiations. 'We have a deal, we don't have a deal,' and it goes till the last minute," Mr. Flynn said. Analysts said concerns over pipelines in countries such as Nigeria helped support a move higher in oil prices. Robbie Fraser, commodity analyst with Schneider Electric, said the possibility that instability and supply disruptions will continue also has made investors more bullish on oil. OPEC is in a difficult position. Any cut would potentially trigger increased production elsewhere, leading to doubts over the effectiveness of the current scale of the agreement. Rising production in nonmembers, including Brazil and Russia, has exacerbated the global supply glut. "We believe the amount of production cut that will be delivered will fall short of helping the market to rebalance in 2017, assuming recovery in Libya and Nigeria and stability in Venezuela," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. The bank expects global stocks to rise in 2017. Credit: By Sarah McFarlane and Stephanie Yang
Subject: Crude oil; Commodity prices
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.17
Publication year: 2016
Publication date: Nov 16, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839463463
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839463463?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Refiners Hurt as Oil Price Spread Thins
Author: Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]16 Nov 2016: B.17.
Abstract:
For years, the price levels for U.S. and overseas oil moved close to lockstep, often with WTI trading at a premium to Brent because of differences in quality and the cost to transport the crude to the U.S., where gasoline demand is stronger than in Europe.
Full text: Philadelphia Energy Solutions, operator of the largest oil refinery on the U.S. Atlantic Coast, felt confident enough about its prospects last year that it filed to raise $272 million through an initial public offering. But the company ditched those plans in September. It also let go dozens of workers, suspended pension contributions and delayed capital projects, according to a person familiar with the matter. A year can make a big difference, as can a 75% narrowing of the spread between the price of the U.S. crude-oil benchmark, West Texas Intermediate, and the global benchmark, Brent. That price discount for the U.S. benchmark -- which widened to as much as $28 a barrel -- had nourished East Coast refiners with cheaper crude, giving them a competitive advantage over imports from their trans-Atlantic rivals. But the discount has narrowed as output by U.S. shale producers declined, and tightened this year to $1.65, on average. "They lost that lifeline of cheap crude," said Robert Campbell, an analyst for Energy Aspects. Philadelphia Energy Solutions declined to comment. Refiners around the country have been hurt by the loss of exceptionally cheap oil, which they transform into fuels that could be sold at prices linked to the global oil benchmark. But East Coast plants -- squeezed by competition from abroad and from huge, efficient plants on the Gulf Coast -- have always had thinner margins and have been hit hardest. Some had to curtail output amid a record fuel glut that hit the region this summer, a time when drivers typically take to the roads and sop up gasoline supplies. "East Coast refiners are now operating in the same difficult environment that led to closures between 2009 and 2012," said Sandy Fielden, director of oil-and-products research at Morningstar. Delta Air Lines Inc. also has taken a hit. The Atlanta-based airline, which bought a refinery near Philadelphia in 2012 in hopes of reducing its jet-fuel costs, recently said it expects the plant to lose $100 million this year. Two years ago, the airline bragged it could save $2 to $3 a barrel by bringing in 70,000 barrels of oil a day from North Dakota "at a significant discount to what we currently pay for Brent." Phillips 66 and PBF Energy Inc., which own plants in New Jersey and Delaware, have reported that refining margins in the region have halved from a year ago, largely because of the collapse in the crude discount. For years, the price levels for U.S. and overseas oil moved close to lockstep, often with WTI trading at a premium to Brent because of differences in quality and the cost to transport the crude to the U.S., where gasoline demand is stronger than in Europe. That started to change about a decade ago as excess output from U.S. shale fields began to build up in storage tanks. As the glut accumulated, U.S. crude began to trade at a steep discount to its European counterpart. The spread reached its peak in 2011, when the WTI price of $86.80 was nearly $28 below that of Brent. The boost to the East Coast refinery business rescued plants in a part of the country where refineries had been shutting down because they were losing money. Some buyers bet they could pick up these refiners cheaply and turn them around. PBF Energy Inc., an independent refiner, bought plants in New Jersey and Delaware from San Antonio-based Valero Energy Corp. Carlyle Group, a private-equity firm, took a stake in a Philadelphia plant, helping form Philadelphia Energy Solutions, with the aim of upgrading it and building a new terminal to unload crude delivered from North Dakota. For a time, the strategy worked. U.S. crude imports by companies on the Eastern Seaboard plummeted by 54% from 2005 to 2014. But the spread began narrowing in 2012. One factor was new pipelines that helped shale producers reach markets on the Gulf Coast. The collapse of oil prices was another blow. Then in December, the federal government lifted restrictions that had banned most crude exports. That effectively allowed U.S. shale producers to sell excess supply on world markets at higher global prices. While the price gap had already narrowed significantly by the time that the export ban was lifted, analysts say it is one reason why the gap is unlikely to widen to previous levels. "Those days are gone," PBF Energy Chief Executive Tom Nimbley said. "It's very dangerous to be in a position where you're betting on a differential staying the same forever," he said.
Credit: By Alison Sider
Subject: Petroleum refineries; Crude oil prices
Company / organization: Name: PBF Energy; NAICS: 324110; Name: Philadelphia Energy Solutions; NAICS: 324110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.17
Publication year: 2016
Publication date: Nov 16, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839480744
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839480744?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
IEA Sees Peak Oil Demand After 2040; Demand will keep rising for longer because there are scant alternatives to oil, says group's chief Fatih Birol
Author: Williams, Selina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Nov 2016: n/a.
Abstract:
Global oil demand won't stop growing before 2040 despite pledges made at the Paris climate change summit last year to cap greenhouse-gas emissions, the head of the International Energy Agency said.
Full text: Global oil demand won't stop growing before 2040 despite pledges made at the Paris climate change summit last year to cap greenhouse-gas emissions, the head of the International Energy Agency said. IEA Executive Director Fatih Birol's comments have added to a debate over when oil consumption--which has steadily grown for decades--will begin a sustained decline, a change known as peak demand. Royal Dutch Shell PLC's Chief Financial Officer Simon Henry caused a stir earlier this month when he said the company believes demand for oil could stop growing within the next two decades and as soon as five years. Mr. Birol said demand will keep rising for longer because there are currently scant alternatives to oil for road freight, aviation and petrochemicals, despite increasing investment in renewable energy. Even efficiency gains in petrol engines and an increase in the number of electric vehicles on the road won't be enough to halt a rise in oil demand, he added. "The era of fossil fuels appears to be far from being over," Mr. Birol said. Mr. Birol's remarks were made as the IEA publishes its annual report, forecasting global energy supply and demand to 2040. Oil companies have started to look at a future in which consumer demand for their core product could stop growing due to climate policies and efficiency gains. "We've long been of the opinion that demand will peak before supply," Mr. Henry of Shell told analysts this month. "And that peak may be somewhere between five and 15 years hence and it will be driven by efficiency and substitution." Saudi Arabia, the world's largest exporter of crude oil, has begun preparing for a day when oil is no longer the dominant fuel. The kingdom is planning to publicly list a small piece of its giant state-run petroleum company, Saudi Arabia Oil Co., and use the money to invest in developing its economy away from crude. However, Saudi Arabia hasn't put an estimate on the timing of peak demand. Oil demand could peak by 2020 if a more stringent approach on climate change is taken, the IEA said, something that is looking increasingly unlikely after the election of Donald Trump in the U.S. The president-elect has called climate change a hoax and has said he would withdraw from the Paris deal. "We may well see a change in U.S. policy and given the size of the U.S. economy it may well have implications beyond the U.S. But it's far too early too speculate on what these changes would be and the implications on the energy market," Mr. Birol told a news conference in London. Government officials from dozens of countries are working this month in Morocco to implement curbs on emissions agreed last year in Paris. Even if successful, that effort may not be enough to quickly slow down crude-oil consumption, Mr. Birol said. "Today 81% of global energy comes from fossil fuels and in 2040, even if all the pledges are implemented, this share will go down to 74%. Under the IEA's central scenario in its World Energy Outlook to 2040, global oil demand is set to grow almost 12% to 103.5 million barrels a day in 2040, compared with 92.5 million barrels a day in 2015. Oil demand is set to fall more quickly in the Organization for Economic Cooperation and Development, a group of countries with advanced industrial economies, but this reduction is more than offset by increases elsewhere. India is set to become the leading source of growth, while China will overtake the U.S. to become the single largest consuming country in the early 2030s, the IEA said in the report. Write to Selina Williams at selina.williams@wsj.com Credit: By Selina Williams
Subject: Oil consumption; Climate change; Supply & demand; Environmental policy; Emissions; Efficiency; Energy industry
Location: United States--US Saudi Arabia
People: Henry, Simon Trump, Donald J
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839481034
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839481034?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil-Price Rally Undercut by Supply Data; Russian energy minister's comments boost crude, but prices are dragged down by growing stockpiles
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Nov 2016: n/a.
Abstract:
Mr. Novak's comments boosted prices shortly after a report from the U.S. Energy Information Administration showed a 5.3-million-barrel increase in U.S. crude supplies last week--well above the 1.1-million-barrel increase anticipated by analysts and traders surveyed by The Wall Street Journal.
Full text: Crude oil settled lower after flipping between gains and losses Wednesday, as renewed optimism that major oil producers could agree to scale back production competed with data showing that crude supplies are still swelling. Prices began to move higher Wednesday afternoon after Russian Energy Minister Alexander Novak told reporters at a Moscow energy forum that Russia would "support any decision" adopted by the Organization of the Petroleum Exporting Countries, according to media reports. But the rally couldn't be sustained, and attention turned to persistently bearish supply figures. Mr. Novak's comments boosted prices shortly after a report from the U.S. Energy Information Administration showed a 5.3-million-barrel increase in U.S. crude supplies last week--well above the 1.1-million-barrel increase anticipated by analysts and traders surveyed by The Wall Street Journal. Crude prices traded as high as $46.41 a barrel on the New York Mercantile Exchange before settling down 24 cents, or 0.52%, at $45.57 a barrel. Brent, the international benchmark, fell 32 cents, or 0.68%, at $46.63 a barrel. Oil markets have been whipsawed in recent weeks as market participants have tried to suss out the likelihood that OPEC will come to an agreement to cut output. Many had become broadly skeptical as some members raised disputes with the plan, but reports of increasing efforts to work out a deal prompted a 5.75% increase in prices Tuesday. Mr. Novak is slated to meet with oil ministers from Saudi Arabia and Qatar later this week. Wednesday's data showing swelling U.S. stockpiles puts more pressure on OPEC, analysts said. Gasoline and diesel inventories also increased, and total stocks of petroleum products increased by 7.1 million barrels. "They've got to come up with some kind of deal or it's going to get pretty ugly," said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. But there were signs of increasing demand for crude by refiners, which are coming out of seasonal maintenance. Refiners processed 16.1 million barrels of oil during the week, up from 15.8 the previous week, and refinery utilization jumped from 87.1% to 89.2%--well above the 87.9% forecast by traders and analysts. Gasoline futures fell 1.59 cents, or 1.19%, at $1.3191 a gallon. Diesel futures fell 0.89 cents, or 0.62%, at $1.435 a gallon Neanda Salvaterra, Dan Strumpf, and Benoit Faucon contributed to this article. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Supply & demand; Price increases
Location: Russia United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839583000
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839583000?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Market to OPEC: Make a Deal or Price Rout Resumes; Group's pledge to rein in output has been one of the few recent bright spots for oil
Author: Sider, Alison; Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Nov 2016: n/a.
Abstract: None available.
Full text: For oil prices that have been retreating for most of the past month, OPEC is shaping up as the last line of defense. U.S. crude prices have lost more than 11% in four weeks. Oil prices tumbled after data showed U.S. inventories rising and U.S. producers putting more rigs back to work. They continued falling as the dollar rallied, a move that makes oil more expensive for foreign buyers. But the biggest factor in oil's retreat, many traders say, has been growing skepticism that members of the Organization of the Petroleum Exporting Countries can reach a deal to cut output at their Nov. 30 meeting. OPEC leaders have elaborated little in recent weeks on their tentative plan reached in late September to limit crude production to between 32.5 million to 33 million barrels a day. Meanwhile, cartel members have been pumping at full tilt. Production reached a record 33.83 million barrels a day in October, according to the International Energy Agency. That means OPEC would have to cut back more than 800,000 barrels day to reach its stated goal. The group's behavior is raising doubts that it is prepared to reach a deal that will cut output deep enough to rebalance a market that has been well oversupplied. "Fundamentally, I see very little reason for a rally anytime soon outside of OPEC," said Mark Anderle, director of supply and trading at TAC Energy. OPEC may be getting the message. U.S. crude futures rallied 5.75% on Tuesday following media reports that cartel members are working on details of their proposed production cut. That was oil's biggest one-day percentage gain since April. Prices began to rise again Wednesday after Russian Energy Minister Alexander Novak indicated that Russia is ready to support an OPEC deal. But without new evidence of progress, his comments were not enough to outweigh new data showing swelling U.S. supplies, and U.S. oil prices sputtered, losing 0.5%. The group's pledge to rein in output has been one of the few recent bright spots for oil. Crude prices climbed more than 15% to $51.60--their highest settlement price since July 2015--during the three weeks after OPEC announced its plan to cut production. Those gains enabled crude to pierce the price ceiling of around $50 that had held since April. But oil mostly has sat out a post-U.S. election rally, which has boosted the price of stocks, industrial metals and other assets that rose in response to President-elect Donald Trump's fiscal-stimulus proposals that the markets hope will bring economic expansion and inflation. Now the growing concern is that a lack of OPEC follow-through on its pledge to cut could drag prices below the $40 floor that has also held for months. "Supply is rearing its head again," said Kris Kelley, an energy analyst at Janus Capital Group. "Now the onus to cut production is a lot higher." A report released Wednesday by the Energy Information Administration showed that U.S. crude-oil stockpiles rose by 5.3 million barrels for the week ended Nov. 11 to 490.3 million barrels, which is above the upper limit of the average range for this time of year. Skeptics point out that, even if OPEC members reach an agreement, previous efforts to reduce output weren't always well-enforced. Countries often traded accusations of cheating. "It's been such an ineffective cartel for so long, I don't think people are going to believe it," Mr. Kelley said. OPEC representatives didn't respond to requests seeking comment. Others worry that a cut could result in only short-term price gains, eventually triggering more output from U.S. shale companies that many analysts view as the new swing producers. Analysts say this is already showing up in domestic production. U.S. output jumped 2% in the week ended Nov. 4, though it fell slightly last week, the Energy Information Administration said Wednesday. Not all investors are this pessimistic. Nick Koutsoftas, portfolio manager at Cohen & Steers, said many investors have already prepared for the OPEC deal to collapse. In the week ended Nov. 8, money managers added a record number of bearish bets on oil, 82,791 new positions, according to Commodity Futures Trading Commission data released Monday. That could lead oil prices to hold or even rise, no matter what OPEC does on Nov. 30. Mr. Koutsoftas expects crude prices could return to $50 a barrel by year-end, with oil demand catching up to supply by the end of next year. "Even if they did absolutely nothing, I think the market has already discounted that, and that's what we've seen over the last month with the price of oil coming down," Mr. Koutsoftas said. Some analysts think that demand has already caught up to daily supply, at least excluding the excess capacity in storage. PIRA Energy Group said global crude supply is already 400,000 barrels a day less than demand, a shortage likely to grow next year. Others say focusing on OPEC misses the point. Because most of the cartel's members are already pumping as much as they can, there is little risk that the floodgates will open in the absence of a production agreement, said Robin Wehbé, portfolio manager at the Boston Company Asset Management. "The narrative now is we're looking for OPEC to save the market, and everyone feels it's in OPEC's hands," Mr. Wehbé said. But "the reality is, they lost the ability to control the market a decade ago." Write to Alison Sider at alison.sider@wsj.com and Timothy Puko at tim.puko@wsj.com Read more * IEA Sees Peak Oil Demand After 2040 * U.S. Refiners Feel the Squeeze as Crude Oil Discount Disappears * Wednesday's Oil Markets Credit: By Alison Sider and Timothy Puko
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839699695
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1839699695?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Stockpiles Rise Much More Than Expected
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Nov 2016: n/a.
Abstract:
U.S. crude oil stockpiles rose sharply for the week ended Nov. 11, while gasoline supplies also inched higher, according to data released Wednesday by the Energy Information Administration.
Full text: U.S. crude oil stockpiles rose sharply for the week ended Nov. 11, while gasoline supplies also inched higher, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles rose by 5.3 million barrels to 490.3 million barrels, which is above the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 1.1 million barrels on the week. Oil stored at the Cushing, Okla., delivery point for U.S. stocks, increased by 691,000 barrels to 59.2 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by 746,000 barrels to 221.7 million barrels. Analysts were expecting inventories to fall by 500,000 barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, increased by 310,000 barrels to 148.9 million barrels, and remain "well above" the upper limit of the average range, the EIA said. Analysts were forecasting supplies to fall by 1.8 million barrels from a week earlier. Refining capacity utilization rose by 2.1 percentage points from the previous week to 89.2%. Analysts were expecting utilization levels to rise by a more modest 0.8 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1839788022
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
North Dakota Crude-Oil Output Drops to Low of More Than Two Years; State's production fell 1.1% in September due to low prices
Author: Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Nov 2016: n/a.
Abstract:
A slight uptick in the number of drilling rigs deployed and wells completed were not enough to halt the slide in output, a result of production rate declines from older wells.
Full text: North Dakota's crude-oil production in September dropped to the lowest level in more than two years on depressed prices, staying below one million barrels a day for the second month in a row, the state's Department of Mineral Resources said Wednesday. Crude production fell 1.1% on the month to 971,658 barrels a day in September, the most recent month for which data is available. That is the lowest level since February 2014, when output was 952,055 barrels a day, and follows a 4.7% drop in August. Lynn Helms, director of the department, said depressed prices will likely weigh on North Dakota's production volumes next year. "The lower-for-longer oil price pushes that million-barrel-a-day [recovery] number out into 2018," he said at a news conference in Bismarck. North Dakota's production is centered on the Bakken Shale formation , one of the world's highest-cost oil fields. Prices below $50 a barrel --half the level two years ago--have forced shale-oil producers in plays like the Bakken to slow drilling activity and curb output. Total production in North Dakota was 29.2 million barrels of oil in September, down from 30.4 million barrels in August, the state said. A slight uptick in the number of drilling rigs deployed and wells completed were not enough to halt the slide in output, a result of production rate declines from older wells. North Dakota's active rig count currently stands at 38 rigs, up from 33 in October, the state said. The all-time high for the state was 218 rigs in May 2012. The number of wells completed, or brought into production, rose to 71 in September from 63 in August, according to provisional state figures. Natural-gas production in North Dakota fell 1.7% in September to 1.61 billion cubic feet a day, state figures showed. Energy producers burned off, or flared, 11.9% of gas output, up from 11.4% in August. Gas is a byproduct of oil production. Most oil in North Dakota is extracted by hydraulic fracturing , or fracking, where a mixture of water, sand and chemicals is pumped into rock formations to push oil out. Such wells are first drilled and then put into production after being fracked, or completed. Write to Chester Dawson at chester.dawson@wsj.com Credit: By Chester Dawson
Subject: Prices; Natural gas; Petroleum production; Hydraulic fracturing
Location: North Dakota
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1840129004
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1840129004?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Futures Lower as U.S. Crude Stocks Balloon; Brent crude fell 9 cents to $46.54 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Nov 2016: n/a.
Abstract:
Saudi Energy Minister Khalid al-Falih is set to meet his counterparts, Russia's Alexander Novak and Qatar's Mohammed Saleh Al Sada, on the sidelines of the Gas Exporting Countries Forum, taking place in Doha on Thursday, according to people familiar with the plans. Since a September meeting, some producer nations in OPEC have asked to be exempt from any output cut deal.
Full text: Oil futures were lower in Asian trade Thursday after weekly data showed another large increase in U.S. inventories of crude. On the New York Mercantile Exchange, light, sweet crude futures traded 8 cents lower at $45.49 a barrel at 0336 GMT, in the Globex electronic session. Brent crude on London's ICE Futures exchange fell 9 cents to $46.54 a barrel. U.S. stocks of crude oil jumped more than expected to 5.27 million barrels, although the impact was cushioned by a fall in output and increased capacity utilisation by refineries. Crude oil stocks have increased for three straight reporting periods, notes an S&P Global Platts report, adding that prior to this inventories had fallen for seven out of eight weeks. An ANZ report said reports of the Organization of the Petroleum Exporting Countries member countries' meeting with Russia in Doha this week to discuss production cuts has also helped improve investor sentiment. Oil prices have been under pressure due to the prospect of rising global crude oil supplies despite pledges of cutbacks. OPEC, the 14-nation cartel that controls over a third of the world's oil, is trying to formalise a deal to cut production to between 32.5 million and 33 million barrels a day from record levels of 33.83 million barrels a day in October. Saudi Energy Minister Khalid al-Falih is set to meet his counterparts, Russia's Alexander Novak and Qatar's Mohammed Saleh Al Sada, on the sidelines of the Gas Exporting Countries Forum, taking place in Doha on Thursday, according to people familiar with the plans. Since a September meeting, some producer nations in OPEC have asked to be exempt from any output cut deal. Iraq has said it needs to pump at will to finance its continuing war against the Islamic State. Market watchers say without Russia's commitment to cut or freeze production, OPEC members would be less inclined to scale back their own. Media reports on Wednesday quoted Russian Energy Minister Alexander Novak as saying that Russia would "support any decision" adopted by OPEC. The victory of Republican Donald Trump in the U.S. presidential elections could also pose a further threat to Brent crude oil prices because his policies are seen as supportive of a recovery in U.S. shale oil production, a BMI Research report said. "Further relaxation of drilling and environmental regulations, coupled by faster approval of midstream infrastructure will lend support to the recovery in output under Trump," the report said. "It is probable that his economic policies will take on a more protectionist bent, which is a net negative for global goods flows and export-dependent emerging markets. This would pressure oil demand to the downside, over a multi-year timeframe," adds BMI. It forecast an annual average price of $55.0/barrel and $53.0/barrel for Brent and Nymex, respectively, for 2017. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 37 points to $1.3154 a gallon. ICE gasoil for December changed hands at $419.50 a metric ton, down $2 from the previous settlement. Write to Biman Mukherji at biman.mukherji@wsj.com Credit: By Biman Mukherji
Subject: Crude oil prices; Crude oil; Supply & demand; Inventory; Petroleum production
Location: Russia United States--US
People: Novak, Alexander
Company / organization: Name: ICE Futures; NAICS: 523210; Name: Gas Exporting Countries Forum; NAICS: 813910; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 17, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1840566868
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1840566868?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Asia Stocks Mixed on Oil Slide; Fall in some markets comes ahead of inflation, jobs and exports data due from the U.S.
Author: Machado, Kenan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Nov 2016: n/a.
Abstract:
A drop in oil prices weighed on Asia stocks on Thursday, ahead of inflation, jobs and exports data expected from the U.S. and testimony from Federal Reserve Chairwoman Janet Yellen on the economic outlook to Congress later in the day.
Full text: A drop in oil prices weighed on Asia stocks on Thursday, ahead of inflation, jobs and exports data expected from the U.S. and testimony from Federal Reserve Chairwoman Janet Yellen on the economic outlook to Congress later in the day. Australia's S&P/ASX 200 closed up 0.2%, recovering from early losses, with BHP Billiton bouncing back 0.3% and Rio Tinto gaining 1.1%. However, Woodside Petroleum lost 1.6%, while oil and energy firm Santos fell 2.7%. "The strengthening U.S. dollar is buffeting commodity prices," said Michael McCarthy, chief market strategist at CMC Markets in Sydney. Stock market declines in the U.S. and Europe also weighed on equities in Asia, he said. The dollar touched a 13-year high on Wednesday , boosted by rising U.S. bond yields. The ICE Dollar Index, which tracks the greenback against a basket of six currencies, rose to 100.57 earlier in the session, its highest level since April 2003. It was last trading 0.2% down at 100.23. Crude prices fell after data showed U.S. crude oil inventories were higher than expected . Brent crude, the international benchmark, was last trading down 0.2% at $46.53 a barrel. The data overshadowed comments from Russian Energy Minister Alexander Novak who told reporters at a Moscow energy forum that Russia would "support any decision" adopted by the Organization of the Petroleum Exporting Countries. Crude prices had surged nearly 6% Tuesday on news that OPEC would try to limit production ahead of a meeting in Vienna. In Japan, the Nikkei Stock Average closed flat even as the yen slipped 0.3% against the dollar. Bank of Japan Governor Haruhiko Kuroda said on Thursday that he would hold down yields ahead of a likely rate-increase cycle in the U.S. "Interest rates may have risen in the U.S., but that doesn't mean that we have to automatically allow Japanese interest rates to increase in tandem," he said in parliament. The remark came within an hour of an announcement by the BOJ that it was prepared to buy an unlimited amount of certain government bonds at fixed rates . The tactic worked: Yields on two-year and five-year Japanese government bonds fell after the BOJ's announcement. The 10-year yield also briefly fell to 0.010% after hitting as high as 0.025% earlier in the morning. Korea's Kospi and the Shanghai Composite each gained 0.1% while Hong Kong's Hang Seng Index closed down 0.1%. "The market is getting back to normal after people were overconcerned about the elections," said Arthur Kwong, head of equities for Asia at BNP Paribas Investment Partners. "[Investor] behavior will be now be correlated to fundamentals." Elsewhere in the region, the Philippines' third-quarter gross domestic product came in at 7.1% on year, surprising economists by its strength. The benchmark stock index, the PSEi, was 1.2% higher. The Malaysian ringgit fell 1% Thursday on talk of enhanced controls by the Malaysian central bank on trading the currency offshore. Thomson Reuters reported Wednesday, citing banking sources, that Bank Negara Malaysia has asked foreign banks to make a written commitment to refrain from trading the ringgit in the offshore nondeliverable-forwards market. Later in the U.S. on Thursday, data on October consumer prices, weekly jobless claims and export sales are due. But the market will be focused on congressional testimony from Ms. Yellen. New York Fed President William Dudley and Fed Board Governor Lael Brainard will also be speaking at public events. Ese Erheriene, Yantoultra Ngui, Takashi Nakamichi, Yifan Xie and Chris Larano contributed to this article. Write to Kenan Machado at kenan.machado@wsj.com Credit: By Kenan Machado
Subject: Interest rates; Stock exchanges; Yen
Location: Australia United States--US Asia
People: Novak, Alexander
Company / organization: Name: Rio Tinto Group; NAICS: 212112, 212291; Name: Congress; NAICS: 921120; Name: BHP Billiton; NAICS: 211111, 212231, 212234; Name: Woodside Petroleum Ltd; NAICS: 211111; Name: BNP Paribas Investment Partners; NAICS: 523920
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 17, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1840568051
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1840568051?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil-Demand Growth Seen Increasing Through 2040
Author: Williams, Selina
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 Nov 2016: B.13.
Abstract:
Global oil demand won't stop increasing before 2040 despite pledges made at the Paris climate-change summit last year to cap greenhouse-gas emissions, the head of the International Energy Agency said.
Full text: Global oil demand won't stop increasing before 2040 despite pledges made at the Paris climate-change summit last year to cap greenhouse-gas emissions, the head of the International Energy Agency said. IEA Executive Director Fatih Birol's comments have added to a debate over when oil consumption, which has risen steadily for decades, will begin a sustained decline, a change known as peak demand. Royal Dutch Shell PLC Chief Financial Officer Simon Henry caused a stir this month when he said the company believes demand for oil could stop increasing within the next two decades and as soon as five years. Mr. Birol said demand will keep rising for longer because there are scant alternatives to oil for road freight, aviation and petrochemicals, despite increasing investment in renewable energy. Even efficiency gains in gas engines and an increase in the number of electric vehicles on the road won't be enough to halt a rise in oil demand, he said. "The era of fossil fuels appears to be far from being over," Mr. Birol said. Mr. Birol's remarks were made as the IEA publishes its annual report, forecasting global energy supply and demand to 2040. Oil companies have started to look at a future in which consumer demand for their core product could stop expanding due to climate policies and efficiency gains. "We've long been of the opinion that demand will peak before supply," Mr. Henry of Shell told analysts this month. "And that peak may be somewhere between five and 15 years hence, and it will be driven by efficiency and substitution." Oil demand could peak by 2020 if a more stringent approach on climate change is taken, the IEA said. Credit: By Selina Williams
Subject: Supply & demand; Environmental policy; Oil consumption; Climate change
Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.13
Publication year: 2016
Publication date: Nov 17, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: En glish
Document type: News
ProQuest document ID: 1840585606
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Reverse Earlier Gains to Settle Lower; Dollar up after Fed remarks on interest rates
Author: Sider, Alison; McFarlane, Sarah; Mukerji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Nov 2016: n/a.
Abstract:
Write to Alison Sider at alison.sider@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com RELATED ARTICLES * Five Reasons Why Oil Prices Could Fall Further (Nov. 16) * Saudi, Russian Energy Ministers to Meet Before a Key OPEC Meeting (Nov. 15) * OPEC's Oil Production Cut in Doubt as Output Flows (Nov.\n
Full text: Oil futures reversed earlier gains to settle lower on Thursday as a stronger dollar outweighed hopes that major oil producers will come to a deal to limit output. U.S. crude futures lost 15 cents, or 0.33%, to $45.42 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost 14 cents, or 0.3%, to $46.49 a barrel. The move lower came after crude hit a weekly high of $46.58. But in the absence of signs that the Organization of the Petroleum Exporting Countries has made more progress reaching an agreement on how to implement production cuts, the dollar's strength took precedence, analysts said. "As the day progressed, the dollar re-exerted itself and crude rolled over," said John Saucer, vice president of research and analysis at Mobius Risk Group. "Something would have had to offset the dollar. Today there was none of that." The U.S. dollar rose after comments from Federal Reserve Chairwoman Janet Yellen raised expectations that the central bank will raise interest rates next month. The WSJ Dollar Index was recently up 0.59%--its ninth consecutive day of gains. A stronger dollar makes oil, which is priced in the U.S. currency, more expensive for foreign buyers. Market participants are still focused on OPEC's Nov. 30 meeting. Ongoing talks between members and nonmembers are expected to take place in the lead up, as they look to curb production to stabilize prices. Saudi Energy Minister Khalid al-Falih continued to bolster expectations on Thursday, telling Saudi-owned Al Arabiya television that he is "optimistic" that OPEC's members will formalize the tentative deal they reached in September and set production limits for individual countries. His comments came a day after media reports quoted Russian Energy Minister Alexander Novak as saying that Russia would "support any decision" adopted by OPEC. "Verbal intervention by key players is keeping hope alive," said John Kilduff, founding partner of Again Capital. "They keep talking this up, the market keeps biting on the lure, and here we are." OPEC, the 14-nation cartel that controls over a third of the world's oil, is trying to formalize a deal to cut production to between 32.5 million and 33 million barrels a day from record levels of 33.83 million barrels a day in October. Oil ministers from Saudi Arabia, Russia and Qatar are expected to meet on the sidelines of the Gas Exporting Countries Forum, taking place in Doha on Thursday, according to people familiar with the plans. But ministers from Iraq and Iran, two countries that have resisted an agreement, aren't expected to attend. There is widespread skepticism over whether OPEC will be able to achieve its goal given some producer nations have asked to be exempted from any output cut deal, plus the group has a patchy record for its members sticking to output quotas. But analysts say that Saudi Arabia's commitment to a deal makes it hard to discount the possibility of an agreement. "With Saudi Arabia driving the process, we've been continually optimistic that the deal will get done even though the market has sort of lost faith," Jason Bloom, Director of research and strategy for commodities and alternatives at Invesco PowerShares. Gasoline futures are up 2.39 cents, or 1.81%, to $1.343 a gallon. Diesel futures rose 1.2 cents, or 0.84%, to $1.447 a gallon. Write to Alison Sider at alison.sider@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com RELATED ARTICLES * Five Reasons Why Oil Prices Could Fall Further (Nov. 16) * Saudi, Russian Energy Ministers to Meet Before a Key OPEC Meeting (Nov. 15) * OPEC's Oil Production Cut in Doubt as Output Flows (Nov. 11) Credit: By Alison Sider, Sarah McFarlane and Biman Mukerji
Subject: Crude oil; Cartels; Agreements; Petroleum production
Location: United States--US
People: Novak, Alexander
Company / organization: Name: Al Arabiya; NAICS: 515120; Name: Gas Exporting Countries Forum; NAICS: 813910; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 17, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1840594215
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1840594215?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Extend Falls in Asia Amid Dollar Strength; January Brent crude on London's ICE Futures exchange fell 41 cents to $46.08 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Nov 2016: n/a.
Abstract:
Going forward, oil prices are likely to take direction from statements made by members of the Organization of the Petroleum Exporting Countries on the sidelines of the Gas Exporting Countries Forum, taking place in Doha, said Peter Lee, Asia oil and gas analyst at BMI Research.
Full text: Oil futures fell in Asia trade Friday on a stronger dollar and amid few signs that major oil producers would be able to come to a deal to limit output. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $44.94 a barrel at 0346 GMT, down 49 cents in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell 41 cents to $46.08 a barrel. The U.S. dollar has been rising after comments from the Federal Reserve Chairwoman Janet Yellen raised expectations that the central bank will raise interest rates next month. The victory of Donald Trump in the U.S. presidential election has also boosted hopes that he will introduce policies that will be more supportive of U.S. shale oil production. Going forward, oil prices are likely to take direction from statements made by members of the Organization of the Petroleum Exporting Countries on the sidelines of the Gas Exporting Countries Forum, taking place in Doha, said Peter Lee, Asia oil and gas analyst at BMI Research. OPEC, the 14-nation cartel that controls over a third of the world's oil, is trying to formalize a deal to cut production to between 32.5 million and 33 million barrels a day from record levels of 33.83 million barrels a day in October. Saudi Energy Minister Khalid al-Falih told Saudi-owned Al Arabiya television on Thursday that he is "optimistic" that OPEC's members will formalize the tentative deal they reached in September and set production limits for individual countries. But observers are skeptical about a quick outcome. "There is a lot of uncertainty on OPEC's ability to reach an outcome," said Mr. Lee. "I am personally not optimistic." However, he said that oil prices are likely to strengthen next year when some production cuts are expected by some OPEC members coupled with production declines outside the cartel because of slowing investments. Nymex reformulated gasoline blendstock--the benchmark gasoline contract--was down 90 points to $1.4380 a gallon. ICE gas oil for December changed hands at $420.25 a metric ton, down $3.25 from Thursday's settlement. Credit: By Biman Mukherji
Subject: Crude oil prices; Crude oil; Petroleum production
Location: United States--US Asia
People: Trump, Donald J
Company / organization: Name: Al Arabiya; NAICS: 515120; Name: ICE Futures; NAICS: 523210; Name: Gas Exporting Countries Forum; NAICS: 813910; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 18, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1840905915
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Slide as Dollar Rises
Author: Sider, Alison; McFarlane, Sarah; Mukherji, Biman
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Nov 2016: B.10.
Abstract:
[...]in the absence of signs that the Organization of the Petroleum Exporting Countries has made more progress reaching an agreement on how to implement production cuts, the dollar's strength took precedence, analysts said.
Full text: Oil futures reversed earlier gains to settle lower on Thursday as a stronger dollar outweighed hopes that major oil producers will come to a deal to limit output. U.S. crude futures lost 15 cents, or 0.33%, to $45.42 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost 14 cents, or 0.3%, to $46.49 a barrel. The move lower came after crude hit a weekly high of $46.58. But in the absence of signs that the Organization of the Petroleum Exporting Countries has made more progress reaching an agreement on how to implement production cuts, the dollar's strength took precedence, analysts said. "As the day progressed, the dollar re-exerted itself and crude rolled over," said John Saucer, vice president of research and analysis at Mobius Risk Group. "Something would have had to offset the dollar. Today there was none of that." The dollar rose after comments from Federal Reserve Chairwoman Janet Yellen raised expectations that the central bank will raise interest rates next month. The WSJ Dollar Index was recently up 0.59% -- its ninth consecutive day of gains. A stronger dollar makes oil, which is priced in the U.S. currency, more expensive for foreign buyers. Market participants are still focused on OPEC's Nov. 30 meeting. Continuing talks between members and nonmembers are expected to take place in the lead up, as they look to curb production to stabilize prices. Saudi Energy Minister Khalid al-Falih continued to bolster expectations on Thursday, telling Saudi-owned Al Arabiya television that he is "optimistic" that OPEC's members will formalize the tentative deal they reached in September and set production limits for individual countries. His comments came a day after media reports quoted Russian Energy Minister Alexander Novak as saying that Russia would "support any decision" adopted by OPEC. "Verbal intervention by key players is keeping hope alive," said John Kilduff, founding partner of Again Capital. "They keep talking this up, the market keeps biting on the lure, and here we are." OPEC, the 14-nation group that controls over one-third of the world's oil production, is trying to formalize a deal to cut production to between 32.5 million and 33 million barrels a day from record levels of 33.83 million barrels a day in October. Oil ministers from Saudi Arabia, Russia and Qatar are expected to meet on the sidelines of the Gas Exporting Countries Forum, taking place in Doha on Thursday, according to people familiar with the plans. But ministers from Iraq and Iran, two countries that have resisted an agreement, aren't expected to attend. Credit: By Alison Sider, Sarah McFarlane and Biman Mukherji
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2016
Publication date: Nov 18, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1840946848
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rise as Hopes Grow for an OPEC Output Cut; OPEC members are scheduled to meet Nov. 30 to try to agree on production quotas
Author: Sider, Alison; McFarlane, Sarah; Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Nov 2016: n/a.
Abstract:
Oil markets were also under pressure from a strengthening U.S. dollar after comments from Federal Reserve Chairwoman Janet Yellen raised expectations that the central bank will raise interest rates next month.
Full text: Oil prices rose Friday as hopes grew that major oil producers would be able to strike a deal to cut output and stabilize prices. Oil markets have been in a tug of war this week amid a flurry of diplomacy among major producers trying to implement production cuts. But several factors have weighed on prices--persistent skepticism that the Organization of the Petroleum Exporting Countries will reach such a deal by its Nov. 30 meeting, a strengthening U.S. dollar and data showing an unexpectedly large increase in U.S. oil supplies. "There's a lot of rhetoric out there, but you can't ignore what happened with the inventory numbers, and the dollar is a massive headwind," said Tariq Zahir, managing member of Tyche Capital Partners. West Texas Intermediate futures wavered between gains and losses during the day, before settling higher, posting a weekly gain for the first time since mid-October. U.S. oil prices rose 27 cents, or 0.59%, to settle at $45.69 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained 37 cents, or 0.8%, to $46.86 a barrel on London's ICE futures exchange. The Wall Street Journal reported Friday that Iraq's oil minister said he is optimistic about the prospects for an agreement, and that some of the country's issues with the deal have been hashed out. The statements signaled a change of tone, as Iraq had seemed to be the cartel's most intransigent member in recent weeks. Gene McGillian, research manager at Tradition Energy, said he expects prices to stay close to the $45 level until the deal's fate becomes clear. "The market is showing it's uncertain about what's going to happen," Mr. McGillian said. The market has been particularly sensitive to statements coming out of Doha this week, where talks between OPEC members on the sidelines of a gas forum were expected to give some indication of progress toward a deal to cut oil production to between 32.5 million and 33 million barrels a day, from record levels of around 33.83 million barrels a day in October. Russian Energy Minister Alexander Novak said talks between OPEC and non-OPEC members had proved "positive," according to Interfax news agency. Saudi Energy Minister Khalid al-Falih told Saudi-owned Al Arabiya television on Thursday that he is "optimistic" that OPEC's members will formalize the tentative deal they reached in September and set production limits for individual countries. But observers are skeptical about a quick outcome. "There is a lot of uncertainty on OPEC's ability to reach an outcome," said Peter Lee, Asia oil and gas analyst at BMI Research. "I am personally not optimistic." The impact of any agreement between OPEC members to lower production could also be offset by surging output from non-OPEC producers, such as Russia, where production hit a post-Soviet high of 11.2 million barrels a day in October. "Russia has earlier spoken with mixed voices regarding joining OPEC in an output cut or freeze," said Michael Poulsen, oil risk manager at Global Risk Manager. Worries about growing supplies in the U.S. held prices back this week. Oil-field services firm Baker Hughes Inc. reported Friday that another 19 oil rigs went to work in U.S. fields this week. Oil markets were also under pressure from a strengthening U.S. dollar after comments from Federal Reserve Chairwoman Janet Yellen raised expectations that the central bank will raise interest rates next month. A stronger dollar makes oil more expensive in other currencies. The WSJ Dollar Index was up 0.46% Friday, extending its rally. Gasoline futures fell 0.39 cent, or 0.29%, to $1.3391 a gallon. Diesel futures rose 1.07 cents, or 0.74%, to $1.4577 a gallon. Selina Williams and Benoit Faucon contributed to this article Write to Alison Sider at alison.sider@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Biman Mukherji at biman.mukherji@wsj.com Credit: By Alison Sider, Sarah McFarlane and Biman Mukherji
Subject: Cartels; Crude oil prices; Petroleum production
Location: United States--US Iraq
People: Novak, Alexander
Company / organization: Name: Al Arabiya; NAICS: 515120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 18, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841038273
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841038273?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Iraq Now Optimistic About OPEC Oil-Output Deal; Oil cartel to meet later this month in Vienna
Author: Williams, Selina; Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Nov 2016: n/a.
Abstract:
Iraq's oil minister said Friday that he is optimistic about OPEC reaching an agreement at its next meeting, a change in tone that suggests the cartel's most recalcitrant member is coming around to the idea of cutting oil output.
Full text: Iraq's oil minister said Friday that he is optimistic about OPEC reaching an agreement at its next meeting, a change in tone that suggests the cartel's most recalcitrant member is coming around to the idea of cutting oil output. "I'm really optimistic on the result of the next OPEC meeting," Iraq's top oil official, Jabbar al-Luaibi, said in a telephone interview. Iraq had seemed to be the most reluctant member of the Organization of the Petroleum Exporting Countries to agree to a production cut ahead of a Nov. 30 gathering in Vienna. The 14-nation cartel is meeting to decide on output reductions aimed at boosting oil prices . Crude remains down more than 60% since mid-2014. The group--which controls over a third of global oil production--agreed in September to reduce output to help draw down a glut of supplies weighing down on prices . But the pact left the details of how to cut roughly 2% to 4% of its output for later. Iraq has been ramping up production for over two years, reaching record output of over 4.5 million barrels a day in recent months. Mr. Luaibi had said Iraq should be exempted from cutting production because it needs oil revenue to prosecute a costly war against Islamic State. He had also disputed the independent production statistics OPEC wants to use as a baseline for production cuts because they differ from Iraqi government figures. On Friday, Mr. Luaibi said he and OPEC had made progress in resolving their differences. Mr. Luaibi said OPEC's production estimates from independent analysts had been moving closer to Iraq's declared output level in the past couple of months. He said he met with OPEC Secretary General Mohammad Barkindo and other OPEC officials on the sidelines of a recent conference in Abu Dhabi and hashed out some of their problems. "We reached almost some sort of, not agreement, but satisfactory results," he said of the meeting. Mr. Luaibi's comments come after a flurry of diplomacy inside and outside the cartel to seal the production-cut deal. On Friday, oil officials from nine OPEC members--including Saudi Arabia's energy minister Khalid al-Falih -- met with two non-OPEC producers , Russia and Oman, to discuss production. Russian Energy Minister Alexander Novak said the talks had proved "positive," according to Interfax news agency. "I see that the sides' positions are getting closer, and the possibility of reaching an agreement has become real," he said. Mr. Novak gave no figures for any cut in output. If Iraq remains on board, the next challenge for OPEC to clinch a production deal will be Iran. The Islamic Republic has increased production this year after the lifting of U.S. and European sanctions related to its nuclear program and doesn't want to stop until it regains what it says was its pre-sanctions market share. An Iranian oil official said Friday the country wants to increase at least to 4 million barrels a day compared with its current production estimate of 3.9 million barrels a day. Mr. Barkindo is traveling to Tehran on Saturday, according to an OPEC official. -- Laura Mills in Moscow contributed to this article. Write to Selina Williams at selina.williams@wsj.com and Benoit Faucon at benoit.faucon@wsj.com Credit: By Selina Williams and Benoit Faucon
Subject: Cartels; Quotas; Agreements; Petroleum production
Location: Iraq
People: Novak, Alexander
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 18, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841153320
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841153320?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 19, Baker Hughes Says; Sharp rise is fastest acceleration in some time
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Nov 2016: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by 19 in the past week to 471, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector.
Full text: The number of rigs drilling for oil in the U.S. rose by 19 in the past week to 471, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. The oil-rig count has generally been rising since the beginning of summer, but the sharp rise by 19 in the latest week was the fastest acceleration in some time. The nation's gas-rig count rose by one to 116 in the past week, according to Baker Hughes. The U.S. offshore-rig count rose by two from last week to 23, which is 7 fewer than a year ago. On Friday, the U.S. dollar extended its powerful rally , and the stronger currency weighed on some greenback-denominated commodities. As the WSJ Dollar Index rose 0.5%, U.S. crude-oil prices fell 0.3% to $45.88 a barrel. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 18, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841196284
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841196284?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Transcript: Q&A With Dallas Fed's Robert Kaplan in Houston; Central banker discusses oil prices, district's economy and interest rates
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Nov 2016: n/a.
Abstract: None available.
Full text: Robert S. Kaplan, president of the Federal Reserve Bank of Dallas, participated in a question-and-answer session Friday, Nov. 18, 2016, at a conference on "Oil and the Economy: Adapting to a New Reality." Here is a transcript of the discussion, lightly edited for length and clarity. MODERATOR: (In progress) Rob is the 15th head and CEO of the Federal Reserve Bank of Dallas. He started in September of last year. Before coming to the bank, Rob was the Martin Marshall Professor of Management Practice and a senior associate dean at Harvard Business School. He is the author of several books, the most recent of which is "What You Really Need to Lead: The Power of Thinking and Acting like an Owner." Prior to joining Harvard in 2006, Rob was vice chairman of the Goldman Sachs group, with global responsibility for the firm's investment banking and investment management divisions. Jim Hackett is presently a partner in Riverstone Holdings, a large private energy investment firm. Jim is the retired executive chairman of the board and former CEO of Anadarko Petroleum Corporation. Before joining Anadarko, Jim served as president and CEO of Devon Energy Corporation, following its merger with Ocean Energy, where he was chairman, president and CEO. Before that, he was with Seagull Energy and Duke Energy, among others. Most importantly for us, Jim served on the Dallas Fed Board of Directors, and was chairman of the board from 2007 to 2010. Before that, he was on the Houston board and served as chairman from 2004 to 2005. So the structure of this conversation, Rob and Jim are going to have a dialogue for about 25 minutes, and then we're going to open the conversation up to questions from the audience. We have three standing mics, as you know. So I'm now going to turn the proceedings over to Jim. JAMES T. HACKETT: Great. Thank you. Appreciate it. Welcome, everybody. And, Rob, thank you for being here. It's really just-- ROBERT S. KAPLAN: Thank you, Jim. And thank you for your service to the Fed, and thank you for doing this today. MR. HACKETT: Oh, great to be amongst this good group. So what I thought I'd do is try to drill into an ever-widening scope, Rob, of what you see, because you see an awful lot both internationally and domestically. But maybe starting regionally, we could talk a little bit about District 11 and kind of what you--I mean, we've all--a number of us in the room have been suffering through the oil price decline that has gone on probably longer than any period that I recall, except for the '80s. And perhaps you can talk about the economy relative to that which you see. MR. KAPLAN: I will do that. So, first of all, I'll give you my own two cents, because it was interesting listening this morning. My own overview on where we're heading is it's our view at the Dallas Fed, while there's debates--and there should be debate--about the exact timing, I think we're going to move toward balance--global supply-demand balance by sometime early to mid-2017. Some people think it's going to a little sooner. Some people think it's going to be a little later. These outages, other things, the OPEC discussions--which we're skeptical about, by the way--may buffet that around. But the key to us is not the exactly timing; it's the trend. And the trend, in our view, is that we're heading toward balance. The reason it's been so painful and sometimes confusing is I wish I could say we're heading toward balance because supply is declining. As you heard, it's not. Supply has declined in the United States. We think supply has come down net year-over-year by as much as a million barrels a day. That has been more than offset by supply increases in Iran, Saudi Arabia, Russia, other countries, and that's what's been so frustrating. While we're going through all this pain here locally, global supply continues to go up. And so the reason we think we're going to be in balance by the middle of 2017 is that it's I think what was talked about earlier. It's the demand side. We see demand growing at approximately 1.2, 1.3 million barrels a day in 2016 and into '17. And because supply growth is slowing, even though it's still growing, we think demand will finally catch up with supply, and that's how we're going to get into balance. Then we have to still work off a record level of inventory. So what's the implications for the 11th District economy? The net of it all is we think you're going to see prices firm. And that's not a word I've used a lot in my career; it's usually up/down. Firm means, well, you're going to have a lot of volatility. And we're seeing a period right now. You know, OPEC makes an announcement, it goes up; OPEC makes a different announcement, it goes down. We think that volatility will continue, but within an overall context over the next couple years of firming. And it's our own view, as demand keeps chugging along, and the fact that OPEC is at a relatively high level of capacity utilization, we think if you go over the next three to five years, if there is a price risk, our own judgment and my own judgment is it's more likely to the upside than to the downside. So what's been a headwind for our district, particularly Texas, there's no doubt energy, as well as a strong dollar, both--we're the largest exporting state in the country, so a strong dollar really hurts our exporters--plus energy, has created headwinds. Just to give you one statistic--[Kansas City Fed President] Esther [George] gave you the national statistic; I'll give you the local one--energy, by our measure, in Texas was 13% of GDP for the state in 2014. It's down to 6% today. That's a breathtaking decline, but it's correlated to the same thing Esther mentioned: about 2.8% for the United States, about half that now, similar. Part of that is the decline in energy. Part of it is that--migration of people and firms to Texas and diversification of the state. We've been growing, which is another thing that's kept that percentage lower. But because of all this, when you net it all out, job growth in the state of Texas in the first half of 2016 we estimate is something less 1%, very disappointing for Texas by historical standards. We think, though, as the energy headwind at least becomes neutral, if not yet a tailwind, we're expecting to see closer to 2% job growth in the second half of this year, and we're expecting approximately 2% job growth into '17. And if you ask me what's my outlook over the next few years, which I think is an easier question to answer, I'm relatively optimistic about the dynamics and the outlook for the energy business in this state and in the country. And because--in addition, because of the migration of people and firms to the state of Texas, I'm very optimistic about the future of the state and this district economically in the months and years ahead. I think we've got terrific dynamics. And the only surprise is that we've weathered the strong dollar and the weak energy as well as we have. MR. HACKETT: That's remarkable. That is a very positive review. You spoke of migrations of businesses. There's another kind of migration that obviously occurs in all states of the union, and that's regarding demographics, people. What effects do you--or what do you see in the future, maybe even comment on what we've seen already and kind of what you expect, and how that affects the economy, if you would. MR. KAPLAN: So we talk a lot at the Fed about (gross domestic product), unemployment, inflation, and lots of cyclical data. I think at the Dallas Fed, we also like to focus on trying to get our arms around big secular drivers. And there are four that we're, for lack of a better word, wrestling with and trying to understand. One of them is aging demographics in the United States and all advanced economies. Meaning, you know, famously, the--because it's been talked about so much--the participation rate in the United States has gone from 66% in 2007 to 62.8, which is where we are right now. I would have liked to believe, before I took this job 14 months ago, that a good bulk of that decline could be addressed, or maybe we'd bounce back. After the work we're doing, we're convinced at the Dallas Fed, and I'm convinced, that the bulk of that decline is demographic, all right? If you, in addition, look at part-time to full-time workers, discouraged workers, the so-called marginally attached that Esther talked about this morning, referred to as U6, that is now moving back to 2008 levels, which further reinforces to me that demographics has been driving the participation rate. And what's the problem with that? The big problem with that is let's project out another 10 years from here. If you project out what we think the demographics are of the U.S. workforce, we think the participation rate is going to be below 61% within the next 10 years. What that--the implications of that--unless there's a burst of productivity, that means we're going to--we're going to face lower levels of potential GDP growth in the years ahead. And I'll come back to that, because that has obvious implications for our strategy as a country regarding growing the workforce. The other big secular trends I'll just rattle off. Globalization, I don't need to tell you, is a giant trend. But it matters more today than it ever has, mainly because of China. Record levels of overcapacity, high levels of debt-to-GDP in order to make their GDP targets, and this massive transition from being an export-driven economy to a service-oriented economy. But what it means is when China wrestles with their issues, we think they're going to eventually have to let GDP float lower. They can't keep using leverage to beef up GDP by investing in already excess-capacity state-owned enterprises and in infrastructure. We think GDP is going to need to float down. The implications for us, as central bankers of the United States, is I think we think--we think you're going to see more bouts of currency weakness in China. And by the way, strengthening dollar--rapidly strengthening dollar just exacerbates that, which is what we've got right now. And therefore you can see, like we saw in the first part of the year, bouts of financial instability and turmoil that will tighten global financial conditions. The other two big trends, quickly, I would call the very end of the debt supercycle, OK? So while the household sector's been deleveraging since the Great Recession in the United States, government debt-to-GDP is increasing. We're more leveraged than we were in 2007. It's true basically in every advanced economy. And Esther mentioned these statistics: 75, 76% of public debt-to-GDP. But the big one, the present value of future underfunded entitlements is about $46 trillion. That means we have less bandwidth or capacity for fiscal policy and other economic policy. And when you overlay that on the demographic trends, it means you're going to have more dependents, less workers to support the dependents, and I don't need to tell you the implications of that while your leverage is going up. And so we are going to have to be careful about policies that make that debt-to-GDP worse. And then the last one is technology-enabled disruption. And we live with it every day: Uber versus taxis, Airbnb versus hotels, Amazon versus retail stores. But we think it's having a big effect on holding down pricing power of businesses. And when you have wage pressure, it may not be so easy for businesses to pass it on. It may just shrink margins. Businesses have less pricing power than at any time in my life. And so you mentioned some of these--I think one of the nice things--and I can say this. I lived in--I'm from Kansas, which has got lots of small towns. But when you live in New York City or Boston, you don't see as many small-, mid-sized towns. And one thing, living in Texas, I visit them all the time. I was in Wichita Falls earlier in the week. And every one of these--there's hundreds of them in the United States. Wichita Falls is, what, 150,000 I think is the population. And it's not going down; it's flat. A lot of the issue they're facing may be attributed to trade, but increasingly the issues they're facing may be about technology-enabled disruption and this demographic trend where there's in effect a competition in the country for people. And I think you saw the heat map earlier about where populations and growing and not growing. The kids of the folks in Wichita Falls, they were telling us, they want to live in Dallas or they want to live in Houston. And so lots of towns in this country are dealing with that. And it's a cultural trend as much as it is--and a demographic trend as much as it has to do with trade and other things. So I would say the reason I like to focus and we like to focus on these big secular trends--and notice I was careful to say I'd love to tell you we understand the impact of them. We don't. We're trying, and we will be trying as long as I'm in the job and for years ahead, and keep trying to understand the implications. But I think, as a nation, I would argue we're wrestling with trying to understanding the implications of these trends. MR. HACKETT: I want to come back to you a little later, if you don't mind, and talk about what your view of inflation is in that environment, too. MR. KAPLAN: What's the headwind on it. MR. HACKETT: Yeah, for sure. And it's a bit sobering, because you gave us such a good, positive view on energy. You just took it away with all the demographic stuff. MR. KAPLAN: Sorry. (Laughter.) You know, the good news is Texas is winning the demographic battle, which is why I'm very optimistic about the state. I'm more worried about the country, though. While we're winning, and that's great, but many states and cities--Illinois, for example, is struggling. And there are lots of others. So it creates a challenging environment. MR. HACKETT: Sure, sure. And that's why we need good people running all of the big institutions in our lives. So if you came out of an educational environment. I'm going to come back to that later and how that--how you use that with your current responsibilities. But when you--we know that you do op-eds on education. We know that you've hosted conferences on education. As the chief banker of the district, what is interesting to you about education? Because that's not really your remit, I mean, other than the financial literacy issue. MR. KAPLAN: Yeah. Right. MR. HACKETT: But what is that about? MR. KAPLAN: So--and by the way, and I think other Fed presidents probably share my views on this and are active in it. Education--so I talked about the demographic trends. And we all know that there's--the weak--the productivity numbers in the United States have been weaker. There is a very high correlation between educational attainment levels and worker productivity. We know there's a skills gap in Texas, by--from all our surveys, and in the United States. There's more demand for skilled workers than there is supply. So one of the things we work on in--at the Dallas Fed--everybody at the Dallas Fed works on this; and [senior vice president] Alfreda Norman, who you know, leads our effort--we believe that a key part of economic conditions is--and we have great convening power at the Fed--is to convene business leaders, community leaders and other leaders to talk about how do we improve early childhood literacy. Because we know if a child starts even kindergarten behind, they never catch up. Vocational training, or usually referred to workforce development--public-private partnerships within educational institutions and businesses that help provide a vocational path. Increasingly, high schools and colleges in this state are doing that. We need to do more of it. But when I talk about we need to grow the workforce, those are two actions that, if we can help make an improvement here, we can more--we can better grow the workforce and improve their productivity, which means--that's one way to fight against some of these demographic trends. Immigration, obviously, is another. But that's why we spend so much time on this. We think it's a contribution we can make as a convener and someone who does research on these issues, where we can help improve prosperity in cities here and in the state, and also share best practices with the rest of the country. MR. HACKETT: That's great, and it makes perfect sense. If we step outside of the region and treat with the U.S. economy--and you touched on a little bit of this--what do you see? I mean, it's an interesting time, right, because of the demographic forces you talked about, the debt cycle. I won't ask you to comment on the transition we're about to have in administration, because I guess that's uncertain. But just in general, what do you--what do you think are kind of the big threats to the economy? Are they these demographic trends you spoke of, mainly? MR. KAPLAN: Yeah. MR. HACKETT: Or are there other things as well? Because we've been--we haven't had a lot of great fiscal policy, right? MR. KAPLAN: No. So one of the things I've learned in my 14 months or more in this job--and I can say this with some degree of objectivity--I actually think the Fed, up to this point, has done an outstanding job. That's before I came in; I had nothing to do with it. They did a good job. MR. HACKETT: (Inaudible.) (Laughter.) MR. KAPLAN: I think--I think I am, but, no, you can argue about the last round or two of quantitative easing, et cetera. MR. HACKETT: I would. (Laughter.) MR. KAPLAN: Yeah, and I think that's fair. MR. HACKETT: Pushing against the stream. MR. KAPLAN: But--fair enough. But the point is, you said it: very little fiscal policy, or no fiscal policy. And the Fed may have taken too much even on its own to try to address these issues. But I understand why. I understand the rationale. I might not agree with everything, but I understand. We're now at the point where the big secular trends I just described, they're not going to be addressed by monetary policy. And Esther echoed this. They're going to be need to be addressed by structural reforms, as well as other economic policies. And I think--it's not that monetary policy from here won't have a key role to play, but I think we need to broaden out now our economic policy in the United States. So what do I worry about? I worry--A, for up to a few weeks ago I worried, are we going to broaden out and have other economic policies because of political polarization and high levels of debt-to-GDP. Although a number of things that could be done may not take--structural reform is a matter of political will, less of money. Infrastructure spending, I would argue we are underspent, but a lot of it could be done with private-sector money. But now the challenge going forward is to--is to make sure that the broader economic policy gets at these issues, and I think that will be the challenge over the next few years. And our job at the Fed will be to--I believe our job and my job is to keep calling out this analysis without regard to-- MR. HACKETT: And educating policy makers, saying hey, objectively-- MR. KAPLAN: Yes, getting it out there, maybe laying out options without--it's their choice which ones to pursue. And then, obviously, as new policies unfold, we've got to work hard, and we're going to be on our--we're going to be on our toes analyzing them and then adapting our views on monetary policy based on what unfolds. MR. HACKETT: Can I just do a sequel to that? MR. KAPLAN: Sure. MR. HACKETT: Which is that that you--you're very aware of the double mandate of the Federal Reserve for employment and--(inaudible)--and it seems that you've achieved--to your point, the policies have been-- MR. KAPLAN: Yeah. MR. HACKETT: Something effective has happened at the end--at the end of the day, but we've still got challenges. So what is your personal view? You may not be able to say this publicly. I know you sometimes do, and you have to vote. What's your view about what the Federal Reserve ought to be doing with regard to interest rates? MR. KAPLAN: So I've said publicly that I would have been comfortable with removed accommodation in September. I would have been comfortable with removed accommodation in November. And so you can take from that, unless something changes, I'm comfortable. I think we're at the point where it's appropriate to remove accommodation. The irony is the thing I don't like to do is project what I might or might not do at a future meeting, but I'm happy to talk about what I would have done in a meeting. And that's where I am right now. That's the next step, whenever we take that. Beyond that, I would have said, and I've been saying, that I think the path of rates should be--we should be patient and gradual, mainly because of these persistent headwinds. But I think I also understand, as new economic policies unfold, we'll have to adapt and update our view based on what policies and how economic conditions unfold. But that's my view on monetary policy. MR. HACKETT: It just seems like the chairman's even public about it. MR. KAPLAN: It's just simple fact. MR. HACKETT: You know, what I wonder about--I love your attitude--is I wonder if the Fed should be as transparent as they are these days. The financial markets tend to like that a lot. So if I can move to the global economy now-- MR. KAPLAN: Yeah. MR. HACKETT: You've talked about China. You--I don't know which place you put that in the equation, but you've got the developed-country segment. You've got the emerging countries. MR. KAPLAN: Yeah. MR. HACKETT: You've got China, that is, I guess, both in some ways, but-- MR. KAPLAN: Yeah. And I would say, in terms of things I'm worried about--I'll come back to Europe in a moment--I'd actually put China as--in terms of a watch-out, that's at the top of my list, which is why we actually had the team--we just went over to visit China. It's the one place I think we probably should go once a year and visit, because it is now--when I started my career, China was significant--and I lived in Asia, ran our business in Asia for my firm for five years--but China wasn't that big. It's now--it literally accounts for a substantial percentage of global GDP growth. That 6 1/2% from China is very significant. But the ripple effects they can have are significant. And right now their debt-to-GDP systemwide has basically doubled. So we're going to see lower GDP growth. We're going to see bouts of financial instability. We're going to have to watch that. Back to--on Europe, I--obviously Brexit, there's been a great deal of concern. If I had to give the punch line on Brexit, it is still our view--and I've been saying this publicly--while it will likely, to some degree--although it hasn't been as bad as feared--hurt GDP growth in U.K. and will have some effect on Europe, particularly if there's further actions or contagion. But barring that, we think the impact of Brexit on the United States is quite manageable. MR. HACKETT: Can I turn to personal--a couple of personal questions? And they're not--you have to decide how you want to answer them, obviously. But the (Federal Open Market Committee) process is one-- MR. KAPLAN: This is going to be good. MR. HACKETT: One of them will be one that you'll be very comfortable with. The first one is about the FOMC process. MR. KAPLAN: Yes. Yes. MR. HACKETT: And I know that's a sensitive issue. MR. KAPLAN: No, I can talk about it. MR. HACKETT: But if you can just talk to us about--we all know that the vote rotates. MR. KAPLAN: Yes. MR. HACKETT: We all know that that happens for the district. MR. KAPLAN: Yeah. MR. HACKETT: You will have voting rights. You will not have voting rights. MR. KAPLAN: Yeah. MR. HACKETT: Does it really matter, under this chairman? How does that process work where you take the knowledge you have and you bring from your district--how does that work? MR. KAPLAN: So many of you were here. I thought [Kansas City Fed President] Esther George-- MR. HACKETT: Oh, I'm sorry. MR. KAPLAN: No, that's OK. She did--I agreed completely with her answer. She gave a great answer this morning. MR. HACKET: Oh, I apologize. MR. KAPLAN: No, it's OK. It's worth reiterating. And before I took this job, by the way, I say, OK, let me get this straight. I'm used to being a decision maker and everything. I'm going to vote every three years. And I was told by people you're going to find out that your influence around the table and the way you prepare for meetings and your role at the FOMC is the same regardless of whether you vote or not. The only difference will be in the last 17 seconds of the meeting when they call the roll. Your role will be different whether you're voting or not. And I thought, OK, I'll take their word for it. But I've found that to be true. The most influential people around the table--and probably you can refer it back to your business career or other career where, you know, people--somebody has a great argument, and in this--at the FOMC, I'm--the degree of influence around the table is not correlated for me to who's voting. So what I try to do in every meeting--and I've done it the last year and a quarter, and I'll do it into '17 the same approach--is try to add value in that meeting, which means we go around the table and we each give our views on economic conditions day one. I'm trying to bring something insightful that will add value to the group discussion, same way I did in my business career or other things I've done, and on day two same thing. And the difference will be this year I will actually then also vote. But I think everyone around the table is influential. And the trick is and the challenge is, am I adding value, am I adding insight, which is why our research department in Dallas works hard--and we're all working hard, and I'm working hard in terms of talking to people in this room and digging for insights as to what's going on up there that may not be shared around the table that would add value. So that's still the challenge. The group works well. The FOMC, I must say, as a new person in that process, I think, works very, very well. And I--people have asked, gee, is it affected by politics? Not that I've seen. And I've got a pretty keen eye of looking for that. I couldn't tell you the political party of the people around the table, by and large. Some are political appointees, so I know who appointed them. But I can't tell by their arguments. This is one place, when you go there, you'd better be prepared to argue on the merits and back up your arguments. And that's what drives our analysis and decision-making. MR. HACKETT: Thank God it is that way. And I'm glad to hear you say it, and also thank you for taking that vote on and being serious every time you go. Related to that, very related to that, is that you come to this with some kind of more unique kind of features than most people have. MR. KAPLAN: Yeah. MR. HACKETT: And even [former Dallas Fed President] Richard Fisher was a lot different than you in what he brought to the table. MR. KAPLAN: Yeah. MR. HACKETT: He was a bit different too. But you bring this incredible investment-banking background and being around big-time finance. And you did real markets and living those markets. MR. KAPLAN: Yeah. MR. HACKETT: And you bring a long and intense experience in book writing. Is that--do you view that as a disadvantage or advantage in this group that you work in? MR. KAPLAN: So for me--and one of the reasons why, when I interviewed for this job and went through the D.C. portion, they were interested in having a person with a different perspective. For me it's been an advantage because I bring something different. You know, I bring a market perspective. So, for example, I'm looking at Martin Stuermer and he's smiling at me, and I think I know why he's smiling at me--because since I've been at the Fed, I've taken the Dallas Fed research and I've asked the questions a markets person would ask. I luckily in this job don't have to trade the commodity, but I ask all the questions I would if I did have to, or if I had to make an investment for the next "x" number of years. And so I think it's an advantage. And the leadership professor work has been enormously helpful. And the Fed actually has--I was about to say shockingly--has used it. For example, we had an issue systemwide on--I won't get into what it was--where people came to Dallas around the system, and I led a discussion. It was a Harvard Business School classroom, what I used to do with companies, and went through, you know, the issue, diagnosis, alternatives, and got to a resolution. So I learned how to do that at Harvard. What do we do that's distinctive? Where are we out of alignment? What do we ought to do to address it? So that background I brought to the Fed, and I bring even to the FOMC, and I brought to other issues--Council of Presidents, which they've been very receptive to it. But it makes me--and I know this--it makes me countercultural. I'm a little countercultural. One, economists have a certain cultural background. I'm countercultural to that. I went through this at Harvard also. And then I-- MR. HACKETT: That was your first meeting. MR. KAPLAN: That's right. I mean, you know--and you've been there. MR. HACKETT: You've been--(inaudible). MR. KAPLAN: I was countercultural there for sure, and I learned how to adapt. And then the Fed has its own very strong culture, and I've had to learn to adapt to that. But there are times where I push back, and I-- MR. HACKETT: I noticed when you said "firming," I was thinking, God, he's already learning some of that economic lingo. MR. KAPLAN: Yeah. MR. HACKETT: (Laughs.) MR. KAPLAN: All right, that's good. Hopefully--and I need to be learning. MR. HACKETT: No, it's great. We're lucky to have that. If you would, anybody in the audience, I'm sure, Rob, would love to answer questions. You can tell he's not bashful. Yes. Can we take this one, maybe? We've got some microphones, I guess, standing in the--if you're soft-spoken, please use a microphone. Q: I'm not soft-spoken, but I'll use the microphone. (Laughs.) With respect to the demographic trends that you alluded to earlier, I was wondering, is there any risk that we will be the next Japan? And, if there is, how do we avoid that? MR. KAPLAN: Yeah. So it's interesting. And maybe in hindsight--I lived in Japan for five years in my business career. And so Japan, just for those who don't know, has an aging demographic issue, but theirs is much more extreme than ours. They're to the point where the population is actually shrinking. Our population is growing; it's just the participation rate. It's aging with an overall level of growth. Japan's is actually shrinking. In addition, Japan has very high levels of debt-to-GDP. And they're analogous to me in that central-bank action is not--it may buy them a little time. It's not going to solve--they have deep structural issues. The difference between the United States and Japan, though--there are many differences, but one of them is cultural, which gives us an enormous advantage. Another is the space considerations and the congestion there versus--density versus here, and that we are much more receptive historically to immigration than Japan is. It's been one of the great strengths of our country. My grandparents were not born in this country. And that's true of probably many of you in the audience. You're either first, second or third generation. Japan doesn't have that history, OK. So that's made it very difficult for them to deal with this demographic issue. And so we have many advantages in the United States that I think give it--make us very well equipped to deal with these issues that we face, which will mean that our path and Japan will be different. And I'm optimistic about that. That doesn't mean we won't--that doesn't mean we'll always do the right thing. But we have the capacity, I think, and many more natural advantages. Natural resources would be another. But there are many others that I think give us a real opportunity to manage these issues better. MR. HACKETT: Yes, please. Q: For purpose of this question, I'd like you to be king for a day or a decade. MR. KAPLAN: King of what? (Laughter.) Q: That'll be clear with the question. MR. KAPLAN: (Inaudible.) (Laughter.) Q: So you mentioned the debt supercycle is one of the four primary issues that you see. MR. KAPLAN: Yeah. I think so. Q: So as--in the whole king-for-a-day concept, you can control monetary policy. MR. KAPLAN: Yeah. Q: It's not the Committee. And you can control fiscal policy. MR. KAPLAN: Yeah. Q: It's not Congress. Talk to us how you would want to see that balance take place, please. MR. KAPLAN: So in my old age, even I have learned that there are certain of these subjects that are not appropriate for me as a central banker to talk about. And so let me--I'm going to answer it a little bit way that I think is just more appropriate to my role as a central banker, where there are certain areas that it would be inappropriate, I think, for me to--but let me--I can still be responsive. There are--so let's take these. And I'll do it more as in a menu format, which I think is more appropriate. And that's what I've done before publicly. If you've got--one of the big challenges you have is aging demographics. You need to look for policies. When I say structural reforms, I mean policies that help us grow the workforce. And those can be early childhood literacy improvement, vocational training, and, yes, we're going to have to at some point--my guess is we are going to at some point have to address the issue of immigration, both skilled at the high level, as well as lower-skilled immigration. And I'll leave that to policy makers, though, to debate which are the appropriate options. But I--the point I'm teeing up is ultimately the path of GDP is going to be heavily influenced by whether or not we grow the workforce. This issue of the end of the debt supercycle--how much more capacity do we in advanced countries have--it tells me you would have on the menu, if you're going to do projects like infrastructure spending, you want to be very intelligent about it. You want to take advantage of the fact there's this huge amount of liquidity globally that's looking for safe assets. And so you want to take advantage. That may be public-private partnership, as opposed to all government money. It also means that when you look at entitlements--and this is a very touchy subject, but I'll just mention it--I believe you'll see the--CBO believes--Congressional Budget Office shows the budget deficit has been going like this. But if you look at the CBO numbers, it's going to start going like this over the next five to 10 years. I believe entitlement reform or some restructuring that protects current retirees or people about to retire, but deals with it for the long-run trajectory, is going to be on the menu to look at. I believe it will be. And you want to be sensitive to other actions you take that could further increase debt-to-GDP. Those would be two examples. Regulatory review--and I'm not talking just federal--state and local regulatory review for so-called--which nobody knows exactly what it means--sometimes cost-benefit analysis, which means different things to different people. But you would think that that should be open game to look at are there ways to simplify, improve regulation that will encourage new business formation, encourage lending, encourage capital formation, encourage business growth. Those are some examples of things I'd say ought to be on the docket for debate. MR. HACKETT: Oh, here--can you just--go ahead, but Judy's going to speak first, I think. Q: Judy Allen. When I was on the Federal Reserve Board of Dallas in '05, in the fall, being a land developer and hearing about the various new kinds of mortgages that were coming with no money down and, you know, infinity, well--and unqualified buyers--I'm very sensitive to what is the next bubble. Where do you see bad things happening? Is it in auto loans, where so many of them you just give the car back and walk away? MR. KAPLAN: Right. Q: So I'd love to hear from you on that. MR. KAPLAN: OK. So one of the things the Fed has had to do in the aftermath of the great recession is substantially--some people might argue too substantially--but I think very--in many cases, I believe, appropriately--beef up regulation of banks and those non-banks that became banks, to make sure of three things--that they have enough capital, they have enough liquidity on the down side--those are the stress tests--and deal with this issue of interconnectedness. OK, and while it's fair that there could be criticisms of the complication of this work and so on, I think, by and large, it's not perfect and there's room for improvement and review. We've made good progress with the big banks in making sure they have sufficient capital, they work on the down side, and deal with this interconnectedness issue. My own judgment--then I'm going to get to some of the concerns I have--I think, though, the rules that are appropriate for small, midsize banks should be tailored, and they should not--I believe this--they don't pose the systemic risk the big banks do. And I would like to see a certain amount of tailoring. And I've been saying that--I say it publicly. And I hope we see that. And if there's simplification of other regulation, I just--I want to make sure, whatever happens, we maintain sufficient capital, works on the downside scenario in the stress tests, and deal with interconnectedness. What do I worry about? I worry that--I worry not about what we can see. I worry about what we can't see, OK. And that is for me the nonbank financials, the shadow system. And I go back to 2005. Where were the worst practices? Everybody thinks--you know, remembers they were at the banks. They actually--there were issues with the banks, but the worst practices in lending--easier mortgages, [collateralized debt obligations] upon CDOs upon CDOs--many of them--and all these insurance--if there was $90 trillion--and that's a gross guesstimate--of credit default swaps that were outstanding against, by the way, to insure $10 trillion of debt outstanding around the globe--so, in other words, it had turned into a casino--much of those practices were done--that were initiated where the worst practices were in nonbank financials. So what do I worry about? And we do talk about this, the (Financial Stability Oversight Council) and the preparation of our leadership of the FSOC is to talk about issues that we can see in nonbank financials. So what's an example? Some of the issues I've raised publicly before. If there's $300 billion of--(audio break)--is there embedded leverage. So everywhere I go and when we're talking about this, I'm asking lots and lots and lots of questions about nonbank financials and things we don't have an opportunity to look hard at to ask what the practices are. And this is the reason why--and there's a big public debate, and I'll stay out of it--why some insurance companies were designated (systemically important financial institutions). And appropriately some people say, gee, why are you, the Fed--who are you to be--well, I understand why. AIG was an insurance company, and you worry about some of these insurance products, and you just want to make sure--not that you want to keep people from doing business, but you want to make sure that there's not embedded leverage, particularly derivatives, enough capital, works on the downside. And this issue of interconnect, this counterparty transactions, particularly with derivatives, that's what I'm always asking about. And the people at the Dallas Fed know everywhere I go I'm asking questions about that to try to understand it and see if we--make sure we're thinking about it. Q: (Off microphone)--as soon as you--(off microphone). (Laughter.) MR. KAPLAN: I mean, my own sense is that at the moment I believe there are exposures. Some people are concerned about cap rates are very low on commercial real estate, maybe there's--we're going to have some instability there. Right now I don't see a significant systemic risk from those, though I am aware of there may be things I'm not seeing. But that doesn't mean I've noticed--if you go to 2005, if we had just stopped the music then, I think it would have been manageable. What happened in '05 into '06 and even into '07 made it much worse. A lot of the CDOs happened in that last year or two, and [credit default swaps] written. So I'm sensitive to the fact we've got to be looking forward as to what's happening now. Q: At the beginning of the discussion, we were discussing that your expectation was that the oil market would return back to balance in the second half of 2017. And we know, leading up to that period, there's been a big buildup in crude oil stocks and--(inaudible)--stocks over that period. Do you have any sense that, after we've gotten back to this rebalancing period, are we going to enter into an extended period of drawdowns in these stocks? And do you have any sense for how large or how long this is going to last for? MR. KAPLAN: Well, I'll tell you what I know and what I don't know. And I'm in an audience that has probably 20 different appropriate opinions out there, some do. Obviously, step one, you know, you got to get to balance before you can have drawdowns. Step two is, ideally, you'd start having drawdowns. What's the rate of those? I don't know. And this is one where I'm asking people this all the time. The other thing which has--was alluded to today, you also wonder what's the break-even levels for domestic production here, in the Permian and other places? So, you know, we've learned shale is not--is not a swing producer; it's a short-cycle producer. And so there will be some supply come back online as prices move up, and that will have an impact on global supply and demand. And then you'll have the OPEC discussion. So there's--I guess the main way I'll look at it, I don't know the answer to your question. I think we have a pretty good feel at the Dallas Fed for what the different variables are that would drive the pace at which we get to balance, when we get there, and the pace of the drawdowns. And I think what we'll do is just try to monitor those. But predicting how fast, I don't know. I think--the main thing we're trying to--I'd say the trend is we're getting there, and the trend is we're ultimately, over the next few years, should start drawdowns. The speed is going to be based on a whole bunch of factors, including GDP growth. MR. HACKETT: Can we just do two more questions, I think? Does that sound right? OK. Please. Q: So, directionally, there's about $11 trillion of negative sovereign debt in the market. About a third of all sovereign debt is-- MR. KAPLAN: Did you say--you said Russia? Q: No. Directionally, there's about $11 trillion of negative sovereign debt, negative interest rate. MR. KAPLAN: Right. OK, pardon, I got it. Q: About a third of the sovereign debt is negative interest rate. MR. KAPLAN: Yeah. Q: How do you think about that? And how does the FOMC think about that? And when they factor in a rate rise or move in the U.S., how much does the international play versus the domestic? MR. KAPLAN: So the first question before the house is, why is there so much debt outstanding at negative rates? And there are a number of factors, but we've talked about--there are a couple in particular that are the most significant. One is expectation of future GDP growth is sluggish in most--around the world and in those countries. And we think that--and if you go back--even if you go back over the last five years and 10 years, what you'll see is a steady step down in expectations of future GDP growth. And the reduction in rates has--it's highly correlated with this. That's number one. Number two thing that's had an effect is you've got a lot--and part of this is due to central banks--you have a substantial amount of global liquidity. That means there is a global search for so-called "safe assets." And so that's also had a big effect. The one thing I've learned--I remember other periods in my life where there was discussion of a big--the savings glut and lots of global liquidity. That can go in waves. The part that I'm more concerned about--so that may work itself out. The part I'm very worried about is the expectations of future growth. And this is at a time, because of this--high levels of debt at government level, there isn't room or capacity for a lot of other economic policy beyond monetary policy. And monetary policy by itself isn't going to address these issues--you know, these structural issues. And so that's why we've got this. And what I try to do is think about why this is happening. It gets me back to these big secular drivers, and it also gets me back to we're going to need broader economic policy to work our--to improve expectations of future GDP growth. And I think you'll see, after we get there, you'll see rates follow that. But we're not there yet. The expectation, based on what the markets are saying in the last two weeks, is that we're--we may get there here, but globally--and the search for yields is global, and money flows globally. And so we've got a big global challenge right now. Q: So how do we get back to--(off microphone)? MR. KAPLAN: I think what it does is it's--these global rates are a symptom of a problem which has caused us--and forget "us"--caused me to say I think we could--up to now; I think we may change our views, and we'll see how things unfold--that we can afford to be patient in light of these factors because we're in a world of very sluggish GDP growth, and we need as central bankers to be very mindful of that. MR. HACKETT: The last question we'll take over here, please. Q: Speaking of global issues, when you think about removing accommodation, do you also think about how far the Fed can get in front of the ECB--European Central Bank, the Bank of Japan? Is there an expectation of other major central banks will eventually also move toward removing accommodation? MR. KAPLAN: Well, we worry first and foremost, A, about the United States. But we're very aware of so-called divergences, which you're referring to. So if we are going one way and the ECB is going another, we've got to be aware of that because the impact of it could further strengthen the dollar, which has an impact on U.S. exports, can have some impact on global financial stability. So I would just say it's something we have to be aware of, and we'll continue to keep our eye on it. MR. HACKETT: I think, if I can just say one thing, the nature of the questions and the energy around them indicate, you know, how well people feel like you communicate. And I really appreciated that. And I want to just give Rob a round of applause for serving--(applause). MR. KAPLAN: I'll say one other thing. And there's a number of people in the audience that are--either fill out our surveys, on our boards, help us. You're a great example, for how many years you were CEO of a company. We don't--we do not pay people to be on our boards, and Jim basically spent years in Houston and at the Dallas Fed giving us advice, service. We meet regularly, these boards. We take a lot of people's time. And so I'd just say there's a number of people--Jim is exhibit A for the leadership in this district that the business community leaders show in helping us do our job. And so I just wanted to say back to you: thank you for all you do. MR. HACKETT: We get to work around people like you and --(inaudible)--and others. (Applause.) MODERATOR: All right. Thank you, Jim and Rob. WSJ PRO * Fed's Kaplan Says Some Trump Policies 'Could Be Helpful,' Some 'Hurtful' -- WSJ PRO (Nov. 18)
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 19, 2016
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841272206
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Fights Lawsuits Over Environmental Record in Nigeria; Company faces litigation in London, the Netherlands over oil spills
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Nov 2016: n/a.
Abstract: None available.
Full text: LONDON--Royal Dutch Shell PLC is fighting lawsuits this coming week in London and the Netherlands over its environmental record in Nigeria, highlighting the quagmire of problems the energy company faces there as it tries to pivot away from the West African nation. The oil-rich Niger Delta has generated billions of dollars for Shell over the past 60 years, but the company's operations have been plagued by sabotage, theft and oil spills that ravaged the local environment. Though Nigeria was one of its most prolific regions for crude production in 2015, Shell has sold off tracts of onshore oil fields. Its new focus--sealed with the mammoth $50 billion acquisition of BG Group PLC this year--is deep-water wells off the coasts of the U.S. and Brazil and a historic shift toward natural gas that puts it at the forefront of oil companies offering a more climate-friendly image to investors. The flurry of lawsuits Shell is facing for oil spills from its Nigerian operations are a legacy of decades of drilling that now carry financial and reputational risks at a time when the company is contending with the slump in oil prices. The hearings in London's High Court, scheduled to start Tuesday, represent an early test for cases brought by the community of Ogale and a group from the Bille Kingdom. The communities are hoping to hold Shell accountable for environmental damage they claim has been caused by spills from infrastructure operated by Shell's Nigerian subsidiary, Shell Petroleum Development Co. of Nigeria Ltd., or SPDC. Shell is expected to argue that only the subsidiary should be held liable and that the cases should be heard in Nigeria, SPDC's base and where the incidents took place. "This litigation is divisive, it's costly, it's time consuming, and asking courts unfamiliar with the reality on the ground in Nigeria does nothing to address the very real problems they're facing like oil theft, criminality and illegal refining," a spokeswoman for SPDC said. But the communities and their lawyers say seeking justice in Nigeria won't hold Shell responsible for the actions of its subsidiary and is extraordinarily difficult. It can take decades for cases to wind their way through the court system with no relief for land poisoned by oil spills, barren fishing creeks and the foul water that runs from their pumps, they say. "You cannot fight Shell in Nigeria," the king of Ogale, Emere Godwin Bebe Okpabi, said in a phone interview. "Shell is Nigeria, Nigeria is Shell." It is a point Shell has already contested in The Hague, where four Nigerian farmers and Friends of the Earth successfully appealed a ruling that was largely in Shell's favor last year, allowing them to pursue a case against the company in the Netherlands. The next hearing in the case is scheduled for Thursday. Last year, the company said it experienced on average nine oil spills a month caused by sabotage or theft, with a handful of additional spills caused by operational issues. An uptick in violence this year has knocked important export terminals out of action for months at a time, though divestments onshore have helped reduce the overall number of spills Shell has recorded. Shell blames the spills in the legal cases on third-party interference, like sabotage and theft. Under Nigerian law, the company isn't required to pay compensation for spills caused by sabotage or theft. It also points to illegal refining, a source of pollution in the region that is unrelated to the company's infrastructure. Shell also maintains that it cleans up all oil spills, regardless of the cause. These are assertions that the lawsuits in London and The Hague challenge, claiming that Shell has failed to properly clean up oil-spill sites years after oil oozed out of their pipes, and hasn't adequately protected pipelines where spills were caused by third-party damage. The company has already paid out £55 million, or roughly $80 million, to compensate another Niger Delta-based community in a settlement reached last year after they brought a separate lawsuit in London. In that instance, Shell admitted the spills were caused by operational failures. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 19, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 18413767 45
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Iran Oil Minister Says OPEC Production-Curb Deal Is 'Highly Likely'; The 14-nation cartel is meeting to decide on output reductions aimed at boosting oil prices
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Nov 2016: n/a.
Abstract:
[...]speaking after a meeting with OPEC's secretary general Mohamed Barkindo in Tehran, Iran's oil minister Bijan Zangeneh said "it is highly likely that oil and energy ministers of the member countries of the Organization of the Petroleum Exporting Countries will reach an agreement" on Nov 30.
Full text: OPEC is "highly likely" to reach a final agreement to curb oil production later this month, Iran's oil minister said Saturday, in the latest sign that the cartel is moving closer to resolve its differences. Iran and Iraq have seemed to be the most reluctant members of the Organization of the Petroleum Exporting Countries to agree on reining production ahead of a Nov. 30 gathering in Vienna. The 14-nation cartel is meeting to decide on output reductions aimed at boosting oil prices . International crude remains down more than 60% since mid-2014, closing at $46.76 a barrel on Friday. The group--which controls over a third of global oil production--agreed in September to reduce output to help draw down a glut of supplies weighing down on prices . But the pact left the details of how to cut roughly 2% to 4% of its output for later. But speaking after a meeting with OPEC's secretary general Mohamed Barkindo in Tehran, Iran's oil minister Bijan Zangeneh said "it is highly likely that oil and energy ministers of the member countries of the Organization of the Petroleum Exporting Countries will reach an agreement" on Nov 30. If producers manage to cooperate, oil prices could rebound to $55 to $60 a barrel, the level OPEC members deem appropriate for producers and consumers, the ministry's news agency, Shana, quoted him as saying. Though Mr. Zanganeh didn't say how Iran would participate in the deal, an Iranian oil official reiterated the Islamic Republic still wanted to reach its pre-sanctions market share of about 4 million barrels a day but was now close to that level. "We are almost there," the official said. Iran said it produced 3.92 million barrels a day on average in October but several oil projects have since come on stream. Iran's continuous output increase since sanctions were lifted in January has turned into a contentious issue with its Persian Gulf neighbors who said they are not ready to cut their output unless Tehran reins its production. The positive noises out of Tehran come after Iraq, which has disputed numbers used by OPEC to assess its production, showed willingness to compromise in recent days. In an interview with the Wall Street Journal on Friday, Iraq oil minister Jabbar al-Luaibi said Baghdad was narrowing differences with independent analysts used by the cartel. He also said he had hashed out some of those problems during a recent meeting with OPEC's Mr. Barkindo. The optimistic signals by Iraq and Iran come after a flurry of diplomacy inside and outside the cartel to seal the production-cut deal. On Friday, oil officials from nine OPEC members--including Saudi Arabia's energy minister Khalid al-Falih--met with two non-OPEC producers, Russia and Oman, to discuss production. Russian Energy Minister Alexander Novak said the talks had proved "positive," according to Interfax news agency. Ahmed Al-Omran contributed to this article Write to Benoit Faucon at benoit.faucon@wsj.com Related * Shell Fights Lawsuits Over Environmental Record in Nigeria Credit: By Benoit Faucon
Subject: Cartels; Supply & demand; Crude oil prices; Petroleum production
Location: Iran Iraq
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 19, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: News papers
Language of publication: English
Document type: News
ProQuest document ID: 1841402848
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841402848?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Why Saudi Arabia's Oil Giant Aims to Be Big in Chemicals, Too; Aramco's plans to vastly expand its petrochemical operations are part of the kingdom's effort to remake its economy as oil's future clouds
Author: Gold, Russell; Spindle, Bill; Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Nov 2016: n/a.
Abstract:
Aramco now aims to vastly expand its petrochemical operations, turning itself into a modern integrated energy company along the lines of Exxon Mobil Corp. Thousands of miles away, near the Saudi Arabian city of Al Jubail on the Persian Gulf, an army of workers is finishing the $20 billion Sadara petrochemical complex, an Aramco joint venture with Dow Chemical Co. Sadara will use ethane refined by Aramco nearby to make a petrochemical called butadiene to ship world-wide to facilities, likely including its Dutch plant.
Full text: GELEEN, Netherlands--Saudi Arabian Oil Co. has been the world's single largest crude producer for decades. It wants to be a lot more than that now, as a new petrochemical complex shows. Among the Dutch corn fields here is a tangle of pipes, vats and catalyzers that the company uses in its Arlanxeo plant to transform what was oil into synthetic rubber for products ranging from auto-engine hoses to plastic wine corks. Aramco, as it is commonly known, until recently focused on pumping great quantities of oil and, like the Standard Oil companies of John D. Rockefeller, processing it through its refineries. Aramco now aims to vastly expand its petrochemical operations, turning itself into a modern integrated energy company along the lines of Exxon Mobil Corp. Thousands of miles away, near the Saudi Arabian city of Al Jubail on the Persian Gulf, an army of workers is finishing the $20 billion Sadara petrochemical complex, an Aramco joint venture with Dow Chemical Co. Sadara will use ethane refined by Aramco nearby to make a petrochemical called butadiene to ship world-wide to facilities, likely including its Dutch plant. Aramco, one of the world's most powerful and secretive companies, is undergoing an unprecedented makeover, as the oil-price rout hurts its revenue and uncertainty clouds the future of fossil-fuel demand. Its transformation is intertwined with a long-term plan to diversify the Saudi economy . That plan, led by a powerful deputy crown prince who wants his nation to grow beyond being a petrostate, is accelerating the Aramco shift in ways now becoming clear. By positioning the company to generate more domestic jobs and non-oil revenue, Aramco aims to help provide the funding needed to carry out the prince's vision. Aramco's strategic goal is to create a global network of refining and petrochemical plants that let Saudi Arabia turn its biggest asset into hundreds of higher-value products crucial to modern life, from chewing gum to auto parts. To extract capital from oil still in the ground, Aramco plans another ambitious gambit: an initial public offering in 2018 that may become history's biggest. Aramco says it has 261.6 billion barrels of oil left to pump, roughly 20 times as much as Exxon Mobil. "Aramco's capabilities will be fully unleashed," Saudi oil minister and Aramco Chairman Khalid al-Falih said in a briefing with several reporters this year. "The company will be able to go global in multiple ways." Aramco declined to answer detailed questions, referring instead to speeches such as one by Aramco Chief Executive Amin Nasser in September. He signaled why the company was interested in a growing petrochemical industry. He said the Gulf region was home to only 2.5% of global petrochemical revenue and less than 1% of the industry's jobs. "Considering the Gulf's endowment of oil and gas, as well as our geographic proximity to major markets in Europe and Asia," he said, "both those figures should be much, much higher." New jobs, revenue Aramco's moves position it for a future when crude demand may peak and when owning reserves won't be as attractive . Even if electric-vehicle adoption and alternative-fuel use soar, cutting global thirst for fuel, demand for petrochemicals is likely to remain strong. By developing more chemical manufacturing of its own, Aramco could attract jobs and revenue to the kingdom, which recently issued $17.5 billion in bonds to shore up its finances. Aramco's reinvention as a public company invested in producing gasoline, diesel and specialty chemicals could mean abdicating Saudi Arabia's traditional role as de facto head of the Organization of the Petroleum Exporting Countries. Historically, the kingdom, through Aramco, has opened the spigot when prices rise too high and restricted supply when they fall too far. To do this, Aramco has kept unused spare production capacity, which shareholders would frown on, say some oil-industry consultants. It isn't clear how much of the change will come to pass at Aramco or in the Saudi economy. The government relies on oil for the vast majority of its revenue and has for decades talked about needing to diversify, without much change. Richard Mallinson at Energy Aspects, a London global-energy-market consultant, says he thinks the diversification plan "will fall a long way short of the lofty ambitions" and "is just too much of a jump from where they are today." The strategy of directly owning more petrochemical plants to create outlets for crude and refined products has long been pursued by large firms such as Exxon Mobil and Royal Dutch Shell PLC. "Aramco is the powerhouse in the area of oil. They want to get bigger in chemistry," says Matthias Zachert, chairman of Aramco's German joint-venture partner Lanxess AG. "But you don't create a leading chemical company overnight." Several advisers involved in the IPO planning say the transformation will be so complex it could go beyond 2018. The 5% stake targeted for the IPO is so large--Aramco has been valued at $2 trillion to $3 trillion--that finding a deep enough pool of investors may require Aramco to float the stock on several stock exchanges and to face multiple sets financial-disclosure rules, they say. It is a special challenge for bankers, they say, because the company and the kingdom are so deeply intertwined in ways that aren't public. A prince's role The company has said it will begin disclosing financial statements in 2017. Its operations are shrouded in secrecy and wouldn't meet governance requirements of most exchanges, such as board diversity. Its board includes no women and few outsiders. King Salman bin Abdulaziz has already shaken up the kingdom's ruling elite by empowering his son, Deputy Crown Prince Mohammed Bin Salman. Prince Mohammed is moving ahead with a plan drawn up by McKinsey & Co. consultants to wean the country off its oil dependence. In May, he proposed the IPO and the transfer of proceeds to a sovereign-wealth fund that will invest in other sectors. By taking on the transformation, the 31-year-old Prince Mohammed is challenging the established order in ways that could prove difficult to implement, say people close to the current establishment. Even giving shareholders partial control over Saudi Arabia's oil reserves would be tough because taking control of those assets was a defining moment for the kingdom. The prince is working with Mr. Falih, Aramco's chairman, and a tight circle of advisers to map out the future of Aramco and the Saudi economy, say people familiar with the discussions. They are making many decisions surrounding Aramco with little input from the company's bureaucracy, these people say. Members of the company's board learned of the IPO plans from media reports, rather than from Mr. Falih or Mr. Nasser, Aramco's CEO, one Aramco official says. "In some occasions even the chief executive is not fully aware of the latest update," the official says of Mr. Nasser. Aramco didn't make Mr. Nasser, Mr. Falih or other executives available for interviews. A spokesman for the prince declined to comment. Aramco owns directly or through joint ventures plants capable of processing 5.4 million barrels a day in markets that are its biggest crude customers: the U.S., South Korea, Japan, China and Saudi Arabia. Making Aramco's integrated model more lucrative, its operating costs for extracting oil remain among the world's lowest--perhaps $6 a barrel, compared with an average of $10 in Texas' Permian Basin, according to oil consultant Wood Mackenzie. "The idea of control of the end market is very important to them," says Anas Alhajji, an independent energy economist in Dallas. "This is their outlet to the market." That philosophy led Aramco earlier this year to break up a strategic partnership: Motiva , its two-decade-old joint venture with Shell. A key asset was a Port Arthur, Texas, refinery, North America's largest. Motiva had begun buying American crude oil, which was competing with Saudi oil, say people familiar with the Motiva relationship. Shell spokesman Ray Fisher says ending such a long venture with numerous assets and liabilities is "a very complex process, involving various adjustments and changes along the way before final agreements can be reached." The breakup will let Aramco cement its U.S. foothold. From Port Arthur, it could ship gasoline, jet fuel and diesel to military bases in Virginia, airports in the Washington, D.C., area and service stations in New York. The split will free Aramco from certain limits imposed by the Motiva deal, allowing it to expand, for instance, on the West Coast. The Saudi company has looked at buying a large refinery along the Gulf Coast or a stake in a refinery, say people familiar with the company. Aramco is negotiating with the Malaysian national oil company, Petronas , to work together on a $21 billion refining-and-petrochemicals project near Singapore, The Wall Street Journal reported in October. The project would operate as a joint venture and serve as another major Asian beachhead for Saudi oil. Aramco owns a stake in the giant Fujian Refining & Petrochemical complex, supplying oil that is turned into gasoline and plastics for China. Aramco's roots Aramco has its roots in Texaco and Standard Oil of California, which formed a partnership that found enormous oil deposits on the Arabian Peninsula. In the early 1970s, the kingdom bought a stake in Aramco and by the 1980s had acquired it all. In 1991, Aramco began looking overseas when it bought a stake in a South Korean refiner. In terms that Aramco would repeat, it agreed to supply the refinery with crude for two decades. Over the years, it bought and built more refineries. Still, Aramco remained a company almost entirely focused on producing crude. The first inklings of a new strategy emerged in 2011 when Aramco and Dow Chemical agreed to create Sadara, among the world's largest petrochemical complexes. After signing the deal, Mr. Falih, then Aramco's CEO, explained his vision. Aramco, he said, will "become the world's leading integrated energy company by the year 2020." Saudi Arabian crude sales faced new pressures starting in about 2012 as Nigeria and Angola, forced out of the U.S. market by a flood of shale oil, began competing with Aramco in Asia. Demand was stagnating, and countries were moving to limit fossil-fuel use. Soon after oil prices began falling in 2014, Mr. Zachert, chairman of Lanxess, the chemical firm, suggested a European deal with Aramco. "They saw the strong strategic rationale," he says. "The transaction was completed in record time." Aramco paid $1.2 billion to Lanxess to cleave off half the German company and create a partnership, Arlanxeo, 50%-owned by Aramco and based in a Netherlands industrial park dubbed Chemelot. Three Aramco executives moved to Holland to help run a company with 20 factories in Latin America, North America, Europe and Asia. "They're very interested in how we do things," says Jan Paul de Vries, the Lanxess executive who heads the venture. Arlanxeo's synthetic-rubber facility is a neat fit for the Sadara project, which shipped its first chemicals in December. When fully running, Sadara will be able to supply feedstock to Arlanxeo. The plant is a key link between Aramco's aspiration of building a petrochemical empire and the kingdom's diversification plan. One recent afternoon, workers wearing protective masks painted arrows on new roads near the complex's edge. Beyond a chain-link fence, trucks lined a half-built road on a patch of desert that is part of a planned five-square-mile industrial park. The goal is to attract manufacturers that would use Sadara's chemical output while benefiting from the infrastructure. That would complete a circle, allowing Aramco to use its oil extraction, refining and processing chain to supply more Saudi-based manufacturing--one of eight sectors the economic-diversification plan targets for expansion. Robert W. Jordan, U.S. ambassador to Saudi Arabia under President George W. Bush, says changes Aramco is making are preparing the country to depart from the past. "Saudi Arabia may have enough oil for the oil age," he says. "But the oil age may be ending." Natascha Divac and Elena Cherney contributed to this article. Write to Bill Spindle at bill.spindle@wsj.com and Summer Said at summer.said@wsj.com More * Rowan, Aramco Plan Offshore Drilling Venture * Oil Gains on Expectations of OPEC Cut * Libyan Delegate Says OPEC Talks Going Well Credit: By Russell Gold, Bill Spindle and Summer Said
Subject: Chemical industry; Supply & demand; Production capacity
Location: Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111; Name: Dow Chemical Co; NAICS: 325199, 325211, 325180
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 20, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841584332
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841584332?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Iraq to Offer New Proposals to Implement OPEC Oil Output Cut; Proposals to be discussed at Vienna technical meeting Monday and Tuesday
Author: Williams, Selina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Nov 2016: n/a.
Abstract:
The Organization of the Petroleum Exporting Countries agreed in September to reduce output to help draw down a global supply glut that is weighing on oil prices, but left the details of the plan to be worked out later.
Full text: LONDON--Iraq will offer three new proposals at a meeting in Vienna this coming week to discuss implementing an OPEC accord to cut output, Iraq's Oil Minister Jabbar al-Luaibi said late Sunday, in the latest sign the country is inching closer to resolving its differences with the cartel. The options will be consistent with OPEC policy and are designed to bolster the unity of the group, said Mr. Luaibi, who has until very recently been at loggerheads with the group over Iraq's contribution to the reduction. He declined to give details over the proposals. "Our alternatives are based on other variables and will make it easier for OPEC members to make a decision," he told The Wall Street Journal. "All of the options will be logical and in line with OPEC policy," he added. The Organization of the Petroleum Exporting Countries agreed in September to reduce output to help draw down a global supply glut that is weighing on oil prices, but left the details of the plan to be worked out later. The group is holding a so-called "technical meeting" at their Vienna headquarters Monday and Tuesday to discuss the mechanism for implementing the September agreement. The technical meeting will prepare for OPEC's ministerial meeting Nov. 30 in Vienna. Iraq has been ramping up its oil production for more than two years. Mr. Luaibi has said Iraq should be exempted from cutting production because it needs the revenues to prosecute a costly war against Islamic State. But Friday, Mr. Luaibi said he is optimistic that OPEC will reach an agreement at the Nov. 30 meeting. His comments were followed by similarly positive comments from Iran, which had also been reluctant to rein in its output. Write to Selina Williams at selina.williams@wsj.com Credit: By Selina Williams
Subject: Cartels; Petroleum production; Quotas
Location: Iraq
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 20, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: Engl ish
Document type: News
ProQuest document ID: 1841625648
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841625648?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Rise in Asia Amid Diplomatic Push Within OPEC; January Brent crude rose 56 cents to $47.42 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Nov 2016: n/a.
Abstract:
Oil futures advanced in Asian trade Monday following a fresh round of diplomatic wrangling ahead of a highly anticipated meeting of the Organization of the Petroleum Exporting Countries later this month.
Full text: Oil futures advanced in Asian trade Monday following a fresh round of diplomatic wrangling ahead of a highly anticipated meeting of the Organization of the Petroleum Exporting Countries later this month. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $46.15 a barrel, up 46 cents, or 1%, in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose 56 cents, or 1.2%, to $47.42 a barrel. The weekend saw a renewed push by members of the OPEC to resolve differences ahead of the Nov. 30 meeting in Vienna. Iraq's oil minister Jabbar al-Luaibi said late Sunday the country plans to offer three new proposals this week aimed at bolstering the unity of the group. The country's oil minister declined to give specifics about the proposals, but Iraq's contribution to a proposed supply cut by OPEC has been a key stumbling block toward reaching a deal. Iraq has been ramping up oil production for more than two years and has said it desperately needs oil revenue in order to fund its war against the Islamic State. Market sentiment was also bolstered by comments from Iran's oil minister Bijan Zangeneh, who on Saturday said OPEC is "highly likely" to reach a final agreement to curb oil production later this month. "Traders will be looking at this rhetoric and saying, 'well it seems like it's almost a forgone conclusion that they'll come up with something,'" said Stuart Ive, private client manager at OM Financial. "There's too much at stake for them now, so they need to deliver." While oil prices have retreated sharply from highs above $50 a barrel reached in October, they have rebounded in recent sessions amidst diplomatic maneuvers by OPEC members. The cartel is looking to cut production to between 32.5 million and 33 million barrels a day, down from record levels of 33.83 million barrels a day of output in October. Still, differences within the group remain wide, and OPEC has failed repeatedly to deliver on production cuts since oil prices began to tumble two years ago. OPEC's deadlock and elevated production among non-OPEC members like the U.S. have contributed to low prices. Looking ahead, the oil market is still coming to grips with a Donald Trump presidency, which is widely expected to bring looser regulations--and potentially higher output--of U.S. oil and gas. "U.S. elections have further muddled the decision-making process as Donald Trump has made strong statements about Iranian sanctions and banning imports of Saudi crude," analysts at Barclays wrote in a note to clients. They expect OPEC to agree to a "face-saving statement" at its Nov. 30 meeting, which would "show case agreement, provide flexibility and not veer too far from what countries had planned initially for" the first half of 2017. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 104 points to $1.3495 a gallon, while December diesel traded at $1.4689, 112 points higher. ICE gasoil for December changed hands at $430.00 a metric ton, up $6.00 from Friday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil prices; Supply & demand; Petroleum production
Location: United States--US Iraq
People: Trump, Donald J
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 21, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841663622
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841663622?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Hits Three-Week High on Expectations for OPEC Cut; Iran, Iraq now backing proposal for production limits
Author: Baxter, Kevin; Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Nov 2016: n/a.
Abstract:
While the absence of a deal would be bearish for oil prices, Morgan Stanley analysts said the downside risk for OPEC not agreeing to cuts is limited since a "fair amount of skepticism" has already been priced in.
Full text: Oil prices rose to a three-week high Monday as investors continued to bet that the Organization of the Petroleum Exporting Countries will reach a production deal at the end of the month. Light, sweet crude for December delivery settled up $1.80, or 3.9%, to $47.49 a barrel on the New York Mercantile Exchange, closing at the highest level since Oct. 28. Brent, the global benchmark, settled up $2.04, or 4.4% at $48.90 a barrel. Prices were buoyed by news that the energy ministers from two of OPEC's most reluctant members in terms of cutting output, Iraq and Iran, are backing the proposal . The cartel meets Nov. 30 when it will formally decide on strategy for the first half of 2017. "It's all adding up to where people are a little bit more bullish," said Donald Morton, senior vice president at Herbert J. Sims Co., who runs an energy-trading desk. "Everybody wants to turn into a buyer." The change in sentiment marks a one-week turnaround for crude oil, as skepticism over OPEC's ability to come to a deal has tempered. Analysts have also become more positive on the outlook for a production cut. On Monday, Goldman Sachs raised the forecast for oil prices in the first half of 2017, given expectations that OPEC will announce and implement a production cut. A Bank of America Merrill Lynch research report also noted that a supply cut looks highly probable. However, "political risks can still derail an otherwise economically sound decision," Goldman Sachs analysts wrote. While the market largely expects OPEC to cut production, some remain cautious going into the meeting. "Their track record is horrendous," said Mark Waggoner, president of Excel Futures. "Somebody makes another statement, things could change." Traders also noted that any shift in expectations could lead to heightened volatility before the meeting, especially given the holiday week and less activity in the market. Should OPEC decide against a production cut, oil prices face headwinds such as a strengthening U.S. dollar, high production levels and growing crude-oil stockpiles. These challenges could make a production cut more difficult for the cartel, Barclays analysts wrote in a note this week. Cutting production would give prices a short-term boost, but it would be U.S. producers that reap the benefit in the midterm, by using the fillip to lock in higher prices for future production, the bank said. "We still expect OPEC to agree to a face-saving statement. It would showcase agreement, provide flexibility, and not veer too far from what countries had planned initially for [the first half of 2017]," said Barclays. "Should a credible deal prove out of reach, only the normal uptick in winter demand could save the market from declining further." While the absence of a deal would be bearish for oil prices, Morgan Stanley analysts said the downside risk for OPEC not agreeing to cuts is limited since a "fair amount of skepticism" has already been priced in. Gasoline futures settled up 4.3% at $1.3965 a gallon and diesel futures settled up 4.6% at $1.5245 a gallon. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Stephanie Yang at stephanie.yang@wsj.com Related Coverage * Iraq to Offer New Proposals to Implement Oil Output Cut Credit: By Kevin Baxter and Stephanie Yang
Subject: Crude oil prices; Cartels
Location: Iraq Iran
People: Trump, Donald J
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: New York Mercantile Exchange; NAICS: 523210; Name: Bank of America Merrill Lynch; NAICS: 522110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 21, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841692840
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841692840?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Aramco's Grand Plan To Move Beyond Oil --- Vast expansion of chemical operations is part of Saudi Arabia's push to remake its economy
Author: Gold, Russell; Spindle, Bill; Said, Summer
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Nov 2016: A.1.
Abstract:
Aramco now aims to vastly expand its petrochemical operations, turning itself into a modern integrated energy company along the lines of Exxon Mobil Corp. Thousands of miles away, near the Saudi Arabian city of Al Jubail on the Persian Gulf, an army of workers is finishing the $20 billion Sadara petrochemical complex, an Aramco joint venture with Dow Chemical Co. Sadara will use ethane refined by Aramco nearby to make a petrochemical called butadiene to ship world-wide to facilities, likely including its Dutch plant.
Full text: GELEEN, Netherlands -- Saudi Arabian Oil Co. has been the world's single largest crude producer for decades. It wants to be a lot more than that now, as a new petrochemical complex shows. Among the Dutch corn fields here is a tangle of pipes, vats and catalyzers that the company uses in its Arlanxeo plant to transform what was oil into synthetic rubber for products ranging from auto-engine hoses to plastic wine corks. Aramco, as it is commonly known, until recently focused on pumping great quantities of oil and, like the Standard Oil companies of John D. Rockefeller, processing it through its refineries. Aramco now aims to vastly expand its petrochemical operations, turning itself into a modern integrated energy company along the lines of Exxon Mobil Corp. Thousands of miles away, near the Saudi Arabian city of Al Jubail on the Persian Gulf, an army of workers is finishing the $20 billion Sadara petrochemical complex, an Aramco joint venture with Dow Chemical Co. Sadara will use ethane refined by Aramco nearby to make a petrochemical called butadiene to ship world-wide to facilities, likely including its Dutch plant. Aramco, one of the world's most powerful and secretive companies, is undergoing an unprecedented makeover, as the oil-price rout hurts its revenue and uncertainty clouds the future of fossil-fuel demand. Its transformation is intertwined with a long-term plan to diversify the Saudi economy. That plan, led by a powerful deputy crown prince who wants his nation to grow beyond being a petrostate, is accelerating the Aramco shift in ways now becoming clear. By positioning the company to generate more domestic jobs and non-oil revenue, Aramco aims to help provide the funding needed to carry out the prince's vision. Aramco's strategic goal is to create a global network of refining and petrochemical plants that let Saudi Arabia turn its biggest asset into hundreds of higher-value products crucial to modern life, from chewing gum to auto parts. To extract capital from oil still in the ground, Aramco plans another ambitious gambit: an initial public offering in 2018 that may become history's biggest. Aramco says it has 261.6 billion barrels of oil left to pump, roughly 20 times as much as Exxon Mobil. "Aramco's capabilities will be fully unleashed," Saudi oil minister and Aramco Chairman Khalid al-Falih said in a briefing with several reporters this year. "The company will be able to go global in multiple ways." Aramco declined to answer detailed questions, referring instead to speeches such as one by Aramco Chief Executive Amin Nasser in September. He said the Gulf region was home to only 2.5% of global petrochemical revenue and less than 1% of the industry's jobs. "Considering the Gulf's endowment of oil and gas, as well as our geographic proximity to major markets in Europe and Asia," he said, "both those figures should be much, much higher." Aramco's moves position it for a future when crude demand may peak and when owning reserves won't be as attractive. Even if electric-vehicle adoption and alternative-fuel use soar, cutting global thirst for fuel, demand for petrochemicals is likely to remain strong. By developing more chemical manufacturing of its own, Aramco could attract jobs and revenue to the kingdom, which recently issued $17.5 billion in bonds to shore up its finances. Aramco's reinvention as a public company invested in producing gasoline, diesel and specialty chemicals could mean abdicating Saudi Arabia's traditional role as de facto head of the Organization of the Petroleum Exporting Countries. Historically, the kingdom, through Aramco, has opened the spigot when prices rise too high and restricted supply when they fall too far. To do this, Aramco has kept unused spare production capacity, which shareholders would frown on, say some oil-industry consultants. It isn't clear how much of the change will come to pass. The government relies on oil for the vast majority of its revenue and has for decades talked about needing to diversify, without much change. Richard Mallinson at Energy Aspects, a London global-energy-market consultant, says he thinks the diversification plan "will fall a long way short of the lofty ambitions" and "is just too much of a jump from where they are today." The strategy of directly owning more petrochemical plants to create outlets for crude and refined products has long been pursued by large firms such as Exxon Mobil and Royal Dutch Shell PLC. "Aramco is the powerhouse in the area of oil. They want to get bigger in chemistry," says Matthias Zachert, chairman of Aramco's German joint-venture partner Lanxess AG. "But you don't create a leading chemical company overnight." Several advisers involved in the IPO planning say the transformation will be so complex it could go beyond 2018. The 5% stake targeted for the IPO is so large -- Aramco has been valued at $2 trillion to $3 trillion -- that finding a deep enough pool of investors may require Aramco to float the stock on several stock exchanges and to face multiple sets financial-disclosure rules, they say. It is a special challenge for bankers, they say, because the company and the kingdom are so deeply intertwined in ways that aren't public. The company has said it will begin disclosing financial statements in 2017. Its operations are shrouded in secrecy and wouldn't meet governance requirements of most exchanges, such as board diversity. Its board includes no women and few outsiders. King Salman bin Abdulaziz has already shaken up the kingdom's ruling elite by empowering his son, Deputy Crown Prince Mohammed Bin Salman. Prince Mohammed is moving ahead with a plan drawn up by McKinsey & Co. consultants to wean the country off its oil dependence. In May, he proposed the IPO and the transfer of proceeds to a sovereign-wealth fund that will invest in other sectors. By taking on the transformation, the 31-year-old Prince Mohammed is challenging the established order in ways that could prove difficult to implement, say people close to the current establishment. Even giving shareholders partial control over Saudi Arabia's oil reserves would be tough because taking control of those assets was a defining moment for the kingdom. The prince is working with Mr. Falih, Aramco's chairman, and a tight circle of advisers to map out the future of Aramco and the Saudi economy, say people familiar with the discussions. They are making many decisions surrounding Aramco with little input from the company's bureaucracy, these people say. Members of the company's board learned of the IPO plans from media reports, rather than from Mr. Falih or Mr. Nasser, Aramco's CEO, one Aramco official says. "In some occasions even the chief executive is not fully aware of the latest update," the official says of Mr. Nasser. Aramco didn't make Mr. Nasser, Mr. Falih or other executives available for interviews. A spokesman for the prince declined to comment. Aramco owns directly or through joint ventures plants capable of processing 5.4 million barrels a day in markets that are its biggest crude customers: the U.S., South Korea, Japan, China and Saudi Arabia. Making Aramco's integrated model more lucrative, its operating costs for extracting oil remain among the world's lowest -- perhaps $6 a barrel, compared with an average of $10 in Texas' Permian Basin, according to oil consultant Wood Mackenzie. "The idea of control of the end market is very important to them," says Anas Alhajji, an independent energy economist in Dallas. "This is their outlet to the market." That philosophy led Aramco earlier this year to break up a strategic partnership: Motiva, its two-decade-old joint venture with Shell. A key asset was a Port Arthur, Texas, refinery, North America's largest. Motiva had begun buying American crude oil, which was competing with Saudi oil, say people familiar with the Motiva relationship. Shell spokesman Ray Fisher says ending such a long venture with numerous assets and liabilities is "a very complex process, involving various adjustments and changes along the way before final agreements can be reached." The breakup will let Aramco cement its U.S. foothold. From Port Arthur, it could ship gasoline, jet fuel and diesel to military bases in Virginia, airports in the Washington, D.C., area and service stations in New York. The split will free Aramco from certain limits imposed by the Motiva deal, allowing it to expand, for instance, on the West Coast. The Saudi company has looked at buying a large refinery along the Gulf Coast or a stake in a refinery, say people familiar with the company. Aramco is negotiating with the Malaysian national oil company, Petronas, to work together on a $21 billion refining-and-petrochemicals project near Singapore, The Wall Street Journal reported in October. The project would operate as a joint venture and serve as another major Asian beachhead for Saudi oil. Aramco owns a stake in the giant Fujian Refining & Petrochemical complex, supplying oil that is turned into gasoline and plastics for China. Aramco has its roots in Texaco and Standard Oil of California, which formed a partnership that found enormous oil deposits on the Arabian Peninsula. In the early 1970s, the kingdom bought a stake in Aramco and by the 1980s had acquired it all. In 1991, Aramco began looking overseas when it bought a stake in a South Korean refiner. In terms that Aramco would repeat, it agreed to supply the refinery with crude for two decades. Over the years, it bought and built more refineries. Still, Aramco remained a company almost entirely focused on producing crude. The first inklings of a new strategy emerged in 2011 when Aramco and Dow Chemical agreed to create Sadara, among the world's largest petrochemical complexes. After signing the deal, Mr. Falih, then Aramco's CEO, explained his vision. Aramco, he said, will "become the world's leading integrated energy company by the year 2020." Saudi Arabian crude sales faced new pressures starting in about 2012 as Nigeria and Angola, forced out of the U.S. market by a flood of shale oil, began competing with Aramco in Asia. Demand was stagnating, and countries were moving to limit fossil-fuel use. Soon after oil prices began falling in 2014, Mr. Zachert, chairman of Lanxess, the chemical firm, suggested a European deal with Aramco. "They saw the strong strategic rationale," he says. "The transaction was completed in record time." Aramco paid $1.2 billion to Lanxess to cleave off half the German company and create a partnership, Arlanxeo, 50%-owned by Aramco and based in a Netherlands industrial park dubbed Chemelot. Three Aramco executives moved to Holland to help run a company with 20 factories in Latin America, North America, Europe and Asia. "They're very interested in how we do things," says Jan Paul de Vries, the Lanxess executive who heads the venture. Arlanxeo's synthetic-rubber facility is a neat fit for the Sadara project, which shipped its first chemicals in December. When fully running, Sadara will be able to supply feedstock to Arlanxeo. The plant is a key link between Aramco's aspiration of building a petrochemical empire and the kingdom's diversification plan. One recent afternoon, workers wearing protective masks painted arrows on new roads near the complex's edge. Beyond a chain-link fence, trucks lined a half-built road on a patch of desert that is part of a planned five-square-mile industrial park. The goal is to attract manufacturers that would use Sadara's chemical output while benefiting from the infrastructure. That would complete a circle, allowing Aramco to use its oil extraction, refining and processing chain to supply more Saudi-based manufacturing -- one of eight sectors the economic-diversification plan targets for expansion. Robert W. Jordan, U.S. ambassador to Saudi Arabia under President George W. Bush, says changes Aramco is making are preparing the country to depart from the past. "Saudi Arabia may have enough oil for the oil age," he says. "But the oil age may be ending." --- Natascha Divac and Elena Cherney contributed to this article.
Credit: By Russell Gold, Bill Spindle and Summer Said
Subject: Production capacity; Product development; Petrochemicals industry
Location: Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2016
Publication date: Nov 21, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841702753
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841702753?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Farmers' Grain Bounty, Crop Exports Buoy U.S. Railroads; Rail traffic is still recovering from years of steep declines in coal, oil shipments
Author: Cameron, Doug; Newman, Jesse
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Nov 2016: n/a.
Abstract:
"More grain is moving this harvest to export channels and it's moving faster," said Nate Asplund, chief executive of Wahpeton, N.D.-based Red River Valley & Western Railroad Co. BNSF Railway Co. spent $15 billion over the past three years, much of it to link crop-producing areas to ports in the Northwest and Gulf Coast, said John Miller, vice president for agricultural products.
Full text: A record fall harvest and surging crop exports are boosting U.S. railroad operators, who are still feeling pain from the collapse of coal and oil shipments. Farmers across the Midwest--benefiting from good weather during much of the growing season--are expected to bring in about two billion more bushels of corn and soybeans than they did last year. Many rely on railcars to transport their crops from grain elevators to processing plants around the country, or to the coasts for export. Shipments of grain and soybeans are up around 6.5% this year, and set a record of over 26,000 carloads a week during the peak of the harvest in October, according to the Association of American Railroads, a trade group. Leasing company GATX Corp. said every one of its grain cars was in use during the third quarter. CSX Corp., the third-largest U.S. railroad, said grain shipments shot up 27% in the third quarter compared with a year earlier, helping fuel a rally in the company's stock. Even so, booming grain traffic hasn't erased years of steep declines in coal shipments, still the biggest single source of rail traffic, according to industry data. Overall, freight carloads are down 6% this year and thousands of cars designed to carry oil and industrial products are sitting idle. Railroads are betting the grain boom will continue. Analysts say some orders for oil-tank cars are being converted into purchases of new grain cars. Through the third quarter, deliveries of covered-top railcars used most often in grain service are up 147% from the same period last year, according to the Railway Supply Institute, a trade group. The railroad operators also have spent billions of dollars to add capacity so they can ship grain faster and with fewer traffic jams. Those improvements have helped avoid a repeat of the 2014 harvest. That year, big crop volumes and more crude-oil shipments caused snarls across the rail network, holding up trains and driving up grain prices. Grain shipments were up nearly 20% last month compared with October 2014, without major delays, rail operators say. "More grain is moving this harvest to export channels and it's moving faster," said Nate Asplund, chief executive of Wahpeton, N.D.-based Red River Valley & Western Railroad Co. BNSF Railway Co. spent $15 billion over the past three years, much of it to link crop-producing areas to ports in the Northwest and Gulf Coast, said John Miller, vice president for agricultural products. The Berkshire Hathaway Inc.-owned company, the biggest shipper of agricultural products in North America, said such shipments climbed 13% in the third quarter. Among the improvements: Some 1,000 miles of double track, which allows trains to pass in opposite directions along the same route, and high-speed grain loaders to improve efficiency. Trains hauling 100 or more grain cars are making an average of three trips a month this year compared with 1.8 in 2014, said railroad executives. Regional railroads like Red River have also invested in new track and facilities. Railroad operators are using new railcars that are shorter and deeper, allowing more to be hauled by a single train. Canadian Pacific Railway Ltd. has increased its grain trains to a record 124 cars, and plans to raise this to as many as 134. Railroads of all sizes have borrowed scheduling tips from the airline industry to maximize capacity. Just as low-cost carriers look to maximize the number of flights a day from their jets with quick airport turnarounds, railroads have found more efficient ways to load and unload railcars. New equipment has halved the time taken to fill or empty a 115-car train to as little as six hours. "In the old days we talked about cars. Now we focus on turns per car," said Mr. Asplund. The rail industry also got an early jump on this year's harvest. Exports soared over the summer as buyers in China and Mexico purchased more soybeans and corn from U.S. farmers following a poor harvest in South America and concerns over currency swings. U.S. soybean exports more than doubled in July from a year earlier to 98.4 million bushels, and more than tripled in August. Grain cars that usually remain parked until the fall harvest were pressed into service as early as June. Grain elevator operators said the drop in coal and oil shipments has also reduced rail traffic, leaving more track open for agricultural products. Roger Miller, chief executive of Premier Cooperative in Champaign, Ill., said in 2014 railroads prioritized oil cars ahead of grain hoppers. This year he said there is "a night and day difference." Bob Tita contributed to this article. Write to Doug Cameron at doug.cameron@wsj.com and Jesse Newman at jesse.newman@wsj.com Credit: By Doug Cameron and Jesse Newman
Subject: Railroad transportation; Trains; Harvest; Traffic congestion
Location: United States--US
Company / organization: Name: GATX Corp; NAICS: 532411, 532420, 488510; Name: Berkshire Hathaway Inc; NAICS: 442210, 445292, 511110, 511130, 524126, 335210; Name: CSX Corp; NAICS: 482111; Name: Association of American Railroads; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 21, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841775584
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841775584?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Transcript: Q&A With Dallas Fed's Robert Kaplan in Houston; Central banker discusses oil prices, district's economy and interest rates
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Nov 2016: n/a.
Abstract: None available.
Full text: Robert S. Kaplan, president of the Federal Reserve Bank of Dallas, participated in a question-and-answer session Friday, Nov. 18, 2016, at a conference on "Oil and the Economy: Adapting to a New Reality." Here is a transcript of the discussion, lightly edited for length and clarity. MODERATOR: (In progress) Rob is the 15th head and CEO of the Federal Reserve Bank of Dallas. He started in September of last year. Before coming to the bank, Rob was the Martin Marshall Professor of Management Practice and a senior associate dean at Harvard Business School. He is the author of several books, the most recent of which is "What You Really Need to Lead: The Power of Thinking and Acting like an Owner." Prior to joining Harvard in 2006, Rob was vice chairman of the Goldman Sachs group, with global responsibility for the firm's investment banking and investment management divisions. Jim Hackett is presently a partner in Riverstone Holdings, a large private energy investment firm. Jim is the retired executive chairman of the board and former CEO of Anadarko Petroleum Corporation. Before joining Anadarko, Jim served as president and CEO of Devon Energy Corporation, following its merger with Ocean Energy, where he was chairman, president and CEO. Before that, he was with Seagull Energy and Duke Energy, among others. Most importantly for us, Jim served on the Dallas Fed Board of Directors, and was chairman of the board from 2007 to 2010. Before that, he was on the Houston board and served as chairman from 2004 to 2005. So the structure of this conversation, Rob and Jim are going to have a dialogue for about 25 minutes, and then we're going to open the conversation up to questions from the audience. We have three standing mics, as you know. So I'm now going to turn the proceedings over to Jim. JAMES T. HACKETT: Great. Thank you. Appreciate it. Welcome, everybody. And, Rob, thank you for being here. It's really just-- ROBERT S. KAPLAN: Thank you, Jim. And thank you for your service to the Fed, and thank you for doing this today. MR. HACKETT: Oh, great to be amongst this good group. So what I thought I'd do is try to drill into an ever-widening scope, Rob, of what you see, because you see an awful lot both internationally and domestically. But maybe starting regionally, we could talk a little bit about District 11 and kind of what you--I mean, we've all--a number of us in the room have been suffering through the oil price decline that has gone on probably longer than any period that I recall, except for the '80s. And perhaps you can talk about the economy relative to that which you see. MR. KAPLAN: I will do that. So, first of all, I'll give you my own two cents, because it was interesting listening this morning. My own overview on where we're heading is it's our view at the Dallas Fed, while there's debates--and there should be debate--about the exact timing, I think we're going to move toward balance--global supply-demand balance by sometime early to mid-2017. Some people think it's going to a little sooner. Some people think it's going to be a little later. These outages, other things, the OPEC discussions--which we're skeptical about, by the way--may buffet that around. But the key to us is not the exactly timing; it's the trend. And the trend, in our view, is that we're heading toward balance. The reason it's been so painful and sometimes confusing is I wish I could say we're heading toward balance because supply is declining. As you heard, it's not. Supply has declined in the United States. We think supply has come down net year-over-year by as much as a million barrels a day. That has been more than offset by supply increases in Iran, Saudi Arabia, Russia, other countries, and that's what's been so frustrating. While we're going through all this pain here locally, global supply continues to go up. And so the reason we think we're going to be in balance by the middle of 2017 is that it's I think what was talked about earlier. It's the demand side. We see demand growing at approximately 1.2, 1.3 million barrels a day in 2016 and into '17. And because supply growth is slowing, even though it's still growing, we think demand will finally catch up with supply, and that's how we're going to get into balance. Then we have to still work off a record level of inventory. So what's the implications for the 11th District economy? The net of it all is we think you're going to see prices firm. And that's not a word I've used a lot in my career; it's usually up/down. Firm means, well, you're going to have a lot of volatility. And we're seeing a period right now. You know, OPEC makes an announcement, it goes up; OPEC makes a different announcement, it goes down. We think that volatility will continue, but within an overall context over the next couple years of firming. And it's our own view, as demand keeps chugging along, and the fact that OPEC is at a relatively high level of capacity utilization, we think if you go over the next three to five years, if there is a price risk, our own judgment and my own judgment is it's more likely to the upside than to the downside. So what's been a headwind for our district, particularly Texas, there's no doubt energy, as well as a strong dollar, both--we're the largest exporting state in the country, so a strong dollar really hurts our exporters--plus energy, has created headwinds. Just to give you one statistic--[Kansas City Fed President] Esther [George] gave you the national statistic; I'll give you the local one--energy, by our measure, in Texas was 13% of GDP for the state in 2014. It's down to 6% today. That's a breathtaking decline, but it's correlated to the same thing Esther mentioned: about 2.8% for the United States, about half that now, similar. Part of that is the decline in energy. Part of it is that--migration of people and firms to Texas and diversification of the state. We've been growing, which is another thing that's kept that percentage lower. But because of all this, when you net it all out, job growth in the state of Texas in the first half of 2016 we estimate is something less 1%, very disappointing for Texas by historical standards. We think, though, as the energy headwind at least becomes neutral, if not yet a tailwind, we're expecting to see closer to 2% job growth in the second half of this year, and we're expecting approximately 2% job growth into '17. And if you ask me what's my outlook over the next few years, which I think is an easier question to answer, I'm relatively optimistic about the dynamics and the outlook for the energy business in this state and in the country. And because--in addition, because of the migration of people and firms to the state of Texas, I'm very optimistic about the future of the state and this district economically in the months and years ahead. I think we've got terrific dynamics. And the only surprise is that we've weathered the strong dollar and the weak energy as well as we have. MR. HACKETT: That's remarkable. That is a very positive review. You spoke of migrations of businesses. There's another kind of migration that obviously occurs in all states of the union, and that's regarding demographics, people. What effects do you--or what do you see in the future, maybe even comment on what we've seen already and kind of what you expect, and how that affects the economy, if you would. MR. KAPLAN: So we talk a lot at the Fed about (gross domestic product), unemployment, inflation, and lots of cyclical data. I think at the Dallas Fed, we also like to focus on trying to get our arms around big secular drivers. And there are four that we're, for lack of a better word, wrestling with and trying to understand. One of them is aging demographics in the United States and all advanced economies. Meaning, you know, famously, the--because it's been talked about so much--the participation rate in the United States has gone from 66% in 2007 to 62.8, which is where we are right now. I would have liked to believe, before I took this job 14 months ago, that a good bulk of that decline could be addressed, or maybe we'd bounce back. After the work we're doing, we're convinced at the Dallas Fed, and I'm convinced, that the bulk of that decline is demographic, all right? If you, in addition, look at part-time to full-time workers, discouraged workers, the so-called marginally attached that Esther talked about this morning, referred to as U6, that is now moving back to 2008 levels, which further reinforces to me that demographics has been driving the participation rate. And what's the problem with that? The big problem with that is let's project out another 10 years from here. If you project out what we think the demographics are of the U.S. workforce, we think the participation rate is going to be below 61% within the next 10 years. What that--the implications of that--unless there's a burst of productivity, that means we're going to--we're going to face lower levels of potential GDP growth in the years ahead. And I'll come back to that, because that has obvious implications for our strategy as a country regarding growing the workforce. The other big secular trends I'll just rattle off. Globalization, I don't need to tell you, is a giant trend. But it matters more today than it ever has, mainly because of China. Record levels of overcapacity, high levels of debt-to-GDP in order to make their GDP targets, and this massive transition from being an export-driven economy to a service-oriented economy. But what it means is when China wrestles with their issues, we think they're going to eventually have to let GDP float lower. They can't keep using leverage to beef up GDP by investing in already excess-capacity state-owned enterprises and in infrastructure. We think GDP is going to need to float down. The implications for us, as central bankers of the United States, is I think we think--we think you're going to see more bouts of currency weakness in China. And by the way, strengthening dollar--rapidly strengthening dollar just exacerbates that, which is what we've got right now. And therefore you can see, like we saw in the first part of the year, bouts of financial instability and turmoil that will tighten global financial conditions. The other two big trends, quickly, I would call the very end of the debt supercycle, OK? So while the household sector's been deleveraging since the Great Recession in the United States, government debt-to-GDP is increasing. We're more leveraged than we were in 2007. It's true basically in every advanced economy. And Esther mentioned these statistics: 75, 76% of public debt-to-GDP. But the big one, the present value of future underfunded entitlements is about $46 trillion. That means we have less bandwidth or capacity for fiscal policy and other economic policy. And when you overlay that on the demographic trends, it means you're going to have more dependents, less workers to support the dependents, and I don't need to tell you the implications of that while your leverage is going up. And so we are going to have to be careful about policies that make that debt-to-GDP worse. And then the last one is technology-enabled disruption. And we live with it every day: Uber versus taxis, Airbnb versus hotels, Amazon versus retail stores. But we think it's having a big effect on holding down pricing power of businesses. And when you have wage pressure, it may not be so easy for businesses to pass it on. It may just shrink margins. Businesses have less pricing power than at any time in my life. And so you mentioned some of these--I think one of the nice things--and I can say this. I lived in--I'm from Kansas, which has got lots of small towns. But when you live in New York City or Boston, you don't see as many small-, mid-sized towns. And one thing, living in Texas, I visit them all the time. I was in Wichita Falls earlier in the week. And every one of these--there's hundreds of them in the United States. Wichita Falls is, what, 150,000 I think is the population. And it's not going down; it's flat. A lot of the issue they're facing may be attributed to trade, but increasingly the issues they're facing may be about technology-enabled disruption and this demographic trend where there's in effect a competition in the country for people. And I think you saw the heat map earlier about where populations and growing and not growing. The kids of the folks in Wichita Falls, they were telling us, they want to live in Dallas or they want to live in Houston. And so lots of towns in this country are dealing with that. And it's a cultural trend as much as it is--and a demographic trend as much as it has to do with trade and other things. So I would say the reason I like to focus and we like to focus on these big secular trends--and notice I was careful to say I'd love to tell you we understand the impact of them. We don't. We're trying, and we will be trying as long as I'm in the job and for years ahead, and keep trying to understand the implications. But I think, as a nation, I would argue we're wrestling with trying to understanding the implications of these trends. MR. HACKETT: I want to come back to you a little later, if you don't mind, and talk about what your view of inflation is in that environment, too. MR. KAPLAN: What's the headwind on it. MR. HACKETT: Yeah, for sure. And it's a bit sobering, because you gave us such a good, positive view on energy. You just took it away with all the demographic stuff. MR. KAPLAN: Sorry. (Laughter.) You know, the good news is Texas is winning the demographic battle, which is why I'm very optimistic about the state. I'm more worried about the country, though. While we're winning, and that's great, but many states and cities--Illinois, for example, is struggling. And there are lots of others. So it creates a challenging environment. MR. HACKETT: Sure, sure. And that's why we need good people running all of the big institutions in our lives. So if you came out of an educational environment. I'm going to come back to that later and how that--how you use that with your current responsibilities. But when you--we know that you do op-eds on education. We know that you've hosted conferences on education. As the chief banker of the district, what is interesting to you about education? Because that's not really your remit, I mean, other than the financial literacy issue. MR. KAPLAN: Yeah. Right. MR. HACKETT: But what is that about? MR. KAPLAN: So--and by the way, and I think other Fed presidents probably share my views on this and are active in it. Education--so I talked about the demographic trends. And we all know that there's--the weak--the productivity numbers in the United States have been weaker. There is a very high correlation between educational attainment levels and worker productivity. We know there's a skills gap in Texas, by--from all our surveys, and in the United States. There's more demand for skilled workers than there is supply. So one of the things we work on in--at the Dallas Fed--everybody at the Dallas Fed works on this; and [senior vice president] Alfreda Norman, who you know, leads our effort--we believe that a key part of economic conditions is--and we have great convening power at the Fed--is to convene business leaders, community leaders and other leaders to talk about how do we improve early childhood literacy. Because we know if a child starts even kindergarten behind, they never catch up. Vocational training, or usually referred to workforce development--public-private partnerships within educational institutions and businesses that help provide a vocational path. Increasingly, high schools and colleges in this state are doing that. We need to do more of it. But when I talk about we need to grow the workforce, those are two actions that, if we can help make an improvement here, we can more--we can better grow the workforce and improve their productivity, which means--that's one way to fight against some of these demographic trends. Immigration, obviously, is another. But that's why we spend so much time on this. We think it's a contribution we can make as a convener and someone who does research on these issues, where we can help improve prosperity in cities here and in the state, and also share best practices with the rest of the country. MR. HACKETT: That's great, and it makes perfect sense. If we step outside of the region and treat with the U.S. economy--and you touched on a little bit of this--what do you see? I mean, it's an interesting time, right, because of the demographic forces you talked about, the debt cycle. I won't ask you to comment on the transition we're about to have in administration, because I guess that's uncertain. But just in general, what do you--what do you think are kind of the big threats to the economy? Are they these demographic trends you spoke of, mainly? MR. KAPLAN: Yeah. MR. HACKETT: Or are there other things as well? Because we've been--we haven't had a lot of great fiscal policy, right? MR. KAPLAN: No. So one of the things I've learned in my 14 months or more in this job--and I can say this with some degree of objectivity--I actually think the Fed, up to this point, has done an outstanding job. That's before I came in; I had nothing to do with it. They did a good job. MR. HACKETT: (Inaudible.) (Laughter.) MR. KAPLAN: I think--I think I am, but, no, you can argue about the last round or two of quantitative easing, et cetera. MR. HACKETT: I would. (Laughter.) MR. KAPLAN: Yeah, and I think that's fair. MR. HACKETT: Pushing against the stream. MR. KAPLAN: But--fair enough. But the point is, you said it: very little fiscal policy, or no fiscal policy. And the Fed may have taken too much even on its own to try to address these issues. But I understand why. I understand the rationale. I might not agree with everything, but I understand. We're now at the point where the big secular trends I just described, they're not going to be addressed by monetary policy. And Esther echoed this. They're going to be need to be addressed by structural reforms, as well as other economic policies. And I think--it's not that monetary policy from here won't have a key role to play, but I think we need to broaden out now our economic policy in the United States. So what do I worry about? I worry--A, for up to a few weeks ago I worried, are we going to broaden out and have other economic policies because of political polarization and high levels of debt-to-GDP. Although a number of things that could be done may not take--structural reform is a matter of political will, less of money. Infrastructure spending, I would argue we are underspent, but a lot of it could be done with private-sector money. But now the challenge going forward is to--is to make sure that the broader economic policy gets at these issues, and I think that will be the challenge over the next few years. And our job at the Fed will be to--I believe our job and my job is to keep calling out this analysis without regard to-- MR. HACKETT: And educating policy makers, saying hey, objectively-- MR. KAPLAN: Yes, getting it out there, maybe laying out options without--it's their choice which ones to pursue. And then, obviously, as new policies unfold, we've got to work hard, and we're going to be on our--we're going to be on our toes analyzing them and then adapting our views on monetary policy based on what unfolds. MR. HACKETT: Can I just do a sequel to that? MR. KAPLAN: Sure. MR. HACKETT: Which is that that you--you're very aware of the double mandate of the Federal Reserve for employment and--(inaudible)--and it seems that you've achieved--to your point, the policies have been-- MR. KAPLAN: Yeah. MR. HACKETT: Something effective has happened at the end--at the end of the day, but we've still got challenges. So what is your personal view? You may not be able to say this publicly. I know you sometimes do, and you have to vote. What's your view about what the Federal Reserve ought to be doing with regard to interest rates? MR. KAPLAN: So I've said publicly that I would have been comfortable with removed accommodation in September. I would have been comfortable with removed accommodation in November. And so you can take from that, unless something changes, I'm comfortable. I think we're at the point where it's appropriate to remove accommodation. The irony is the thing I don't like to do is project what I might or might not do at a future meeting, but I'm happy to talk about what I would have done in a meeting. And that's where I am right now. That's the next step, whenever we take that. Beyond that, I would have said, and I've been saying, that I think the path of rates should be--we should be patient and gradual, mainly because of these persistent headwinds. But I think I also understand, as new economic policies unfold, we'll have to adapt and update our view based on what policies and how economic conditions unfold. But that's my view on monetary policy. MR. HACKETT: It just seems like the chairman's even public about it. MR. KAPLAN: It's just simple fact. MR. HACKETT: You know, what I wonder about--I love your attitude--is I wonder if the Fed should be as transparent as they are these days. The financial markets tend to like that a lot. So if I can move to the global economy now-- MR. KAPLAN: Yeah. MR. HACKETT: You've talked about China. You--I don't know which place you put that in the equation, but you've got the developed-country segment. You've got the emerging countries. MR. KAPLAN: Yeah. MR. HACKETT: You've got China, that is, I guess, both in some ways, but-- MR. KAPLAN: Yeah. And I would say, in terms of things I'm worried about--I'll come back to Europe in a moment--I'd actually put China as--in terms of a watch-out, that's at the top of my list, which is why we actually had the team--we just went over to visit China. It's the one place I think we probably should go once a year and visit, because it is now--when I started my career, China was significant--and I lived in Asia, ran our business in Asia for my firm for five years--but China wasn't that big. It's now--it literally accounts for a substantial percentage of global GDP growth. That 6 1/2% from China is very significant. But the ripple effects they can have are significant. And right now their debt-to-GDP systemwide has basically doubled. So we're going to see lower GDP growth. We're going to see bouts of financial instability. We're going to have to watch that. Back to--on Europe, I--obviously Brexit, there's been a great deal of concern. If I had to give the punch line on Brexit, it is still our view--and I've been saying this publicly--while it will likely, to some degree--although it hasn't been as bad as feared--hurt GDP growth in U.K. and will have some effect on Europe, particularly if there's further actions or contagion. But barring that, we think the impact of Brexit on the United States is quite manageable. MR. HACKETT: Can I turn to personal--a couple of personal questions? And they're not--you have to decide how you want to answer them, obviously. But the (Federal Open Market Committee) process is one-- MR. KAPLAN: This is going to be good. MR. HACKETT: One of them will be one that you'll be very comfortable with. The first one is about the FOMC process. MR. KAPLAN: Yes. Yes. MR. HACKETT: And I know that's a sensitive issue. MR. KAPLAN: No, I can talk about it. MR. HACKETT: But if you can just talk to us about--we all know that the vote rotates. MR. KAPLAN: Yes. MR. HACKETT: We all know that that happens for the district. MR. KAPLAN: Yeah. MR. HACKETT: You will have voting rights. You will not have voting rights. MR. KAPLAN: Yeah. MR. HACKETT: Does it really matter, under this chairman? How does that process work where you take the knowledge you have and you bring from your district--how does that work? MR. KAPLAN: So many of you were here. I thought [Kansas City Fed President] Esther George-- MR. HACKETT: Oh, I'm sorry. MR. KAPLAN: No, that's OK. She did--I agreed completely with her answer. She gave a great answer this morning. MR. HACKET: Oh, I apologize. MR. KAPLAN: No, it's OK. It's worth reiterating. And before I took this job, by the way, I say, OK, let me get this straight. I'm used to being a decision maker and everything. I'm going to vote every three years. And I was told by people you're going to find out that your influence around the table and the way you prepare for meetings and your role at the FOMC is the same regardless of whether you vote or not. The only difference will be in the last 17 seconds of the meeting when they call the roll. Your role will be different whether you're voting or not. And I thought, OK, I'll take their word for it. But I've found that to be true. The most influential people around the table--and probably you can refer it back to your business career or other career where, you know, people--somebody has a great argument, and in this--at the FOMC, I'm--the degree of influence around the table is not correlated for me to who's voting. So what I try to do in every meeting--and I've done it the last year and a quarter, and I'll do it into '17 the same approach--is try to add value in that meeting, which means we go around the table and we each give our views on economic conditions day one. I'm trying to bring something insightful that will add value to the group discussion, same way I did in my business career or other things I've done, and on day two same thing. And the difference will be this year I will actually then also vote. But I think everyone around the table is influential. And the trick is and the challenge is, am I adding value, am I adding insight, which is why our research department in Dallas works hard--and we're all working hard, and I'm working hard in terms of talking to people in this room and digging for insights as to what's going on up there that may not be shared around the table that would add value. So that's still the challenge. The group works well. The FOMC, I must say, as a new person in that process, I think, works very, very well. And I--people have asked, gee, is it affected by politics? Not that I've seen. And I've got a pretty keen eye of looking for that. I couldn't tell you the political party of the people around the table, by and large. Some are political appointees, so I know who appointed them. But I can't tell by their arguments. This is one place, when you go there, you'd better be prepared to argue on the merits and back up your arguments. And that's what drives our analysis and decision-making. MR. HACKETT: Thank God it is that way. And I'm glad to hear you say it, and also thank you for taking that vote on and being serious every time you go. Related to that, very related to that, is that you come to this with some kind of more unique kind of features than most people have. MR. KAPLAN: Yeah. MR. HACKETT: And even [former Dallas Fed President] Richard Fisher was a lot different than you in what he brought to the table. MR. KAPLAN: Yeah. MR. HACKETT: He was a bit different too. But you bring this incredible investment-banking background and being around big-time finance. And you did real markets and living those markets. MR. KAPLAN: Yeah. MR. HACKETT: And you bring a long and intense experience in book writing. Is that--do you view that as a disadvantage or advantage in this group that you work in? MR. KAPLAN: So for me--and one of the reasons why, when I interviewed for this job and went through the D.C. portion, they were interested in having a person with a different perspective. For me it's been an advantage because I bring something different. You know, I bring a market perspective. So, for example, I'm looking at Martin Stuermer and he's smiling at me, and I think I know why he's smiling at me--because since I've been at the Fed, I've taken the Dallas Fed research and I've asked the questions a markets person would ask. I luckily in this job don't have to trade the commodity, but I ask all the questions I would if I did have to, or if I had to make an investment for the next "x" number of years. And so I think it's an advantage. And the leadership professor work has been enormously helpful. And the Fed actually has--I was about to say shockingly--has used it. For example, we had an issue systemwide on--I won't get into what it was--where people came to Dallas around the system, and I led a discussion. It was a Harvard Business School classroom, what I used to do with companies, and went through, you know, the issue, diagnosis, alternatives, and got to a resolution. So I learned how to do that at Harvard. What do we do that's distinctive? Where are we out of alignment? What do we ought to do to address it? So that background I brought to the Fed, and I bring even to the FOMC, and I brought to other issues--Council of Presidents, which they've been very receptive to it. But it makes me--and I know this--it makes me countercultural. I'm a little countercultural. One, economists have a certain cultural background. I'm countercultural to that. I went through this at Harvard also. And then I-- MR. HACKETT: That was your first meeting. MR. KAPLAN: That's right. I mean, you know--and you've been there. MR. HACKETT: You've been--(inaudible). MR. KAPLAN: I was countercultural there for sure, and I learned how to adapt. And then the Fed has its own very strong culture, and I've had to learn to adapt to that. But there are times where I push back, and I-- MR. HACKETT: I noticed when you said "firming," I was thinking, God, he's already learning some of that economic lingo. MR. KAPLAN: Yeah. MR. HACKETT: (Laughs.) MR. KAPLAN: All right, that's good. Hopefully--and I need to be learning. MR. HACKETT: No, it's great. We're lucky to have that. If you would, anybody in the audience, I'm sure, Rob, would love to answer questions. You can tell he's not bashful. Yes. Can we take this one, maybe? We've got some microphones, I guess, standing in the--if you're soft-spoken, please use a microphone. Q: I'm not soft-spoken, but I'll use the microphone. (Laughs.) With respect to the demographic trends that you alluded to earlier, I was wondering, is there any risk that we will be the next Japan? And, if there is, how do we avoid that? MR. KAPLAN: Yeah. So it's interesting. And maybe in hindsight--I lived in Japan for five years in my business career. And so Japan, just for those who don't know, has an aging demographic issue, but theirs is much more extreme than ours. They're to the point where the population is actually shrinking. Our population is growing; it's just the participation rate. It's aging with an overall level of growth. Japan's is actually shrinking. In addition, Japan has very high levels of debt-to-GDP. And they're analogous to me in that central-bank action is not--it may buy them a little time. It's not going to solve--they have deep structural issues. The difference between the United States and Japan, though--there are many differences, but one of them is cultural, which gives us an enormous advantage. Another is the space considerations and the congestion there versus--density versus here, and that we are much more receptive historically to immigration than Japan is. It's been one of the great strengths of our country. My grandparents were not born in this country. And that's true of probably many of you in the audience. You're either first, second or third generation. Japan doesn't have that history, OK. So that's made it very difficult for them to deal with this demographic issue. And so we have many advantages in the United States that I think give it--make us very well equipped to deal with these issues that we face, which will mean that our path and Japan will be different. And I'm optimistic about that. That doesn't mean we won't--that doesn't mean we'll always do the right thing. But we have the capacity, I think, and many more natural advantages. Natural resources would be another. But there are many others that I think give us a real opportunity to manage these issues better. MR. HACKETT: Yes, please. Q: For purpose of this question, I'd like you to be king for a day or a decade. MR. KAPLAN: King of what? (Laughter.) Q: That'll be clear with the question. MR. KAPLAN: (Inaudible.) (Laughter.) Q: So you mentioned the debt supercycle is one of the four primary issues that you see. MR. KAPLAN: Yeah. I think so. Q: So as--in the whole king-for-a-day concept, you can control monetary policy. MR. KAPLAN: Yeah. Q: It's not the Committee. And you can control fiscal policy. MR. KAPLAN: Yeah. Q: It's not Congress. Talk to us how you would want to see that balance take place, please. MR. KAPLAN: So in my old age, even I have learned that there are certain of these subjects that are not appropriate for me as a central banker to talk about. And so let me--I'm going to answer it a little bit way that I think is just more appropriate to my role as a central banker, where there are certain areas that it would be inappropriate, I think, for me to--but let me--I can still be responsive. There are--so let's take these. And I'll do it more as in a menu format, which I think is more appropriate. And that's what I've done before publicly. If you've got--one of the big challenges you have is aging demographics. You need to look for policies. When I say structural reforms, I mean policies that help us grow the workforce. And those can be early childhood literacy improvement, vocational training, and, yes, we're going to have to at some point--my guess is we are going to at some point have to address the issue of immigration, both skilled at the high level, as well as lower-skilled immigration. And I'll leave that to policy makers, though, to debate which are the appropriate options. But I--the point I'm teeing up is ultimately the path of GDP is going to be heavily influenced by whether or not we grow the workforce. This issue of the end of the debt supercycle--how much more capacity do we in advanced countries have--it tells me you would have on the menu, if you're going to do projects like infrastructure spending, you want to be very intelligent about it. You want to take advantage of the fact there's this huge amount of liquidity globally that's looking for safe assets. And so you want to take advantage. That may be public-private partnership, as opposed to all government money. It also means that when you look at entitlements--and this is a very touchy subject, but I'll just mention it--I believe you'll see the--CBO believes--Congressional Budget Office shows the budget deficit has been going like this. But if you look at the CBO numbers, it's going to start going like this over the next five to 10 years. I believe entitlement reform or some restructuring that protects current retirees or people about to retire, but deals with it for the long-run trajectory, is going to be on the menu to look at. I believe it will be. And you want to be sensitive to other actions you take that could further increase debt-to-GDP. Those would be two examples. Regulatory review--and I'm not talking just federal--state and local regulatory review for so-called--which nobody knows exactly what it means--sometimes cost-benefit analysis, which means different things to different people. But you would think that that should be open game to look at are there ways to simplify, improve regulation that will encourage new business formation, encourage lending, encourage capital formation, encourage business growth. Those are some examples of things I'd say ought to be on the docket for debate. MR. HACKETT: Oh, here--can you just--go ahead, but Judy's going to speak first, I think. Q: Judy Allen. When I was on the Federal Reserve Board of Dallas in '05, in the fall, being a land developer and hearing about the various new kinds of mortgages that were coming with no money down and, you know, infinity, well--and unqualified buyers--I'm very sensitive to what is the next bubble. Where do you see bad things happening? Is it in auto loans, where so many of them you just give the car back and walk away? MR. KAPLAN: Right. Q: So I'd love to hear from you on that. MR. KAPLAN: OK. So one of the things the Fed has had to do in the aftermath of the great recession is substantially--some people might argue too substantially--but I think very--in many cases, I believe, appropriately--beef up regulation of banks and those non-banks that became banks, to make sure of three things--that they have enough capital, they have enough liquidity on the down side--those are the stress tests--and deal with this issue of interconnectedness. OK, and while it's fair that there could be criticisms of the complication of this work and so on, I think, by and large, it's not perfect and there's room for improvement and review. We've made good progress with the big banks in making sure they have sufficient capital, they work on the down side, and deal with this interconnectedness issue. My own judgment--then I'm going to get to some of the concerns I have--I think, though, the rules that are appropriate for small, midsize banks should be tailored, and they should not--I believe this--they don't pose the systemic risk the big banks do. And I would like to see a certain amount of tailoring. And I've been saying that--I say it publicly. And I hope we see that. And if there's simplification of other regulation, I just--I want to make sure, whatever happens, we maintain sufficient capital, works on the downside scenario in the stress tests, and deal with interconnectedness. What do I worry about? I worry that--I worry not about what we can see. I worry about what we can't see, OK. And that is for me the nonbank financials, the shadow system. And I go back to 2005. Where were the worst practices? Everybody thinks--you know, remembers they were at the banks. They actually--there were issues with the banks, but the worst practices in lending--easier mortgages, [collateralized debt obligations] upon CDOs upon CDOs--many of them--and all these insurance--if there was $90 trillion--and that's a gross guesstimate--of credit default swaps that were outstanding against, by the way, to insure $10 trillion of debt outstanding around the globe--so, in other words, it had turned into a casino--much of those practices were done--that were initiated where the worst practices were in nonbank financials. So what do I worry about? And we do talk about this, the (Financial Stability Oversight Council) and the preparation of our leadership of the FSOC is to talk about issues that we can see in nonbank financials. So what's an example? Some of the issues I've raised publicly before. If there's $300 billion of--(audio break)--is there embedded leverage. So everywhere I go and when we're talking about this, I'm asking lots and lots and lots of questions about nonbank financials and things we don't have an opportunity to look hard at to ask what the practices are. And this is the reason why--and there's a big public debate, and I'll stay out of it--why some insurance companies were designated (systemically important financial institutions). And appropriately some people say, gee, why are you, the Fed--who are you to be--well, I understand why. AIG was an insurance company, and you worry about some of these insurance products, and you just want to make sure--not that you want to keep people from doing business, but you want to make sure that there's not embedded leverage, particularly derivatives, enough capital, works on the downside. And this issue of interconnect, this counterparty transactions, particularly with derivatives, that's what I'm always asking about. And the people at the Dallas Fed know everywhere I go I'm asking questions about that to try to understand it and see if we--make sure we're thinking about it. Q: (Off microphone)--as soon as you--(off microphone). (Laughter.) MR. KAPLAN: I mean, my own sense is that at the moment I believe there are exposures. Some people are concerned about cap rates are very low on commercial real estate, maybe there's--we're going to have some instability there. Right now I don't see a significant systemic risk from those, though I am aware of there may be things I'm not seeing. But that doesn't mean I've noticed--if you go to 2005, if we had just stopped the music then, I think it would have been manageable. What happened in '05 into '06 and even into '07 made it much worse. A lot of the CDOs happened in that last year or two, and [credit default swaps] written. So I'm sensitive to the fact we've got to be looking forward as to what's happening now. Q: At the beginning of the discussion, we were discussing that your expectation was that the oil market would return back to balance in the second half of 2017. And we know, leading up to that period, there's been a big buildup in crude oil stocks and--(inaudible)--stocks over that period. Do you have any sense that, after we've gotten back to this rebalancing period, are we going to enter into an extended period of drawdowns in these stocks? And do you have any sense for how large or how long this is going to last for? MR. KAPLAN: Well, I'll tell you what I know and what I don't know. And I'm in an audience that has probably 20 different appropriate opinions out there, some do. Obviously, step one, you know, you got to get to balance before you can have drawdowns. Step two is, ideally, you'd start having drawdowns. What's the rate of those? I don't know. And this is one where I'm asking people this all the time. The other thing which has--was alluded to today, you also wonder what's the break-even levels for domestic production here, in the Permian and other places? So, you know, we've learned shale is not--is not a swing producer; it's a short-cycle producer. And so there will be some supply come back online as prices move up, and that will have an impact on global supply and demand. And then you'll have the OPEC discussion. So there's--I guess the main way I'll look at it, I don't know the answer to your question. I think we have a pretty good feel at the Dallas Fed for what the different variables are that would drive the pace at which we get to balance, when we get there, and the pace of the drawdowns. And I think what we'll do is just try to monitor those. But predicting how fast, I don't know. I think--the main thing we're trying to--I'd say the trend is we're getting there, and the trend is we're ultimately, over the next few years, should start drawdowns. The speed is going to be based on a whole bunch of factors, including GDP growth. MR. HACKETT: Can we just do two more questions, I think? Does that sound right? OK. Please. Q: So, directionally, there's about $11 trillion of negative sovereign debt in the market. About a third of all sovereign debt is-- MR. KAPLAN: Did you say--you said Russia? Q: No. Directionally, there's about $11 trillion of negative sovereign debt, negative interest rate. MR. KAPLAN: Right. OK, pardon, I got it. Q: About a third of the sovereign debt is negative interest rate. MR. KAPLAN: Yeah. Q: How do you think about that? And how does the FOMC think about that? And when they factor in a rate rise or move in the U.S., how much does the international play versus the domestic? MR. KAPLAN: So the first question before the house is, why is there so much debt outstanding at negative rates? And there are a number of factors, but we've talked about--there are a couple in particular that are the most significant. One is expectation of future GDP growth is sluggish in most--around the world and in those countries. And we think that--and if you go back--even if you go back over the last five years and 10 years, what you'll see is a steady step down in expectations of future GDP growth. And the reduction in rates has--it's highly correlated with this. That's number one. Number two thing that's had an effect is you've got a lot--and part of this is due to central banks--you have a substantial amount of global liquidity. That means there is a global search for so-called "safe assets." And so that's also had a big effect. The one thing I've learned--I remember other periods in my life where there was discussion of a big--the savings glut and lots of global liquidity. That can go in waves. The part that I'm more concerned about--so that may work itself out. The part I'm very worried about is the expectations of future growth. And this is at a time, because of this--high levels of debt at government level, there isn't room or capacity for a lot of other economic policy beyond monetary policy. And monetary policy by itself isn't going to address these issues--you know, these structural issues. And so that's why we've got this. And what I try to do is think about why this is happening. It gets me back to these big secular drivers, and it also gets me back to we're going to need broader economic policy to work our--to improve expectations of future GDP growth. And I think you'll see, after we get there, you'll see rates follow that. But we're not there yet. The expectation, based on what the markets are saying in the last two weeks, is that we're--we may get there here, but globally--and the search for yields is global, and money flows globally. And so we've got a big global challenge right now. Q: So how do we get back to--(off microphone)? MR. KAPLAN: I think what it does is it's--these global rates are a symptom of a problem which has caused us--and forget "us"--caused me to say I think we could--up to now; I think we may change our views, and we'll see how things unfold--that we can afford to be patient in light of these factors because we're in a world of very sluggish GDP growth, and we need as central bankers to be very mindful of that. MR. HACKETT: The last question we'll take over here, please. Q: Speaking of global issues, when you think about removing accommodation, do you also think about how far the Fed can get in front of the ECB--European Central Bank, the Bank of Japan? Is there an expectation of other major central banks will eventually also move toward removing accommodation? MR. KAPLAN: Well, we worry first and foremost, A, about the United States. But we're very aware of so-called divergences, which you're referring to. So if we are going one way and the ECB is going another, we've got to be aware of that because the impact of it could further strengthen the dollar, which has an impact on U.S. exports, can have some impact on global financial stability. So I would just say it's something we have to be aware of, and we'll continue to keep our eye on it. MR. HACKETT: I think, if I can just say one thing, the nature of the questions and the energy around them indicate, you know, how well people feel like you communicate. And I really appreciated that. And I want to just give Rob a round of applause for serving--(applause). MR. KAPLAN: I'll say one other thing. And there's a number of people in the audience that are--either fill out our surveys, on our boards, help us. You're a great example, for how many years you were CEO of a company. We don't--we do not pay people to be on our boards, and Jim basically spent years in Houston and at the Dallas Fed giving us advice, service. We meet regularly, these boards. We take a lot of people's time. And so I'd just say there's a number of people--Jim is exhibit A for the leadership in this district that the business community leaders show in helping us do our job. And so I just wanted to say back to you: thank you for all you do. MR. HACKETT: We get to work around people like you and --(inaudible)--and others. (Applause.) MODERATOR: All right. Thank you, Jim and Rob. WSJ PRO * Fed's Kaplan Says Some Trump Policies 'Could Be Helpful,' Some 'Hurtful' -- WSJ PRO (Nov. 18)
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 21, 2016
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841806148
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841806148?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
If Oil Refiners Crash, So Will the Economy; Biofuel regulations are ruining merchant oil refiners--bad for business and national security.
Author: Icahn, Carl
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Nov 2016: n/a.
Abstract:
[...]instead of being a small system for trading credits among oil firms, RINs have turned into a $15 billion market full of manipulation, speculation and fraud. Because refiners and importers are required to buy these credits, they are captive customers. If merchant refiners go under, the Big Oil oligopolies will be strengthened and gasoline prices will go up, with ripple effects throughout the economy--lower consumer spending, decreased travel, higher shipping costs, increased unemployment, labor market monopsony, decreased consumer confidence, higher food prices, and less public funding for priorities like education.
Full text: A decade ago, the term "mortgage-backed securities" probably sounded to most people like made-up business-school nonsense. But then in 2008 the Wall Street engineers overreached and caused one of the largest financial crises in American history. Today the threat looming over the U.S. economy is similarly obscure: a shadowy, unregulated trade in electronic credits called Renewable Identification Numbers (RINs) that threatens to destroy America's oil refineries, send gasoline prices skyward and devastate the U.S. economy. This system of credits was created as part of the Renewable Fuels Standard, a biofuels mandate passed by Congress in 2005. RINs are generated when renewables, like ethanol, are blended into gasoline and diesel fuel. Oil firms that are not able to blend are required to purchase RINs to comply with the biofuels mandate. It's sort of like a "cap and trade" scheme, but meant to encourage renewables. The problem is that the EPA, in implementing the Renewable Fuel Standard, made the enormous mistake of regulating the wrong party. The obligation to blend biofuels was put on petroleum refiners and importers. This has been catastrophic for small and medium-size refiners, often called "merchant refiners," most of whom cannot blend. The majority of fuel they produce goes into a common-carrier pipeline and is sold to blenders downstream. Those blenders, often gas-station chains, earn windfall profits by generating RINs that the merchant refiners are forced to buy to comply with the law. Big integrated oil firms are practically exempt: Most of them blend more fuel than they refine, meaning they end up with excess RINs to sell. This "blender loophole" is the downfall of the program. Any blender can generate RINs, and anyone, including Wall Street investors, can buy and sell them. So instead of being a small system for trading credits among oil firms, RINs have turned into a $15 billion market full of manipulation, speculation and fraud. Because refiners and importers are required to buy these credits, they are captive customers. Wall Street, Big Oil and large gas-station chains have inflated the price of RINs far above their true value. In 2012 each credit cost a penny, but this July the price hit $0.98. Billions of dollars are being made selling compliance with the Renewable Fuel Standard. The result is that many merchant refiners are cutting capital outlays to avoid bankruptcy. Some firms have lost up to 80% of their value since 2013. Philadelphia Energy Solutions, which operates the largest oil-refining complex on the East Coast, warned in September that its finances are "significantly stressed," and it has cut pensions, benefits and jobs. Icahn Enterprises, of which I am chairman, indirectly controls CVR Refining, a merchant refiner that is losing hundreds of millions of dollars because of the Renewable Fuel Standard. The RINs program is effectively doing for the Big Oil firms what the Federal Trade Commission would never allow them to do for themselves: destroy their competitors in the refining business. If merchant refiners go under, the Big Oil oligopolies will be strengthened and gasoline prices will go up, with ripple effects throughout the economy--lower consumer spending, decreased travel, higher shipping costs, increased unemployment, labor market monopsony, decreased consumer confidence, higher food prices, and less public funding for priorities like education. The failure of multiple refineries would absolutely wreck America's economy. It would undermine national security, too. Retired U.S. Navy Commander Kirk S. Lippold warned in October of "dire consequences" if the RINs market is not fixed. He added that a strong refining industry "provides the United States with significant and often under-appreciated national security benefits." The EPA claims that high RINs prices are an incentive to increase biofuel blending. But because of the "blender loophole," the parties who are capable of putting more biofuels into America's gasoline have no legal obligation or financial incentive to do so. They are pocketing the profits from selling RINs instead. Further, the Renewable Fuel Standard's blending targets, developed by Congress more than 10 years ago, were set under incorrect assumptions. Stringent standards for automobile fuel economy have kept demand for gasoline and diesel below forecasts. Most vehicle engines can only tolerate about 10% ethanol--a limitation usually called the "blend wall." Each year the EPA admits that the mandate cannot be met, but it increases the blending targets anyway. The problems with the RINs market are compounded by rampant fraud and abuse--largely fake credits being sold to refiners. The EPA's former chief of criminal investigations, Doug Parker, estimates that total fraud approaches $1 billion. In a September report Mr. Parker said that "structural vulnerabilities in the regulations, limited agency oversight, and a lack of market transparency" have made the RINs program "a ripe target for massive fraud and illicit gain." The "wild west" RINs market must be cleaned up if merchant refiners are to survive. First, a moratorium on RINs trading should be put into place while the criminal activities and the black market are thoroughly investigated. Second, the "blender loophole" should be eliminated. The biofuels mandate should apply equally to any company that blends, from big integrated oil firms to large gas-station chains. It shouldn't apply to refiners and importers that are not able to blend. The EPA has refused to fix a system that is clearly broken, ignoring obvious and repeated warnings. On Nov. 10, after years of inaction, the agency announced that it will open a regulatory docket and take public comment on changing the "point of obligation" to close the blender loophole. This move, in the waning days of the Obama administration, is a step in the right direction, but seems to be simply the EPA's attempt to justify the failing status quo. If the small and merchant refineries start shutting down, it will jeopardize the economy and national security alike. The Trump administration, with new leadership at the EPA, should move quickly next year to reform the biofuels mandate and forestall the crisis. Mr. Icahn is the chairman of Icahn Enterprises. Credit: By Carl Icahn
Subject: Biodiesel fuels; National security; Gasoline prices; Windfall profits; Petroleum refineries
Location: United States--US
Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: Congress; NAICS: 921120; Name: Icahn Enterprises LP; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 22, 2016
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841908106
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841908106?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Extend Rally in Asia as OPEC Optimism Mounts; Brent crude gained 49 cents to $49.39 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Nov 2016: n/a.
Abstract:
"Growing optimism [that] key OPEC/non-OPEC producers will make progress to control supply and generate a deficit next year has gone a long way to rally global crude markets," analysts at TD Securities wrote in a note to clients.
Full text: Oil futures extended their advance into a third session in Asia trading Tuesday, as anticipation over a production cut at next week's meeting of the Organization of the Petroleum Exporting Countries continued to build. Light, sweet crude for January delivery rose 50 cents, or 1%, to $48.74 a barrel in the Globex electronic session of the New York Mercantile Exchange. Brent crude gained 49 cents, or 1%, to $49.39 a barrel. Crude continued to march higher as a growing chorus of delegates from OPEC expressed optimism over the likelihood of a deal at their Nov. 30 in Vienna. Delegates are in Vienna this week to iron out differences ahead of the formal meeting, and several delegates expressed optimism over their progress. "We are discussing, we are not disagreeing," said Mohamed Oun, a Libyan representative to the cartel on Monday. Monday's comments follows remarks over the weekend from OPEC representatives from Iraq and Iran. On Sunday, Iraq's oil minister Jabbar al-Luaibi told The Wall Street Journal that his country planned to offer three proposals at the meetings this week without specifying them. "Growing optimism [that] key OPEC/non-OPEC producers will make progress to control supply and generate a deficit next year has gone a long way to rally global crude markets," analysts at TD Securities wrote in a note to clients. The cartel is looking to reach a deal at its Nov. 30 that would cut production to between 32.5 million and 33 million barrels a day, down from record levels of 33.83 million barrels a day of output in October. Still, OPEC has long struggled to reach an accord at its meetings since prices began their collapse about two years ago. OPEC's deadlock, and the elevated production among non-OPEC members like the U.S. have contributed to low prices. In refined fuel markets, Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 135 points to $1.4100 a gallon, while December diesel traded at $1.5411, 166 points higher. ICE gasoil for December changed hands at $449.75 a metric ton, up $2.75 from Monday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Cartels; Crude oil; Optimism
Location: Asia Iraq
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 22, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841912117
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841912117?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Asian Shares Rise on OPEC Oil Deal Hopes; Australia's market rises to one-month high as oil prices rallied on expectations of production cut
Author: Erheriene, Ese; Narioka, Kosaku
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Nov 2016: n/a.
Abstract:
Overnight, oil prices rose to a three-week high as investors stuck to bets that the Organization of the Petroleum Exporting Countries will reach a production deal at its meeting on Nov. 30.
Full text: Asian shares were broadly higher on Tuesday, with the Australian market rising to a one-month high, as oil prices rallied on expectations that key oil-producing countries will agree to a deal to slash production. The S&P/ASX 200 closed up 1.2% at 5413.30 points, its highest level since late October. Meanwhile, Hong Kong's Hang Seng Index was last up 1.5%, and Korea's Kospi added 0.9%. In China, stocks in Shanghai closed at their highest level since Jan. 6, in line with the region's strength. The move came after the nation's central bank fixed the yuan reference level higher Tuesday, ending 12 straight sessions of devaluation. The benchmark Shanghai Composite Index rose 0.9%. Elsewhere, Japanese stocks were initially down slightly, following a 6.9-magnitude earthquake that struck off the eastern coast of Japan early Tuesday, though the impact appeared limited and the Nikkei Stock Average later reversed to gains, and ended up 0.3%. Overnight, oil prices rose to a three-week high as investors stuck to bets that the Organization of the Petroleum Exporting Countries will reach a production deal at its meeting on Nov. 30. Brent, the global crude-oil benchmark, was recently up 1.2% at $49.47 a barrel. "Reports of the OPEC technical committee making progress in the first of their two-day meeting raised hopes of an output agreement," said Jingyi Pan, a market strategist at IG Markets, in a note. Markets in the region that are more dependent on oil production outperformed, including Australia and Singapore--home to many companies that serve the oil-and-gas industry. The FTSE Straits Times Index was last up 0.4%. Among energy stocks in Australia, Oil Search ended up 2.2%, Woodside Petroleum added 2.4% and Santos rose 3.8%. Elsewhere, Japan Petroleum Exploration gained 2.5% and Hong Kong-listed Cnooc jumped 5.2%. Hopes over U.S. President-elect Donald Trump's fiscal-stimulus plans led stocks to gain globally amid expectations of looser regulation and higher interest rates. Yet market participants will likely become more cautious as investors focus on some of the more protectionist aspects of Mr. Trump's policies, said Tomoichiro Kubota, senior market analyst at Matsui Securities. "So far the market [has] only focused on the positives," he said. Mr. Trump said Monday that he would issue an order on the first day of his presidency notifying 11 other countries that the U.S. was pulling out of the proposed Trans-Pacific Partnership. However, markets in Asia largely shrugged off Mr. Trump's comments for now. Smaller exporting nations, like South Korea and Singapore, were expected to benefit most from the TPP deal, but traded positively Tuesday. "TPP isn't yet fully functional, so if the U.S. is backing out now, we have other trade deals available," said Hao Hong, chief strategist and co-head of research at Bocom International. "In the near term, the market tends to overlook this kind of longer-term stuff." Meanwhile, the Philippine share market was the region's worst-performing market, with the benchmark PSEi down 2.5%. The PSEi is off 6.4% since the election of Donald Trump as U.S. president, given the country's unique issues. Mr. Trump has vowed to restrict immigration, specifically the use of the so-called H-1B visas that allow U.S. employers to hire specialized offshore talent, such as Filipino nurses. This could hurt the flow of remittances to the Philippines, a pillar of the country's economy. "The Philippines benefited the most in Asia from globalization because of its very movable, English-speaking workforce," said Mark Matthews, head of research Asia at Julius Baer. "After Trump was elected, the idea was that there would be less globalization." Looking ahead, the market will be watching for home-sales data out of the U.S., as the case for a rise in local interest rates builds. According to CME Group's FedWatch tool, the probability of a rate increase at the Federal Reserve's meeting next month is above 95%. Yifan Xie and Jasper Moiseiwitsch contributed to this article. Write to Ese Erheriene at ese.erheriene@wsj.com and Kosaku Narioka at kosaku.narioka@wsj.com Related * Energy Stocks Set the Pace for Records Credit: By Ese Erheriene and Kosaku Narioka
Subject: Stock exchanges; Investments; Globalization; Petroleum production; Earthquakes
Location: United States--US Australia China Hong Kong
Company / organization: Name: Woodside Petroleum Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 22, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841926338
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841926338?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reprod uction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Gains on Hope for Pact --- Crude climbs 3.9% as traders reassess their doubts toward an OPEC production deal
Author: Yang, Stephanie; Baxter, Kevin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 Nov 2016: B.11.
Abstract:
While failure to reach a deal would be bearish for oil prices, Morgan Stanley analysts said the downside risk is limited since a "fair amount of skepticism" about a deal has been priced in to the market.
Full text: Oil prices rose to a three-week high Monday as investors continued to bet that the Organization of the Petroleum Exporting Countries will reach a production deal at the end of the month. Light, sweet crude for December delivery climbed $1.80, or 3.9%, to $47.49 a barrel on the New York Mercantile Exchange, closing at the highest level since Oct. 28. Brent, the global benchmark, rose $2.04, or 4.4%, to $48.90 a barrel. Prices were buoyed by news that the energy ministers from two of OPEC's most reluctant members in terms of cutting output, Iraq and Iran, are backing the proposal. The cartel meets Nov. 30, when it will formally decide on strategy for the first half of 2017. "It's all adding up to where people are a little bit more bullish," said Donald Morton, senior vice president at Herbert J. Sims Co., who runs an energy-trading desk. "Everybody wants to turn into a buyer." The change in sentiment marks a turnaround over the past week for crude oil, as skepticism over OPEC's ability to reach a deal has receded. Oil-market watchers also have become more positive on the outlook for a deal to curtail production. On Monday, analysts at Goldman Sachs raised their forecast for oil prices in the first half of 2017, given expectations that OPEC will announce and implement a cut. A Bank of America Merrill Lynch research report also noted that a supply cut looks highly probable. However, "political risks can still derail an otherwise economically sound decision," Goldman Sachs' analysts wrote. While the market largely expects OPEC to rein in production, some remain cautious going into the meeting. "Their track record is horrendous," said Mark Waggoner, president of Excel Futures. "Somebody makes another statement, things could change." Traders also noted that any shift in expectations could lead to heightened volatility before the meeting, especially given the Thanksgiving holiday week in the U.S. and less activity in the market. Should OPEC decide against a production cut, oil prices face headwinds such as a strengthening U.S. dollar, high production levels and growing crude-oil stockpiles. These challenges could make a production cut more difficult for the cartel, Barclays analysts wrote in a note this week. Cutting production would give prices a short-term boost, but it would be U.S. producers that reap the benefit in the midterm, by using the fillip to lock in higher prices for future production, the bank said. "We still expect OPEC to agree to a face-saving statement. It would showcase agreement, provide flexibility, and not veer too far from what countries had planned initially for [the first half of 2017]," said the analysts at Barclays. "Should a credible deal prove out of reach, only the normal uptick in winter demand could save the market from declining further." While failure to reach a deal would be bearish for oil prices, Morgan Stanley analysts said the downside risk is limited since a "fair amount of skepticism" about a deal has been priced in to the market. Gasoline futures jumped 4.3% to $1.3965 a gallon and diesel futures gained 4.6% to $1.5245 a gallon. Credit: By Stephanie Yang and Kevin Baxter
Subject: Price increases; Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2016
Publication date: Nov 22, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1841957962
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1841957962?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Close Lower on Uncertainty Ahead of OPEC Meeting; Investors gain some optimism after reports of a deal close to being reached
Author: Baxter, Kevin; Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Nov 2016: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 1.3 million-barrel decrease in crude supplies, a 2.7 million-barrel increase in gasoline stocks and a 400,000-barrel decrease in distillate inventories, according to a market participant.
Full text: Oil prices pulled back on Tuesday as the market continued to be fueled by headlines regarding the forthcoming meeting of OPEC members due to take place Nov. 30. Light, sweet crude for January delivery settled down 21 cents, or 0.4%, at $48.03 a barrel. Prices reversed after trading at a fresh three-week high, hitting as high as $49.20 earlier in the session. Brent, the global benchmark, settled up 22 cents, or 0.4%, to $49.12 a barrel. On Tuesday, investors were closely tracking news out of the pre-summit meeting for the Organization of the Petroleum Exporting Countries in Vienna for clues on whether a production cut agreement could be reached by the end of the month. Concern over the cartel's ability to come to a deal weighed on prices throughout the day. Oil has been heavily influenced by OPEC expectations in recent weeks, as investors have speculated whether a deal will be able to offset headwinds such as a strong U.S. dollar, rising production and a glut of storage. At the meeting, OPEC discussed cutting oil production by 4.5%, and officials said the successfully came to a consensus on output action. Prices pared losses as the outlook for a deal became more upbeat. "There were some positive comments at the end of the meeting, whereas earlier in the day there was some apprehension," said Tony Headrick, energy analyst at CHS Hedging. Now there is "more willingness to buy on OPEC optimism." A Nigerian delegate told The Wall Street Journal that sticking points remain, such as discrepancies between independent data on production used by the group and members' own disclosures and Iran's plans to boost output, which have scuttled past efforts to reach a deal. A history of failing to come to a production agreement has made some analysts skeptical of comments from OPEC officials on Tuesday. "[They're] kicking the can down the road," said Stephen Schork, editor of energy trade publication the Schork Report. "It's the same old." Dominick Chirichella from the Energy Management Institute believes that there is still only a 50% chance that OPEC will make any meaningful cuts to output. He said in a research note that despite all the "jawboning," no new information has entered the market since last week. "Basically, nothing has changed from the meeting in September," Mr. Chirichella said. "I think there is still ground that needs to be worked out." Investors are also awaiting storage data from the U.S. Energy Information Administration, scheduled for release on Wednesday, to gauge whether recent demand has impacted the high level of crude-oil stockpiles. Analysts and traders surveyed by The Wall Street Journal expect inventories to climb an average of 800,000 barrels in the week ended Nov. 18. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 1.3 million-barrel decrease in crude supplies, a 2.7 million-barrel increase in gasoline stocks and a 400,000-barrel decrease in distillate inventories, according to a market participant. "I think we've priced in OPEC after yesterday's move," said Carl Larry, director of oil and gas at Frost Sullivan. "We're really going to be waiting on stats here." Gasoline futures settled up 1% at $1.4098 a gallon, and diesel futures settled up 0.1% at $1.5263 a gallon.[ Write to Kevin Baxter at Kevin.Baxter@wsj.com and Stephanie Yang at stephanie.yang@wsj.com Credit: By Kevin Baxter and Stephanie Yang
Subject: Inventory; Petroleum production; Price increases; Cartels
Location: United States--US
Company / organization: Name: Marex Spectron; NAICS: 523140; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 22, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842048422
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842048422?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stockpiles Seen Increasing in DOE Data; Gasoline inventories are also projected to rise
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Nov 2016: n/a.
Abstract:
U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 11 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 800,000 barrels, on average, in the week ended Nov. 18. Seven analysts expect stockpiles to rise and four expect them to decline. Forecasts range from a decrease of 2 million barrels to an increase of 3.5 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to show an increase of 900,000 barrels on average, according to analysts. Two analysts expect gasoline stockpiles to fall, and nine expect them to rise. Estimates range from a fall of 2 million barrels to an increase of 2.5 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall 700,000 barrels. Three analysts expect stockpiles to increase, seven expect them to decrease and one forecasts no change. Forecasts range from a decline of 2.1 million barrels to a rise of 1.2 million barrels. Refinery use is seen rising 0.5 percentage point to 89.7% of capacity, based on EIA data. Eight analysts expect a rise, one expects a decline and one expects no change. One didn't report expectations. Forecasts range from a decrease of 0.5 point to an increase of 1 point. Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Financial performance
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 22, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842298690
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842298690?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Pause in Asia as Traders Await OPEC News; January Brent crude fell nine cents to $49.03 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Nov 2016: n/a.
Abstract:
Earlier, the American Petroleum Institute reported a 1.3 million-barrel decrease in crude inventories during the week, a 2.7 million-barrel increase in gasoline stocks and a 400,000-barrel decrease in distillate inventories, according to a market participant.
Full text: Oil futures stalled in Asia trading hours Wednesday, as traders await further updates ahead of the upcoming meeting of the Organization of the Petroleum Exporting Countries next week. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $47.93 a barrel at 0321 GMT, down 10 cents, or 0.2%, in the Globex electronic session. January Brent crude on London's ICE Futures exchange fell nine cents to $49.03 a barrel. Crude prices have been buffeted in recent weeks by changing expectations around OPEC's Nov. 30 meeting in Vienna. Anticipation has been building that the cartel will strike a supply cut aimed at bolstering prices, fueled by optimistic comments from OPEC delegates in recent days. "The odds of OPEC getting a deal done continue to rise but the risks remain palpable," analysts at Citigroup wrote in a note to clients. "The outlook for oil prices is really a binary one dependent on the upcoming meeting." Recent positive comments from Iranian and Iraqi representatives to the cartel have lifted oil prices closer to $50 a barrel. But some sticking points remain, a Nigerian delegate told The Wall Street Journal, including questions over production data and Iran's output plans. Separately, oil markets could move later Wednesday on updated U.S. inventory data from the Energy Information Administration. A glut of oil in storage around the world has been a key factor in sending oil prices swooning over the last two years. Analysts polled by The Wall Street Journal expect another 800,000-barrel rise in inventories for the week ended Nov. 18. Earlier, the American Petroleum Institute reported a 1.3 million-barrel decrease in crude inventories during the week, a 2.7 million-barrel increase in gasoline stocks and a 400,000-barrel decrease in distillate inventories, according to a market participant. In refined fuel markets, Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 21 points to $1.4119 a gallon, while December diesel traded unchanged at $1.5263. ICE gasoil for December changed hands at $447.50 a metric ton, up $2.25 from Tuesday's settlement. Credit: By Dan Strumpf
Subject: Crude oil prices; Inventory; Price increases; Crude oil
Location: Asia
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New Yo rk, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 23, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842342372
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842342372?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of c opyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Slip Lower On OPEC Uncertainty
Author: Yang, Stephanie; Baxter, Kevin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]23 Nov 2016: B.14.
Abstract:
A Nigerian delegate told The Wall Street Journal that sticking points remain, such as discrepancies between independent data on production used by the group and members' own disclosures and Iran's plans to boost output, which have scuttled past efforts to reach a deal.
Full text: Oil prices pulled back on Tuesday as the market continued to be fueled by headlines on the meeting of OPEC members due to take place Nov. 30. Light, sweet crude for January delivery settled down 21 cents, or 0.4%, at $48.03 a barrel. Prices reversed after trading at a fresh three-week peak, hitting as much as $49.20. Brent, the global benchmark, settled up 22 cents, or 0.4%, at $49.12 a barrel. On Tuesday, investors were tracking news out of the presummit meeting of the Organization of the Petroleum Exporting Countries in Vienna for clues on whether a production-cut deal could be reached by month's end. Concern over the cartel's ability to come to a deal weighed on prices throughout the day. Oil has been heavily influenced by OPEC expectations in recent weeks, as investors have speculated whether a deal would be able to offset headwinds such as a strong U.S. dollar, rising production and a glut of storage. At the meeting, OPEC discussed cutting oil production by 4.5%, and officials said the successfully came to a consensus on output action. Prices pared losses as the outlook for a deal became more upbeat. "There were some positive comments at the end of the meeting, whereas earlier in the day there was some apprehension," said Tony Headrick, energy analyst at CHS Hedging. Now there is "more willingness to buy on OPEC optimism." A Nigerian delegate told The Wall Street Journal that sticking points remain, such as discrepancies between independent data on production used by the group and members' own disclosures and Iran's plans to boost output, which have scuttled past efforts to reach a deal. A history of failing to come to a production agreement has made some analysts skeptical of comments from OPEC officials on Tuesday. "[They're] kicking the can down the road," said Stephen Schork, editor of energy trade publication the Schork Report. "It's the same old." Dominick Chirichella from the Energy Management Institute believes that there is still only a 50% chance that OPEC will make any meaningful cuts in output. He said in a research note that despite all the "jawboning," no new information has entered the market since last week. Investors are also awaiting storage data from the U.S. Energy Information Administration, set for release Wednesday, to gauge whether recent demand has affected the high crude-oil stockpiles. Analysts and traders surveyed by the Journal expect inventories to have climbed an average of 800,000 barrels in the week ended Nov. 18. Credit: By Stephanie Yang and Kevin Baxter
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.14
Publication year: 2016
Publication date: Nov 23, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842415678
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842415678?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Falters Despite Iraq's Promise of Production Cuts; Historic surge from dollar keeps oil from rallying
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Nov 2016: n/a.
Abstract:
If they participate, it makes the cartel more likely to complete a deal significant enough to reduce production so that it starts to fall short of demand by the second half of 2017, said Bart Melek, head of commodity strategy at TD Securities in Toronto.
Full text: Oil prices inched lower Wednesday with a surging dollar outweighing a public commitment from Iraq's oil minister to cut production along with OPEC. Light, sweet crude for January delivery settled down 7 cents, or 0.1%, to $47.96 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 17 cents, or 0.3%, to $48.95 a barrel, snapping a three-session winning streak. A rising dollar makes dollar-denominated commodities like oil more expensive for traders who are based in countries using other currencies, and those commodities often fall as the dollar rises. Oil and the dollar have had an especially strong tie during large stretches of the past year, and a rising dollar has been one of the biggest factors pulling oil back from the highs it hit in mid-October. Those highs have come from members of the Organization of the Petroleum Exporting Countries publicly agreeing to push for a deal to cut production when they meet next week in Vienna. But the market has already anticipated that and OPEC has to confront the possibility traders won't keep bidding up the market without something exceptional, said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. "No matter what they do, they're going to be facing dollar headwinds. There are going to be more days like today," he added. "We don't know what (the dollar) is going to do. We haven't seen days like these for a while." Orders for durable goods--products designed to last longer than three years, such as trucks, computers and metals--rose 4.8% to a seasonally adjusted $239.4 billion from a month earlier, the Commerce Department said Wednesday. The rise was nearly double what analysts expected. The Wall Street Journal Dollar Index, which tracks the greenback against a basket of other currencies, climbed about 1% at its peak above 92, hitting its highest level since 2002. Whether OPEC can strike a deal has been central to oil trading since they first agreed back in September that cutbacks are needed. But many traders have been skeptical about the group's ability to complete a deal, or even cooperate enough to stick to one they do set, with some remaining doubtful even after the Iraqi oil minister's comments Wednesday. "Iraq is ready to cooperate with OPEC and cut production," Jabbar al-Luaibi told The Wall Street Journal. Iraq and Iran have been at the forefront of a group of countries claiming they deserve exemptions and that other OPEC members should lead the cuts. If they participate, it makes the cartel more likely to complete a deal significant enough to reduce production so that it starts to fall short of demand by the second half of 2017, said Bart Melek, head of commodity strategy at TD Securities in Toronto. That supply shortage would lead stockpiles to really drain and give bulls the rally they are betting on. "Whether (Iraq and Iran) are part of the agreement is a pretty important thing," Mr. Melek said. "It suggests there's a consensus building." U.S. crude stockpiles also fell by 1.3 million barrels in the week ended Nov. 18, a surprise for many analysts who had expected an addition to stockpiles. Analysts surveyed by the Journal had forecast an addition of 800,000 barrels. Many bullish traders are waiting for bloated stockpiles to drain, expecting that could be the tipping point for prices to go on a strong rally. "It's a step in the right direction," said Scott Shelton, broker at ICAP PLC. "But I don't think they're significant enough to take our eyes off of OPEC at this point." Gasoline futures gained 1.19 cents, or 0.8%, to $1.4217, the highest settlement in nearly three weeks after four gains in five sessions. Diesel futures lost 0.94 cent, or 0.6%, to $1.5169 a gallon, snapping a four-session winning streak. Selina Williams, Eric Morath, Anna Louie Sussman and Chelsey Dulaney contributed to this article Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Bond issues
Location: Iraq
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 23, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842457589
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842457589?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Inventories Surprisingly Decline; Crude-oil stockpiles declined by 1.3 million barrels, according to the EIA
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Nov 2016: n/a.
Abstract:
U.S. crude oil stockpiles unexpectedly fell for the week ended Nov. 18, while gasoline supplies climbed, according to data released Wednesday by the Energy Information Administration.
Full text: U.S. crude oil stockpiles unexpectedly fell for the week ended Nov. 18, while gasoline supplies climbed, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles declined by 1.3 million barrels to 489 million barrels, which is at the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 800,000 barrels on the week. Oil stored at the Cushing, Okla., delivery point for U.S. stocks, decreased by 87,000 barrels to 59.1 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by 2.3 million barrels to 224 million barrels. Analysts were expecting inventories to rise by 900,000 barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, increased by 327,000 barrels to 149.2 million barrels, and are still "well above" the upper limit of the average range, the EIA said. Analysts were forecasting supplies to fall by 700,000 barrels from a week earlier. Refining capacity utilization rose by 1.6 percentage points from the previous week to 90.8%. Analysts were expecting utilization levels to rise by 0.5 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 23, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842528229
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842528229?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Up by Three in Latest Week; Baker Hughes says gas-rig count rose by two to 118 in past week
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Nov 2016: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by three in the past week to 474, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector.
Full text: The number of rigs drilling for oil in the U.S. rose by three in the past week to 474, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count fell sharply. The oil-rig count generally has been rising since the beginning of summer. The nation's gas-rig count rose by two to 118 in the past week, according to Baker Hughes. The U.S. offshore-rig count is unchanged from last week at 23, which is seven fewer than a year ago. Oil prices were about flat at $48.01 a barrel in afternoon trading Wednesday. General Electric Co. reached a deal in October to combine its oil-and-gas business with Baker Hughes, creating a publicly traded energy powerhouse that would give GE a cost-effective way to play any recovery in the industry . Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Oil service industry
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 23, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842646028
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842646028?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
EPA Completes Rule Requiring More Ethanol Blended Into 2017 Gasoline Supply; Rules draws praise from ethanol producers, ire from oil industry
Author: Harder, Amy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Nov 2016: n/a.
Abstract:
The Renewable Fuel Standard, or RFS, first established by Congress as part of a 2005 energy law and significantly expanded in 2007, was designed to help reduce carbon emissions and wean the U.S. off foreign oil by requiring refineries to blend an increasingly large amount of biofuels into the nation's gasoline supply each year.
Full text: Corrections & Amplifications: Sen. Ted Cruz (R, Texas) won the Iowa GOP caucus. An earlier version of this article incorrectly stated Donald Trump won that contest. (Nov. 23, 2016) WASHINGTON--Federal regulators finalized a rule Wednesday that raises the amount of ethanol refineries must blend into the nation's gasoline supply, providing a boost to ethanol companies and drawing criticism from an oil industry that opposes higher levels. The Environmental Protection Agency issued a final regulation, first proposed in May , requiring refineries to blend 19.28 billion gallons of corn-based ethanol and other biofuels into the gasoline supply in 2017. That amounts to 1.17 billion gallons more than the requirement for this year, which was 18.11 billion gallons , but it is far less than the 24 billion gallons envisioned by a 2007 law. The EPA is using a waiver in that law allowing the agency to set lower amounts for a variety of reasons, including slower-than-expected development of certain kinds of non-corn biofuels. The Renewable Fuel Standard, or RFS, first established by Congress as part of a 2005 energy law and significantly expanded in 2007, was designed to help reduce carbon emissions and wean the U.S. off foreign oil by requiring refineries to blend an increasingly large amount of biofuels into the nation's gasoline supply each year. The EPA, which Congress gave the authority to enforce the mandate, has struggled in recent years to implement it, given the oil boom over the last decade and lack of biofuels infrastructure, among other factors. Unlike most energy regulations proposed or issued by the Obama administration, President-elect Donald Trump has at times expressed support for the mandate. He won corn-rich Iowa in the general election due in part to his stated support for the policy. Iowa's GOP leaders are some of the biggest supporters of the mandate, which is fulfilled almost entirely by corn-based ethanol. That said, if incoming Trump administration officials do want to review and rewrite the latest quotas for any reason, Mr. Trump and GOP leaders in Congress have several avenues for blocking Mr. Obama's recently completed rules, including this one. Congress could use a little-known law called the Congressional Review Act to nullify rules that have been finalized within 60 days in which Congress is in session, a period that often extends much longer than a couple of months, since lawmakers aren't in session every weekday. Given that the GOP controls both chambers of Congress and the White House, this could be one of the easiest ways to undo Mr. Obama's regulatory agenda. Some legislative experts say rules issued as far back as May could fall under the 60-day window, because Congress has been in session so few days the second half of this year. Still, Nov. 20 has been considered the clearer deadline by which the Obama administration must issue rules before the window opens for the incoming Trump administration to stop the rules unilaterally. That is because most regulations requires at least 60 days between a rule being finalized and its taking effect, and if a new administration steps in during that interim period, the incoming president can indefinitely postpone on the rule's effective date. Groups representing biofuel companies cheered the news, while the oil industry called on Congress to repeal the policy. Any major overhaul or repeal is unlikely any time soon given the stark divisions across party lines in Washington. "The move will send a positive signal to investors, rippling throughout our economy and environment," said Bob Dinneen, president and CEO of the Renewable Fuels Association. "By signaling its commitment to a growing biofuels market, the agency will stimulate new interest in cellulosic ethanol and other advanced biofuels." Shares in ethanol companies, including Green Plains Inc. and Pacific Ethanol Inc., climbed after the EPA's announcement Wednesday morning. The American Fuel & Petrochemical Manufacturers, which represents refineries that are required to blend the ethanol, criticized the announcement and called on Congress to undo or overhaul the policy. "EPA unfortunately finalized a RFS volume requirement that looks to force more biofuel in the fuel supply than consumers want or infrastructure can handle," said Chet Thompson, president of the association. "Refiners should not have the responsibility to force consumers to use products they either don't want or that are incompatible with their cars, boats, and motor equipment." Write to Amy Harder at amy.harder@wsj.com Credit: By Amy Harder
Subject: Biodiesel fuels; Petroleum refineries; Ethanol; Petroleum industry
Location: Iowa Texas
Company / organization: Name: Congress; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Environmental Protection Agency--EPA; NAICS: 924110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 23, 2016
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842650711
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842650711?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Pause in Asia, OPEC Stays in Focus; Brent crude eased two cents to $48.93 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Nov 2016: n/a.
Abstract:
Futures remained stuck in neutral despite a bullish inventory report released early Wednesday in the U.S. Oil stockpiles there fell by 1.3 million barrels in the week ended Nov. 18, surprising analysts surveyed by The Wall Street Journal who had expected an inventory increase.
Full text: Oil futures were in a lull in Asian trade on Thursday, pausing after data showed a fall in U.S. crude inventories last week and amid a dearth of fresh updates from the Organization of the Petroleum Exporting Countries. Light, sweet crude for January delivery gained 3 cents, or 0.1%, to $47.99 a barrel in the Globex electronic session on the New York Mercantile Exchange. Brent crude eased two cents, less than 0.1%, to $48.93 a barrel. Headlines on OPEC have been the dominant factor driving price moves in the oil market for much of this year. Prices have rebounded off their lows near $40 a barrel in recent sessions. Anticipation has been building that the cartel will follow through with a production cut at its Vienna meeting set for Nov. 30, though some sticking points remain around the terms of a cut for members such as Iran and Iraq. "The main driver for the doubt comes from Iran and Iraq with, neither nation beholden to Saudi dominance within OPEC," said Stuart Ive, private client manager at OM Financial. "The consequence of no deal will be well known to all and one that none can afford, even the Saudis," he said. Most analysts expect a swift fall in oil prices if OPEC fails to reach a deal. Futures remained stuck in neutral despite a bullish inventory report released early Wednesday in the U.S. Oil stockpiles there fell by 1.3 million barrels in the week ended Nov. 18, surprising analysts surveyed by The Wall Street Journal who had expected an inventory increase. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 4 points to $1.4213 a gallon, while December diesel traded at $1.5191, 22 points higher. ICE gasoil for December changed hands at $443.75 a metric ton, down $2.00 from Wednesday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Supply & demand; Inventory; Crude oil; Price increases
Location: Iran United States--US Iraq
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 24, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842703969
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842703969?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Firm Ahead of Expected Production Cut; Analysts expect swift fall in prices if no deal reached
Author: McFarlane, Sarah; Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Nov 2016: n/a.
Abstract:
According to calculations by Commerzbank, Saudi Arabia requires an oil price of $74 per barrel if it is to halt the decline in its currency reserves.
Full text: Oil futures were slightly lower on Thursday, with all eyes on the coming Organization of the Petroleum Exporting Countries meeting next week, where a deal to cut output is expected. Brent crude, the global oil benchmark, was down 0.10% to $48.90 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading 0.06% lower at $47.92 a barrel. Headlines on OPEC have been the dominant factor driving price moves in the oil market for much of this year. Prices have rebounded in recent weeks in anticipation that the cartel will follow through with a production cut at its Vienna meeting on Nov. 30, though some sticking points remain around the terms of a cut for members such as Iran and Iraq. "With a steady flow of supportive statements, member countries have raised the stakes and put themselves in a position where something needs be delivered," consultancy JBC Energy said in a research note, adding that a deal remains complex due to economic challenges in member states and geopolitical issues. Most analysts expect a swift fall in oil prices if OPEC fails to reach a deal. "The consequence of no deal will be well known to all, and one that none can afford, even the Saudis," said Wellington, New Zealand based Stuart Ive, private client manager at OM Financial. According to calculations by Commerzbank, Saudi Arabia requires an oil price of $74 per barrel if it is to halt the decline in its currency reserves. "Many OPEC members attempted to offset their revenue losses by expanding output, but in doing so simply increased the oversupply," said Commerzbank in a research note. Data on Wednesday showed that U.S. weekly crude stocks fell by 1.3 million barrels, surprising many analysts who had expected stocks to grow. However, the number of rigs drilling for oil rose by three in the past week to 474, according to services company Baker Hughes Inc. The rig count has been rising since the beginning of summer, after U.S. oil prices recovered to above $50 a barrel, having dipped to around $26 in February. Nymex reformulated gasoline blendstock--the benchmark gasoline contract--rose 0.3% to $1.43 a gallon. ICE gasoil changed hands at $444.00 a metric ton, down $1.75 from the previous settlement. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Dan Strumpf at daniel.strumpf@wsj.com Credit: By Sarah McFarlane and Dan Strumpf
Subject: Supply & demand; Cartels; Energy economics; Crude oil prices
Location: Iran United States--US Iraq
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 24, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842837971
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842837971?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Executive Leads Siemens Through Tough Times; Lisa Davis works to make oil-and-gas unit more efficient to gain competitive edge when oil prices rebound
Author: Alessi, Christopher
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Nov 2016: n/a.
Abstract: None available.
Full text: MUNICH--When American Lisa Davis took over energy operations at Siemens AG in 2014, oil prices were near record highs and Europe's largest industrial company was bullish on the U.S. natural-gas market. Weeks after Ms. Davis assumed her post in Houston, the German manufacturing giant paid a rich premium to buy U.S. oil-equipment maker Dresser-Rand Group --muscling onto rival General Electric Co.'s home turf. But before the deal closed, oil prices tanked, with the global benchmark Brent dropping from highs around $115 a barrel in mid-2014 to below $30 at the start of this year, and recently trading just under $50. Now, GE's recently announced plan to link with oil-field services provider Baker Hughes Inc. could stymie Siemens's energy ambitions. That transaction, announced last month, would create an energy powerhouse in the U.S. with more than $32 billion in revenue. Siemens posted oil-and-gas revenue for fiscal year 2016 of roughly EUR4.36 billion ($4.6 billion), according to estimates by J.P. Morgan Chase & Co. Shares of Siemens have risen 13% over the past year. Ms. Davis pledges to push on. "Oil and gas is here to stay," she said in a recent interview. "We are very committed to that marketplace and see it as a long-term bet." A former Royal Dutch Shell PLC executive, Ms. Davis, 53 years old, must steer the beleaguered oil-and-gas unit through the downturn while integrating Dresser-Rand. Investors have questioned the price and timing of the $7.6 billion deal, which closed in mid-2015. Ms. Davis says she aims to make the energy unit more efficient to gain a competitive edge when oil prices rebound. For that, she is calling on Siemens's experience digitizing and automating factories. The Dresser-Rand deal, which came soon after Siemens paid about $1.3 billon for Rolls-Royce Holdings PLC's energy operations, broadened the company's energy portfolio. That means the company can now offer a range of services and products, such as compressors, to a wide variety of customers, she said. "And so we're there for the opportunities when they start to come back online." Ms. Davis also oversees Siemens's growing power-generation and wind-power divisions, which are vital to energy business profits. Siemens last year signed a EUR8 billion power-generation agreement with Egypt , the largest single order in its history. Earlier this year, the company announced plans to merge its wind operations with Spain's Gamesa Corporación Tecnológica SA, in a binding deal that would create one of the world's largest wind-turbine manufacturers. Many investors initially were skeptical of Ms. Davis' ability to manage these other energy units because her work experience solely was in the oil-and-gas industry. Moreover, Ms. Davis is the first management board member in Siemens's 169-year history to run a major division from the U.S. "There was tremendous doubt about her profile," said Ingo Speich, a portfolio manager at Union Investment, a Siemens shareholder. Operations have run "smoothly" under Ms. Davis, he said. "Overall, we are more positive" about her leadership capabilities. Andreas Willi, an analyst at J.P. Morgan, said stationing a senior executive in the U.S. made sense because Siemens had been "too Munich-focused" before Chief Executive Joe Kaeser took over in 2013. Mr. Kaeser, who has presided over a major restructuring during the past few years, centralized control before recruiting Ms. Davis in 2014. Mr. Willi said that while Siemens "historically wasn't an easy place for a woman, an outsider to succeed," if Mr. Kaeser "gives her full support, it sends a pretty clear message" to other staff. In an interview earlier this year, Mr. Kaeser said the oil-and-gas unit "will be back stronger than ever...and the way we help them survive is to help them to build a digital oil field," referencing Siemens's plans to apply its digital expertise to the sector. Ms. Davis said she brings a fresh perspective to a management board that can be too "process oriented" at the expense of results. "We tend to use our incredible intelligence and capabilities in the company to make things too complex at times," she said. Now, the election of Donald Trump as U.S. president could offer the oil-and-gas industry "a lot of tailwinds," said Union Investment's Mr. Speich. He cited Mr. Trump's proposals to lower corporate taxes and invest in infrastructure as potentially mitigating increased energy-market competition. Ms. Davis said Mr. Trump's pledges to improve ties between the West and Moscow could help Siemens re-engage in Russia, where it has done many deals in recent years. Siemens retrenched to comply with international sanctions following Russian incursions in Ukraine in 2014. "Russia is like other countries where infrastructure improvements are needed," Ms. Davis said. "So if we can do that [build infrastructure] to support the needs in Russia in a fashion that is very respectful and compliant with the agreements between governments, then great." Write to Christopher Alessi at christopher.alessi@wsj.com Credit: By Christopher Alessi
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 24, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842838047
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842838047?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Arabia Backs OPEC Push to Make Steep Oil Output Cuts; OPEC is set to debate big reductions in oil production at its meeting next week
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Nov 2016: n/a.
Abstract:
According to the people familiar with the matter, OPEC is also pushing for Russia and other oil producers outside OPEC to pitch in by cutting another 500,000 to 600,000 barrels a day of output--the equivalent of the output a country such as Ecuador.
Full text: VIENNA--Saudi Arabia is backing an effort to make the steepest oil-production cuts possible at OPEC's meeting next week and to convince producers outside the cartel to help remove almost 2% of the world's oil supply, people familiar with the matter said. The ambitious plan is encountering reservations from Iran and Iraq , the second- and third-largest producers in the Organization of the Petroleum Exporting Countries, the 14-nation cartel that controls over a third of global oil production. It also ran into an obstacle on Thursday when Russia's energy minister said his country was planning only to hold output steady, not cut. But the proposal backed by Saudi Arabia, the cartel's biggest and most influential member, has been pushed to the center of talks this week here at OPEC's headquarters as the group discusses ways to shrink production and knock crude prices out of a two-and-a-half year funk. OPEC's 14 national oil ministers are set to meet Wednesday to decide on how to cut production to reduce a global oversupply of oil. The Saudi-backed proposal would set a production ceiling of 32.5 million barrels a day, the people said. That is more than 1.1 million barrels a day below OPEC's October output and at the top end of a range of cuts the cartel promised in September. OPEC agreed to reduce its record output to between 32.5 million and 33 million barrels a day in September, but its members have since increased production even more, complicating its calculations for a cut. According to the people familiar with the matter, OPEC is also pushing for Russia and other oil producers outside OPEC to pitch in by cutting another 500,000 to 600,000 barrels a day of output--the equivalent of the output a country such as Ecuador. All told, the OPEC and non-OPEC cuts would remove about 1.6% of global oil supplies if enacted. A growing group within the cartel believe only a strong statement from OPEC and big producers outside the cartel will turn market sentiment bullish and lift prices. One OPEC delegate said the cartel's members were discussing cuts of up to 1.3 million barrels a day from October levels. The proposal has begun picking up steam in discussions in Vienna as the cartel's officials study new data showing the imbalance between oil supply and demand will take longer than they thought to correct itself without intervention. The amount of oil going into storage has been increasing in the U.S. and Japan, not falling as some OPEC members hoped--a trend that keeps the glut going. OPEC is set to discuss separate cuts with Russia and other countries outside of OPEC on Monday in Vienna. OPEC specifically wants Russia to reduce production by 300,000 barrels a day, from current levels of over 11 million barrels a day, people familiar with the matter said. Russian energy minister Alexander Novak said Thursday that Moscow was in talks with non-OPEC countries about freezing production at current levels, including Kazakhstan, Uzbekistan and Mexico. He said a production freeze would effectively be a cut of 200,000 to 300,000 barrels a day for Russia--the world's largest producer of crude--because the country is planning to bring on new output soon. At a gathering in Vienna last month, Brazil told OPEC members that the public listing of its state-oil giant Petrobras limited its flexibility in turning off the spigots, while Mexico said its privatization push could be derailed by such a move, according to an attendee. The discussions are beginning to pick up speed and intensity as OPEC's oil ministers prepare to travel to Vienna. OPEC still hasn't agreed to a formula for how to apportion the production cuts. Nigeria and Libya, which have suffered disruptions due to violence and civil unrest, are likely to be exempted. Iran has also said it wants an exemption as it builds back the market share it lost during years of Western sanctions over its nuclear program. An Iranian oil official said Tehran has yet to agree to join OPEC's output-reduction plan. Laura Mills in Moscow contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com Related * Oil Prices Firm Ahead of Expected Production Cut Credit: By Benoit Faucon
Subject: Cartels; Supply & demand; Crude oil; Petroleum production
Location: Russia Iraq Iran Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 24, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842863437
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842863437?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Asia Oil Futures in Wait and See Mode Ahead of OPEC; Brent crude lost 10 cents to $48.90 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Nov 2016: n/a.
Abstract:
Oil futures were little changed in Asian trade on Friday, amid quiet holiday trading and a wait-and-see mode ahead of next week's closely watched meeting of the Organization of the Petroleum Exporting Countries.
Full text: Oil futures were little changed in Asian trade on Friday, amid quiet holiday trading and a wait-and-see mode ahead of next week's closely watched meeting of the Organization of the Petroleum Exporting Countries. Light, sweet crude for January delivery fell four cents, or 0.1%, to $47.91 a barrel in the Globex electronic session of the New York Mercantile Exchange. Brent crude lost 10 cents, or 0.2%, to $48.90 a barrel. Oil trading has been quiet for much of this week and a holiday in the U.S. on Thursday meant fewer players in the market. Expectations for a sizeable production cut by the cartel has been building. The group agreed in principle to cap output at 32.5 million to 33 million barrels a day at a meeting in September, but the specifics are set to be ironed out next week. Saudi Arabia is backing an effort to cap production at 32.5 million barrels, people familiar with the matter told The Wall Street Journal. The Saudi-backed proposal is the most concrete plan so far, but it has encountered misgivings from Iran and Iraq, two countries that have long been sticking points for the cartel. Iraq is in need of oil revenue to help fund its war against the Islamic State, while Iran is trying to ramp up its oil exports after years of punishing sanctions. A large number of short positions, or bets on lower oil prices, mean prices could spike if OPEC delivers on a cut, said analysts at Energy Aspects. "With managed money short positions across WTI and Brent at record highs, the market is setting itself up for a possibly sharp short covering rally--should OPEC deliver an output cut of around 1 million barrels a day," they said in a note to clients. In refined product markets, Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 59 points to $1.4276 a gallon, while December diesel traded at $1.5260, 91 points higher. ICE gasoil for December changed hands at $444.75 a metric ton, up $0.50 from Thursday's settlement. Benoit Faucon contributed to this article. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil; Price increases
Location: Iraq United States--US Iran Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 25, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842953080
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842953080?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall Ahead of OPEC Meeting; Skepticism about a deal to cut production keeps some investors selling
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Nov 2016: n/a.
Abstract:
Trading has been subdued in recent sessions because of the Thanksgiving holiday in the U.S. In addition, uncertainty about the Organization of the Petroleum Exporting Countries reaching an agreement to cut oil production has kept some investors on the sidelines.
Full text: Oil prices took their biggest daily losses in two months as skepticism grew Friday about whether global exporters can strike an effective deal to cut production. Light, sweet crude for January delivery settled down $1.90, or 4%, to $46.06 a barrel on the New York Mercantile Exchange. It was the biggest percentage drop since Sept. 23 and took oil to losses of 30 cents, or 0.6%, for the week, its fourth losing week of the past five. Brent, the global benchmark, fell $1.76, or 3.6%, to $47.24 a barrel. It wasn't enough to cancel out early-week gains, and Brent finished the week up 38 cents, or 0.8%. Trading has been subdued in recent sessions because of the Thanksgiving holiday in the U.S. In addition, uncertainty about the Organization of the Petroleum Exporting Countries reaching an agreement to cut oil production has kept some investors on the sidelines. Investors have been increasingly questioning the agreement this week as attempts to bring in non-OPEC producers have hit roadblocks. The Wall Street Journal reported Thursday that OPEC wants Russia and others outside OPEC to cut production by 500,000 to 600,000 barrels a day. OPEC officials said Friday that Saudi leaders are backing out of a Monday meeting with those producers while they wait for OPEC to reach a final agreement they can take to those rivals. "It does underscore how fragile the situation may be," Tim Evans, an analyst from Citi Futures, said in a note to clients. Saudi Arabia is backing an effort to cut output by more than 1 million barrels to 32.5 million barrels, people familiar with the matter told The Wall Street Journal. OPEC agreed in principle in September to cap output at 32.5 million to 33 million barrels a day, but details with be hammered out on Nov. 30. The push is to get non-OPEC producers to join in with a cut equivalent to the output of a country such as Ecuador. That is raising skepticism among analysts because on Thursday Russian energy minister Alexander Novak said Moscow was talking about only a freeze in production. He said that would essentially be a cut because the country would keep increasing production otherwise. "This makes a mockery of the whole debate about production cuts," Germany's Commerzbank said in a note. It makes OPEC's recent push for a deal "completely unrealistic unless Russia manages to persuade anyone that its plan to freeze its oil production at the current (record) level actually constitutes a reduction." OPEC's recommendation for non-OPEC countries highlights how meaningless it is if OPEC even reaches a deal, said Hamza Khan, head of commodity strategy at ING Bank. Oil supply is so diverse now that many other producers are ready to fill whatever gap OPEC creates, and U.S. and North Sea producers have already started doing so after recent rallies caused by OPEC talks, he said. "The whole concept is so silly," Mr. Khan added. "If one part of the world cuts, supply will come online in other parts of the world...and it will come on very quickly." Gasoline futures lost 4.9 cents, or 3.4%, to $1.3727. It still finished the week up 3.36 cents, or 2.5%. Diesel futures lost 4.69 cents, or 3.1%, to $1.47 a gallon. It also finished the week up despite Friday's losses, gaining 1.23 cents, or 0.8%. Georgi Kantchev, Benoit Faucon, Sarah McFarlane and Dan Strumpf contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Cartels; Agreements; Futures; Petroleum production
Location: Russia United States--US
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 25, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1842967421
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1842967421?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Await Effect of OPEC Deal; OPEC will meet next week amid a growing consensus the cartel will strike a deal to cut crude production
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Nov 2016: n/a.
Abstract:
Ole Hanson, head of commodity strategy at Saxo Bank, said that Saudi's proposal implies they expect all producers, apart from Libya and Nigeria, to contribute. [...]once again (they are) throwing the baton to Iran who has to, at a bare minimum, agree to a freeze and preferably also join in with the 4 to 4.5% cut to achieve that level," he said.
Full text: OPEC will meet next week amid a growing consensus the cartel will strike a deal to cut crude production . A question remains: How much would that actually affect oil prices ? The days of $100 a barrel oil prices are over, oil-industry analysts said, no matter how strong any deal that the Organization of the Petroleum Exporting Countries cuts in Vienna on Wednesday. The more likely scenario is that a strong statement from OPEC, the 14-nation cartel that controls a third of the world's oil production, would put a floor under prices of $50 a barrel in 2017, analysts said. A credible deal, with production targets for each country and enforcement mechanisms, could send prices above $55 a barrel, analysts said. "It's looking more like a deal will go ahead," said Warren Patterson, commodity strategist at ING Bank. "However, it will be important what the details around the deal will actually end up being." Conversely, a breakdown in talks would send oil plunging back down to $40 a barrel or less, analysts said. "The stakes are high that an agreement will be reached," said Rob Thummel, portfolio manager at Tortoise Capital Advisors, which manages $15 billion in energy assets. Underscoring the uncertainty about the deal's prospects, banks polled by The Wall Street Journal kept their price forecasts largely unchanged from the previous month. The 14 banks in the survey predict that international Brent crude will average at $56 a barrel next year while U.S. benchmark West Texas Intermediate will average $54 a barrel next year. On Friday, Brent was trading at $48.54 a barrel while WTI was at $47.60 a barrel. Those prices are still down by more than half from mid-2014. OPEC agreed in September to reduce its record output, but its members have since increased production even more, complicating its calculations for a cut. That means the nitty-gritty details of any OPEC agreement on Wednesday will be more important than usual. OPEC members produced 33.643 million barrels a day in October, a record, after agreeing in September to cut down to between 32.5 million and 33 million barrels a day. Saudi Arabia is now backing a push for OPEC to cut to the 32.5 million mark and get Russia and other big producers outside of OPEC to join in with a cut of 500,000 to 600,000 barrels a day. A strong agreement would include country targets for all 14 members, Michael Wittner, chief oil analyst at Société Générale, wrote in a report. That is something OPEC has struggled to agree on in the past. "That is a 50-50 tossup whether or not there is a credible OPEC agreement," Mr. Wittner wrote. Analysts at Credit Suisse said that if OPEC fails to agree on production cuts next week, U.S. oil prices could fall to $35 a barrel at the beginning of next year. Conversely, a production ceiling of 32.5 million for six months would reduce the global oversupply and boost prices to $60 a barrel. UBS expects prices to test $40 a barrel if talks break down and rise above $50 if a deal is reached next week. Investors also appear to be split in their expectations ahead of the meeting. Last week, money managers increased both their bullish and bearish bets on Brent prices, according to data from Intercontinental Exchange Inc. A potential stumbling block could be that producers outside the cartel have yet to agree on any cuts. Saudi Arabia and other OPEC heavyweights are set to lose significant market share if they cut production without outside producers pitching in. Russia, however, has recently been pumping crude at a post-Soviet record pace while Brazil and Mexico have indicated that they are unlikely to join major output cut efforts. While not at the bargaining table in Vienna, U.S. shale producers could also upend OPEC's calculations if a deal leads to higher prices, which incentivize new drilling, analysts said. Drilling has been rising since the beginning of the summer as some U.S. oil regions can be profitable even with prices in their current range of $40 to $50 a barrel. This means that if an OPEC deal boost prices above that level, U.S. production, which is down from last year's highs, is likely to rise again, according to analysts. "OPEC faces a critical decision: cut production and let U.S. producers reap the benefits of higher prices, or maintain a hands-off approach and let the market rebalance naturally," analysts at Barclays said. Barclays said U.S. oil companies accounting for 3.3 million barrels a day of production are forecast to increase output by 6% next year if oil prices average $55. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Crude oil; Cartels; Petroleum production
Location: Iran Iraq United States--US Saudi Arabia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 25, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843061045
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843061045?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Non-Oil Surplus Limits Mexico's October Trade Deficit; Deficit of $900 million smaller than September's $1.6 billion trade gap
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Nov 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexico's trade deficit narrowed in October from the previous month and from a year earlier as a surplus in trade of non-petroleum goods partially offset the continued petroleum deficit. Exports fell 4.4% from October 2015 to $32.59 billion, and imports fell 5.9% to $33.49 billion, the National Statistics Institute said Friday. The $900 million deficit was smaller than September's $1.6 billion trade gap, and the $1.5 billion shortfall in the year-earlier month. The trade deficit has widened over the past two years as a result of low crude oil prices and a decline in Mexican oil-export volume, coupled with increased imports of natural gas, gasoline and diesel, mostly from the U.S., which has turned Mexico into a net petroleum importer. Petroleum accounted for $10 billion of the $13.36 billion trade deficit in the first 10 months of the year. Both exports and imports rose in October. The non-petroleum trade balance has improved, however, with manufactured goods accounting for 90% of total exports. Mexico had a $106 million surplus in non-petroleum goods trade in October, narrowing the non-oil deficit to $3.37 billion in the first 10 months of the year, the smallest in two decades. The Bank of Mexico expects the trade deficit to end this year at $15.2 billion, or 1.5% of gross domestic product, but forecasts a narrower $12.6 billion trade gap in 2017. The central bank's projections acknowledge the risk that the administration of U.S. President-elect Donald Trump could adopt policies that jeopardize cross-border production chains, "even if those policies are contrary to the interests of our northern neighbor itself." Still, the bank's base-case scenario is that commercial relations between Mexico and the U.S. will continue to work well. If rising oil prices don't help reduce Mexico's trade deficit, the country will rely on manufactured exports to narrow the gap, hence the risk from U.S. protectionist threats that could lower the benefits to Mexico of a pickup in U.S. industry, UBS said in a recent report. The peso's roughly 40% depreciation in the past two years hasn't helped manufacturing exports much, partly because Mexico imports many of the components it uses for final assembly. "What matters more than price to Mexican manufacturing volumes is that U.S. demand be strong, and that has not been the case in recent quarters," UBS added. Mexican exports of factory-made goods fell 6.1% in October from a year before, and were down 2.9% in the first 10 months of the year. Mr. Trump has said he would seek to renegotiate the North American Free Trade Agreement to secure better terms for the U.S., or abandon the agreement which he blames for job and factory losses in the U.S. He made no mention of Nafta this week, however, when announcing his intention to order a U.S. withdrawal from the Trans-Pacific Partnership on taking office. The content or scope of a Nafta renegotiation isn't yet clear. Mexican President Enrique Peña Nieto told reporters this week that his government will discuss a new agenda in the bilateral relationship once Mr. Trump takes office in January, including "sensitive issues" for both sides, but reiterated Mexico's commitment to free trade. Mexico wants to expand commerce with all 46 countries with which it has trade agreements, but "evidently the agreement with North America will continue to be a central issue," he said. Mr. Peña Nieto had a controversial meeting with Mr. Trump in Mexico City in late August, during the U.S. presidential campaigns. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 25, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 18431082 29
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843108229?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Equities: Crude Oil Skids 4% Amid OPEC Unease
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 Nov 2016: B.9.
Abstract:
Oil prices declined by the most in two months as skepticism about whether global exporters can strike an effective deal to curtail production increased on Friday.
Full text: Oil prices declined by the most in two months as skepticism about whether global exporters can strike an effective deal to curtail production increased on Friday. Light, sweet crude for January delivery fell $1.90, or 4%, to $46.06 a barrel on the New York Mercantile Exchange. It was the biggest percentage drop since Sept. 23 and took oil to a decline of 30 cents, or 0.6%, for the week, its fourth losing week of the past five. Brent, the global benchmark, fell $1.76, or 3.6%, to $47.24 a barrel. That wasn't enough to cancel out early-week gains, as Brent finished the week up 38 cents, or 0.8%. Gasoline futures lost 4.9 cents, or 3.4%, to $1.3727 but ended the week up 3.36 cents, or 2.5%. Diesel futures lost 4.69 cents, or 3.1%, to $1.47 a gallon. Diesel finished the week up 1.23 cents, or 0.8%. Credit: By Timothy Puko
Subject: Crude oil prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.9
Publication year: 2016
Publication date: Nov 26, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843237313
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843237313?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Iran Still Hopes to Be Exempt From OPEC Output Cut; Cartel is set to discuss a proposal to cut its production by about 1.1 million barrels a day when it gathers to bolster oil prices and draw down high inventories
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Nov 2016: n/a.
Abstract:
Iran is still trying to be exempted from an OPEC output cut but expects the group to reach an agreement on curbs next week, the country's oil minister said Saturday, after tensions over who should shoulder the burden re-emerged in recent days.
Full text: Iran is still trying to be exempted from an OPEC output cut but expects the group to reach an agreement on curbs next week, the country's oil minister said Saturday, after tensions over who should shoulder the burden re-emerged in recent days. The Organization of the Petroleum Exporting Countries is set to discuss a proposal to cut its production by about 1.1 million barrels a day when it gathers to bolster oil prices and draw down high inventories. But last week, Iran and Iraq expressed reservations on the scale of the reductions that would be required from them. Afterward, Saudi Arabia canceled its attendance of a Monday meeting to discuss coordinated cuts with Russia and others outside OPEC, saying the cartel should sort out its differences first. Speaking after meeting with Algerian Energy Minister Nourredine Bouterfa in Tehran, Iran's oil minister, Bijan Zanganeh, said "the general trend and public statements suggest that OPEC can reach a viable agreement for its production and market management." Asked whether Iran, Libya and Nigeria would be excluded from any OPEC output-cut plan, he said: "This has been a serious discussion in our talks." Iran has maintained that it wants to boost production to its pre-sanctions level of 4 million barrels a day. But OPEC's top producer, Saudi Arabia, says Tehran should participate in OPEC's production cuts. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Supply & demand; International markets
Location: Russia Iran Libya Nigeria Iraq Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 26, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New Y ork, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843345865
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843345865?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Measuring the Economic Spillover of OPEC's Oil Output Decisions; Oil cartel may struggle to unite members after two years of depressed oil prices strain ties
Author: Williams, Selina; Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Nov 2016: n/a.
Abstract:
According to people familiar with the matter, OPEC is considering cutting more than 1 million barrels a day and has asked Russia to slash output by 300,000 barrels a day--taking over 1% of global supply off the market.
Full text: OPEC's struggle to balance oil supply and demand globally is exposing economic fault lines around the world. The Organization of the Petroleum Exporting Countries heads into a highly anticipated meeting this week facing a difficult dynamic: Cutting oil production could open the door for other producers, including in the U.S., to ramp up their output at the expense of OPEC members. Failing to cut output could keep oil markets oversupplied, potentially knocking prices down and hurting some already troubled OPEC members. Either outcome is set to shape the path of the global economy and markets that remain deeply sensitive to movements in oil prices. The oil cartel is negotiating oil-output cuts not only from its 14 member nations but also from a host of producing countries outside the cartel including Russia, Kazakhstan and Brazil. Those countries are unlikely to pitch in this time, in part because of global market conditions OPEC helped usher in--leading to two years of depressed oil prices. "At the end of the day, everyone is looking after their own interests and no one wants to lose market share," said Amrita Sen, chief oil analyst at Energy Aspects. GDP in Russia and Kazakhstan is projected to fall 0.8% in 2016, while Brazil's will fall 3.3% in 2016 and 3.8% in 2015, according to the International Monetary Fund. Brazilian state oil giant Petrobras is weighed down by around $128 billion in debt and would be financially weakened if it cut back. Even OPEC's own members have long resisted an output cut, and their talks could easily break down on Wednesday in Vienna. In November 2014, OPEC sent prices skittering when it decided against cutting production to address oil supplies that were outstripping demand, and instead decided to keep pumping to defend its market share. The main culprit for the oversupply, U.S. shale producers, would eventually buckle as prices fell, OPEC believed, and the market would rebound as American output fell. Instead, U.S. output proved resilient, OPEC output throttled to record levels and prices fell to levels not seen in more than a decade, touching $27 a barrel in January. U.S. oil prices fell $1.90, or 4%, to $46.06 on Friday. While the U.S. oil patch saw a huge wave of job losses and slashed investment over two years, conditions have stabilized in recent months. Now, OPEC's hope is that Russia, which produces more crude oil than any other country, can act as a sort of force multiplier for the cartel's promised cuts. According to people familiar with the matter, OPEC is considering cutting more than 1 million barrels a day and has asked Russia to slash output by 300,000 barrels a day--taking over 1% of global supply off the market. Russia has signaled its willingness to hold production steady at 11.2 million barrels a day, a post-Soviet high, but President Vladimir Putin has stopped short of endorsing a cut. Energy Minister Alexander Novak says a so-called production freeze amounts to a cut of 200,000 to 300,000 barrels a day because Russia would have pumped even more in 2017. Though Russia's production is historically high, the country gets just under half its government revenue from oil and gas and has little room to maneuver. Its oil industry is weighed down by American and European Union sanctions related to the conflict over Ukraine. "Russia is already facing a significant budget deficit this year and next and we see how active it has been this year in its attempts to reach agreement with OPEC," said Alexander Kornilov of Russian investment company Aton. One of Russia's biggest competitors on the oil market is OPEC kingpin Saudi Arabia, which is in similarly dire economic straits. It posted a record deficit of $89 billion last year and borrowed $10 billion from a group of international banks in April, its first foreign borrowing in more than a decade. The two countries are already fighting over customers from China to India to Poland, and have little incentive to cede ground, analysts said. OPEC is looking for 200,000 barrels a day in cuts from producers other than Russia, but there aren't a lot of candidates. One country often mentioned is Kazakhstan, but it is looking to raise output right now. A consortium of oil companies, including Exxon Mobil Corp and Royal Dutch Shell PLC, has just started up the giant Kashagan oil field there--a $50 billion feat that the international firms are pressing to recoup. There could always be a surprise. Close OPEC watchers point to 1998, when after months of secret, and often fractious, negotiations, OPEC succeeded in getting Norway, Mexico and others to join a production cut after prices fell to $10 a barrel. In a year the global oil market stabilized and by 2000, oil prices had more than doubled. Times have changed. Mexican production was mostly state-controlled then but is now open to international companies. Norway's production was on the upswing in 1998. Now, the Nordic nation is fighting declining production and unlikely to help OPEC, said the country's oil minister, Tord Lien, in an interview. Mr. Lien pointed to market forces already at work, with low prices slowly cutting production from high-cost fields and demand driven by cheap gasoline catching up to supply. "The market will rebalance itself soon," Mr. Lien said. Credit: Selina Williams and Benoit Faucon
Subject: Cartels; Supply & demand; Budget deficits; Market shares; Crude oil prices; Petroleum production
Location: Brazil Kazakhstan United States--US Russia
Company / organization: Name: Petroleos Brasileiro SA; NAICS: 211111; Name: International Monetary Fund--IMF; NAICS: 522298
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 27, 2016
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843599394
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843599394?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Schlumberger Signs Early Oil Deal With Iran; World's largest oil driller by market value moves forward despite Trump's vow to nix Iran deal
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Nov 2016: n/a.
Abstract: None available.
Full text: Schlumberger Ltd., the world's largest oil driller by market value, said Sunday it had signed a preliminary deal to study an Iranian oil field, as Donald Trump's presidential victory has yet to deter U.S.-connected companies from dealing with Tehran. The contract is one of the most prominent signed since the Nov. 8 election. Mr. Trump has vowed to undo a nuclear pact with Tehran signed last year by global powers. The pledge has led many international companies to freeze their plans to enter the Islamic Republic despite the country's huge potential as an energy and consumer market. But a spokesman for Schlumberger, one of the world's largest oil-services companies, told The Wall Street Journal it has signed a memorandum of understanding with the state-run National Iranian Oil Company "for the non-disclosure of data required for a technical evaluation of a field development prospect." Though it is incorporated in Curaçao in the Dutch Antilles, Schlumberger has one of its headquarters in Houston, while some of its shares trade in New York. If completed, the deal would be the first in Iran for Schlumberger since European sanctions for the company to leave the country in 2010. Schlumberger said the deal does not involve the execution of oilfield services operations and it intends to comply with the laws and regulations of the countries where it operates. Though most international sanctions on Iran's energy industry were lifted in January, Washington has maintained a ban on U.S. companies and citizens from investing in that country's oil fields. European oil giants have stepped into the breach, culminating with an agreement by France's Total SA to join a $4.8 billion investment in an Iranian gas field hours before Mr. Trump was elected. Despite uncertainty over what the president-elect will do over the Iran nuclear deal, Schlumberger is not the only one to pursue Iranian opportunities. Immediately after Mr. Trump's election, Norway's DNO signed up to study a key Iranian oil field near the Iraqi border . European aircraft maker Airbus Group SE recently received U.S. government backing for the export of more than 100 jetliners to Iran, despite a move by U.S. lawmakers to curb such transactions. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 27, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843703784
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843703784?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Lower Ahead of OPEC Meeting; Nymex crude is down 1.4% at $45.41
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
0042 GMT [Dow Jones] Oil prices are down as investors take profit ahead of the OPEC meeting Wednesday in which the likelihood of major oil producers forging a production cut deal remains in suspense.
Full text: 0042 GMT [Dow Jones] Oil prices are down as investors take profit ahead of the OPEC meeting Wednesday in which the likelihood of major oil producers forging a production cut deal remains in suspense. "The stakes are high and the unusual amount of diplomacy would suggest a firm deal is far from in place, but all parties will be very aware failure to deliver a deal will see crude prices back on their way to a $30 dollar handle very quickly," says Stuart Ive, a private client manager at OM Financial. Prices are also weighed by the growing number of active oil rigs in the U.S. which rose by three in the most recent week to 474. Nymex crude is down 1.4% at $45.41 a barrel while Brent is down 1.6% at $46.5 a barrel. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Cartels
Location: United States--US
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843722483
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843722483?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Climb Ahead of Key OPEC Meeting; The cartel hasn't yet reached consensus on production cuts, causing volatility
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
Members of the Organization of the Petroleum Exporting Countries have been trying for months to strike a deal to reduce output and ease a global glut of crude.
Full text: With OPEC members heading toward a possible showdown this week at their meeting in Vienna, crude prices rallied Monday as traders bet that major oil producers can still reach an agreement to cut production. U.S. crude futures climbed $1.02, or 2.21%, to $47.08 a barrel on the New York Mercantile Exchange. The global crude benchmark Brent rose $1, or 2.12%, to $48.24 a barrel on London's ICE Futures Exchange. Members of the Organization of the Petroleum Exporting Countries have been trying for months to strike a deal to reduce output and ease a global glut of crude. In late September, the group announced a tentative plan to implement production cuts. But they left out important details, guaranteeing volatility for oil in the run-up to the group's Nov. 30 meeting. Arriving in Vienna, Iraq Oil Minister Jabar al-Luaibi said Monday that he was confident OPEC would reach an agreement this week. Iran and Iraq, which have previously said they want to keep increasing output, indicated in a Monday private meeting that they would consider holding production steady, according to a person familiar with the matter. That's part of what drove prices higher Monday, said John Kilduff, founding partner of Again Capital. "Iran and Iraq are holding the key to getting a deal done," he said. "Their rhetoric counts right now." But there have been few indications that OPEC's members have found a way around the hurdles that have kept them from reaching an accord, even with a strong push by Saudi Arabia. Russia, which isn't a member of OPEC, has stopped short of saying it would curtail output. Still, many market participants believe the stakes are too high for OPEC members to fail to reach a deal. Oil prices last month climbed above $50 after the cartel pledged to cut production. Some analysts now fear that U.S. crude could plunge below $40 level if oil ministers leave Vienna empty handed. One challenge for OPEC is to nail down how much each country will be allowed to produce. Another is enforcing any arrangement when the group has a notoriously poor record of compliance and the fact that some sizeable oil producers, like Nigeria and Libya, are exempt from the negotiations. OPEC's output has also continued to climb over the past two months, with many countries pumping more oil even as they discussed freezing or curtailing production. In September, OPEC agreed to target production levels that would have translated into a 200,000 to 700,000 barrel-a-day reduction. Tariq Zahir, managing member of Tyche Capital Partners, said the group would now have to agree to cut at least 1 million barrels a day to make a meaningful dent in supply. "I think there's going to be some kind of a deal done to save face," Mr. Zahir said. "But you need to have a serious cut." Even if OPEC strikes a deal, its impact on prices may be short-lived. "We may be seeing prices in the low 40s before we see the high 50s," said Mark Anderle, director of supply and trading at TAC Energy. Gasoline futures rose 4 cents, or 2.91%, to $1.4127 a gallon. Diesel futures rose 4.28 cents, or 2.91%, to $1.5128 a gallon. Write to Alison Sider at alison.sider@wsj.com Related * Options Players See Further 17% Gains for Crude Credit: By Alison Sider
Subject: Cartels; Futures; Price increases; Crude oil
Location: United States--US Iran Iraq
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843738010
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843738010?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Dollar Slips With U.S. Data, Oil in Focus; Dollar was down against currencies of oil-producing countries
Author: Dulaney, Chelsey
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
European Central Bank President Mario Draghi on Monday warned about the risks low-interest rates pose to the eurozone, such as encouraging a buildup of debt and excessive risk-taking.
Full text: The dollar softened Monday as investors focused on upcoming U.S. data and the potential for an oil-production cut ahead of Wednesday's OPEC meeting. The WSJ Dollar Index, which measures the U.S. currency against 16 others, fell 0.4% to 91.50. The dollar was down against currencies of oil-producing countries, falling 0.7% against the Canadian dollar and 0.4% against the Norwegian krone. Oil prices oscillated Monday, closing up 1.8%, as investors continue to assess the prospects that OPEC members agree to rein in production ahead of Wednesday's main meeting. A production cut would likely support oil prices and boost the currencies of oil exporters such as Canada, Russia and Norway. "All eyes will be on the OPEC meeting this week to see what sized production cut we might have in store," said Brad Bechtel, a currency strategist at Jefferies Group, in a research note. Investors are also watching a string of U.S. data this week on gross-domestic product, manufacturing and hiring. Upbeat reports would further solidify the Federal Reserve's case for raising interest rates next month. Markets are already pricing in a 96% chance that the Fed raises rates at its December meeting, according to CME Group data. Higher rates typically support the dollar by making the currency more attractive to yield-seeking investors. The euro was up 0.3% to $1.0608. European Central Bank President Mario Draghi on Monday warned about the risks low-interest rates pose to the eurozone, such as encouraging a buildup of debt and excessive risk-taking. The yen rallied about 1% versus the dollar, recovering from a 7% selloff in the wake of the U.S. election. Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com Credit: By Chelsey Dulaney
Subject: American dollar; Interest rates; Cartels; Quotas
Location: United States--US Canada Russia Norway
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: European Central Bank; NAICS: 521110; Name: CME Group; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843742839
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843742839?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
How Iran, Russia Could Derail Oil-Production Deal; OPEC members engage in a last-minute blitz of diplomacy ahead of a meeting on Wednesday
Author: Faucon, Benoit; Kantchev, Georgi; Amon, Michael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
VIENNA--The world's biggest oil producers on Monday intensified talks over an oil-output agreement but failed to resolve disputes over production in Iran, Iraq and Russia that have emerged as potentially deal-breaking obstacles. The Organization of the Petroleum Exporting Countries was trying to nail down the details of a September agreement to cut production and reduce a global oversupply of oil.
Full text: VIENNA--The world's biggest oil producers on Monday intensified talks over an oil-output agreement but failed to resolve disputes over production in Iran, Iraq and Russia that have emerged as potentially deal-breaking obstacles. The Organization of the Petroleum Exporting Countries was trying to nail down the details of a September agreement to cut production and reduce a global oversupply of oil. The negotiations come ahead of an official OPEC gathering at its Vienna headquarters on Wednesday, two years after the 14-nation cartel decided to let prices fall, sending the market to historic lows and ushering in a period of cheap prices for consumers. Saudi Arabia and other countries within OPEC are pushing for an output cut of more than 1 million barrels a day from the cartel--more than 1% of global supply. Saudi Arabia, the world's top exporter of crude and OPEC's most influential country, also wants substantial contributions to a cut from producers outside the cartel, like Russia, the world's largest producer of oil. A diplomatic blitz ensued Monday to save a deal that was thrown into question on Sunday when Saudi Arabia's powerful energy minister, Khalid al-Falih, said the market could right itself without an OPEC cut. Mr. Falih had previously been one of the biggest advocates for a production cut. Some progress was made Monday. Iranian and Iraqi officials indicated in a private meeting they would consider holding their output steady, a change in position as both countries had initially said they wanted to keep increasing output, a person familiar with the matter said. But Iraqi officials were often on the phone talking to their superiors, underscoring the tenuousness of the talks, the person said. And a promise to freeze production may not satisfy the Saudis either as they have indicated they want other OPEC members to cut. On Monday, Russian President Vladimir Putin and Iranian President Hassan Rouhani said they had agreed to coordinate their production, though they didn't disclose details. That pledge fell short of the agreement to cut that Saudi Arabia has been looking for. At the same time, Algerian and Venezuelan oil ministers Noureddine Bouterfa and Eulogio del Pino, respectively, flew to Moscow on Monday to try to bring the Russians onboard for a production cut. Oil prices rose amid the negotiations on Monday, with Brent crude rising 2.2% at $49.31. Saudi Arabian officials are concerned by the reluctance of other countries to join cuts, OPEC officials have said, worrying they will trim their own production and then watch other countries swoop in and steal the kingdom's former market share, as happened during the 1980s. While countries that have suffered disruptions such as Nigeria and Libya will likely get exemptions, Saudi officials don't want to make sacrifices and then allow rival Iran to keep raising output. "If they are going to cut their production, the Saudis don't want others to replace them," one OPEC official said. Iran oil minister Bijan Zanganeh told state television that he "hoped oil won't not be used as a political tool" when the group meets Wednesday. Iran, Iraq and Russia all want prices to rise, but they have fewer incentives to cut production than some others. Russia wants prices to rise, as it relies on oil and gas for just under half its national revenue. But the country has less room to maneuver than Saudi Arabia, with much of its oil industry under Western sanctions and oil fields located in icy Siberia where fields could easily be damaged if shut down. Iraq wants to pump every barrel it can as it needs to finance a costly war with the radical Islamic State. The country has also disputed the independent data used by OPEC to calculate its production, saying it underestimate its production by about 200,000 barrels a day. Iran is trying to regain the share of the oil-buying market it enjoyed before Western sanctions over its nuclear program crippled its energy industry. Even at low prices, it is useful for Iran to rebuild relationships with European refineries and Asian buyers. Iran has a more diverse economy than many of its fellow OPEC members. The Islamic Republic relies on crude-oil exports for about 25% of its budget, compared with 70% in Saudi Arabia and more than 40% in Venezuela. A former Iranian oil official, Manouchehr Takin, said Saudi Arabia and Iran were likely to put aside their differences this time because the stakes are higher. Some analysts have said oil prices could again fall below $35 a barrel if OPEC fails to make an agreement this week. "What you're seeing now is horse-trading," Mr. Takin said. "When there is a crisis, OPEC always come together and take action together." Selina Williams and Kevin Baxter in London contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com , Georgi Kantchev at georgi.kantchev@wsj.com and Michael Amon at michael.amon@wsj.com Related News * The Problem for OPEC in Three Charts * OPEC Has Been Here Before--in 1986 * OPEC May Give Trump Energy Goals a Boost * Oil Industry Braces for Peaking Demand * U.S. Energy Firms Step Up Business Investment * U.S. Now a Net Exporter of Natural Gas * Economic Effects of OPEC's Output Decisions Credit: By Benoit Faucon, Georgi Kantchev and Michael Amon
Subject: Cartels; Agreements; Energy industry
Location: Iraq Russia Iran Saudi Arabia
People: del Pino, Eulogio Rouhani, Hassan Putin, Vladimir
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843788709
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843788709?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Stocks Pull Back After Rally; Oil Rises; U.S. indexes hit record highs on Friday
Author: Driebusch, Corrie; Gold, Riva
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
The gains began before the U.S. presidential election, but accelerated after Nov. 8 as investors poured money into U.S.-based companies.
Full text: U.S. stocks slipped Monday, snapping the Russell 2000's longest winning streak in 20 years. The index of small-company shares rose for 15 consecutive trading sessions through Friday. The gains began before the U.S. presidential election, but accelerated after Nov. 8 as investors poured money into U.S.-based companies. Investors bet that President-elect Donald Trump's policies could improve domestic growth, lower corporate taxes and increase infrastructure spending--which they believe will benefit smaller, domestically focused companies that are typical of the Russell 2000. On Monday, the index declined 1.3%. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite also edged lower. The declines represent an unusual pullback for U.S. stocks after a weekslong rally that sent all three indexes--plus the Russell--to fresh records again Friday. For the 12 trading sessions following the U.S. presidential election, the Dow industrials rose 4.5% through Friday and only fell two days. The blue-chip index declined 0.3% on Monday. The S&P 500 fell 0.5%, and the Nasdaq Composite slipped 0.6%. Indexes in both Europe and the U.S. were weighed down by falling bank stocks, which have been big winners since the election. Financial companies in the S&P 500 were the worst-performing sector Monday, falling 1.4%. Ahead of Monday, banks had also posted stand-out performance in recent weeks as investors bet on lightened regulation under President-elect Trump and higher interest rates. On Monday, Russell 2000 component Bank of the Ozarks fell 3.1%. In the past month the bank is up 24%. Banks in the Stoxx Europe 600 fell 1.8% ahead of a Dec. 4 referendum on Italian constitutional reform . Many investors are concerned that a "no" vote and the political uncertainty that could follow might derail plans to shore up the country's fragile banking system. Recent polls suggest the proposed changes are likely to be rejected, an outcome that Prime Minister Matteo Renzi has said would prompt him to resign. Italy's FTSE MIB index dropped 1.8%. The broader Stoxx Europe 600 fell 0.8%. Shares of oil and gas companies also struggled Monday as crude prices swung ahead of a meeting of major oil producers in Vienna. U.S.-traded crude oil gained 2.2% to $47.08 a barrel. The Organization of the Petroleum Exporting Countries agreed in September to trim production amid a global glut of supply, but left the details of who cuts how much to a meeting in Vienna on Wednesday. "Speculation that OPEC would agree to production cuts spurred big increases last week, and we'll get this kind of back and forth until we get clarity on what exactly the deal is likely to be," said Ian Williams, strategist at brokerage Peel Hunt. The U.S. dollar weakened Monday after its best three-week stretch since 2008. Emerging-market currencies and the yen rose sharply against the dollar, sending the WSJ Dollar Index, which measures the dollar against a basket of 16 currencies, down 0.3% on Monday. Some investors said the pullback in the dollar was likely to prove temporary, with inflation expectations on the rise and the Federal Reserve widely expected to raise interest rates in December and in 2017. U.S. government bonds strengthened, sending the yield on the 10-year U.S. Treasury note down to 2.319% from 2.359% on Friday. Earlier, Hong Kong's Hang Seng and the Shanghai Composite advanced 0.5%. Write to Corrie Driebusch at corrie.driebusch@wsj.com and Riva Gold at riva.gold@wsj.com Credit: By Corrie Driebusch and Riva Gold
Subject: Interest rates; Stocks; Natural gas utilities; American dollar; Presidential elections
Location: United States--US
People: Renzi, Matteo Trump, Donald J
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843788877
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843788877?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Industry Anticipates Day of Reckoning; Prospect of 'peak demand' prompts debate and long-term planning by global producers
Author: Kent, Sarah; Spegele, Brian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
Big oil players such as Exxon Mobil Corp, BP PLC and Saudi Arabia--which is leading recent efforts by the Organization of the Petroleum Exporting Countries to boost oil prices--are also anticipating significant shifts in demand, though there is no consensus on the timing and their moves have been gradual. [...]that picture shifts radically if governments take further action to limit global warming to less than 2 degrees Celsius with more stringent policies like carbon pricing, strict emissions limits and the removal of fossil-fuel subsidies.
Full text: This month, European oil company MOL Group delivered a stark message to investors: Demand for fuel in its key markets is bound to fall. So-called peak oil demand is a mind-bending scenario that global producers such as Royal Dutch Shell PLC and state-owned Saudi Aramco are beginning to quietly anticipate. But MOL has a transformation plan that is among the most explicit responses to the trend, indicating how the landscape may change for big energy providers over the next decade. The Hungarian company is rethinking its traditional focus on fuel supply and shifting investment to petrochemicals, the key ingredient of everyday plastic products and a sector where MOL believes growth will continue even when its fuel business falters. Although there will still be customers for its fuel, the company reckons demand will soon flatten and then start falling in its Eastern European markets around 2030. "We see that as an inevitability," MOL Chief Financial Officer Jozsef Simola said. Big oil players such as Exxon Mobil Corp, BP PLC and Saudi Arabia--which is leading recent efforts by the Organization of the Petroleum Exporting Countries to boost oil prices--are also anticipating significant shifts in demand, though there is no consensus on the timing and their moves have been gradual. They are increasing their investment in petrochemicals, pumping more natural gas, driving down costs and even diversifying into alternative energy sources like solar power. Last month Shell finance chief Simon Henry caused a stir when he said the company sees oil demand peaking in five to 15 years. Shell's latest published forecasts have consumption flattening toward the end of that period. State-owned China National Petroleum Corp. quietly issued a report in the summer predicting that China's oil consumption--a major driver of growth in recent decades--will begin to fall by 2030, if not sooner. Global demand is expected to follow suit. The International Energy Agency, which advises industrialized countries on energy policy, says consumption will continue to rise for decades in its most likely scenario. But that picture shifts radically if governments take further action to limit global warming to less than 2 degrees Celsius with more stringent policies like carbon pricing, strict emissions limits and the removal of fossil-fuel subsidies. If that happens, oil demand could peak within the next 10 years, the IEA says. "The question is more a question of when, rather than if," Dominic Emery, BP's vice president for long-term planning and policy, told the Economist Energy Summit in London this month. BP says oil demand could fall by the late 2020s if tougher emissions laws are enacted. Others don't see peak demand coming so quickly. Exxon expects consumption to grow through 2040, though at a decelerating pace. Likewise, OPEC sees demand continuing to grow beyond 2040, but acknowledges new technologies and efforts to curb climate change could mean consumption peaks within the next three decades. Still, OPEC mainstay Saudi Arabia, the world's largest exporter of oil, is pushing its state oil company to invest heavily in petrochemical plants around the world. The kingdom is trying to diversify away from oil, publicly list Aramco to raise money for other industries, and build a new base of renewable energy. Peak demand "will be later than the common dates that are being thrown around, but if it does happen, because we're building multiple engines for the economy and we're planning for an economy beyond oil, we'll be ready," Saudi Arabia's energy minister, Khalid al Falih, told a conference in Istanbul last month. Timing and preparing for peak demand are critical to companies' fortunes. Energy producers could move too fast to adapt to shifts that are still years away. Or new technologies and policies could leave them vulnerable to changes that happen sooner than expected. "There's risks on both sides," said Paul McConnell, research director of global trends at Edinburgh-based consultancy Wood Mackenzie. Shell, Exxon and others are pouring money into natural gas --a less-carbon-intensive fossil fuel they bet will benefit from efforts to curb global emissions. In China, where growing oil demand has supported global markets for years, the state-owned energy giants are aggressively embracing natural gas as a fuel for use in everything from power generation to running cars. Several of the world's biggest oil companies are also increasing their focus on alternative energy sources like solar and biofuels. France's Total SA has said it wants 20% of its portfolio to consist of low-carbon businesses within the next 20 years. The company hasn't commented on the prospect of peak demand. Peak demand is already arriving in some regions. In Europe, for instance, the IEA sees consumption most likely falling to 10.8 million barrels a day by the end of the decade from 11.7 million barrels a day in 2015. Those numbers are driving big changes at companies like MOL. "To come to a point to say that, wow, maybe the future will be different and maybe we have to prepare ourselves for a different world...that was not easy for guys like myself," said Ferenc Horvath, head of the Hungarian company's refining and petrochemicals business. Bradley Olson in Houston contributed to this article. Write to Sarah Kent at sarah.kent@wsj.com and Brian Spegele at brian.spegele@wsj.com More * How Iran, Russia Could Derail Oil-Production Deal * OPEC May Give Trump Energy Goals a Boost * U.S. Energy Firms Step Up Business Investment * U.S. Now a Net Exporter of Natural Gas * Economic Effects of OPEC's Output Decisions Credit: Sarah Kent, Brian Spegele
Subject: Natural gas; Oil consumption; Alternative energy sources; Emissions; Climate change; Decades; Fund raising
Location: Saudi Arabia
People: Henry, Simon
Company / organization: Name: China National Petroleum Corp; NAICS: 211111; Name: Saudi Arabian Oil Co; NAICS: 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843834144
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843834144?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC May Give Trump Energy Goals a Boost; An agreement to cut production could lead to higher global oil prices
Author: Gold, Russell
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
Nonetheless, a coordinated agreement by OPEC, led by Saudi Arabia, to tighten supplies to oversupplied oil markets could provide a windfall for independent oil and gas producers such as Mr. Hamm, and generate momentum for Mr. Trump's energy-independence plans.
Full text: Donald Trump says he plans to make America energy-independent. He may receive an unintended boost this week in the form of an oil production cut by Organization of the Petroleum Exporting Countries, which could raise crude prices. Mr. Trump has pledged to slash regulations he sees as impediments to U.S. fossil-fuel industries. But, the U.S. has moved closer to energy independence in recent years. Oil imports are down and exports of natural gas and diesel are up. Overall, the net amount of energy brought into the country fell to 11.2% of domestic need in 2015 from 30.1% in 2006, according to Gregor Macdonald, an independent energy analyst. Energy experts say the biggest barrier to additional increased domestic oil production today is the low price of crude, not red tape. While the President-elect has certain extraordinary levers he could try to use to raise oil prices--including restricting imports of crude from countries such as Saudi Arabia--the actions could prove politically controversial, and likely to drive up prices at the pump, something politicians are historically loath to do. However, OPEC, which declined to curtail its output to put a floor on prices two years ago, is now trying to reach an agreement this week in Vienna to cut production as a way to address a continuing imbalance between supply and demand. That may be a boon for Mr. Trump and U.S. oil and gas producers, who helped create the global glut by using advances in horizontal drilling and hydraulic fracturing to unlock new supplies. Oil companies would be able to clean up damaged balance sheets, and increase the pace of drilling, if an OPEC production cut leads global prices to tick up over $50 a barrel and stabilize. In a YouTube video last week detailing his plans for his first 100 days in office, Mr. Trump promised to roll back regulations on energy. "I will cancel job-killing restrictions on the production of American energy, including shale energy and clean coal, creating many millions of high-paying jobs," he said. While industry officials applaud such measures, many say they need higher prices to kick production into another gear. "To get the full blown benefit of all the reserves out there, you need a higher and stable price," says Lee Fuller, executive vice president of the Independent Petroleum Association of America. Although total energy independence may be difficult, if not impossible, for the U.S. to achieve, the country is closer to that goal today than it has ever been since the early 1970s. In August 2008, the U.S. produced five million barrels a day of crude oil. Eight years later, production was at 8.7 million barrels, according to the latest monthly tally from the Energy Information Administration. That is down from a peak of 9.6 million barrels daily in April 2015, as domestic oil production has fallen in recent months and imports have risen because lower global oil prices led U.S. producers to idle drilling rigs and cut production budgets. Still, the strength of American oil production gives Mr. Trump more room to maneuver, and more ability to adopt a foreign policy that challenges Saudi Arabia and the rest of OPEC. The U.S. boom "offers a grand opportunity to strengthen our ties with our allies and friends and gives us commercial leverage," said Kathleen Harnett White, a former environmental regulator in Texas who is now a policy fellow at the Texas Public Policy Foundation, a conservative think tank based in Austin. Mr. Trump and his advisers have railed against OPEC. "He is operating from this widespread view, formed in the 1970s, that OPEC is manipulating the price of oil to the detriment of the U.S.," says Robert McNally, president of energy-advisory firm the Rapidan Group and a former National Security Council adviser for energy under President George W. Bush. Many people close to the incoming president view Saudi Arabia, a key OPEC member, with distrust. One of Mr. Trump's key energy advisers is Harold Hamm, the chairman and chief executive of Continental Resources Inc. Mr. Trump has praised him as an "amazing friend" and a valuable guide on energy issues. In an interview earlier in November following Mr. Trump's election, Mr. Hamm suggested a new relationship with America's overseas oil suppliers. "Some of the countries, Saudi Arabia in particular, have been treated too kindly, because of the large supply of oil," Mr. Hamm said. "I don't think that may be the case in the future." Nonetheless, a coordinated agreement by OPEC, led by Saudi Arabia, to tighten supplies to oversupplied oil markets could provide a windfall for independent oil and gas producers such as Mr. Hamm, and generate momentum for Mr. Trump's energy-independence plans. There is no question that the U.S. has the capacity to ramp up production, if prices support it. There is a sea of oil, in particular, in West Texas' Permian Basin. The U.S. Geological Survey recently estimated that the area's Wolfcamp Shale held 20 billion barrels of oil. That is three times the size of the Bakken Shale in North Dakota, and the largest continuous oil accumulation ever assessed in the U.S. At present, operators in the Permian Basin produce about two million barrels a day. Bud Brigham, founder of Brigham Resources LLC, said production could double or triple within a few years. "It has legs and it has depth," he said. If that were to happen, the U.S. would tilt even further from being an importer to an exporter nation. In 2008, U.S. oilmen such as Mr. Brigham were just beginning to figure out how to apply hydraulic fracturing technology to the Bakken Shale, the first steps in what has turned into a domestic oil renaissance in the U.S. Now the limitations are more economic than technological. Mr. Macdonald said Mr. Trump's vision of energy independence has been largely achieved. "The entire vision of an America as an energy powerhouse that produces more of its own energy, uses more of its own energy and exports the surplus...it is already here," he said. The Obama administration didn't promote that vision, he added. "The reason America doesn't know that is because of a failure of sales and marketing." Mr. Trump is pledging to promote U.S. energy output, and OPEC's attempts to raise prices may give him a head start--without tying him to resulting gasoline price increases. "The popularity of the U.S. president is directly related to the price of gasoline at the pump," said Bill Ritter, a former Colorado governor and director of the Center for the New Energy Economy at Colorado State University. "You are in really dangerous territory if a president impacts it." Ted Mann contributed to this article. Write to Russell Gold at russell.gold@wsj.com Related Coverage * Oil Industry Braces for Peaking Demand * How Iran, Russia Could Derail Oil-Production Deal * U.S. Energy Firms Step Up Business Investment * U.S. Now a Net Exporter of Natural Gas * Economic Effects of OPEC's Output Decisions Credit: By Russell Gold
Subject: Crude oil prices; Supply & demand; Petroleum production
Location: United States--US Saudi Arabia
Company / organization: Name: Independent Petroleum Association of America; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843845522
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843845522?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Firms Anticipate Day of Reckoning
Author: Kent, Sarah; Spegele, Brian
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Nov 2016: A.1.
Abstract:
Big oil players such as Exxon Mobil Corp, BP PLC and Saudi Arabia -- which is leading recent efforts by the Organization of the Petroleum Exporting Countries to boost oil prices -- are also anticipating significant shifts in demand, though there is no consensus on the timing and their moves have been gradual. [...]that picture shifts radically if governments take further action to limit global warming to less than 2 degrees Celsius with more stringent policies like carbon pricing, strict emissions limits and the removal of fossil-fuel subsidies.
Full text: This month, European oil company MOL Group delivered a stark message to investors: Demand for fuel in its key markets is bound to fall. Peak oil demand -- when global consumption crests and begins a permanent decline -- is a mind-bending scenario that global producers such as Royal Dutch Shell PLC and state-owned Saudi Aramco are beginning to quietly anticipate. But MOL has a transformation plan that is among the most explicit responses to the trend, indicating how the landscape may change for big energy providers over the next decade. The Hungarian company is rethinking its traditional focus on fuel supply and shifting investment to petrochemicals, the key ingredient of everyday plastic products and a sector where MOL believes growth will continue even when its fuel business falters. Although there will still be customers for its fuel, the company reckons demand will soon flatten and then start falling in its Eastern European markets around 2030. "We see that as an inevitability," MOL Chief Financial Officer Jozsef Simola said. Big oil players such as Exxon Mobil Corp, BP PLC and Saudi Arabia -- which is leading recent efforts by the Organization of the Petroleum Exporting Countries to boost oil prices -- are also anticipating significant shifts in demand, though there is no consensus on the timing and their moves have been gradual. They are increasing their investment in petrochemicals, pumping more natural gas, driving down costs and even diversifying into alternative energy sources like solar power. Last month Shell finance chief Simon Henry caused a stir when he said the company sees oil demand peaking in five to 15 years. Shell's latest published forecasts have consumption flattening toward the end of that period. State-owned China National Petroleum Corp. quietly issued a report in the summer predicting that China's oil consumption -- a major driver of global growth in recent decades -- will begin to fall by 2030, if not sooner. Global demand is expected to follow suit. The International Energy Agency, which advises industrialized countries on energy policy, says consumption will continue to rise for decades in its most likely scenario. But that picture shifts radically if governments take further action to limit global warming to less than 2 degrees Celsius with more stringent policies like carbon pricing, strict emissions limits and the removal of fossil-fuel subsidies. If that happens, oil demand could peak within the next 10 years, the IEA says. "The question is more a question of when, rather than if," Dominic Emery, BP's vice president for long-term planning and policy, told the Economist Energy Summit in London this month. BP says oil demand could fall by the late 2020s if tougher emissions laws are enacted. Others don't see peak demand coming so quickly. Exxon expects consumption to grow through 2040, though at a decelerating pace. Likewise, OPEC sees demand continuing to grow beyond 2040, but acknowledges new technologies and efforts to curb climate change could mean consumption peaks within the next three decades. Still, OPEC mainstay Saudi Arabia, the world's largest exporter of oil, is pushing its state oil company to invest heavily in petrochemical plants around the world. The kingdom is trying to diversify away from oil, publicly list Aramco to raise money for other business lines and build a new base of renewable energy. Peak demand "will be later than the common dates that are being thrown around, but if it does happen, because we're building multiple engines for the economy and we're planning for an economy beyond oil, we'll be ready," Saudi Arabia's energy minister, Khalid al Falih, told a conference in Istanbul last month. Timing and preparing for peak demand are critical to companies' fortunes. Energy producers could move too fast to adapt to shifts that are still years away. That could hurt them by producing too much of next-generation fuels for which demand isn't yet mature. Or new technologies and policies could leave them vulnerable to changes that happen sooner than expected. "There's risks on both sides," said Paul McConnell, research director of global trends at Edinburgh-based consultancy Wood Mackenzie. Shell, Exxon and others are pouring money into natural gas -- a less-carbon-intensive fossil fuel they bet will benefit from efforts to curb global emissions. Several of the world's biggest oil companies are also increasing their focus on alternative energy sources like solar and biofuels. Peak demand is already arriving in some regions. In Europe, for instance, the IEA sees consumption most likely falling to 10.8 million barrels a day by the end of the decade from 11.7 million barrels a day in 2015. Those numbers are driving big changes at companies like MOL. "To come to a point to say that, wow, maybe the future will be different and maybe we have to prepare ourselves for a different world . . . that was not easy for guys like myself," said Ferenc Horvath, head of the Hungarian company's refining and petrochemicals business. --- Bradley Olson in Houston contributed to this article. Credit: Sarah Kent, Brian Spegele
Subject: Alternative energy sources; Supply & demand; Oil consumption
Location: Saudi Arabia
People: Henry, Simon
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: MOL Group; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2016
Publication date: Nov 28, 2016
Publisher: Do w Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1843846935
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1843846935?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Faith in OPEC Deal Turns Options Traders Into Oil Bulls; Investors have concentrated on contracts that pay out when West Texas Intermediate hits $55 a barrel
Author: Banerji, Gunjan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
While prices of crude futures have been whipsawed by uncertainty ahead of the Organization of the Petroleum Exporting Countries' meeting this week , market participants have built up bullish positions in options.
Full text: Oil prices have jumped 8.7% since Nov. 14 when OPEC said its members agreed to cut output. Options players are betting on another 17% run-up in prices. As of Friday, traders have concentrated on contracts that pay out when West Texas Intermediate hits $55 a barrel. While prices of crude futures have been whipsawed by uncertainty ahead of the Organization of the Petroleum Exporting Countries' meeting this week , market participants have built up bullish positions in options. Open interest, or the number of contracts outstanding, of $55 WTI calls that expire in January has nearly doubled in the last month, according to QuikStrike, an options pricing and analysis tool that uses data from CME Group Inc., the world's largest operator of derivatives exchanges. On the bearish side, investors have coalesced around a strike--the level at which an option can be exercised--of $40, with 26,557 contracts of puts outstanding at that price. That falls short of the 30,254 calls at $55 as of Nov. 25, a level oil hasn't surpassed since July 2015. Overall, calls on crude futures outnumber puts by a ratio of five to four, data show. "There's a lot of upside trading activity," said Nick Howard, chief executive officer at QuikStrike. Some investors are using options to bet the swing will be wild, whether up or down, by using a trade known as a straddle, which involves buying both puts and calls, according to Commodity Research Group. "There are so many scenarios that you can think of that are possible" that a bet on futures is too risky, said CRG's Jim Colburn. "Just buy volatility." Oil market participants have been speculating OPEC, the 14-member cartel that controls one-third of the world's crude production, could strike a deal to slash production. On Nov. 21, Goldman Sachs raised its forecast for oil in the first half of 2017 to an average of $55, citing expectations of lower production. The open interest in strike prices spanning between $50 and $55 is roughly twice what it normally would be for January and February contracts in WTI and Brent, the U.S. and global benchmarks for oil, respectively, said John Gretzinger, head of energy at INTL FCStone, a financial services firm, noting there has been a lot of hedge-fund and buy-side interest recently. OPEC members such as Saudi Arabia and Iran have said they want prices to return to a range of $55 to $60 a barrel, a level that would stop the bleeding in their national budgets. Not all traders and investors are sold on the trade. Analysts at Credit Suisse said if OPEC fails to agree on production cuts, U.S. oil could fall to $35 a barrel at the beginning of next year--a price level at which options players have also increased hedges. Questions remain over how much OPEC is willing to cut, said Rob Haworth, a senior investment strategist at U.S. Bank Wealth Management. "Unless OPEC can really cut production and deliver on that, we're still a year away from this market getting back into balance," Mr. Haworth said. The buildup in the options markets ahead of the meeting could lead to a seismic unraveling that adds to selling pressure should OPEC disappoint, Mr. Gretzinger said. "The stakes are higher," he said. "The positions are bigger than they normally are." Trading volumes have shot up. The average daily volume of WTI options hit an all-time record on Nov. 15 of about 430,000 contracts traded, according to the CME Group. While CME launched weekly crude options in 2014, the popularity of these shorter-dated contracts took off this year, said Jeff White, senior director of energy products at CME Group. Weekly crude oil options trading is up 54.5% year-over-year as of Friday, according to CME. "Weekly options give traders even more granularity around market-moving events," Mr. White said. "More volume stems from increased participants in the oil market in general." Tim Puko, Benoit Faucon and Georgi Kantchev contributed to this article. Write to Gunjan Banerji at Gunjan.Banerji@wsj.com Related * Traders Bet OPEC Will Tighten Spigots Credit: By Gunjan Banerji
Subject: Securities prices; Futures; Options markets; Price increases
Company / organization: Name: CME Group; NAICS: 523210; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: Credit Suisse Group; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844049408
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844049408?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Mom's Big Oil Bet Bites the Dust; Demise of two popular ETNs shows risks of such investments
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2016: n/a.
Abstract:
(Nov. 29) One of the stock market's most popular investments--a favorite of "moms and millennials "--is being delisted with an offer of early redemption, showing once again why complicated structured products that promise high returns are best avoided.
Full text: Corrections & Amplifications: Exchange-Trade Notes sponsored by Credit Suisse are being delisted and shareholders are being offered early redemption on the notes. A Heard on the Street column on Monday said the ETNs are being shut down. Some of the notes may continue to trade over the counter. (Nov. 29) One of the stock market's most popular investments--a favorite of "moms and millennials "--is being delisted with an offer of early redemption, showing once again why complicated structured products that promise high returns are best avoided. With the explosion in the number of exchange-traded products, inevitable closures have followed. Some fill no real investor need--whiskey, Mongolia or Nashville, for example. Others just didn't trade enough. That wasn't the issue for two hugely popular exchange-traded notes by VelocityShares that give investors triple daily exposure to gains or losses in a crude-oil index. The larger of the two, with the ticker symbol UWTI, turned over an astounding half of its shares on typical trading days. In dollar terms last Monday that was as much as Exxon Mobil, the world's largest listed oil company. But sponsor Credit Suisse will delist both ETNs from the New York Stock Exchange Arca market on Dec. 9 and cease issuing new units. To understand why, consider the difference between ETNs and more numerous exchange-traded funds, or ETFs. An ETN is an unsecured loan to a bank that provides exposure to a specific asset. If you buy and hold the ETN--and no one does--the bank promises to pay you on a specified maturity date-- 2032 in the case of UWTI and DWTI--unless it "accelerates" redemption. There are multiple problems with products like this. In 2012, Credit Suisse suspended issuance of an ETN that was supposed to produce twice the return of VIX volatility futures. Prices rose to a premium over the notional value of the shares, prompting short sellers to step in on what seemed like a sure bet that the premium would be wiped out. But prices kept rising and forcing short sellers to scramble to buy shares. Prices soared to 90% above their notional value and then collapsed in a matter of days. Even without such dislocations, a leveraged ETN can be an awful investment. While crude oil has lost around half of its value since February 2012, UWTI is down a whopping 99.6%, undergoing multiple reverse splits to avoid becoming a penny stock. At least a slow 99.6% loss is better than a quick 100% in event of bankruptcy. Owners of Lehman Brothers ETNs had to get in line with the bank's other unsecured creditors. So why is Credit Suisse pulling the plug on cheap money it doesn't have to repay for 16 years? Probably because, from a regulatory perspective, it isn't so cheap, especially for a bank that is trying to boost its capital. The bank's hedges, volatile oil derivatives, count toward its risk-weighted assets. But at least Credit Suisse is repaying the money quickly, which it isn't required to do. When it delisted some ETNs in 2009 , the bank dragged its feet repaying the cash. Regardless, steer clear of this "going out of business sale." Spencer Jakab Write to Spencer Jakab at spencer.jakab@wsj.com Credit: By Spencer Jakab
Subject: Stock exchanges; Volatility; Stock market delistings
Location: Mongolia Nashville Tennessee
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Credit Suisse Group; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 28, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844049446
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844049446?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
How Iran, Russia Could Derail Oil-Production Deal; OPEC members engage in a last-minute blitz of diplomacy ahead of a meeting on Wednesday
Author: Faucon, Benoit; Kantchev, Georgi; Amon, Michael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.
Abstract:
VIENNA--The world's biggest oil producers on Monday intensified talks over an oil-output agreement but failed to resolve disputes over production in Iran, Iraq and Russia that have emerged as potentially deal-breaking obstacles. The Organization of the Petroleum Exporting Countries was trying to nail down the details of a September agreement to cut production and reduce a global oversupply of oil.
Full text: VIENNA--The world's biggest oil producers on Monday intensified talks over an oil-output agreement but failed to resolve disputes over production in Iran, Iraq and Russia that have emerged as potentially deal-breaking obstacles. The Organization of the Petroleum Exporting Countries was trying to nail down the details of a September agreement to cut production and reduce a global oversupply of oil. The negotiations come ahead of an official OPEC gathering at its Vienna headquarters on Wednesday, two years after the 14-nation cartel decided to let prices fall, sending the market to historic lows and ushering in a period of cheap prices for consumers. Saudi Arabia and other countries within OPEC are pushing for an output cut of more than 1 million barrels a day from the cartel--more than 1% of global supply. Saudi Arabia, the world's top exporter of crude and OPEC's most influential country, also wants substantial contributions to a cut from producers outside the cartel, like Russia, the world's largest producer of oil. A diplomatic blitz ensued Monday to save a deal that was thrown into question on Sunday when Saudi Arabia's powerful energy minister, Khalid al-Falih, said the market could right itself without an OPEC cut. Mr. Falih had previously been one of the biggest advocates for a production cut. Some progress was made Monday. Iranian and Iraqi officials indicated in a private meeting they would consider holding their output steady, a change in position as both countries had initially said they wanted to keep increasing output, a person familiar with the matter said. But Iraqi officials were often on the phone talking to their superiors, underscoring the tenuousness of the talks, the person said. And a promise to freeze production may not satisfy the Saudis either as they have indicated they want other OPEC members to cut. On Monday, Russian President Vladimir Putin and Iranian President Hassan Rouhani said they had agreed to coordinate their production, though they didn't disclose details. That pledge fell short of the agreement to cut that Saudi Arabia has been looking for. At the same time, Algerian and Venezuelan oil ministers Noureddine Bouterfa and Eulogio del Pino, respectively, flew to Moscow on Monday to try to bring the Russians onboard for a production cut. Oil prices rose amid the negotiations on Monday, with Brent crude rising 2.2% at $49.31. Saudi Arabian officials are concerned by the reluctance of other countries to join cuts, OPEC officials have said, worrying they will trim their own production and then watch other countries swoop in and steal the kingdom's former market share, as happened during the 1980s. While countries that have suffered disruptions such as Nigeria and Libya will likely get exemptions, Saudi officials don't want to make sacrifices and then allow rival Iran to keep raising output. "If they are going to cut their production, the Saudis don't want others to replace them," one OPEC official said. Iran oil minister Bijan Zanganeh told state television that he "hoped oil won't not be used as a political tool" when the group meets Wednesday. Iran, Iraq and Russia all want prices to rise, but they have fewer incentives to cut production than some others. Russia wants prices to rise, as it relies on oil and gas for just under half its national revenue. But the country has less room to maneuver than Saudi Arabia, with much of its oil industry under Western sanctions and oil fields located in icy Siberia where fields could easily be damaged if shut down. Iraq wants to pump every barrel it can as it needs to finance a costly war with the radical Islamic State. The country has also disputed the independent data used by OPEC to calculate its production, saying it underestimate its production by about 200,000 barrels a day. Iran is trying to regain the share of the oil-buying market it enjoyed before Western sanctions over its nuclear program crippled its energy industry. Even at low prices, it is useful for Iran to rebuild relationships with European refineries and Asian buyers. Iran has a more diverse economy than many of its fellow OPEC members. The Islamic Republic relies on crude-oil exports for about 25% of its budget, compared with 70% in Saudi Arabia and more than 40% in Venezuela. A former Iranian oil official, Manouchehr Takin, said Saudi Arabia and Iran were likely to put aside their differences this time because the stakes are higher. Some analysts have said oil prices could again fall below $35 a barrel if OPEC fails to make an agreement this week. "What you're seeing now is horse-trading," Mr. Takin said. "When there is a crisis, OPEC always come together and take action together." Selina Williams and Kevin Baxter in London contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com , Georgi Kantchev at georgi.kantchev@wsj.com and Michael Amon at michael.amon@wsj.com Related News * The Problem for OPEC in Three Charts * OPEC Has Been Here Before--in 1986 * OPEC May Give Trump Energy Goals a Boost * Oil Industry Braces for Peaking Demand * U.S. Energy Firms Step Up Business Investment * U.S. Now a Net Exporter of Natural Gas * Economic Effects of OPEC's Output Decisions Credit: By Benoit Faucon, Georgi Kantchev and Michael Amon
Subject: Cartels; Agreements; Energy industry
Location: Iraq Russia Iran Saudi Arabia
People: del Pino, Eulogio Rouhani, Hassan Putin, Vladimir
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 29, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844105299
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844105299?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Brent Oil Rises Over 2% Ahead of OPEC Meeting; Brent is up 2.1% or $1.00 at $48.24 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.
Abstract: None available.
Full text: 0046 GMT [Dow Jones] Brent oil prices are up in early Asia trade Tuesday ahead of a meeting Wednesday among major OPEC members who are making last-ditch diplomatic efforts to forge an agreement to rein in excess oil supplies. "Saudi Arabia had earlier suggested the group doesn't necessarily need to cut production. However, Iraq's Oil Minister Jabbar al-Luaibi said he's 'optimistic' a deal will be reached at OPEC's summit in Vienna on Wednesday," says ANZ Research, adding that volatility will continue to be high as headlines around OPEC's meeting pushes prices around. Nymex is down 0.5% or 24 cents at $46.84, Brent is up 2.1% or $1.00 at $48.24 a barrel. Credit: By Jenny Hsu
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 29, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844111835
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844111835?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Discord Sends Oil Prices Lower; If cartel decides to abandon its pledge to cut output, analysts say oil prices will be hit hard in the short term
Author: Yang, Stephanie; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.
Abstract:
Oil prices plunged to a two-week low Tuesday as traders expressed doubt that months of negotiations would lead major oil-producing nations to reach a deal to cut output at OPEC's Wednesday meeting. "Higher oil prices mean non-OPEC producers will be more encouraged to drill for more oil, which will increase global supply and prices will be depressed again," said Gao Jian, an energy analyst at SCI International.
Full text: Oil prices plunged to a two-week low Tuesday as traders expressed doubt that months of negotiations would lead major oil-producing nations to reach a deal to cut output at OPEC's Wednesday meeting. Anticipation of action to limit output has boosted the crude market in recent weeks. But comments from officials ahead of the meeting sowed doubts over the Organization of the Petroleum Exporting Countries' ability to come to an agreement. Light, sweet crude for January delivery declined $1.85, or 3.9% to $45.23 a barrel on the New York Mercantile Exchange, its lowest close since Nov. 14. Brent, the global benchmark, settled down $1.86, or 3.9%, at $46.38 a barrel. A key concern for investors leading up to the meeting has been whether OPEC members Iran and Iraq will cooperate in the planned production cuts. While officials said Tuesday that the two countries have expressed willingness to keep output steady, worries over a potential deadlock are pressuring oil prices. "With member delegations already gathered in Vienna ahead of [Wednesday's] formal meeting, it is increasingly clear that key divisions still remain," said Robbie Fraser, commodity analyst at Schneider Electric, in a note. Germany's Commerzbank said the main hurdle for the meeting will be resolving conflicting demands from Saudi Arabia and Iran, with Saudi Arabia's insistence that Iran cap production while Iran seeks an exemption from the cuts. Other members have expressed mixed feelings going into the meeting, contributing to volatility in the oil market. Sentiment has reversed substantially from a week ago, said Donald Morton, senior vice president at Herbert J. Sims Co., who runs an energy-trading desk. "Wall Street has completely flip-flopped," Mr. Morton said. "I've never seen so many changes in opinion in such a short period of time." Goldman Sachs analysts said the oil market reflects a 30% probability that the cartel will come to a deal Wednesday. On Tuesday, Macquarie analysts said the probability of a deal has fallen but still expect the cartel to arrive at an agreement. In September, OPEC agreed on targets that would have translated into production cuts of 200,000 to 700,000 barrels a day. Analysts say that if the Wednesday meeting ends inconclusively, oil prices could fall to as low as $35 a barrel. "I don't think OPEC can afford a complete fiasco here. If there is one, prices are bound to work lower," said Andy Lebow, senior partner at Commodity Research Group. Most observers agree that Saudi Arabia wants a swift resolution, but Iran will likely wait until the formal meeting is under way before the country's negotiators show their hand. Another challenge for the production accord is Russia, which isn't an OPEC member. Russia has indicated it is only interested in holding production at 11.2 million barrels a day. A freeze, it said, is essentially a reduction because it planned to increase output next year. OPEC will also struggle to nail down production quotas for member nations as several countries, such as Nigeria and Libya, have requested exemptions because their oil production and exports have been hurt by militant attacks. In addition, OPEC doesn't have the authority to make members comply with their production assignments. If OPEC decides to abandon its pledge to cut output, oil prices will be hit hard in the short term. However, Bjarne Schieldrop of Swedish bank SEB said the market was likely to shrug off the setback and oil will likely trade back to around $48 a barrel by the end of 2016. "Higher oil prices mean non-OPEC producers will be more encouraged to drill for more oil, which will increase global supply and prices will be depressed again," said Gao Jian, an energy analyst at SCI International. In the U.S., where many oil producers were forced out of the market when prices dropped below $40 a barrel, there are signs of resilience. The latest forecasts from the U.S. Energy Department show domestic crude production is likely to hit 8.7 million barrels a day in 2017, 100,000 barrels a day higher than the previous estimate. Production elsewhere is also climbing. North Sea producers, which have been troubled by rising costs and high taxes, recently increased output to a three-year high. That shows that any OPEC agreement would have a limited impact on the global crude glut, said Hamza Khan, head of commodity strategy at ING Bank. "The whole concept is so silly," Mr. Khan added. "If one part of the world cuts, supply will come online in other parts of the world...and it will come on very quickly." Market players will also be following the weekly inventory report from the U.S. Energy Information Administration. Analysts and traders surveyed by The Wall Street Journal expect crude-oil stockpiles to rise on average by 100,000 barrels in the week ended Nov. 25. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 700,000-barrel decrease in crude supplies, a 3.3-million-barrel increase in gasoline stocks and a 2.2-million-barrel increase in distillate inventories, according to a market participant. Gasoline futures settled down 2.5% at $1.3771 a gallon, and diesel futures settled down 3.3% at $1.4627 a gallon. Write to Stephanie Yang at stephanie.yang@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Read More * Saudis Face Tough Choice: Lead Cuts or Walk Away * Indonesia May Not Join OPEC Production Cuts * A Six-Day Rally in Natural Gas Pauses * In Oil, the Big Bet Is on a Big Swing * OPEC May Give Trump Energy Goals a Boost * How Iran, Russia Could Derail Oil-Production Deal * Measuring the Economic Spillover of OPEC's Oil Output Decisions * OPEC Agrees on Need to Cut Oil Output (Sept. 28) Credit: By Stephanie Yang and Kevin Baxter
Subject: Crude oil prices; Cartels; Petroleum production
Location: Iran Saudi Arabia
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 29, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844160543
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844160543?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Traders Bet OPEC Will Tighten Spigots --- U.S. price rises to $47 as signs emerge that oil producers are near consensus on cutbacks
Author: Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Nov 2016: B.12.
Abstract:
Members of the Organization of the Petroleum Exporting Countries have been trying for months to strike a deal to reduce output and ease a global glut of crude.
Full text: With OPEC members heading toward a possible showdown this week at their meeting in Vienna, crude prices rallied Monday as traders bet that major oil producers still can reach an agreement to cut production. U.S. crude futures climbed $1.02, or 2.21%, to $47.08 a barrel on the New York Mercantile Exchange. The global crude benchmark Brent advanced $1, or 2.12%, to $48.24 a barrel on London's ICE Futures Exchange. Members of the Organization of the Petroleum Exporting Countries have been trying for months to strike a deal to reduce output and ease a global glut of crude. In late September, the group announced a tentative plan to implement production cuts. But they left out important details, guaranteeing volatility for oil in the run-up to the group's Nov. 30 meeting. Arriving in Vienna, Iraq Oil Minister Jabar al-Luaibi said Monday that he was confident OPEC would reach an agreement this week. Iran and Iraq, which have previously said they want to keep increasing output, indicated in a private meeting Monday they would consider holding production steady, according to a person familiar with the matter. That is part of what drove prices higher Monday, said John Kilduff, founding partner of Again Capital. "Iran and Iraq are holding the key to getting a deal done," he said. "Their rhetoric counts right now." But there have been few indications that OPEC's members have found a way around the hurdles that have kept them from reaching an accord, even with a strong push by Saudi Arabia. Russia, which isn't a member of OPEC, has stopped short of saying it would curtail output. Still, many market participants believe the stakes are too high for OPEC members to fail to reach a deal. Oil prices last month climbed above $50 after the cartel pledged to cut production. Some analysts now fear that U.S. crude could plunge below $40 level if oil ministers leave Vienna empty handed. One challenge for OPEC is to nail down how much each country will be allowed to produce. Another is enforcing any arrangement when the group has a notoriously poor record of compliance and the fact that some sizeable oil producers, like Nigeria and Libya, are exempt from the negotiations. OPEC's output also has continued to climb over the past two months, with many countries pumping more oil even as they discussed freezing or curtailing production. In September, OPEC agreed to target production levels that would have translated into a 200,000 to 700,000 barrel-a-day reduction. Tariq Zahir, managing member of Tyche Capital Partners, said the group would now have to agree to cut at least one million barrels a day to make a meaningful dent in supply. "I think there's going to be some kind of a deal done to save face," Mr. Zahir said. "But you need to have a serious cut." Even if OPEC strikes a deal, its impact on prices may be short-lived. "We may be seeing prices in the low 40s before we see the high 50s," said Mark Anderle, director of supply and trading at TAC Energy. Gasoline futures rose four cents, or 2.91%, to $1.4127 a gallon. Diesel futures rose 4.28 cents, or 2.91%, to $1.5128 a gallon. Credit: By Alison Sider
Subject: Cartels; Price increases; Crude oil; Petroleum production
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2016
Publication date: Nov 29, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844291560
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844291560?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Iran, Iraq Soften on OPEC Production Agreement; Saudi Arabia, however, still may not be satisfied as oil producers prepare to meet in Vienna
Author: Faucon, Benoit; Kantchev, Georgi; Amon, Michael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.
Abstract:
In last-minute negotiations, officials said, Iraq has said it would hold its output steady to secure an agreement to bolster oil prices with the Organization of the Petroleum Exporting Countries, the 14-nation cartel that controls a third of the world's crude output. Iran, which is on the opposite side of Saudi Arabia in violent conflicts in Syria and Yemen, wants to increase output to regain market share it lost when Western sanctions targeted its oil industry.
Full text: Corrections & Amplifications: Saudi Arabia's energy minister Khalid al-Falih and Iran's Bijan Zanganeh were scheduled to arrive in Vienna for the OPEC meeting on Tuesday. An earlier version of this article incorrectly stated that they were scheduled to arrive on Wednesday. VIENNA--Iran and Iraq have softened their positions ahead of a crucial OPEC meeting on Wednesday, OPEC officials said, but it may not be enough to satisfy Saudi Arabia's demands for a broad-based oil-production cut . In last-minute negotiations, officials said, Iraq has said it would hold its output steady to secure an agreement to bolster oil prices with the Organization of the Petroleum Exporting Countries, the 14-nation cartel that controls a third of the world's crude output. Iran has told fellow OPEC members it would be willing to freeze its production in early 2017 after clawing back the market share it lost during years of Western sanctions, the officials said. The Iraqi and Iranian proposals are being circulated in a briefing paper among OPEC members preparing for a gathering seen as a crucial test of its ability to influence oil markets. The cartel is aiming to cut into a global oversupply of oil that has dragged prices to half their levels of 2014. The proposal would have OPEC cut more than one million barrels a day, or more than 1% of global oil supply. Iraqi officials didn't respond to requests for comment about the proposals. OPEC members have expressed mixed feelings ahead of the gathering. Arriving at his hotel on Tuesday, Iranian Oil Minister Bijan Zanganeh offered no details of what his country was negotiating. He said he wanted OPEC to stick to the agreement struck in September in Algiers, where the cartel said it would cut back production but gave Iran undefined special treatment. Ecuador's Foreign Minister Guillaume Long said OPEC members agreed on the need to cut production but disagreed "as to how much each country should sacrifice." He said Ecuador was willing to cut its own output and to give Iran and Iraq special treatment. "Based on my conversations with my colleagues, I feel there is definitely a political will to find a solution," he said. Saudi Arabian Energy Minister Khalid al-Falih didn't address reporters after arriving in Vienna on Tuesday. On Sunday, he upended expectations for the meeting when he said a production cut may not be needed to rebalance the market. Saudi officials have indicated that they want either a broad-based production cut or no deal at all. Saudi Arabia has also revived demands toward Iran, which has been trying to negotiate an exemption from cuts. Iran, which is on the opposite side of Saudi Arabia in violent conflicts in Syria and Yemen, wants to increase output to regain market share it lost when Western sanctions targeted its oil industry. One OPEC official said Saudi Deputy Crown Prince Mohammed bin Salman has played a role in the tough new stance. He is the architect of Saudi Arabia's military ambitions and scuttled an oil-production deal with OPEC members in April because Iran didn't participate. Representatives of the prince didn't respond to requests for comment. "There seems to be a disconnect among the Saudis," the OPEC official said. "Their guys in Vienna have no mandate to negotiate anything." Another OPEC official said the Saudis were fully empowered. "The Saudi policy is consistent," this official said. Saudi Arabia and its Persian Gulf allies Qatar, Kuwait and the United Arab Emirates, don't want to be on the hook for the bulk of oil-output cuts . The agreement being circulated in Vienna would ask 10 OPEC members to make a 4.5% production cut, the officials said. Libya and Nigeria would be exempted because they are increasing output after civil unrest disrupted their oil industries. Tehran is close to agreeing to a freeze once it reaches its 3.97 million barrels a day early next year, the OPEC officials said. Iran, OPEC's third-largest producer behind Saudi Arabia and Iraq, says it pumped 3.92 million barrels a day in October. The proposal would allow Iran to reach production levels last seen in July 2005, its highest output before Western sanctions crippled its oil industry. But that may not fulfill a key demand from Saudi Arabia that OPEC members use independent estimates of their production as the baseline for their cuts, a person familiar with the matter said. Iran's oil production is about 200,000 barrels a day less than its government says, according to independent estimates cited by Iraq acquiesced to using independent estimates of its output at 4.55 million barrels a day. But Iraq said it would only freeze from that level, not cut, the officials said. Ahmed Al Omran in Dammam, Saudi Arabia, contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com , Georgi Kantchev at georgi.kantchev@wsj.com and Michael Amon at michael.amon@wsj.com Credit: By Benoit Faucon, Georgi Kantchev and Michael Amon
Subject: Cartels; Quotas; Market shares; Sanctions; Agreements; Petroleum industry
Location: Iran Iraq Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 29, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Econo mics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844293506
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844293506?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Lukoil Profit Plunges as Oil Market Stagnates; Weak oil prices, a lag in export duties, and a fall in production dent earnings
Author: Mills, Laura
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.
Abstract:
The company said weaker revenue was because of lower crude prices, as well as a lag in rising export duties, which kick in one month after any changes in the oil price and buoyed Russian oil companies' results in the second quarter.
Full text: MOSCOW--Russia's second-biggest oil producer PAO Lukoil said profit plummeted 71% in the third quarter as weak oil prices, a lag in export duties, and a fall in production dented earnings. Lukoil's net profit dropped to 54.8 billion rubles ($840 million), while revenue was down 11% to RUB1.3 trillion. The company's earnings before interest, taxes, depreciation and amortization, or Ebitda, dropped 22% to RUB165.9 billion. The company said weaker revenue was because of lower crude prices, as well as a lag in rising export duties, which kick in one month after any changes in the oil price and buoyed Russian oil companies' results in the second quarter. The company said losses from the duty were partially offset by higher refining margins in Russia. Lukoil said hydrocarbon production was down 11% in the third quarter to 2.1 million barrels a day. The company said that was largely the result of declining reserves in Western Siberia, but that it planned to reallocate capital to projects in other parts of Russia. Capital expenditure was down nearly 16% to RUB120 billion, which the company said was due to completed upgrades on its Russian refineries. Write to Laura Mills at Laura.Mills@wsj.com Credit: By Laura Mills
Subject: Corporate profits; Tariffs; Supply & demand
Location: Russia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 29, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: Eng lish
Document type: News
ProQuest document ID: 1844325406
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844325406?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Canada Issues Split Decision on Oil Pipelines; Prime Minister Trudeau announces the rejection of the controversial Northern Gateways project but approves expansion of Kinder Morgan pipeline
Author: Vieira, Paul; Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.
Abstract:
[...]Canada's economy remains dependent on natural resources, and while he repeated his commitment to fighting climate change in announcing the pipelines Tuesday, Mr. Trudeau said that making a transition away from a fossil fuel economy won't happen overnight.
Full text: Canadian Prime Minister Justin Trudeau turned down a proposed Enbridge Inc. pipeline to the West Coast that had become a flashpoint for protesters, while approving a less controversial expansion of an existing Kinder Morgan Inc. corridor that will offer landlocked oil sands producers access to tidewater. Mr. Trudeau rejected Enbridge's yearslong attempt to build the Northern Gateway pipeline, which would have carried 525,000 barrels a day of crude oil along 730 miles to the port at Kitimat, British Columbia. The project was widely supported by Canadian oil sands producers, whose only significant export market is the U.S., but faced the kind of fierce opposition from aboriginal and environmental groups that has mounted across North America in recent years. But the prime minister approved Kinder Morgan's proposed expansion of its Trans Mountain pipeline, which will nearly triple the capacity of an existing pipeline to 890,000 barrels of crude a day at a cost of 5.5 billion Canadian dollars ($4.1 billion). The project would increase Canadian crude exports to Asia and reduce its dependence on the U.S. market where Canada's oil sells for a substantial discount to global prices. Kinder plans to increase ship loads of crude oil to foreign markets, including China, to 34 ships a month from five now. The pipeline decisions point to a careful balancing act on energy by the Trudeau government, which has announced plans to levy a nationwide carbon tax that could make it a leader in the global battle against climate change and has pledged to phase out coal-fired power. But Canada's economy remains dependent on natural resources, and while he repeated his commitment to fighting climate change in announcing the pipelines Tuesday, Mr. Trudeau said that making a transition away from a fossil fuel economy won't happen overnight. Instead, he said, Canada needs to work on that transition, while still seeking to tap new markets for its energy exports. "There isn't a country in the world that would find billions of barrels of oil and just leave it in the ground while there is a market for it," Mr. Trudeau said at a press conference. A cap on greenhouse gas emissions announced by the province of Alberta will place some limits on oil sands development, he said, and the pipelines won't change that. The government approved Enbridge's proposed Line 3 project, which aims to replace segments of an existing pipeline connecting Hardisty, Alberta, to Wisconsin. The project has a price tag of C$7.5 billion. Enbridge and Kinder Morgan were not immediately available for comment. Write to Paul Vieira at paul.vieira@wsj.com and Chester Dawson at chester.dawson@wsj.com Credit: By Paul Vieira and Chester Dawson
Subject: Pipelines; Crude oil; Chemical industry; Oil sands
Location: Canada United States--US British Columbia Canada North America
Company / organization: Name: Kinder Morgan Inc; NAICS: 486910, 324110, 211111, 221210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 29, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844485495
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/18444 85495?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude-Oil Stockpiles Seen Up in Week; Gasoline inventories also expected to increase
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2016: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 700,000-barrel decrease in crude supplies, a 3.3-million-barrel increase in gasoline stocks and a 2.2-million-barrel increase in distillate inventories, according to a market participant.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 11 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 100,000 barrels, on average, in the week ended Nov. 25. Five analysts expect stockpiles to rise and six expect them to decline. Forecasts range from a decrease of 3 million barrels to an increase of 3 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show an increase of 1 million barrels on average, according to analysts. Two analysts expect gasoline stockpiles to fall, eight expect them to rise and one expects no change. Estimates range from a fall of 1.9 million barrels to an increase of 2.6 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to increase by 1 million barrels. Nine analysts expect stockpiles to increase and two expect them to decrease. Forecasts range from a decline of 2 million barrels to a rise of 3.5 million barrels. Refinery use is seen rising 0.8 percentage point to 91.6% of capacity, based on EIA data. Seven analysts expect a rise, one expects a decline and one expects no change. Two didn't report expectations. Forecasts range from a decrease of 0.7 point to an increase of 2 points. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 700,000-barrel decrease in crude supplies, a 3.3-million-barrel increase in gasoline stocks and a 2.2-million-barrel increase in distillate inventories, according to a market participant. Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Inventory; Price increases; Supply & demand
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 29, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844487162
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844487162?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Month-End Selling, Oil Gains May Pressure Dollar
Author: Fleetham, Jessica
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
0008 GMT [Dow Jones] The EUR/USD (now at 1.0646) seems to have turned to go upside after bottoming out around 1.05 (1.0518 on Nov. 24), says Osamu Takashima, chief FX strategist at Citigroup Global Markets Japan in a morning note.
Full text: 1016 GMT Month-end flows are expected to result in dollar selling, which could temper any rally in the U.S. currency, while higher oil prices on the prospect of an OPEC production cut deal could also weigh, analysts say. "Equity managers may well be selling USD," ING analysts say, adding: "we see slightly greater risk on crude's upside, dollar downside." Dollar remains slightly higher for now, however, with EUR/USD down 0.1% at $1.0643, USD/JPY up 0.7% at 113.01 and GBP/USD flat at $1.2491. USD index trades up 0.1%. Write to jessica.fleetham@wsj.com Credit: By Jessica Fleetham
Subject: Eurozone; Bond issues
Location: Italy France United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844480210
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844480210?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Canada Issues Split Decision on Oil Pipelines; Prime Minister Trudeau announces the rejection of the Northern Gateways project but approves expansion of Kinder Morgan pipeline
Author: Vieira, Paul; Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
[...]Canada's economy remains dependent on natural resources, and while he repeated his commitment to fighting climate change in announcing the pipelines Tuesday, Mr. Trudeau said that making a transition away from a fossil fuel economy won't happen overnight.
Full text: OTTAWA--Canadian Prime Minister Justin Trudeau turned down a proposed Enbridge Inc. pipeline to the West Coast that had become a flashpoint for protesters, while approving a less controversial expansion of a Kinder Morgan Inc. corridor that will boost oil-sands producers' access to export markets. Mr. Trudeau rejected Enbridge's yearslong attempt to build the Northern Gateway pipeline, which would have carried 525,000 barrels a day of crude oil along 730 miles to the port at Kitimat, British Columbia. The project was widely supported by Canadian oil sands producers, whose only significant export market is the U.S., but faced the kind of fierce opposition from aboriginal and environmental groups that has mounted across North America in recent years. However, the prime minister approved Kinder Morgan's proposed expansion of its Trans Mountain pipeline, which will nearly triple the capacity of an existing pipeline to 890,000 barrels of crude a day at a cost of 5.5 billion Canadian dollars ($4.1 billion). The project would increase Canadian crude exports to Asia and reduce its dependence on the U.S. market where Canada's oil sells at a substantial discount to global prices. Kinder plans to increase ship loads of crude oil to foreign markets, including China, to 34 ships a month from five now. The pipeline decisions point to a careful balancing act on energy by the Trudeau government, which has announced plans to levy a nationwide carbon tax that could make it a leader in the global battle against climate change and has pledged to phase out coal-fired power. But Canada's economy remains dependent on natural resources, and while he repeated his commitment to fighting climate change in announcing the pipelines Tuesday, Mr. Trudeau said that making a transition away from a fossil fuel economy won't happen overnight. Instead, he said, Canada needs to work on that transition, while still seeking to tap new markets for its energy exports. "There isn't a country in the world that would find billions of barrels of oil and just leave it in the ground while there is a market for it," Mr. Trudeau said at a press conference. A cap on greenhouse gas emissions announced by the province of Alberta will place some limits on oil sands development, he said, and the pipelines won't change that. The government approved Enbridge's proposed Line 3 project, which aims to replace segments of an existing pipeline connecting Hardisty, Alberta, to Wisconsin. The project has a price tag of C$7.5 billion. Kinder Morgan hailed the decision, saying it expects to start up the expanded pipeline by 2019. "This is a defining moment for our project and Canada's energy industry," said Ian Anderson, president of Kinder Morgan's Canadian subsidiary. Calgary, Alberta-based Enbridge said it would assess its options for the rejected Northern Gateway pipeline. Meanwhile, the Line 3 approval should allow it to start work in 2019, two years later than it originally had planned. "This approval today is an important milestone and brings us one step closer to making this important project a reality," a company spokesman said. Canada's largest oil producer, Suncor Energy Inc., said it was pleased with the decision on pipeline expansion and disappointed by the decision to reject the third proposal. "Projects such as Northern Gateway, which allows for Canadian resources to access global markets, are a good thing not only for crude producers and marketers, but also the Canadian economy," the Calgary-based company said in a statement. The approval of Trans Mountain, along with an earlier decision this fall to green light a natural-gas plant in British Columbia, could go some way to allaying concerns in the energy patch that the Liberal government's climate policy will make it harder to get projects approved. But the incoming U.S. administration of President-elect Donald Trump could complicate the Trudeau government's efforts to balance its environmental agenda with the building of pipelines. Mr. Trudeau didn't directly answer a question at the press conference about whether he would talk to Mr. Trump about reviving the Keystone XL project. Mr. Trump has signaled support for the project, which Canada already has approved but which needs a U.S. presidential permit to move forward. Approval for Keystone XL would further ease the bottleneck on Alberta's landlocked oil sands, but could create a political problem for Mr. Trudeau in his quest to reduce carbon emissions. Limited access to global markets for Canada's crude oil has hurt the industry for years, contributing to Canada's oil trading at a discount. Better market access would result in lower transportation costs and could be an incentive to boost oil sands output at a time when the oil sands' production growth is being crimped by high extraction costs and concerns about its higher greenhouse-gas emissions. The government of oil-rich Alberta province welcomed the announcement. "We're getting a chance to sell to China and other new markets at better prices," said Alberta Premier Rachel Notley. She added Alberta would sign on to a federal initiative to institute a nationwide carbon tax that would hit C$50 a ton by 2022. Alberta held off on endorsing that plan of Mr. Trudeau's while Ottawa debated the fate of the proposed pipelines. Enbridge's proposed Gateway corridor had faced fierce opposition, generating debate akin to the fight over Keystone XL in the U.S. The Trans Mountain project wasn't expected to generate as much controversy because it follows an existing crude oil pipe that has been shipping oil from northern Alberta to the coast of British Columbia for decades. But the proposal in 2013 to complete that "twinning" of the line to the coast of British Columbia set off a firestorm of protest, primarily in Vancouver, a birthplace of the modern environmental movement. The most contentious part is the last mile, which runs through a wealthy and leafy suburban area at the base of Burnaby Mountain. Tim McMillan, the head of the Canadian Association of Petroleum Producers, said the Northern Gateway pipeline had the backing of the industry, although its rejection was "consistent" with previous comments from Mr. Trudeau. He lauded Ottawa's support for the other two pipelines, saying it signaled Canada is serious about becoming a global energy supplier. "The approvals of the two pipelines today are a step forward," Mr. McMillan told reporters, adding it could prompt oil-sands producers to move forward on new projects. Write to Paul Vieira at paul.vieira@wsj.com and Chester Dawson at chester.dawson@wsj.com Related * Canada Names Panel to Help Revamp Energy Regulator * Enbridge, Canada Won't Appeal Court Ruling on Northern Gateway * Canada Names Panel to Help Revamp Energy Regulator Credit: By Paul Vieira and Chester Dawson
Subject: Pipelines; Exports; Environmental policy; Climate change; Energy industry; Prime ministers; Press conferences
Location: Canada United States--US British Columbia Canada
Company / organization: Name: Kinder Morgan Inc; NAICS: 486910, 324110, 211111, 221210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844484645
Document URL: https://login.ezproxy.uta.edu/login?url=https://search.proquest.c om/docview/1844484645?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Edge Up Ahead of OPEC Meet; Brent is up 17 cents at $46.55 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
0105 GMT [Dow Jones] Oil prices are marginally higher in early Asia trade after Iran and Iraq indicate they would be willing to hold their production levels steady as part of an OPEC production cut agreement.
Full text: 0105 GMT [Dow Jones] Oil prices are marginally higher in early Asia trade after Iran and Iraq indicate they would be willing to hold their production levels steady as part of an OPEC production cut agreement. The development, however, is still a step away from Saudi Arabia's demand for a broad-based production cut. The meeting in Vienna is expected to commence late afternoon Asia time today and the OPEC secretary-general is scheduled to hold a press conference late at night Asia time. "Oil remains susceptible to further falls as OPEC members struggle to reach an agreement over production cuts," says ANZ Research. Nymex oil prices are up 22 cents at $45.45 a barrel. Brent is up 17 cents at $46.55 a barrel. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Cartels; Crude oil prices; Price increases
Location: Iran Asia Iraq Saudi Arabia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844484761
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844484761?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Treasurys Pull Back on Rising Oil, Strong Data
Author: Goldfarb, Sam
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
Gross domestic product in the three months ended Sept. 30 likely rose 7.5% from a year earlier, according to the median estimate of 14 economists polled by The Wall Street Journal.
Full text: US government bond selloff resumes as traders react to surging oil prices and solid US economic data. Rising oil prices, fueled by optimism about an OPEC production cut, is a boost to inflation expectations. Meanwhile, data on private-sector employment and personal incomes point again to a brightening economic outlook, providing investors with more reason to dump haven debt. The 10-year yield was recently 2.359% vs. 2.305% Tuesday. Write to Sam Goldfarb at sam.goldfarb@wsj.com Credit: By Sam Goldfarb
Subject: Banking industry
Location: Indonesia Singapore India China Japan Asia Malaysia Hong Kong South Korea
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844485113
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844485113?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Asian Shares Mixed on OPEC Worries; Energy stocks were the key decliners after oil prices plunged to a two-week low
Author: Erheriene, Ese
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
Elsewhere, a sharp fall in steel and iron-ore futures prices in China --amid curbs on trading introduced by local exchanges to stop speculative trading--sent shares of local metals producers sharply lower on Wednesday.
Full text: Stock markets in Asia were mixed Wednesday, as a positive lead from Wall Street was offset by investor concerns that key oil-producing nations won't be able to seal a deal to cut global production. Japan's Nikkei Stock Average closed flat, after earlier opening at its highest level in two days, while Hong Kong's Hang Seng Index closed up 0.2%, and South Korea's Kospi finished up 0.3%. By contrast, the Shanghai Composite Index was off 1% and Australia's S&P/ASX 200 ended 0.3% lower. Energy stocks were the key decliners, after oil prices plunged to a two-week low on Tuesday. There were mounting doubts that members of the Organization of the Petroleum Exporting Countries could reach a deal to cut output in the heavily oversupplied market, when the oil cartel meets later on Wednesday. "There is a diminished outlook for any agreement that can surface from this OPEC meeting," said Woon Tian Yong, an investment analyst at Phillip Futures, noting that the failure of an agreement is being priced into energy stocks. "The really big surprise is if there is an agreement from this meeting, then we can expect to see the S&P 500 be lifted by this," he said. Stock markets in oil-reliant economies took a hit. In addition to Australia's weakness, the FTSE Bursa Malaysia Index was down 0.3%. Among individual stocks, Australia's Woodside Petroleum fell 2.4%, Japan Petroleum Exploration slid 3.3% and PetroChina was off 1.3% in Hong Kong. In South Korea, shares of Samsung Electronics ended up 4.1%, putting the country's biggest and most influential stock at an all-time closing high. The gains come a day after the smartphone maker introduced a bundle of shareholder-friendly measures, including increased dividends and buybacks, changes to the board of directors and a promise of changes to the structure of the broader Samsung conglomerate. While the measures fell short of what prominent Samsung shareholder Elliott Management had asked for, the U.S. activist hedge fund said that the measures were "a constructive initial step." Elsewhere, a sharp fall in steel and iron-ore futures prices in China --amid curbs on trading introduced by local exchanges to stop speculative trading--sent shares of local metals producers sharply lower on Wednesday. A recent rally in metals prices that gathered momentum following Donald Trump's win in the U.S. elections was largely driven by Chinese speculative investors, analysts and traders say. In mainland China, shares of Wuhan Iron & Steel Co. fell 1.7%, while in Hong Kong, shares of Angang Steel Co. dropped 4.4% and Maanshan Iron & Steel declined 1.4%. Meanwhile, strength in other markets came as all three main U.S. stock indexes ended in positive territory on Tuesday, with gains in health-care stocks overriding declines in energy shares. Additionally, solid growth and consumer confidence data overnight fueled hopes for stronger U.S. economic expansion, buoying investor confidence in Asian exporters. On Tuesday, the U.S. Commerce Department reported a key measure of after-tax earnings across U.S. corporations rose 5.2% in the third quarter from a year earlier. The report also showed that gross domestic product expanded at an inflation- and seasonally-adjusted annual rate of 3.2% in the third quarter, its strongest level in two years. More broadly, the outflows in emerging-market equities since the U.S. presidential election on expectations of higher interest rates under President-elect Donald Trump have taken a pause. Client flows have recently slowed for some fund managers, though the market is expecting further outflows, analysts say. "Everybody is waiting for the big retracement that is not coming," said Tareck Horchani, deputy head of Asian-Pacific sales trading at Saxo Markets. "With the rates higher, with the outflows in [emerging markets], they're waiting for a bigger selloff in equities," he said. Ben Leubsdorf, Jonathan Cheng, Biman Mukherji and Kosaku Narioka contributed to this article. Write to Ese Erheriene at ese.erheriene@wsj.com Credit: By Ese Erheriene
Subject: Stock exchanges; Securities markets; Agreements; Investments; Stockholders
Location: Australia Japan United States--US Asia South Korea Hong Kong
People: Trump, Donald J
Company / organization: Name: Wuhan Iron & Steel Co; NAICS: 331110; Name: Woodside Petroleum Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844485315
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844485315?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Soars as OPEC Agrees to Cut Output; Percentage gains for U.S. crude, Brent were highest since February.
Author: Puko, Timothy; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
[...]many market observers have been predicting that oil supply and demand will come into balance next year even if major producers kept pumping at these high levels. Global oil stockpiles have swelled to near records, and those inventories will continue to weigh on markets, which are still feeling the effect of the shale drilling and oil-sands production in North America that helped create the glut, some said.
Full text: Oil prices surged more than 9% Wednesday, as investors hoped a deal clinched by major oil-producing nations would help oil prices break out from a punishing slump that has lasted more than two years. After weeks of doubt that members of the Organization of the Petroleum Exporting Countries could resolve their differences, the agreement in Vienna on Wednesday seemed to surprise many investors. The percentage gains were the biggest for U.S. and international crude prices since February, jolting a market toward the top of a range where it has been stuck for several months. The Brent global benchmark broke above $50 a barrel for the first time in a month, while U.S. crude futures rose 9.3% to $49.44. Some investors remain skeptical that the deal will bring a meaningful supply reduction to a world awash in oil. But many market observers have been predicting that oil supply and demand will come into balance next year even if major producers kept pumping at these high levels. Now, some investors say the OPEC deal will likely accelerate that process. "This is going to be the event that signals the recovery," said Dan Pickering, who oversees $1.9 billion in investments for the asset-management arm of Tudor, Pickering, Holt & Co. in Houston. OPEC members agreed to cut production by 1.2 million barrels a day from the current 33.6 million barrels, which would erase about 1% of global output. OPEC also expects producers from outside the cartel, including Russia, to join with additional cuts totaling 600,000 barrels a day. There are other recent signs that supply may be coming down. The U.S. Energy Information Administration reported Wednesday that domestic stockpiles shrank by 884,000 barrels last week, ending a three-week string of additions that included the biggest weekly U.S. crude surplus on record. U.S. crude production is down 9.5% from last year's peak even with a recent uptick. Major global companies have cut investment by $125 billion annually, Mr. Pickering said. Energy Aspects, a London-based consultancy, said the deal could keep prices steadily above $60 a barrel by the first quarter of 2017. That would only get prices back to roughly half their levels in 2014, and other investors weren't as bullish. Global oil stockpiles have swelled to near records, and those inventories will continue to weigh on markets, which are still feeling the effect of the shale drilling and oil-sands production in North America that helped create the glut, some said. "You're starting from a very oversupplied market," said Sarah Emerson, a principal at ESAI Energy LLC in Boston. "You're going to chip away at some of that inventory surplus but you're not going to chip away at everything," Despite Wednesday's gains, many traders say they are skeptical that the six-month agreement will be extended and how it will be enforced. OPEC members have a history of cheating and exceeding their own production quotas. So even if the deal cuts deep and the agreement is firm, it may be months before its impact on the market, if any, becomes clear, some money managers said. If the agreement isn't continued, supply could surge again by the middle of the next year, leaving the market little changed, said Greg Sharenow, portfolio manager at Pacific Investment Management Co., which manages $1.5 trillion, including $13 billion in commodities. "It looks to me the headlines are overstating the real implications," Mr. Sharenow said. "This deal overall is still quite positive. But there are things that have to be thought about." U.S. producers are the biggest threat to the deal, according to Jason Bordoff, director of Columbia University's Center on Global Energy Policy. He said U.S. shale drilling could rise to fill the gap. The U.S. rig count has increased steadily as prices stabilized in recent months, suggesting that companies could soon begin pumping more oil. Some U.S. producers have cut costs and can get by producing at prices even below $50 a barrel. OPEC's action, he added, "may well prove to underestimate U.S. shale." The deal represents a reversal from November 2014, when the group essentially lifted all output quotas so its members could compete with a global boom in oil production. That decision led OPEC to record-high production, adding more supply to an already flooded market and eventually dropping prices below $30 a barrel, so low that many worried they could fuel a global recession. Cutting back now, especially if Russia and other international rivals join OPEC, could solve one of the market's biggest problems in recent weeks, another surge in global output. OPEC and Russian production grew to records this autumn, and U.S. production ended a long, slow decline, trends that briefly sank oil to two-month lows. That had forced OPEC to act this time after failing to act earlier this year, analysts said. It also ended speculation about whether OPEC could agree to work together after nine months of on-and-off-again negotiations. "It's a strong move, I think it should be respected," said Vincent Elbhar, managing partner of GZC Investment Management in Switzerland, though he added "I feel it's kicking the can a bit." Sarah McFarlane and Benoit Faucon contributed to this article. Write to Timothy Puko at tim.puko@wsj.com and Alison Sider at alison.sider@wsj.com Read More * OPEC Reaches Deal to Cut Oil Production * The OPEC Deal - At a Glance * Cut Could Give Lifeline to U.S. Shale Producers * Pact Could Be a Boon to World Economy * Stocks End Month With Gains Credit: By Timothy Puko and Alison Sider
Subject: Crude oil prices; Supply & demand; Agreements; Petroleum production
Location: United States--US
Company / organization: Name: Tudor Pickering Holt & Co LLC; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publicationdate: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844532284
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844532284?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street J ournal
Doubts on OPEC Supply Cut Sink Oil
Author: Yang, Stephanie; Baxter, Kevin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]30 Nov 2016: B.1.
Abstract:
Oil prices plunged to a two-week low Tuesday as traders expressed doubt that months of negotiations would lead major oil-producing nations to reach a deal to cut output at OPEC's Wednesday meeting.
Full text: Oil prices plunged to a two-week low Tuesday as traders expressed doubt that months of negotiations would lead major oil-producing nations to reach a deal to cut output at OPEC's Wednesday meeting. Anticipation of action to limit output has boosted the crude market in recent weeks. But comments from officials ahead of the meeting sowed doubts over the Organization of the Petroleum Exporting Countries' ability to come to an agreement. Light, sweet crude for January delivery declined $1.85, or 3.9% to $45.23 a barrel on the New York Mercantile Exchange, its lowest close since Nov. 14. Brent, the global benchmark, settled down $1.86, or 3.9%, at $46.38 a barrel. A key concern for investors leading up to the meeting has been whether OPEC members Iran and Iraq will cooperate in the planned production cuts. While officials said Tuesday that the two countries have expressed willingness to keep output steady, worries over a potential deadlock are pressuring oil prices. "With member delegations already gathered in Vienna ahead of [Wednesday's] formal meeting, it is increasingly clear that key divisions still remain," Robbie Fraser, commodity analyst at Schneider Electric, said in a note. Germany's Commerzbank said the main hurdle for the meeting will be resolving conflicting demands from Saudi Arabia and Iran, with Saudi Arabia's insistence that Iran cap production while Iran seeks an exemption from the cuts. Other members have expressed mixed feelings going into the meeting, contributing to volatility in the oil market. Sentiment has reversed substantially from a week ago, said Donald Morton, senior vice president at Herbert J. Sims Co., who runs an energy-trading desk. "Wall Street has completely flip-flopped," Mr. Morton said. "I've never seen so many changes in opinion in such a short period of time." In September, OPEC agreed on targets that would have translated into production cuts of 200,000 to 700,000 barrels a day. Analysts say that if the Wednesday meeting ends inconclusively, oil prices could fall to as low as $35 a barrel. "I don't think OPEC can afford a complete fiasco here. If there is one, prices are bound to work lower," said Andy Lebow, senior partner at Commodity Research Group. Another challenge for the production accord is Russia, which isn't an OPEC member. Russia has indicated it is only interested in holding production at 11.2 million barrels a day. Credit: By Stephanie Yang and Kevin Baxter
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2016
Publication date: Nov 30, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844544562
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844544562?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Inches Closer to Output-Cut Deal; Representatives still trying to resolve dispute raised by Iraq over how each country's oil production is calculated
Author: Faucon, Benoit; Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
Ahead of the meeting, Saudi Arabian Energy Minister Khalid al-Falih--whose country is OPEC's largest producer--said that if the cartel is able to reach an agreement, it would reach out to non-OPEC oil producers to try to secure their cooperation in limiting global production.
Full text: VIENNA--OPEC representatives edged closer to a deal that would cut the cartel's oil production by more than 1 million barrels of oil a day in order to boost sagging crude prices, people familiar with the group's talks said Wednesday. Delegates from members of the Organization of the Petroleum Exporting Countries are discussing a deal here that would cut production to 32.5 million barrels a day from 33.6 million, the people said, a reduction that would represent about 1% of global output. The group is still trying to resolve a dispute raised by Iraq over how each country's oil production is calculated, they said. Oil markets rallied Wednesday, with Brent crude futures jumping more than 8%. Ahead of the meeting, Saudi Arabian Energy Minister Khalid al-Falih--whose country is OPEC's largest producer--said that if the cartel is able to reach an agreement, it would reach out to non-OPEC oil producers to try to secure their cooperation in limiting global production. Any final agreement "has to involve OPEC and non-OPEC," he said. If OPEC fails to finalize an agreement at the meeting in Vienna, which follows months of negotiations on an output agreement, world oil prices would eventually recover from their current levels, he said. "I am not concerned about a no-agreement scenario," he said. OPEC members expressed optimism that they could reach an agreement in the run-up to the meeting, which has become a test of OPEC's ability to influence oil markets. At a time when crude is trading at less than half of 2014 prices, OPEC challenges including a Saudi hesitancy to sacrifice market share and reluctance by members including Iran, Iraq and Nigeria--which are recovering from output interruptions--to curb production have made a deal tough to finalize. Iran's oil minister Tuesday night he believed OPEC would clinch an agreement amid signs that his country and Iraq were looking for a compromise that satisfies Saudi Arabia's demand for a broad-based cut. "I have good expectations for the meeting," Iranian oil minister Bijan Zanganeh said, nodding when asked if proposals circulated on Tuesday night were acceptable to his country. In late negotiations, officials said, Iraq said it would curb output to secure an agreement. Iran has told fellow OPEC members it would be willing to restrict its production in early 2017 after clawing back the market share it lost during years of Western sanctions, the officials said. Mr. Zanganeh on Wednesday said his country wouldn't agree to stop ramping up production in the short term though. It isn't clear how Saudi Arabia will react. Iran, which is on the opposite side of Saudi Arabia in violent conflicts in Syria and Yemen, wants to increase output to regain market share it lost when Western sanctions targeted its oil industry. On Sunday, Saudi Arabian Energy Minister Khalid al-Falih upended expectations for the meeting when he said a production cut may not be needed to rebalance the market. Saudi officials have indicated that they want either a broad-based production cut or no deal at all. Indonesian oil minister Ignasius Jonan said Wednesday that there were still issues to resolve that wouldn't be easy. One OPEC official said Saudi Deputy Crown Prince Mohammed bin Salman has played a role in the country's new stance. He is the architect of Saudi Arabia's military ambitions and scuttled an oil-production deal with OPEC members in April because Iran didn't participate. Representatives of the prince didn't respond to requests for comment. Saudi Arabia and its Persian Gulf allies Qatar, Kuwait and the United Arab Emirates don't want to be on the hook for the bulk of oil-output cuts . The agreement being circulated in Vienna would ask 10 OPEC members to make a 4.5% production cut, the officials said. Libya and Nigeria would be exempted because they are increasing output after civil unrest disrupted their oil industries. Tehran is close to agreeing to a freeze once it reaches its 3.97 million barrels a day early next year, the OPEC officials said. Iran, OPEC's third-largest producer behind Saudi Arabia and Iraq, says it pumped 3.92 million barrels a day in October. The proposal would allow Iran to reach production levels last seen in July 2005, its highest output before Western sanctions crippled its oil industry. But that may not fulfill a key demand from Saudi Arabia that OPEC members use independent estimates of their production as the baseline for their cuts, a person familiar with the matter said. Iran's oil production is about 200,000 barrels a day less than its government says, according to independent estimates cited by Iraq acquiesced to using independent estimates of its output at 4.55 million barrels a day. But Iraq said it would only freeze from that level, not cut, the officials said. Write to Benoit Faucon at benoit.faucon@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com More * Crude Price Jumps Amid Vienna Talks * Global Stocks Set to Close Out Solid Month Credit: By Benoit Faucon and Georgi Kantchev
Subject: Cartels; Market shares; Agreements; Petroleum production
Location: Iraq Iran Saudi Arabia
People: Mohamed bin Salman, Prince of Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844549099
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844549099?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Reaches Deal to Cut Oil Production; Cartel representatives agree to cut output by 1.2 million barrels a day
Author: Faucon, Benoit; Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
VIENNA--OPEC representatives reached a deal to cut oil production after months of wrangling Wednesday, in an effort to lift sagging prices and reassert the cartel's influence over a market increasingly dominated by the U.S., Russia and others.
Full text: VIENNA--OPEC representatives reached a deal to cut oil production after months of wrangling Wednesday, in an effort to lift sagging prices and reassert the cartel's influence over a market increasingly dominated by the U.S., Russia and others. Delegates from the Organization of the Petroleum Exporting Countries agreed to cut production by 1.2 million barrels a day to 32.5 million, Iranian Oil Minister Bijan Zanganeh said, representing about 1% of global production. Brent crude, the global benchmark that had soared in anticipation of a deal, extended earlier gains , trading 8.5% higher at $51.36. West Texas Intermediate crude oil was up 8.1% at $48.92. OPEC members have said they were targeting prices as high as $55 to $60 a barrel, levels that would boost petroleum-dependent economies that have been badly damaged by two years of prices often below $50 a barrel. The breakthrough comes after months of on-and-off-again negotiations that made many traders doubt an agreement could be reached. As recently as Tuesday, oil prices tumbled on market skepticism that clashing OPEC members and other major oil producers could come together on a meaningful deal. "It's a good day for the oil market, it's a good for the oil industry," said Saudi Energy Minister Khalid al-Falih. "Our friends from Russia and other non-OPEC countries have agreed to reciprocate and contribute significant volumes of cuts starting in January next year." Under the deal, Iran will be allowed to raise production to 3.9 million barrels a day, Mr. Zanganeh said, as the country claws back the market share it lost during years of Western sanctions . Iran has told fellow OPEC members it would be willing to restrict its production in early 2017. Saudi Arabia will cut production to 486,000 barrels a day, while Iraq, which had expressed reluctance to sacrifice market share, will reduce output by 210,000 barrels a day. Iraq acquiesced to using independent estimates of its output at 4.55 million barrels a day, officials said. A deal to cut more than 1 million barrels a day could keep prices steadily above $60 a barrel by the first quarter of 2017, according to London-based Energy Aspects. That would accelerate the end of a glut that has been slow to come for more than two years after the development of shale drilling and oil-sands production in North America. Saudi Deputy Crown Prince Mohammed bin Salman has played a role in the country's new stance, according to one OPEC official. He is the architect of Saudi Arabia's military ambitions and scuttled an oil-production deal with OPEC members in April because Iran didn't participate. Representatives of the prince didn't respond to requests for comment. Tehran was close to agreeing to a freeze once it reaches 3.97 million barrels a day early next year, OPEC officials said. Iran says it pumped 3.92 million barrels a day in October. The proposal would allow Iran to reach production levels last seen in July 2005, its highest output before Western sanctions crippled its oil industry. Write to Benoit Faucon at benoit.faucon@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Benoit Faucon and Georgi Kantchev
Subject: Cartels; Petroleum industry; Petroleum production
Location: Iran Russia United States--US
People: Mohamed bin Salman, Prince of Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844601621
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844601621?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil Inventories Fall, Fuel Supplies Jump; Crude-oil stockpiles declined by 884,000 million barrels, the EIA said
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
U.S. crude oil stockpiles unexpectedly fell for the week ended Nov. 25, while fuel supplies surged, according to data released Wednesday by the Energy Information Administration.
Full text: U.S. crude oil stockpiles unexpectedly fell for the week ended Nov. 25, while fuel supplies surged, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles declined by 884,000 million barrels to 488.1 million barrels, but are near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 100,000 barrels on the week. Oil stored at the Cushing, Okla., delivery point for U.S. stocks, increased by 2.4 million barrels to 61.5 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by 2.1 million barrels to 226.1 million barrels. Analysts were expecting gasoline inventories to rise by just 1 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, increased by 5 million barrels to 154.2 million barrels, and continue to be "well above" the upper limit of the average range, the EIA said. Analysts were forecasting supplies to increase by a much smaller 1 million barrels from a week earlier. Refining capacity utilization surprisingly fell by 1 percentage point from the previous week to 89.8%. Analysts were expecting utilization levels to rise by 0.8 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844613192
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844613192?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Deal Could Be a Boon to World Economy Amid Shifting Dynamics; Traditional economics says oil-price increases hurt global growth, but this time may be different
Author: Talley, Ian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2016: n/a.
Abstract:
Traditional economics says a boost in oil prices--they rose more than 9% to over $49 a barrel Wednesday after the Organization of the Petroleum Exporting Countries agreed to cut output --is bad for global growth because it erodes consumer buying power, especially in the world's largest economies.
Full text: The world's oil cartel may have just done the global economy a big favor. Traditional economics says a boost in oil prices--they rose more than 9% to over $49 a barrel Wednesday after the Organization of the Petroleum Exporting Countries agreed to cut output --is bad for global growth because it erodes consumer buying power, especially in the world's largest economies. But that view is built on experiences of the past. This time may be different, given changing dynamics in the world economy. "Higher oil prices are good for growth," said Jeffrey Currie, head of commodity research at Goldman Sachs. First, higher prices should help stimulate growth in the world's largest economic engine, the U.S. It is one of the top three oil producers in the world, pumping more than nine million barrels a day, or 10% of global consumption. As prices fell over the last two years, investment in the sector pulled back and output sank by roughly a million barrels a day. But as prices picked up in recent months in anticipation of an OPEC deal, investment in the industry has risen. That should help push down unemployment further, pressure wages and fuel the U.S. economic expansion. More broadly, high crude prices will help a swath of economies hurt by the two-year price plummet. Russia, Brazil, producers in the Middle East and North Africa and Nigeria--Africa's largest economy--have all been suffering with increasing budget deficits and rising debt. The price collapse forced all of them to slash government spending--a primary driver of economic growth in most--and tilted some countries into recession. Their woes added to the headwinds facing the global economy. Currency values--an early indicator of economic health--rose in a host oil-exporting nations around the world Wednesday, with the Russian ruble, Mexico's peso and Canada's dollar all seeing gains. Higher energy costs could also counter the scourge of weak consumer-price growth in the U.S., Europe and Japan. "I see higher oil prices as confirming the end of deflation in most countries, even possibly Japan," said Marc Chandler, head of currency strategy at Brown Brothers Harriman. Beyond the straightforward economic gains, Goldman Sachs's Mr. Currie argued that an evolved global financial system upends the conventional view that higher oil prices harm the global economy. That thinking is based on the price increases of the 1970s, when higher crude costs caused a massive wealth transfer from rich economies to emerging-market exporters. Those higher-saving nations had a lower tendency to consume. And advanced economies had to less in their pocketbooks to spend on other goods and services. Combined, those factors slowed global growth. But now, those exporting nations pour their cash back into rich economies. Unlike the 1970s, more sophisticated financial markets "were able to transform this excess savings into greater global liquidity that increased asset values, lowered interest rates, and improved credit conditions that spanned the globe," said Mr. Currie. As prices rise, that will juice the amount of cash and investment available globally. Furthermore, oil prices should remain range bound, putting oil within levels that could prove optimal for the global economy. Many economists say OPEC's decision--if it proves a credible deal that cuts output--could push oil prices to a range of around $55 to $70 a barrel. "Most participants would say that around $60 a barrel would be a sweet spot," says Deutsche Bank Securities analyst Ryan Todd. "It's not high enough to really hurt global economies, but it's high enough for most producers to sustain a relatively attractive business model, and an attractive price for U.S. refiners." Even if OPEC delivers an effective cut of around 500,000 barrels a day--including the possibility of members producing over their agreed-to quotas--prices could still move into the low-to-mid $50 range, some analysts say. That would put prices into a "Goldilocks equilibrium," says Frank Verrastro, a top energy expert at the Center for Strategic and International Studies. That is a price balance-point "sufficient to bring in additional revenues and potentially draw down the excessive stock overhang without significantly eroding consumer demand." To be sure, if prices go too high--surging past $80 and into the $100 range, they could hurt world growth. Before the 2008 financial crisis, when rich nations were booming and China's double-digit growth fueled an 8% growth rate in emerging markets, the global economy could happily cope with $100-a-barrel oil. Now, such a boost could curb consumer spending while policy makers are still struggling to spur demand for other goods and services and trade is in long-term slump. Write to Ian Talley at ian.talley@wsj.com Read More * OPEC Reaches Deal to Cut Oil Production * Oil Soars as OPEC Agrees to Cut Output * Cut Could Give Lifeline to U.S. Shale Producers * The OPEC Deal: At a Glance Credit: By Ian Talley
Subject: Crude oil prices; Economic growth; Cost control
Location: United States--US
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Nov 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844695584
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844695584?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Surges on OPEC Deal to Cut Production; Cartel representatives agree to reduce output by 1.2 million barrels a day
Author: Faucon, Benoit; Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
(Nov. 30, 2016) VIENNA--OPEC representatives reached a landmark deal to reduce oil output, propelling crude prices more than 8% after months of wrangling and market uncertainty about the ability of the once-mighty group to strike an agreement.
Full text: Corrections & Amplifications: Saudi Arabia will cut its oil production by 486,000 barrels a day under the OPEC agreement. An earlier version of this article incorrectly said it would cut its production to 486,000 barrels a day. (Nov. 30, 2016) VIENNA--OPEC representatives reached a landmark deal to reduce oil output, propelling crude prices more than 8% after months of wrangling and market uncertainty about the ability of the once-mighty group to strike an agreement. The Organization of the Petroleum Exporting Countries said Wednesday that it would cut production by 1.2 million barrels a day from 33.6 million barrels and said it expects producers from outside the group, including Russia, to join with additional cuts totaling 600,000 barrels a day. The OPEC cuts were deeper than many analysts had expected, amounting to about 1% of global production. The 14-member group hopes the output cuts will help shrink a supply glut that has been fed in part by the U.S. shale boom, and has depressed oil prices for more than two years. At the same time, the pact benefits the shale producers, giving them an incentive to ramp up production--a move that could potentially bring a halt to any oil-market rally. Oil prices surged and shares of more than 50 U.S. exploration-and-production companies climbed more than 10% following the agreement. Crude for January delivery climbed $4.21, or 9.3%, to settle at $49.44 a barrel, on the New York Mercantile Exchange. Brent crude, the global benchmark, gained $4.09, or 8.8%, to $50.47, on ICE Futures Europe. Both finished at a one-month high. The biggest gainers in energy stocks were generally those operating in regions that have been uneconomical to drill for much of the past two years. The S&P 500's energy sector advanced 4.8%. Still, questions remain about the long-term impact of the deal and the ability of the group to enforce the cuts. The group has a checkered history of complying with its own agreements, with countries often producing more than their agreed-upon share. Analysts said oil traders would watch the agreement warily in the coming weeks. The Qatari oil minister said a committee of Algeria, Venezuela and Kuwait will monitor compliance with the agreement, though he didn't specify how noncompliance would be defined, deterred or punished. For a cartel that had been declared all but dead, Wednesday's deal was a reminder of the power wielded by a group that controls a third of the world's crude. Almost exactly two years after it decided to let prices slip into a free fall, the group finally acted, pressured by low prices and domestic fiscal demands to overcome bitter divisions, including those between Iran and Saudi Arabia, the group's de-facto leader. The member countries were faced with a "very deep" abyss of low oil prices, and that won out over politics, said Daniel Yergin, vice chairman of IHS Markit and a longtime oil-market watcher. "OPEC is back in business," Mr. Yergin said in an interview. "This will rank as one of their historic decisions." Saudi Arabia and Iran, whose differences blocked a deal that aimed to freeze production earlier this year, made the deal possible by coming to a tortured compromise on production figures. Iran was allowed to increase its production by 90,000 barrels a day, a significant victory for the Islamic Republic as it tries to rebuild its economy after the end of Western sanctions. But the deal allows both Iran and Saudi Arabia to claim a win, by pointing to different sets of numbers. Iran, using production figures generated by OPEC, can say it is raising output, while Saudi Arabia can point to the Islamic Republic's output figures and say that Iran is agreeing to a cut. "It's a good day for the oil market, it's a good day for the oil industry," Saudi Arabian Energy Minister Khalid al-Falih said after the deal was reached. He said the deal, in which the Saudis agreed to take on the highest burden of cuts at 486,000 barrels a day, "is not only what we wanted, but what the market wanted." Saudi Arabia did succeed in wringing a rare concession from a non-OPEC member in Russia. Just after OPEC sealed the deal, Mr. Falih called Russian Energy Minister Alexander Novak and asked for confirmation of a production cut. Russia said it would move to cut 300,000 barrels a day. Saudi Arabia's support for cuts was a reversal from a position it has held through most of the price rout, as it sought to keep output high and fight for market share around the world. As a low-cost producer, it said it could live with low prices, while higher-cost producers like the U.S. would be forced out. But while U.S. production did decline, shale producers proved more resilient than many had expected. Harold Hamm, chairman of Continental Resources Inc. and an energy adviser to President-elect Donald Trump, said Wednesday that U.S. oil production will rise in the wake of OPEC's cut, although it may take more than a year to see it. Mr. Hamm said producers, including Continental, will unlock some of the thousands of drilled wells in the U.S. that haven't been pumped yet. "With the 1.2 million-barrel-per-day-less production, certainly it will pull that overhanging inventory down pretty quickly," he said. Saudi Arabia's support of a deal that will help the U.S. producers it believed would be killed off by the rout shows how badly the kingdom now needs oil prices to rise. Its government has embarked on a plan to diversify its economy that includes a proposal to list its state-owned energy giant, Saudi Arabian Oil Co., in 2018. But income from oil sales still accounts for more than two-thirds of the country's budget revenue. Analysts estimate Saudi Arabia needs oil at about $70 a barrel to break even this year, after the kingdom posted a record budget deficit of $98 billion in 2015. That isn't a price most analysts believe will be reached this year, as even with the production cuts and some demand growth, there is a substantial inventory of oil stored around the world. OPEC members have said they are targeting prices as high as $55 to $60 a barrel, a level that would boost petroleum-dependent economies badly damaged by two years of prices that were often below $50 a barrel, and would provide some relief for energy companies that have been battered by the price drop. Such a level is widely viewed as a sweet spot for oil prices, because economists say it is still low enough to support economic growth. Ahmed Al Omran and Sarah Mcfarlane contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com More * The OPEC Deal - At a Glance * Crude Price Jumps Amid Vienna Talks * Deal Could Be a Boon to World Economy * Cut Might Give Lifeline to U.S. Shale Producers * Stocks End Month With Gains Credit: By Benoit Faucon and Georgi Kantchev
Subject: Agreements; Crude oil prices; Petroleum production; Energy industry
Location: Iran United States--US Russia Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844750727
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844750727?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited with out permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Market to Tighten on OPEC's Production Cut Deal: JPM; Nymex is down 28 cents at $49.16 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract: None available.
Full text: 0100 GMT [Dow Jones] OPEC's decision to reduce the group's production by 1.2 million barrels a day will provide significant support for the global crude market in the first quarter, says JP Morgan in a note. The bank says the latest production quotas imply OPEC's 2017 production will be around 1 million barrels below the bank's previous estimate. "While we acknowledge that OPEC's track record of delivering on production cuts has historically been poor, on a net basis we expect this to tighten crude markets," the bank says. Nymex is down 28 cents at $49.16 a barrel. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844752989
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844752989?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Keeps Rising After OPEC Output Deal; Agreement will cut output by 1.2 million barrels, though questions over enforcement remain
Author: McFarlane, Sarah; Sider, Alison; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
[...]analysts were hopeful that the agreement could move oil supply and demand closer together more quickly than would happen if OPEC members keep pumping at current high levels, even if the actual cuts turn out to be smaller than what was announced.
Full text: Oil prices rose to some of their highest prices of the year Thursday, building on gains made after OPEC struck a long-sought agreement to reduce production by 1.2 million barrels a day. U.S. crude futures briefly topped their one-year-high of $51.60, hit in October, before settling at $51.06 a barrel on the New York Mercantile Exchange, up $1.62, or 3.28%, from Wednesday's close. Brent, the global benchmark, gained $2.10, or 4.05%, to $53.94 a barrel--the highest settlement value since August 2015. The agreement struck by representatives of the Organization of the Petroleum Exporting Countries marked the group's first concerted effort to slash output since 2008. Market participants were skeptical in the days leading up to the meeting that major producers would be able to put aside their differences, and the deal caught some by surprise. U.S. crude futures rose more than 9.3% Wednesday. And questions remain about whether countries will stick to the agreement. But optimism is growing that the cut, representing about 1% of global production, will help to reduce a supply glut that has depressed prices for more than two years. "Market forces have brought supply and demand back close to balance already. The cuts are more intended to accelerate the rebalancing process and in particular the drawdown of the large inventory overhang," said Gordon Gray, global head of oil and gas equity research at HSBC. The group is expected to reassess the effectiveness of the deal in six months. Analysts say the biggest question remains enforcement, as OPEC has no authority to make its members comply. OPEC members have a history of producing beyond their allotted quotas. Adam Longson, commodities analyst at Morgan Stanley, said that OPEC exceeded its quota by an average of 883,000 barrels a day from 2000-2008. "Do I think there's a possibility these guys will not honor their quotas? Yes. They've proven in the past numerous times that they can get out of the market what they want," said Gene McGillian, research manager for Tradition Energy. Still, analysts were hopeful that the agreement could move oil supply and demand closer together more quickly than would happen if OPEC members keep pumping at current high levels, even if the actual cuts turn out to be smaller than what was announced. "While we acknowledge that OPEC's record of delivering on production cuts has historically been poor, on a net basis we expect this to tighten crude markets," said Scott Darling, the head of Asia-Pacific oil and gas research at J.P. Morgan. And some said markets have been buoyed by the signal that OPEC is returning to its policy of taking collective action to keep prices from cratering--a reversal from two years ago when the group essentially lifted all output quotas, allowing more supply to come to an already flooded market. "Although this may seem like a drop in the bucket of rebalancing the global supply/demand equation, the coordination seems to be enough for the markets to hang their hat on for now," analysts at TAC Energy wrote in a research note Thursday. Higher prices, however, are likely to cause more U.S. shale producers to increase production. The latest production data from the U.S. Energy Information Administration showed U.S. production increased by 9,000 barrels a day to 8.7 million barrels for the week ended Nov. 25. "There is a real risk that higher prices could reactivate more dormant shale oil," said ANZ Research, which expects international oil prices to hit strong resistance at around $60 a barrel in early 2017. Another wild card is the cooperation of non-OPEC producers, which are expected to decrease production by 600,000 barrels a day. Russia said it would cut production by 300,000 barrels a day, though it isn't clear how much of that will come from already expected declines. "In fact, we're not even fully confident that Russia will freeze production, particularly if the market tempts them with higher prices," said Tim Evans, a Citi Futures analyst. Gasoline futures rose 6.45 cents, or 4.35%, to settle at $1.547 a gallon. Diesel futures rose 7.16 cents, or 4.54%, to $1.6479 a gallon. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com , Alison Sider at alison.sider@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com More * Heard on the Street: OPEC Windfall Shows Talk Isn't Cheap * U.S. Stocks Edge Higher; Bonds Sell Off * Higher Prices Threaten Oil Demand in Asia Credit: By Sarah McFarlane, Alison Sider and Jenny W. Hsu
Subject: Supply & demand; Agreements; Crude oil prices
Location: United States--US
Company / organization: Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: Morgan Stanley; NAICS: 523110, 523120, 523920; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844756447
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844756447?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Traders Sense an End to a Long Slump for Oil
Author: Puko, Timothy; Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Dec 2016: B.1.
Abstract:
Global oil stockpiles have swelled to near records, and those inventories will continue to weigh on markets, which are still feeling the effect of the shale drilling and oil-sands production in North America that helped create the glut, some said.
Full text: Oil prices surged Wednesday as investors hoped a deal clinched by major oil-producing nations would help oil prices break out from a punishing slump that has lasted more than two years. After weeks of doubt that members of the Organization of the Petroleum Exporting Countries could resolve their differences, the agreement in Vienna on Wednesday seemed to surprise many investors. The percentage gains were the biggest for U.S. and international crude prices since February, jolting a market toward the top of a range where it has been stuck for several months. The Brent global benchmark broke above $50 a barrel for the first time in a month, while U.S. crude futures rose 9.3% to $49.44. Some investors remain skeptical that the deal will bring a meaningful supply reduction to a world awash in oil. But many market observers have been predicting that oil supply and demand will come into balance next year even if major producers kept pumping at these high levels. Now, some investors say the OPEC deal likely will accelerate that process. "This is going to be the event that signals the recovery," said Dan Pickering, who oversees $1.9 billion in investments for the asset-management arm of Tudor, Pickering, Holt & Co. in Houston. OPEC members agreed to cut production by 1.2 million barrels a day from the current 33.6 million barrels, which would erase about 1% of global output. OPEC also expects producers from outside the group, including Russia, to join with additional cuts totaling 600,000 barrels a day. There are other recent signs that supply may be coming down. The U.S. Energy Information Administration reported Wednesday that domestic stockpiles shrank by 884,000 barrels last week, ending a three-week string of additions that included the biggest weekly U.S. crude surplus on record. U.S. crude production is down 9.5% from last year's peak even with a recent uptick. Major global companies have cut investment by $125 billion annually, Mr. Pickering said. Energy Aspects, a London-based consultancy, said the deal could keep prices steadily above $60 a barrel by the first quarter of 2017. That would only get prices back to roughly half their levels in 2014, and other investors weren't as bullish. Global oil stockpiles have swelled to near records, and those inventories will continue to weigh on markets, which are still feeling the effect of the shale drilling and oil-sands production in North America that helped create the glut, some said. "You're starting from a very oversupplied market," said Sarah Emerson, a principal at ESAI Energy LLC in Boston. "You're going to chip away at some of that inventory surplus but you're not going to chip away at everything," --- Sarah McFarlane contributed to this article. Credit: By Timothy Puko and Alison Sider
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2016
Publication date: Dec 1, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844832940
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844832940?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Surges on Pact to Cut Output
Author: Faucon, Benoit; Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Dec 2016: A.1.
Abstract:
OPEC representatives reached a landmark deal to reduce oil output, propelling crude prices more than 8% after months of wrangling and market uncertainty about the ability of the once-mighty group to strike an agreement.
Full text: VIENNA -- OPEC representatives reached a landmark deal to reduce oil output, propelling crude prices more than 8% after months of wrangling and market uncertainty about the ability of the once-mighty group to strike an agreement. The Organization of the Petroleum Exporting Countries said Wednesday that it would cut production by 1.2 million barrels a day from 33.6 million barrels and said it expects producers from outside the group, including Russia, to join with additional cuts totaling 600,000 barrels a day. The OPEC cuts were deeper than many analysts had expected, amounting to about 1% of global production. The 14-member group hopes the output cuts will help shrink a supply glut that has been fed in part by the U.S. shale boom, and has depressed oil prices for more than two years. At the same time, the pact benefits the shale producers, giving them an incentive to ramp up production -- a move that could eventually bring a halt to any oil-market rally. Oil prices surged and shares of more than 50 U.S. exploration-and-production companies climbed more than 10% following the agreement. Crude for January delivery climbed $4.21, or 9.3%, to settle at $49.44 a barrel, on the New York Mercantile Exchange. Brent crude, the global benchmark, gained $4.09, or 8.8%, to $50.47, on ICE Futures Europe. Both finished at a one-month high. The biggest gainers in energy stocks were generally those operating in regions that have been uneconomical to drill for much of the past two years. The S&P 500's energy sector advanced 4.8%. Still, questions remain about the long-term impact of the deal and the ability of the group to enforce the cuts. The group has a checkered history of complying with its own agreements, with countries often producing more than their agreed-upon share. Analysts said oil traders would watch the agreement warily in the coming weeks. The Qatari oil minister said a committee of Algeria, Venezuela and Kuwait will monitor compliance with the agreement, though he didn't specify how noncompliance would be defined, deterred or punished. For a cartel that had been declared all but dead, Wednesday's deal was a reminder of the power wielded by a group that controls a third of the world's crude. Almost exactly two years after it decided to let prices slip into a free fall, the group finally acted, pressured by low prices and domestic fiscal demands to overcome bitter divisions, including those between Iran and Saudi Arabia, the group's de-facto leader. The member countries were faced with a "very deep" abyss of low oil prices, and that won out over politics, said Daniel Yergin, vice chairman of IHS Markit and a longtime oil-market watcher. "OPEC is back in business," Mr. Yergin said in an interview. "This will rank as one of their historic decisions." Saudi Arabia and Iran, whose differences blocked a deal that aimed to freeze production earlier this year, made the deal possible by coming to a tortured compromise on production figures. Iran was allowed to increase its production by 90,000 barrels a day, a significant victory for the Islamic Republic as it tries to rebuild its economy after the end of Western sanctions. But the deal allows both Iran and Saudi Arabia to claim a win, by pointing to different sets of numbers. Iran, using production figures generated by OPEC, can say it is raising output, while Saudi Arabia can point to the Islamic Republic's output figures and say that Iran is agreeing to a cut. "It's a good day for the oil market, it's a good day for the oil industry," Saudi Arabian Energy Minister Khalid al-Falih said after the deal was reached. He said the deal, in which the Saudis agreed to take on the highest burden of cuts at 486,000 barrels a day, "is not only what we wanted, but what the market wanted." Saudi Arabia did succeed in wringing a rare concession from a non-OPEC member in Russia. Just after OPEC sealed the deal, Mr. Falih called Russian Energy Minister Alexander Novak and asked for confirmation of a production cut. Russia said it would move to cut 300,000 barrels a day. Saudi Arabia's support for cuts was a reversal from a position it has held through most of the price rout, as it sought to keep output high and fight for market share around the world. As a low-cost producer, it said it could live with low prices, while higher-cost producers like the U.S. would be forced out. But while U.S. production did decline, shale producers proved more resilient than many had expected. Harold Hamm, chairman of Continental Resources Inc. and an energy adviser to President-elect Donald Trump, said Wednesday that U.S. oil production will rise in the wake of OPEC's cut, although it may take more than a year to see it. Mr. Hamm said producers, including Continental, will unlock some of the thousands of drilled wells in the U.S. that haven't been pumped yet. "With the 1.2 million-barrel-per-day-less production, certainly it will pull that overhanging inventory down pretty quickly," he said. Saudi Arabia's support of a deal that will help the U.S. producers it believed would be killed off by the rout shows how badly the kingdom now needs oil prices to rise. Its government has embarked on a plan to diversify its economy that includes a proposal to list its state-owned energy giant, Saudi Arabian Oil Co., in 2018. --- Ahmed Al Omran and Sarah Mcfarlane contributed to this article. Credit: By Benoit Faucon and Georgi Kantchev
Subject: Agreements; Petroleum production; Crude oil prices
Location: Iran United States--US Russia Saudi Arabia
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2016
Publication date: Dec 1, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economi cs--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844833169
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844833169?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Dow Industrials Rise; Bond Selloff Continues; Crude keeps climbing after OPEC agrees to cut oil production
Author: Whittall, Christopher; Kuriloff, Aaron
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
The election of Donald Trump has boosted investors' expectations for higher U.S. growth and inflation in recent sessions, sending government debt and dividend stocks tumbling while sparking gains in the dollar and shares that tend to do better in times of economic expansion. The recent move higher in global bond yields has been driven mainly by expectations of higher U.S. growth and inflation that could cause the Federal Reserve to raise interest rates faster than previously expected.
Full text: Gains in energy shares pushed the Dow Jones Industrial Average higher to open the final month of the year, while selling in yield-bearing stocks and government bonds accelerated. The blue-chip index rose 66 points, or 0.3%, to 19189 on Thursday after posting in November its biggest monthly gain since March. The S&P 500 slipped 0.2%, and the Nasdaq Composite fell 1.2%. Energy stocks were among the biggest climbers in the S&P 500, adding 1.8% as U.S. crude continued climbing. U.S. oil prices rose 4.2% to $51.49 a barrel after surging more than 9% on Wednesday in the wake of a deal from the Organization of the Petroleum Exporting Countries to cut production . Chevron posted among the biggest gains in the Dow industrials, rising 2.8%. Investors sold real estate, utilities and consumer staples shares, known as proxies for bonds, and the yield on the 10-year Treasury note climbed to 2.473% from 2.365% at Wednesday, according to Tradeweb. U.S. Treasurys saw their worst month in seven years in November. Yields rise as prices fall. The election of Donald Trump has boosted investors' expectations for higher U.S. growth and inflation in recent sessions, sending government debt and dividend stocks tumbling while sparking gains in the dollar and shares that tend to do better in times of economic expansion. Some analysts said a strong jobs report Friday could increase the pace of that rotation, even as several remain concerned that investors' hopes for a new pickup in economic expansion eventually could be dashed. "It's not clear if those expectations are going to be fulfilled," said David Lefkowitz, senior equity strategist at UBS Wealth Management Americas. "It really hinges on the success of some of these reflationary policies." Technology shares lagged, falling 2.2% in the S&P 500 as semiconductor companies Applied Materials, Nvidia and Lam Research all lost more than 5%. The Nasdaq Biotechnology Index fell 0.8%. European stocks slipped, after Asian shares gained overnight on the back of Wednesday's surge in crude prices . European shares lagged behind a rally in U.S. stocks last month as investors have remained cautious ahead of Italy's constitutional referendum Sunday--the first of a series of important votes in Europe in the coming months. Many analysts expect Italy's reform-minded government to lose that vote, potentially unseating Prime Minister Matteo Renzi. Chris Jeffery, an asset allocation strategist at Legal & General Investment Management, said there is "market agitation about political risk" but added this "is happening against a backdrop where the global economy has surprised positively." "On equities, we're pretty close to neutral because of these offsetting pressures: political risks on the one hand, but the economic data not looking too bad on the other hand," he said. A string of eurozone data releases showed promising signs for the local economy Thursday. The eurozone manufacturing purchasing managers index hit its highest level in November since January 2014, according to IHS Markit. Energy shares gained in Europe, but weakness across most other sectors dragged the Stoxx Europe 600 down 0.3%. So-called bond proxies such as utilities and real-estate stocks were among the worst-performing sectors. Eurozone government bonds were also weaker, with the yield on the 10-year German government bond rising to 0.340%, according to Tradeweb. Bond investors are looking ahead to the European Central Bank's meeting next week. Most analysts expect the ECB will extend its vast bond-buying program beyond March. The recent move higher in global bond yields has been driven mainly by expectations of higher U.S. growth and inflation that could cause the Federal Reserve to raise interest rates faster than previously expected. Higher oil prices, which also should boost inflation, have further fueled the selloff. "The move in Treasurys has been very significant. It does capture a degree of optimism around the growth outlook for next year," said Andrew Wilson, global co-head of fixed income management at Goldman Sachs Asset Management, who thinks it is highly likely the Fed will raise rates in December. Still, Mr. Wilson said, "we'd need to see validation of that optimism in economic data" for yields to move higher from here. The U.S. dollar also gained on expectations of higher interest rates, which tend to boost the attractiveness of a currency. The WSJ Dollar Index, which measures the dollar against a basket of 16 other currencies, was down 0.2% Thursday, after closing at its second-highest level of the year Wednesday. The British pound jumped after the minister responsible for the country's exit from the European Union said the U.K. would consider making payments to the EU budget to secure the best access to the bloc for trade. The pound was up 0.6% against the dollar at $1.2602. In Asia, Australia's S&P ASX 200 closed up 1.1%, while Japans's Nikkei Stock Average also rose 1.1%, to close at its highest level of the year. In other commodities, gold prices fell 0.4% at $1,169.90 an ounce. --Jenny Gross contributed to this article. Write to Christopher Whittall at christopher.whittall@wsj.com and Aaron Kuriloff at aaron.kuriloff@wsj.com Credit: By Christopher Whittall and Aaron Kuriloff
Subject: Interest rates; Stocks; Central banks; Purchasing managers index; Crude oil prices; Eurozone; Treasuries
Location: United States--US
People: Renzi, Matteo Trump, Donald J
Company / organization: Name: Lam Research Corp; NAICS: 334413; Name: Applied Materials Inc; NAICS: 333242; Name: Legal & General Investment Management; NAICS: 523930
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844838818
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844838818?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Higher Prices, Weaker Currencies Threaten Oil Demand in Asia; Asia is a crucial market for OPEC as the cartel contends with declining market share
Author: St rumpf, Dan; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
Benchmark Brent crude prices are up nearly 7% this week, trading at five-week high above $52 a barrel. Since oil is priced in dollars, it makes crude more expensive in local currencies that have weakened against the greenback.
Full text: Corrections & Amplifications: The chart for India and China shows gasoline demand. An earlier version of the chart incorrectly stated that demand was for oil in the chart and attribution for the data. (Dec. 2) Rising oil prices in the wake of OPEC's production cut could deliver a one-two punch to demand from Asia's emerging energy consumers, where weakening currencies have already led to higher prices. China and India, the world's second- and third-largest oil consumers after the U.S., have each seen declines in their currencies versus the U.S. dollar in recent weeks. The Indonesian rupiah and Malaysian ringgit have also hit the skids. The currency declines compound the effect of the surge in oil prices following Wednesday's decision to cut production by 1.2 million barrels a day by the Organization of the Petroleum Exporting Countries, analysts and economists said. Benchmark Brent crude prices are up nearly 7% this week, trading at five-week high above $52 a barrel. Since oil is priced in dollars, it makes crude more expensive in local currencies that have weakened against the greenback. In terms of Indian rupees, for example, the price of a barrel of oil has actually risen 8% last month. "You have the negative compound effect of a weaker currency and higher oil prices," said Virendra Chauhan, oil analyst at the research firm Energy Aspects. "It could dent demand at the margin." Emerging-market currencies have fallen sharply in the past month against the dollar, with investors placing bets on higher interest rates in the U.S. and the prospect of reduced global trade under a Donald Trump presidency. The rupee fell 2.7% in November against the dollar, while the Chinese yuan lost 1.6%, the Malaysian ringgit is down 6.1% and the Indonesian rupiah is off 3.9%. Asia is a crucial market for OPEC as the cartel contends with declining market share and rising competition from domestic production in the U.S. But even in Asia, OPEC is fighting to maintain its hold amid growing competition from Russian crude. OPEC accounted for 59% of China's oil imports in September, down from an average of 66% four years ago, according to Chinese customs data. Asia is home to some of the world's fastest-growing economies and energy consumers, though the pace of the expansion has decelerated alongside economic growth. The International Energy Agency in November highlighted a slowdown in oil demand in China and India in recent months, which it said is contributing to a broader slowing in global oil-demand growth. Even at $50 a barrel, oil prices are still low compared with a few years ago when $100-a-barrel crude was the norm. Those low prices have been a boon to a region where economic growth has slowed and asset bubbles have rippled across markets. "There would have been a much sharper economic downturn had oil prices stayed where they were at over $100 a barrel," said Frederic Neumann, Asia economist at HSBC in Hong Kong. In China, gasoline demand in October was up 17% to 32.83 million barrels a day from a year earlier, according to consultancy Facts Global Energy. India's gasoline demand showed the same pattern, rising 13% in October from the previous year. FGE expects demand in India and China to increase next year, juiced by rising auto sales. Crude-oil demand by Chinese refiners, however, may slow slightly if prices stay above $50 or higher, as higher crude prices mean narrower margins. "The ideal crude price range for us is between $42 to $48 a barrel," said Zhang Liucheng, vice president of Shandong Dongming Petrochemical, one of China's biggest independent refiners. But while higher prices usually stunt buying, as long as the increase is between 10% and 15%, Asia demand will be remain largely unaffected, said Jeff Brown, president of FGE. "If oil level remains in the $50s, it is actually indifferent in terms of economic growth and oil demand. But if you start getting more extreme, like going down past $40 and above $60, then it starts to be more of an issue," said Scott Darling, head of oil and gas research Asia Pacific at J.P. Morgan. Write to Dan Strumpf at daniel.strumpf@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Related * China Stands to Gain From OPEC Deal * Oil Keeps Rising After OPEC Output Deal * Off the Charts: OPEC Deal Pumps Up Asia Credit: By Dan Strumpf and Jenny W. Hsu
Subject: Crude oil prices; Supply & demand; Currency; Economic growth
Location: United States--US Asia India China
People: Trump, Donald J
Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844848720
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/18448 48720?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
China Stands to Gain From OPEC Deal; Output agreement could boost the country's oil industry and reduce its reliance on Saudi crude
Author: Spegele, Brian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
BEIJING--For China's beleaguered oil sector, a deal by the Organization of the Petroleum Exporting Countries to cut output could offer a lifeline to an industry that has been hammered by low prices--and may also hasten its shift away from a heavy reliance on Saudi crude.
Full text: BEIJING--For China's beleaguered oil sector, a deal by the Organization of the Petroleum Exporting Countries to cut output could offer a lifeline to an industry that has been hammered by low prices--and may also hasten its shift away from a heavy reliance on Saudi crude. If successfully implemented, the deal portends important shifts in how China buys foreign oil, analysts said. It could also help stem a recent slide in domestic production, which in turn would protect jobs across its troubled energy patch. It is tough to overstate China's importance to OPEC and the energy industry. In addition to being one of the biggest oil importers, it is also a huge producer, making it vulnerable to the supply glut that has roiled markets since 2014. The agreement Wednesday by OPEC calls for cutting production by 1.2 million barrels a day, which sent benchmark oil prices soaring to more than $50 a barrel in Asia trading on Thursday, up about 9% versus a day earlier. While uncertainty remains over how the deal will play out, if implemented Saudi Arabia could see its market share in China eroded by Iran and other OPEC rivals. Saudi Arabia takes on the highest burden of cuts under the agreement--486,000 barrels a day--and that could open a door for others to compete in China. "If that happens, Saudi Arabia will have to reduce its exports more" than others in OPEC, said Sushant Gupta, oil analyst at the consultancy Wood Mackenzie. Already the Saudis are losing market share in China. Its oil makes up about 14% of China's total crude imports, down from nearly 20% five years ago. In many ways, a range of $55-$60 per barrel--where some observers believe prices could ultimately be headed in the coming months if the deal holds--is a sweet spot for China. On one hand, higher prices would cut losses at domestic oil fields , which have contributed to lower overall profits for China's state-owned energy companies--and ultimately less revenues for the government. At the same time, the moderate price rebound means China's import bill for oil from abroad will still remain far below what it was when prices topped $100. That is also good news for the government, which has worried about capital outflows. One area to consider is how a sustained uptick in prices affects domestic production. China's aging fields are more expensive to pump than those of other countries. That has led to a steep drop-off in output as global prices plummeted, particularly at huge onshore fields such as Daqing in northeast China. "It has the potential to stem the decline and move things toward some sort of stability on what has been a one-way train," said Thomas Hilboldt, head of Asia-Pacific resources and energy research at HSBC. Rising imports by China always made it a key market for OPEC. As legions of new Chinese drivers have taken to the roads in recent years, demand for oil has steadily risen. Yet, OPEC's intention to cut production now comes just as China's own import growth is also likely to ease next year. Chinese demand is a key determinant of global prices, meaning without the agreement, the global glut that depressed markets would only deepen, analysts said, adding to OPEC's urgency to act. Write to Brian Spegele at brian.spegele@wsj.com Related * The OPEC Deal--At a Glance Credit: By Brian Spegele
Subject: Supply & demand; Agreements; Energy economics; Market shares; Energy industry
Location: Asia China Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844857349
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844857349?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil-Price Rebound Gives Banks New Reason to Cheer; Some bank shares hit or neared postcrisis highs after Wednesday's OPEC deal; higher crude prices alleviate some worries about loan repayments by oil companies
Author: Rapoport, Michael; Ensign, Rachel Louise
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
[...]Wednesday's landmark deal struck by members of the Organization of the Petroleum Exporting Countries--and the resulting jump in oil prices--should help banks and bolster the view that the worst of the oil sector's problems is in the past, analysts said. Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Tuesday, before the OPEC agreement, that oil and gas prices continued to affect energy-industry borrowers and were part of "a challenging environment" for banks.
Full text: Higher oil prices stemming from OPEC's agreement to cut crude production should give some banks a boost. Bank stocks were slammed earlier this year when, among other factors, falling oil and gas prices raised concerns about troubled energy companies' ability to repay loans. But Wednesday's landmark deal struck by members of the Organization of the Petroleum Exporting Countries--and the resulting jump in oil prices--should help banks and bolster the view that the worst of the oil sector's problems is in the past, analysts said. In particular, higher oil prices could mean that banks will release some of the reserves they set aside earlier this year to protect themselves against soured energy loans. Such releases would increase banks' earnings. The improving oil-price picture also could mean that banks' credit losses on energy loans will continue to decline, as they did in the third quarter. "You certainly feel a lot better than you did at the beginning of the year," said Jason Goldberg, an analyst at Barclays. The oil-price gains are the latest development to boost bank stocks, following higher interest rates, signs of stronger economic growth and hopes for looser regulation under a Donald Trump presidency . In the past few weeks, shares of some big banks have neared or surpassed their highs since the 2008 financial crisis. The KBW Nasdaq Bank Index rose 2.2% on Thursday to a postcrisis high. Bank of America Corp. rose more than 1.8% on the day, Wells Fargo, 2.7%; J.P. Morgan Chase & Co., 2%; and Citigroup Inc., 1.6%. These stocks posted gains on Wednesday as well. Regional banks that are significant energy lenders saw their shares rise, too. Regions Financial Corp. gained 2.2% Thursday, Comerica Inc. rose 2.2%, Zions Bancorp was up 1.6% and Cullen/Frost Bankers Inc. advanced 1.5%. OPEC agreed on Wednesday to reduce crude-oil output by 1.2 million barrels a day. Analysts expect the move will boost oil prices to $55 or $60 a barrel from previous levels below $50. The benchmark U.S. oil price rose 3.3% on Thursday to $51.06 a barrel after soaring 9.3% on Wednesday, the biggest one-day percentage gain since February. Brent, the global benchmark, gained 4.1% on Thursday after jumping 8.8% in the previous session. Prices sank below $27 a barrel early in 2016, the culmination of a monthslong selloff, leading banks to brace for the possibility of significant losses in their energy portfolios. "Criticized" energy loans--those deemed to have a higher risk of nonpayment--rose sharply. Fifteen of the largest U.S. banks amassed a combined $6 billion in reserves for energy loans, according to a Barclays analysis. But fewer borrowers defaulted than banks had anticipated. By the time third-quarter earnings rolled around in October, bank executives were optimistic that their problems with energy loans had hit a turning point. At Wells Fargo, for example, net charge-offs of oil-and-gas loans fell to $168 million in the third quarter, from $263 million in the second quarter. The OPEC agreement strengthens the case that the outlook for banks is improving, analysts said. The pact is a "modest positive" for banks that focus on the energy industry, Evercore ISI analyst John Pancari said in a research note Wednesday. A sustained increase in energy prices, he said, "could provide earnings relief" at those banks by prompting them to release energy-loan reserves. Some banks have already begun to do so. J.P. Morgan released about $50 million in reserves for its oil-and-gas portfolio in the third quarter. "I don't think anybody is saying that the [energy] industry is back on its feet, but we're certainly in a much better place than we were in January," said Douglas Petno, J.P. Morgan's chief executive of commercial banking, at a conference in mid-November. Some banking regulators think the OPEC agreement will help banks, too. "Certainly, things that firm oil prices are going to be welcomed by banks," said Robert Kaplan, president of the Federal Reserve Bank of Dallas, speaking Wednesday to reporters at The Wall Street Journal. Still, banks remain cautious, conscious that they could face renewed problems if oil prices were to plunge again and stay low. Many have cut exposure to the energy industry. Wells Fargo's outstanding oil-and-gas loans declined 6% in the third quarter from the second. Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Tuesday, before the OPEC agreement, that oil and gas prices continued to affect energy-industry borrowers and were part of "a challenging environment" for banks. In a speech earlier Wednesday, Mr. Kaplan said the OPEC agreement could speed up the point at which oil supply and demand would strike a balance, which the Dallas Fed had forecast would occur by mid-2017. But he also said that, despite firming oil prices, more bankruptcies, restructurings and merger activity in the energy sector are expected. Write to Michael Rapoport at Michael.Rapoport@wsj.com and Rachel Louise Ensign at rachel.ensign@wsj.com Related Coverage * Banks Have Had Enough of Oil's Wild Ride (Aug. 25) * Regulators Warn Banks on Loans to Oil Producers (July 2) * Coming to the Oil Patch: Bad Loans to Outnumber the Good (March 24) Credit: By Michael Rapoport and Rachel Louise Ensign
Subject: Banking industry; Energy industry; Agreements; Loans; Bank reserves; Regional banks; Crude oil prices
People: Trump, Donald J
Company / organization: Name: Comerica Inc; NAICS: 522110, 551111; Name: Zions Bancorp; NAICS: 522110, 551111; Name: Regions Financial Corp; NAICS: 551111; Name: Bank of America Corp; NAICS: 522110, 551111; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: Citigroup Inc; NAICS: 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844874737
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844874737?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Government Debt Selloff Continues, With 10-Year Yield at 17-Month High; Higher oil prices adding to expectations of higher inflation, driving investors to switch into TIPS
Author: Zeng, Min
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract: None available.
Full text: The government-bond market rout is deepening at the start of December following the biggest monthly selloff in seven years. Higher oil prices and a solid U.S. manufacturing report Thursday fueled the latest episode of selling in bonds. The yield on the U.S. benchmark 10-year Treasury note closed at a 17-month high Thursday of 2.444%, compared with 2.365% Wednesday. Yields rise as bond prices fall. The selloff rippled globally, pushing up 10-year government bond yields in the developed world, including those in Germany, France, the U.K., Denmark and Sweden. The 10-year German bund yield rose to 0.378%, the highest close level since January, according to Tradeweb. "It has been a tough run for all global bond markets, but especially painful for the U.S.'' said Brian Edmonds, head of interest rates at Cantor Fitzgerald LP in New York. The 10-year Treasury yield has soared by more than 1 percentage point from its record low set in July, a round trip that few investors and analysts had seen coming so soon. The selloff has been intensifying after the U.S. election in early November. Last month, it was up more than half of a percentage point, the most on a monthly basis since December 2009. Investors are betting that the prospect of expansive fiscal and economic policy under the new U.S. administration would lead to stronger growth, higher inflation and potentially a faster pace of interest-rate increases by the Federal Reserve. This represents a big shift away from the notion of soft growth and low inflation that had sent investors piling into Treasury debt and sovereign bonds in other developed countries, pushing bond yields to historic lows this summer. November's selloff alone wiped out more than $1 trillion from the global government bond universe, based on the changes of market value in Bloomberg Barclays indexes data. A 3.3% price gain in the oil market extended Wednesday's rally after the Organization of the Petroleum Exporting Countries reached a deal to curb the continuing oil supply glut. Higher oil prices tend to boost inflation expectations, which chip away at bonds' fixed returns over time and is a big threat to long-term government bonds. Meanwhile, the monthly U.S. manufacturing index Thursday boosted optimism toward the U.S. growth outlook, driving more investors to sell Treasury debt -- typically a haven when the economy falters. The U.S. nonfarm payrolls report is due Friday, one of the most important monthly economic statistics. Traders say an upbeat report could fuel more selling in bonds. Economists expect the U.S. economy added 180,000 new jobs last month, up from a net gain of 161,000 in October. Some of the world's large money managers have changed their view that yields would stay lower for longer. "We are moving to a new regime in the bond market," said Nick Gartside, international chief investment officer of global fixed income at J.P. Morgan Asset Management, which had $1.8 trillion assets under management as of Sept. 30. Mr. Gartside said he believes that Treasury bond yields had hit rock bottom in July following a 35-year span of lower yields. He said the 10-year yield would rise to 3% during 2017--a level where it had last traded in early 2014. Reflecting his yield expectation, he has cut his Treasury bondholdings recently and preferred corporate bonds. He said bonds sold by lower-rated corporate-debt issuers are attractive amid a brighter growth outlook. Some investors believe bond yields have room to rise. They argue that higher Treasury yields are a healthy sign as it reflects a brighter assessment of the economy. The 10-year yield was less than half of the level where it had traded in 2007. The sharp rise in yields reminds investors of the so-called taper tantrum episode in 2013, when worries over a cut in the Fed's bond-buying program rattled the bond market. Now, some investors are concerned that the bond rout may again spook investors and cause heavy outflows from bond funds. Analysts warn that this would generate further selling pressure in the bond market and lead to much higher yields from here. U.S. bond mutual funds that target Treasury securities have suffered 11 consecutive weekly net outflows through Nov. 23 totaling $175.275 million, according to fund tracker Lipper. It is the longest losing streak since 2010. So far the pace of redemption -- $16 million a week during this period -- is moderate. One week in November 2013, a weekly outflow surged above $300 million. For the year, the fund group has lured a net $1.779 billion inflow. "The average retail investor will be slow to change direction in their mutual fund portfolios," said Tom Roseen, head of research services at Thomson Reuters Lipper. "Maybe the baby boomers will hold pat, fearing what some think to be an equity rally that is getting pretty long in the tooth and preferring bonds." Bill Irving, portfolio manager at Fidelity Investments, which had $2.1 trillion assets under management at the end of October, said he scooped up Treasury debt from the selloff. Mr. Irving said he is skeptical bond yields could rise sharply from here because that would rattle stocks and other riskier markets, tighten financial conditions and potentially drag down the growth momentum. While higher yields shrink the value of outstanding bonds, they allow investors to invest new cash at more attractive yields. Higher yields are a boon to pension funds and insurance firms too. These institutional investors need high-grade long-maturity debt to match their long-term obligations. Traders say some have been buying long-term Treasury debt over the past week. "Over the long haul, reinvesting at higher rates will boost your overall returns," said Gemma Wright-Casparius, senior portfolio manager of the fixed-income group at the Vanguard Group. Write to Min Zeng at min.zeng@wsj.com Credit: By Min Zeng
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844955551
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844955551?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Fed's Kaplan: U.S. Oil Output Could Reach 11 Million Barrels a Day or More; The comments come a day after OPEC agreed to cut its own production levels
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
Some analysts warn that U.S. producers, including those involved in hydraulic fracturing, may ramp up its own production in response to the OPEC deal to take market share from OPEC, a move that could threaten any price rally.
Full text: SAN ANTONIO--Federal Reserve Bank of Dallas President Robert Kaplan said Thursday U.S. oil production has the potential to rise by more than 2 million barrels a day from current levels due to new finds, improved technology and already-productive fields. "Based on discussions with people in the industry U.S. oil production could get to in excess of, say, 11 million [barrels a day] or greater," Mr. Kaplan said at a forum in San Antonio. He was responding to a question on where oil production could normalize after falling to 8.5 million barrels a day from a maximum of around 9.5 million. The Fed official's comments come a day after OPEC agreed to cut its own production levels by more than 1 million barrels a day in an effort to boost prices. Some analysts warn that U.S. producers, including those involved in hydraulic fracturing, may ramp up its own production in response to the OPEC deal to take market share from OPEC, a move that could threaten any price rally. But Mr. Kaplan said he doesn't believe U.S. producers will move to increase activity and production in a "substantial" way until price begin to approach the $55 to $65 a barrel range. The U.S. rig count, a gauge of drilling activity in Texas and other oil-producing states, has been ticking higher recently but remains very low compared with pre-oil bust levels. Kaplan also said the OPEC deal will "accelerate" a rebalancing of supply and demand in oil markets that he believes was already in progress before the agreement was sealed. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Petroleum production; Price increases
Location: United States--US
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1844955561
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1844955561?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mike Wiley's Recipe for Olive Oil-Poached Cod With Cauliflower Couscous; A gentle poach in a bath of olive oil renders cod remarkably tender and silky. In this recipe, Mike Wiley of Portland's Eventide Oyster Co. pairs the sumptuous fish with a lemony cauliflower couscous
Author: Greenwald, Kitty
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract: None available.
Full text: COD HAS A MILD, firm flesh that lends itself to a wide range of preparations. But Maine chef Mike Wiley is especially partial to poaching the fillets in olive oil. "The green, grassy oil perfumes the fish," he said, "and the texture this technique achieves is remarkably luscious and light." It's a gentle way of cooking, low and slow. "If your fillets are small you can even turn off the heat after adding them," Mr. Wiley said. "Then watch, because they'll be done in under 10 minutes." You'll know the fish is overcooking if you see foamy white albumin, a protein, seeping out of the fillets--a sure sign it's time to lift them out of the pot. Here Mr. Wiley serves the cod on a bed of "couscous" made by pulsing blanched cauliflower in a food processor--"a great option for gluten-free guests," he said. Tossed with a lemony dressing and plenty of mint and chives, it makes a bright, herbal counterpoint to the sumptuous fish. Olive Oil-Poached Cod With Cauliflower Couscous Total Time: 30 Minutes Serves: 4 * Kosher salt * ½ large head cauliflower, separated into florets * 1¼ tablespoon sesame seeds, toasted * 1 teaspoon smoked paprika * Zest and juice of 1 lemon * 1 large garlic clove, minced * 4¼ cups olive oil * 4 (4-ounce) cod fillets * Leaves from 7 sprigs mint, roughly torn * 10 chives, minced 1. Bring a medium pot of salted water to a boil over high heat. Add cauliflower and boil until beginning to soften but still resistant when pierced, about 3 minutes. Strain cauliflower and toss dry. In a food processor, pulse cauliflower until it resembles fluffy couscous. 2. In a large bowl, whisk together sesame seeds, paprika, lemon zest, half the juice, garlic and ¼ cup olive oil. Season with salt to taste and adjust other seasonings as needed. Fold in cauliflower couscous until evenly dressed. Add more salt, oil or lemon to taste. 3. Season cod liberally on both sides with salt. Pour remaining olive oil into a medium heavy pot over low heat. Once hot but not bubbling, or at 135 degrees, slide in cod fillets and make sure they are just covered in oil, working in batches if necessary to avoid overcrowding. Gently poach cod, keeping temperature steady, until it offers no resistance when pierced, about 6 minutes. If white albumin leeches out, immediately and gently lift fish out with a fish spatula. Blot cod dry on paper towels. 4. Toss chives and mint into couscous. To serve, distribute couscous among 4 plates and place one cod fillet over each helping. The Chef: Mike Wiley His Restaurants: Hugo's, Eventide Oyster Co., the Honey Paw, all in Portland, Maine What He Is Known For: Injecting whimsy into Down East seafood. Anchoring Portland's emerging dining scene. Credit: By Kitty Greenwald
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Life
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845003002
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Windfall Shows Talk Isn't Cheap; Oil producers in the 14-member group have earned billions from the anticipation of Wednesday's cut and now will earn billions more even if the deal fails to pare supply
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
September's preliminary agreement of the Organization of the Petroleum Exporting Countries added billions of dollars to producers' coffers because the market reacted to a pledge to cut output even as they actually raised it.
Full text: Imaginary numbers were first given that name because they were seen as silly, but now we know how useful they are. The same applies to the oil market. September's preliminary agreement of the Organization of the Petroleum Exporting Countries added billions of dollars to producers' coffers because the market reacted to a pledge to cut output even as they actually raised it. A negative for prices computed as positive. Wednesday's surprise cut , which tacked on nearly 14% to crude prices in two days, has all the specifics that the first agreement lacked . As of January, 11 of 14 OPEC members have agreed to specific production levels, amounting to a 1.2 million-barrel cut. Russia may chip in 300,000 more. That is meaningful on the surface, but consider the fact that OPEC-plus-Russian production has increased by about 800,000 barrels a day since August. U.S. production, which had dropped by over one million barrels a day since the 2015 peak, has rebounded by 200,000 barrels a day. So, two-thirds of the proposed 1.5 million-barrel OPEC-plus-Russia cut already has been offset. Compliance is an obvious unknown, though it shouldn't be given OPEC's record. A true mystery is how quickly U.S. shale producers can react to this week's surge in prices. In the case of drilled but uncompleted wells, it is possible that incremental barrels will be coming to the market by June when OPEC members decide whether to extend their quotas for another six months. Calculating the effect on supply is bewildering. Wednesday's agreement means money in the bank for producers today, though, and there is nothing imaginary about that. Write to Spencer Jakab at spencer.jakab@wsj.com Credit: By Spencer Jakab
Subject: Cartels; Agreements; Price increases
Location: Russia United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845009774
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Saudis Wager On Higher Oil Prices to Drive Economic Diversification; Kingdom's decision to push for OPEC deal to trim output traces back to its need to cut reliance on crude exports
Author: Ahmed Al Omran
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
Should OPEC's bid for higher prices through lower production succeed, any resulting increase in government revenue would bolster one of the centerpieces of the Kingdom's economic transformation plan: divesting and listing up to 5% of state-owned energy giant Saudi Arabian Oil Co. in 2018.
Full text: JUBAIL, Saudi Arabia--Saudi Arabia's decision to push for an OPEC deal to reduce crude oil production and boost prices traces back to the Kingdom's need to diversify its economy away from crude oil exports. In its thrust toward diversification, the Organization of the Petroleum Exporting Countries' de facto leader needs to monetize massive reserves of crude oil. That means building up targeted non-crude sectors such as refined petroleum products, petrochemicals and minerals mining. From there, the Kingdom would help finance a push into other sectors, such as tourism, manufacturing and financial services. That goal helped drive the Saudis toward pushing for substantial output restraints at the cartel's meeting in Vienna this week. It was a step the Kingdom has for decades avoided, as it pursued market share at the expense of prices. A trip on Tuesday by Saudi King Salman bin Abdulaziz to a coastal industrial town helps illustrate the country's commitment to its recently mapped economic path. The king made his first visit as monarch to the oil-rich Eastern Province this week to attend events marking a string of multibillion-dollar investments by local and foreign companies in petrochemical and mining projects. Those projects are key to Saudi Arabia's economic diversification. The high-profile royal visit, which included a light-and-sound show and aerial footage of an empty desert landscape transforming into refining and mining complexes, underscored the Saudis' industrial push. With prices tumbling in recent years amid a glut of oil after a U.S. production boom and stabilizing around a relatively low $45 a barrel, the Kingdom posted a record budget deficit of $98 billion for 2015. And with income from oil sales accounting for more than two-thirds of the country's budget revenue, it would take an average price of $70 a barrel to break even fiscally this year. Since mid-2014, when oil prices began their precipitous fall, Saudi Arabia has burned through a quarter of its cash reserves. As government revenues have plunged, the Kingdom requires fresh capital to invest in projects to drive its economic migration away from crude oil. "There are a lot of spending commitments there," Robin Mills, of Dubai-based consultancy Qamar Energy, said of the Saudi economic diversification plan known as Vision 2030. "Even though you want to shift the economy away from oil, that still would depend quite a lot on upfront spending." Saudi Arabia's shift from an emphasis on gaining market share to seeking higher prices comes after an uncertain period for the kingdom of 31 million people, as it has faced economic, fiscal and some political concerns. In the past year, for example, fiscal pressure pushed the government to cut spending and reduce popular energy subsidies. Saudi Arabia's record $17.5 billion bond sale in October helped allay concern at the time about the nation's ability to raise funding. And after the bond sale, the government assured it would make up payment arrears to its private-sector contractors. Those moves have helped ease some worry about liquidity in the Kingdom, sparking a recent Saudi stock-market rally. The benchmark Tadawul stock-market index has gained about 30% since the bond issue in mid-October. The OPEC deal "will help Saudi Arabia achieve some of its key Vision 2030 priorities, avoid an increase in borrowing costs and find notable public support," said Helima Croft, global head of commodity strategy at RBC Capital Markets. Should OPEC's bid for higher prices through lower production succeed, any resulting increase in government revenue would bolster one of the centerpieces of the Kingdom's economic transformation plan: divesting and listing up to 5% of state-owned energy giant Saudi Arabian Oil Co. in 2018. Since news of the production-cut deal was announced on Wednesday, oil prices have surged by more than 14%, with Brent crude, the international benchmark, quoted at $54.50 in London on Thursday afternoon. The test for OPEC will be whether higher prices and the group's production discipline hold, something member states haven't quite managed in such accords in the past. In accepting this week's OPEC deal, the Saudis agreed to the biggest individual production cut--486,000 barrels a day. Before the agreement, the Kingdom was producing 10.06 million b/d, the highest output among OPEC members. The Saudis also had to accept that bitter regional and OPEC rival Iran would be allowed either to increase its production slightly or decrease by just 90,000 barrels, depending upon how OPEC agrees to count oil production of its members, a divisive issue that has yet to be resolved. Iran was pumping about 3.8 million b/d up to this week, according to OPEC data. The Saudi willingness to compromise with Iran showed its determination to get an OPEC deal done. Religious differences under Islam are partly behind the two countries' rivalry. Sunni Saudi Arabia and Shiite Iran have for decades been competing for greater influence in the Middle East, marshaling geopolitical coalitions that extend to proxies on the battlefield in some war zones, notably, these days, in Yemen. Write to Ahmed Al Omran at Ahmed.AlOmran@wsj.com Related Reading * Oil Keeps Rising After OPEC Output Deal (Dec. 1) * OPEC Deal Could Be a Boon to World Economy Amid Shifting Dynamics (Nov. 30) * The OPEC Deal: At a Glance (Nov. 30) * OPEC Cut Could Give Lifeline to U.S. Shale Producers (Nov. 30) Credit: By Ahmed Al Omran
Subject: Crude oil; Crude oil prices; Budget deficits; Market shares; Diversification; Petroleum production
Location: Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845020570
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845020570?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OVERHEARD: Peak Oil (Base Effect Edition)
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Dec 2016: n/a.
Abstract:
The impact was so severe, there was fear of deflation in some areas, though core inflation rates didn't get as close to negative.
Full text: Lowflation expedition log, Dec. 1: We have reached oil base effect camp. The foothills lie behind; ahead is the mountain. The peak looks lofty indeed. December 2015 and January 2016 saw a precipitous slide in oil prices that extended the energy drag on inflation. Brent crude fell from around $45 a barrel to a low of $28 by late January. The Organization of the Petroleum Exporting Countries' deal has pushed Brent back above $50 a barrel--to a 52-week high of $53.94 Thursday on ICE Futures Europe--and the price is now 23% higher than a year ago. The impact was so severe, there was fear of deflation in some areas, though core inflation rates didn't get as close to negative. But if oil remains at its average over the last three months, the year-over-year change will jump, reaching as high as 70% in late January. Even if oil prices fell back to $40, they would still be as much as 40% higher on the year early in 2017. The OPEC oil deal reached this week, which sent prices up as much as 15%, will make those numbers even more extreme. Of course, the bulk of the year-over-year jump reflects price movements a year ago more than now. But in markets where reflation is all the rage, the oil base effect might only add fuel to the flames.
Subject: Prices; Inflation; Cartels
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 1, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845085614
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845085614?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Take a Breather but Sentiment Remains Bullish; February Brent crude on London's ICE Futures exchange fell $0.34 to $53.60 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.
Abstract:
Russia's production also reached a post-Soviet high at 11.2 million barrels a day in the same month. [...]OPEC's deal only cuts production but not exports.
Full text: Crude futures moderated in early Asian trade on Friday, but market sentiment remains bullish on prices trending higher as major oil producers prepare to taper their production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $50.92 a barrel at 0307 GMT, down $0.14 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.34 to $53.60 a barrel, but is up 11% this week so far, buoyed by the Organization of the Petroleum Exporting Countries' decision on Wednesday to pull back their output by 1.2 million barrels a day. Oil prices jumped to a fresh year's high overnight on reports that leading non-OPEC producers, such as Russia and Oman, have also agreed to reduce their output. The production cut pact is expected to take effect in January and participating oil nations will reassess in six months with an option to extend the accord for another six months. If the deal is fully observed, it could shift the market into a deficit as early as the first half of next year. Brent prices could edge up to average between $55 and $60 a barrel in 2017, said Simon Flowers, chief analyst at consultancy Wood Mackenzie. "However, this does depend on OPEC being very careful to meet the terms of the agreement," he cautioned. Skepticism over members' compliance with production quotas isn't without ground as members have cheated their quotas in the past by underreporting or producing beyond their allotted limits. Based on a Goldman Sach's forecast, compliance rate by members this time around is approximately 73% of the target, which would put OPEC's overall production at 33 million barrels a day. JBC Energy expects compliance to be between 70% to 80% over the first quarter next year, but may tick lower when seasonal demand kicks in April. Crude demand in the Middle East, in particular Saudi Arabia, typically surges in the summer months to meet the increasing need for air conditioning. But not everyone is impressed by the deal with some questioning the actual effectiveness of the pact. "Cutting production when it is at an all-time high is not very helpful," said a Chinese oil trader based in Singapore. In October, OPEC production hit a record level at 33.64 million barrels a day. Russia's production also reached a post-Soviet high at 11.2 million barrels a day in the same month. Moreover, OPEC's deal only cuts production but not exports. So, countries with high storage capacity and inventories such as Saudi Arabia will still be able to maintain their market share by drawing down existing stockpiles, while for countries like Iraq with less than two weeks worth of oil stocks, a cut "may not be palatable", said BMI Research. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 83 points to $1.5387 a gallon, while January diesel traded at $1.6427, 52 points lower. ICE gasoil for December changed hands at $470.50 a metric ton, down $3.00 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Cartels; Compliance; Futures; Crude oil; Price increases
Location: Russia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 2, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845057422
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845057422?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Rebound Gives Banks Reason to Cheer --- As crude prices rise, lenders' losses on loans to energy firms are likely to decline
Author: Rapoport, Michael; Ensign, Rachel Louise
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Dec 2016: B.12.
Abstract:
[...]Wednesday's landmark deal struck by members of the Organization of the Petroleum Exporting Countries -- and the resulting jump in oil prices -- should help banks and bolster the view that the worst of the oil sector's problems is in the past, analysts said.
Full text: Higher oil prices stemming from OPEC's agreement to cut crude production should give some banks a boost. Bank stocks were slammed earlier this year when, among other factors, falling oil and gas prices raised concerns about troubled energy companies' ability to repay loans. But Wednesday's landmark deal struck by members of the Organization of the Petroleum Exporting Countries -- and the resulting jump in oil prices -- should help banks and bolster the view that the worst of the oil sector's problems is in the past, analysts said. In particular, higher oil prices could mean that banks will release some of the reserves they set aside earlier this year to protect themselves against soured energy loans. Such releases would increase banks' earnings. The improving oil-price picture also could mean that banks' credit losses on energy loans will continue to decline, as they did in the third quarter. "You certainly feel a lot better than you did at the beginning of the year," said Jason Goldberg, an analyst at Barclays. The oil gains are the latest development to boost bank stocks, following higher interest rates, signs of stronger economic growth and hopes for looser regulation under a Donald Trump presidency. In the past few weeks, shares of some big banks have neared or surpassed their highs since the 2008 financial crisis. The KBW Nasdaq Bank Index rose 2.2% on Thursday to a postcrisis high. Bank of America Corp. rose more than 1.8% on the day, Wells Fargo, 2.7%; J.P. Morgan Chase & Co., 2%; and Citigroup Inc., 1.6%. These stocks posted gains on Wednesday as well. Regional banks that are significant energy lenders saw their shares rise, too. Regions Financial Corp. gained 2.2% Thursday, Comerica Inc. rose 2.2%, Zions Bancorp was up 1.6% and Cullen/Frost Bankers Inc. advanced 1.5%. OPEC agreed on Wednesday to reduce crude-oil output by 1.2 million barrels a day. Analysts expect the move will boost oil prices to $55 or $60 a barrel from below $50. U.S. oil price soared 9.3% on Wednesday, the biggest one-day percentage gain since February. Brent, the global benchmark, gained 8.8%. On Thursday, U.S. crude oil rose 3.3%, to $51.06, while Brent climbed 4.1%, to $53.94. Prices sank below $27 a barrel early in 2016, the culmination of a monthslong selloff, leading banks to brace for the possibility of significant losses in their energy portfolios. "Criticized" energy loans -- those deemed to have a higher risk of nonpayment -- rose sharply. Fifteen of the largest U.S. banks amassed a combined $6 billion in reserves for energy loans, according to a Barclays analysis. But fewer borrowers defaulted than banks had anticipated. By the time third-quarter earnings rolled around in October, bank executives were optimistic that their problems with energy loans had hit a turning point. At Wells Fargo, net charge-offs of oil-and-gas loans fell to $168 million in the third quarter, from $263 million in the second quarter. The OPEC pact is a "modest positive" for banks that focus on the energy industry, Evercore ISI analyst John Pancari said in a note Wednesday. A sustained increase in energy prices, he said, "could provide earnings relief" at those banks by prompting them to release energy-loan reserves. Some banks have already begun to do so. J.P. Morgan released about $50 million in reserves for its oil-and-gas portfolio in the third quarter. "I don't think anybody is saying that the [energy] industry is back on its feet, but we're certainly in a much better place than we were in January," said Douglas Petno, J.P. Morgan's chief executive of commercial banking, at a conference in mid-November. Some banking regulators think the OPEC agreement will help banks, too. "Certainly, things that firm oil prices are going to be welcomed by banks," said Robert Kaplan, president of the Federal Reserve Bank of Dallas, speakingWednesdayto reporters at The Wall Street Journal. Still, banks remain cautious, conscious that they could face renewed problems if oil prices were to plunge again and stay low. Many have cut exposure to the energy industry. Federal Deposit Insurance Corp. Chairman Martin Gruenberg said Tuesday, before the OPEC agreement, that oil and gas prices continued to affect energy-industry borrowers. Credit: By Michael Rapoport and Rachel Louise Ensign
Subject: Banking industry; Petroleum production; Bank stocks; Crude oil prices
Location: United States--US
People: Trump, Donald J
Company / organization: Name: Bank of America Corp; NAICS: 522110, 551111; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: Citigroup Inc; NAICS: 551111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2016
Publication date: Dec 2, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845139474
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845139474?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
World News: Saudis Banking On Higher Oil Prices
Author: Ahmed Al Omran
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Dec 2016: A.8.
Abstract:
In its thrust toward diversification, the Organization of the Petroleum Exporting Countries' de facto leader needs to monetize massive reserves of crude oil.
Full text: JUBAIL, Saudi Arabia -- The kingdom's decision to push for an OPEC deal to reduce crude-oil production and boost prices traces back to Saudi Arabia's need to diversify its economy away from crude oil exports. In its thrust toward diversification, the Organization of the Petroleum Exporting Countries' de facto leader needs to monetize massive reserves of crude oil. That means building up targeted noncrude sectors such as refined petroleum products, petrochemicals and minerals mining. From there, the kingdom would help finance a push into other sectors, such as tourism, manufacturing and financial services. That goal helped to drive the Saudis toward pushing for substantial output restraints at the cartel's meeting in Vienna this week. It was a step the kingdom has for decades avoided, as it pursued market share at the expense of prices. A trip on Tuesday by Saudi King Salman bin Abdulaziz to a coastal industrial town helps illustrate the country's commitment to its recently mapped economic path. The king made his first visit as monarch to the oil-rich Eastern Province this week to attend events marking a string of multibillion-dollar investments by local and foreign companies in petrochemical and mining projects. Those projects are key to Saudi Arabia's economic diversification. The high-profile royal visit underscored the Saudis' industrial push. With prices tumbling in recent years, amid a glut of oil after a U.S. production boom, and stabilizing around a relatively low $45 a barrel, the kingdom posted a record budget deficit of $98 billion for 2015. Credit: By Ahmed Al Omran
Subject: Crude oil prices; Budget deficits; Petroleum production; Economic policy
Location: Saudi Arabia
People: Salman, King of Saudi Arabia
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.8
Publication year: 2016
Publication date: Dec 2, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845142729
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845142729?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Equities -- Commodities: China Stands to Gain From Oil Cuts
Author: Spegele, Brian
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Dec 2016: B.11.
Abstract:
On the one hand, higher prices would cut losses at domestic oil fields, which have contributed to lower overall profits for China's state-owned energy companies and ultimately less revenue for the government.
Full text: BEIJING -- For China's beleaguered oil sector, OPEC's deal to cut output could offer a lifeline to an industry that has been hammered by low prices and may also hasten its shift away from a heavy reliance on Saudi crude. If successful, the deal portends important shifts in how China buys foreign oil, analysts said. It also could help stem a recent slide in domestic production, which in turn would protect jobs. It is tough to overstate China's importance to the Organization of the Petroleum Exporting Countries and the energy industry. In addition to being one of the biggest oil importers, it is also a huge producer, making it vulnerable to the supply glut that has roiled markets since 2014. The agreement reached Wednesday by OPEC calls for cutting production by 1.2 million barrels a day, which has sent benchmark oil prices soaring. On Thursday, U.S. crude rose 3.3% to $51.06 a barrel and global benchmark Brent rose 4.05% to $53.94. The gains followed increases of about 9% for each Wednesday. While uncertainty remains over how the deal will play out, if implemented Saudi Arabia's market share in China could be eroded by Iran and other OPEC rivals. Saudi Arabia is taking on the highest burden of cuts under the agreement -- 486,000 barrels a day -- and that could open a door for others to compete in China. The Saudis already have lost market share in China. Its oil makes up about 14% of China's total crude imports, down from nearly 20% five years ago. In many ways, a range of $55 to $60 a barrel -- where some observers think prices could be headed in the coming months if the deal holds -- is a sweet spot for China. On the one hand, higher prices would cut losses at domestic oil fields, which have contributed to lower overall profits for China's state-owned energy companies and ultimately less revenue for the government. At the same time, the moderate price rebound means China's import bill for oil from abroad will remain far below what it was when prices topped $100. That also is good news for the government, which has worried about capital outflows. One area to consider is how a sustained uptick in prices affects domestic production. China's aging fields are more expensive to pump than those of other countries. That has led to a steep drop in output as global prices plummeted, particularly at huge onshore fields such as Daqing in northeast China. "It has the potential to stem the decline and move things toward some sort of stability on what has been a one-way train," said Thomas Hilboldt, head of Asia-Pacific resources and energy research at HSBC Holdings. Rising imports by China always made it an important market for OPEC. As legions of new Chinese drivers have taken to the roads in recent years, demand for oil has steadily risen. Yet, OPEC's intention to cut production now comes just as China's own import growth is also likely to ease next year. Chinese demand is a determinant of global prices, meaning without the agreement, the global glut that depressed markets would only deepen, analysts said, adding to OPEC's urgency to act. Credit: By Brian Spegele
Subject: Supply & demand; Agreements; Energy industry; Crude oil prices; Market shares; Petroleum production
Location: Saudi Arabia China
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2016
Publication date: Dec 2, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845143801
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rise for Third Straight Day; But skepticism over compliance with OPEC production quotas remains despite Wednesday's deal
Author: Sider, Alison; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.
Abstract:
Skepticism over members' compliance with production quotas remains, as members have cheated their quotas in the past by under-reporting or producing beyond their allotted limits. [...]the OPEC supply action could cause some oil producers to lose market share as oil producers who aren't participating in the deal ramp up their output.
Full text: Corrections & Amplifications: U.S. crude futures rose 62 cents, or 1.21%, to $51.68 a barrel on the New York Mercantile Exchange. An earlier version of this story incorrectly said $51.62 a barrel. (Dec. 2) Oil prices rose for a third straight day on Friday, after OPEC's agreement to cut output for the first time in eight years. U.S. crude futures rose 62 cents, or 1.21%, to $51.68 a barrel on the New York Mercantile Exchange, its highest settlement since July, 2015. Brent, the global benchmark, gained 52 cents, or 0.96%, to $54.46 on London's ICE Futures Exchange. Crude prices have surged since the Organization of the Petroleum Exporting Countries agreed to pull back their output by 1.2 million barrels a day. "At this point I don't think too many people are willing to stand in front of it," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates. Oil's advances stalled overnight, however, with U.S. crude futures pulling back to $50.18 as investors took profits following the dramatic rally. But crude prices resumed their march higher later, as the market looked set to hold onto most of its recent gains. U.S. crude futures gained 12.2% this week--the largest weekly percentage gain since 2009. But market participants say crude's rally could be running out of steam. "I think it's getting close to the end of its rope," said Mark Waggoner, president of Excel Futures. "I see it getting tired and falling back. I just don't see this as a game changer when they're pumping as much as they are." The deal to cut production is expected to take effect in January, and participating oil-producing nations will reassess in six months with an option to extend the accord for another six months. If the deal is fully observed, it could shift the market into a deficit as early as the first half of next year. Brent prices could move higher to average between $55 and $60 a barrel in 2017, said Simon Flowers, chief analyst at consultancy Wood Mackenzie. "However, this does depend on OPEC being very careful to meet the terms of the agreement," he cautioned. Skepticism over members' compliance with production quotas remains, as members have cheated their quotas in the past by under-reporting or producing beyond their allotted limits. Moreover, the OPEC supply action could cause some oil producers to lose market share as oil producers who aren't participating in the deal ramp up their output. "It is a dangerous game that Saudi Arabia is playing," said Michael Cohen, the head of energy commodities research at Barclays. "Should prices rise too high then the amount of shale oil that comes into the market will eventually start to cut into their market share." The U.S. put three more oil rigs back to work in the latest week, bringing total active rigs to 477, the most since late January, according to Baker Hughes. Gasoline futures gained 1.21 cents, or 0.78%, to $1.5591 a gallon. Diesel futures rose 1.02 cents, or 0.62%, to $1.6581 a gallon. --Jenny W. Hsu and Dan Molinski contributed to this article. Write to Alison Sider at alison.sider@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Alison Sider and Neanda Salvaterra
Subject: Market shares; Market entry; International finance; Price increases
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 2, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845208364
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845208364?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Russia's Lukoil Identifies Older Oil Fields for Output Cuts; Russia's second-largest oil producer PAO Lukoil is prepared to cut output by winding down production at older, more expensive fields.
Author: Mills, Laura
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.
Abstract:
Russia reached a new post-Soviet record in oil production in October, as production climbed to 11.22 million barrels a day, up more than 4% from the same month last year. Since the end of July, Russia brought some 370,000 more barrels a day online, increasing production from 10.85 barrels a day.
Full text: MOSCOW--Russia's second-largest oil producer PAO Lukoil (LKOH.MZ) is prepared to cut output by winding down production at older, more expensive fields, Vice President Leonid Fedun said Friday. Mr. Fedun said the decision this week by The Organization of the Petroleum Exporting Countries to cut production by 1.2 million barrels a day was welcome for Russia, where both the state budget and oil companies would benefit. He said Lukoil could easily terminate production at older fields in West Siberia to bring the company in line with expected cuts, though he didn't confirm by how much it expected to reduce output. Fields "that are high-cost and low-income will stop, there are no problems-quite the opposite, it will allow Lukoil to increase cash flow," he said. On Wednesday, Russian Energy Minister Alexander Novak said Russia would join the OPEC agreement by "gradually reducing" production in the first half of 2017 by up to 300,000 barrels a day. But it is unclear how much the cuts will affect Russia, which has ramped up production throughout the year. Russia reached a new post-Soviet record in oil production in October, as production climbed to 11.22 million barrels a day, up more than 4% from the same month last year. Since the end of July, Russia brought some 370,000 more barrels a day online, increasing production from 10.85 barrels a day. Russian oil and gas producers have been largely sheltered from falling crude prices by a weaker ruble, allowing them to intensify drilling despite the downturn. OPEC is expected to hold talks with non-OPEC producers on Dec. 9. Write to Laura Mills at Laura.Mills@wsj.com Credit: By Laura Mills
Subject: Supply & demand; Cartels; State budgets; Petroleum production
Location: Russia
People: Novak, Alexander
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 2, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845229747
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845229747?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Deal Is No Remedy for Poorest Members; A rise in oil prices helps emerging-market producers but won't rescue their economies
Author: Gabriele Steinhauser; Lynn Cook; Sara Schaefer Muñoz; Steinhauser, Gabriele; Cook, Lynn; Sara Schaefer Muñoz
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.
Abstract: None available.
Full text: A sustained oil-price rally driven by the Organization of the Petroleum Exporting Countries' production-cut agreement could provide relief for the cartel's poorest members but won't reverse the dramatic economic declines caused by the two-year crude-market slump. Poorer OPEC members such as Angola, Nigeria and Venezuela are desperate for higher government revenue and economic growth that rising oil prices could bring. Fallen revenues have taken a steep human toll, with food shortages in Nigeria and political unrest in Venezuela . These countries were among the most vocal in pushing for an OPEC production cut over the past two years, with Venezuela's oil minister traveling to Algiers, Moscow and Vienna in the 48 hours before the deal was reached on Wednesday. Even with the sacrifice of cutting production, the domestic political payoff of directly acting to push prices up will go far. "They need the deal," said Skip York, vice president of integrated energy at Wood Mackenzie's Americas Research Team, of OPEC's poor countries. Oil prices are up over 12% since Wednesday's deal, and J.P. Morgan Chase and other oil-industry oil-industry analysts say the cuts, if actually undertaken, could sustain prices between $55 and $60 a barrel--a level OPEC members have said they are targeting. In Angola, a rise in the price of oil to $55 a barrel on average would boost government revenues by 9% in 2017, while $50 oil would lift it by 4%, according to analysts at Eaglestone Securities. Prices were as low as $28 a barrel this year and were under $50 for sustained periods. But even if the rally sticks, government revenues will remain far off the levels seen in 2012 and 2013, when brent crude averaged above $100 a barrel. Angola, Nigeria and Venezuela don't have the deep pockets that helped temper market turbulence in other OPEC states such as Saudi Arabia. Higher prices, however, won't necessarily buy an economic revival for wealthier OPEC members. Saudi Arabia's willingness to commit to cutting output stems in part from its goal to diversify the economy away from oil. Recent prices increases may not be enough to change poorer OPEC members' economic fortunes or help them pay off piles of debt, said James McCormack, global head of Sovereigns at Fitch Ratings Inc. OPEC actions "certainly do not fully resolve the stresses most emerging market oil exporters are experiencing," Mr. McCormack said. Oil-production cuts, even small ones, are painful for these countries as the price of oil rises, said Geoffrey Heal, a professor at Columbia Business School and a former economic adviser to OPEC during the 1990s. Angola agreed to cut 78,000 barrels a day, while Venezuela is cutting 95,000 barrels a day--between 4.5% and 5%. Nigeria was exempted from any obligation to cut since a rebellion in the Niger Delta caused disruptions to its output. There were also modest cuts for such producers as Ecuador (26,000 barrels a day), Gabon (9,000 barrels a day) and Algeria (50,000 barrels a day). Nigerian oil minister Emmanuel Ibe Kachikwu was quick to voice support for the deal Wednesday, saying he was satisfied that the output cut is "big enough." His country has become increasingly desperate for price relief. With 187 million people, and trillions of dollars in untapped crude oil, Nigeria was meant to power Africa's rise. Instead, it has emerged as a symbol of how fast and far low oil prices have dragged down some emerging markets. More than a year of dwindling oil revenues have sent what was Africa's largest economy into a deep recession. Nigerian consumers have found themselves stuck in miles-long queues for gas. Supermarkets have struggled to keep shelves stocked while new shopping malls built when prices were higher are empty. A scarcity of dollars, as the government has hoarded foreign currency to safeguard shrinking reserves, has stifled business activity, particularly for importers. In Africa's other leading oil exporter, Angola, the oil-price plunge has hammered the budget, driving up debt, which the IMF expects to surpass 70% of GDP this year. A lack of funding undermined the government's ability to combat the worst outbreak of yellow fever in the country in years, which, according to the World Health Organization killed almost 400 people. In Venezuela, a rise in oil prices would do little to relieve the suffering of people who are faced with chronic shortages of food and medicine. The annual inflation rate could rise to between 530% and 2,000% by 2017, said Venezuelan economist Angel Garcia Banchs. Mr. Garcia Banchs said government currency and exchange controls are the main drivers of inflation, while Fitch's Mr. McCormack said years of borrowing and spending compounded the problems of the oil-price crash that began in 2014. "Things are going to continue as they are, with people falling into hunger, and depression, unless there is political change," Mr. Garcia Banchs said. Joe Parkinson contributed to this article. Write to Gabriele Steinhauser at gabriele.steinhauser@wsj.com and Lynn Cook at lynn.cook@wsj.com Read more * A Struggle for Daily Bread in Venezuela * Oil-Price Drop Pushes Nigeria Into Technical Recession * Saudis Wager on Higher Oil Prices to Drive Diversification Credit: By Gabriele Steinhauser, Lynn Cook and Sara Schaefer Muñoz
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 2, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845274784
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845274784?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Up by Three in Week to 477; Latest tally extends rising trend evident since this past summer
Author: Steele, Anne
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by three in the past week to a total of 477, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the oil sector.
Full text: The number of rigs drilling for oil in the U.S. rose by three in the past week to a total of 477, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the oil sector. After peaking at 1,609 in October 2014, low oil prices had put downward pressure on production and the rig count receded. The count has generally been rising since this past summer, however. The nation's gas-rig count rose by one to 119 in the past week, according to Baker Hughes. And the U.S. offshore-rig count fell by one to 22, which is three fewer than a year ago. On Friday, oil prices wavered between losses and gains , after their steep ascent in recent days on news that the Organization of the Petroleum Exporting Countries agreed to cut production. Oil prices were 0.5% higher at $51.33 a barrel in recent trading on Friday. Write to Anne Steele at Anne.Steele@wsj.com Credit: By Anne Steele
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 2, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845292681
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845292681?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Mexican Oil Auction Offers First Major Test of Foreign Firms' Interest; BP, Chevron, Exxon, Petrobas expected to bid on Gulf of Mexico deep water oil fields
Author: Montes, Juan; Whelan, Robbie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexico is preparing to auction rights to its oil-rich deep waters in the Gulf of Mexico, considered the crown jewel of the country's energy industry, which opened to foreign investment only three years ago. The auction on Monday is seen as the first major test of Mexico's ability to work with the world's top players. At a time when low oil prices are limiting production elsewhere, the deep-water blocks have caught the attention of energy giants Exxon Mobil Corp., Chevron Corp. and BP PLC, and state-owned firms Statoil ASA of Norway and Petróleo Brasileiro SA of Brazil, among others. The country's oil regulator hopes to award up to 10 unexplored deep-water blocks and find an operating partner to take a 60% stake in the Trion oil field, located offshore just south of the U.S.-Mexico border, alongside national champion Petróleos Mexicanos, or Pemex. "In terms of the scale of the projects, this is the biggest one," said Juan Carlos Zepeda, head of the National Hydrocarbons Commission, referring to the deep-water auctions. Government officials expect the cost of developing all 10 of the unexplored blocks to be $34 billion over the next 15 years. Since an ambitious overhaul opened up Mexico's oil industry to foreign and private investment in 2013, there have been three public tenders; but they offered less-profitable shallow water and inland blocks. While those auctions attracted some global players such as Italy's Eni SpA, the world's largest oil companies largely watched from the sidelines. This time, expectations in the market are high. "To have a household name operating in Mexico--that's what they really need in order to consider this a success. It would be an enormous step." said Steven Otillar, a Houston-based partner with the law firm Akin Gump Strauss Hauer & Feld who has worked on deals in Mexico's energy industry for two decades. Pemex's production has been declining for more than a decade, and the near exhaustion of Mexico's largest oil source, the Cantarell shallow-water field, has forced Mexico to shift its attention to deep-water areas. Authorities estimate that around half of Mexico's prospective oil resources lie in deep waters. A successful tender would be a boost for a sluggish economy that is facing a gloomy outlook, besieged by low oil prices, steep budget cuts and uncertainty over bilateral trade following Donald Trump's electoral victory in the U.S. Oil prices have fallen 61% since mid-2014 and Pemex's production has declined 38% since 2004, to 2.1 million barrels a day. After 75 years of state monopoly, Mexican President Enrique Peña Nieto took the audacious step of opening up the country's energy sector as part of a broader economic overhaul intended to increase competition and investment in key sectors. Mr. Peña Nieto has made the energy reform the centerpiece of a plan to reinvent heavily indebted Pemex and obtain lucrative royalties from foreign investors to fund government programs. Roughly 18% of Mexico's federal budget comes from oil. "Production has been in decline for the last several years, so having a way to reverse that decline is key for Mexico's finances," said Pablo Medina, an analyst at energy research firm Wood Mackenzie. Analysts expect Trion won't produce its first barrels of oil for eight to 10 years. "This is a long-term fix, but whoever joins Pemex in Trion is going to have potentially a lot of upside," Mr. Medina said. The Trion field was discovered in 2012 and is thought to contain about 485 million barrels of commercial reserves. Senior officials at the Energy Ministry say they would be satisfied if four deep-water blocks plus the partnership with Pemex in Trion are awarded. State-owned Pemex lacks the technical expertise to build the undersea infrastructure necessary to drill for deep-water crude oil, and joining with an experienced international firm was impossible before the energy reforms. Developing the Trion field, for example, will require an estimated investment of $11 billion. "We don't have the resources, and we don't have the technology" to produce deep-water oil without partners, said José Antonio González Anaya, Pemex's chief executive. The level of available reserves in the 10 unexplored blocks is unclear, and oil companies will compete alongside Pemex for exploration and production licenses. Four of the blocks are located near Trion in the Perdido Fold belt, a deep-water region where giants such as Royal Dutch Shell PLC, Chevron and BP are already producing oil on the U.S. side of the Gulf at a rate of about 65,000 barrels a day. Analysts also will be watching closely to see if any major oil companies make a formal bid for six additional blocks nestled in the southern elbow of the Gulf of Mexico known as the Saline Basin. Much less is known about potential reserves in this area, compared with the active fields in the northern part of the Gulf. The Saline Basin "is the Great Expectation," said Mr. Zepeda, head of the oil regulator. "It's very risky, but you could find something big." Write to Juan Montes at juan.montes@wsj.com and Robbie Whelan at robbie.whelan@wsj.com Related Reading * Mexico Outlines Plan to Open Oil Fields to Private Companies (Aug. 13, 2014) * Mexico's Pemex Makes Offshore Crude-Oil Discoveries (Sept. 13) * Mexico Begins New Round of Oil Auctions With Shallow Water Blocks (July 19) * Petróleos Mexicanos Posts $4.4 Billion Second-Quarter Loss (July 28) Credit: By Juan Montes and Robbie Whelan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 2, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845297475
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845297475?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OFF DUTY --- Eating & Drinking -- Slow Food Fast: Olive Oil-Poached Cod With Cauliflower Couscous
Author: Greenwald, Kitty
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Dec 2016: D.12.
Abstract:
TOTAL TIME: 30 minutes SERVES: 4 Kosher salt 1/2 large head cauliflower, separated into florets 1 1/4 tablespoon sesame seeds, toasted 1 teaspoon smoked paprika Zest and juice of 1 lemon 1 large garlic clove, minced 4 1/4 cups olive oil 4 (4-ounce) cod fillets Leaves from 7 sprigs mint, roughly torn 10 chives, minced 1.
Full text: [SATISFYING AND SEASONAL FOOD IN ABOUT 30 MINUTES] The Chef: Mike Wiley His restaurants: Hugo's, Eventide Oyster Co. and the Honey Paw, all in Portland, Maine What he's known for: Injecting whimsy and creativity into New England seafood. Anchoring Portland's emerging dining scene. Cod Has a mild, firm flesh that lends itself to a wide range of preparations. But Maine chef Mike Wiley is especially partial to poaching the fillets in olive oil. "The green, grassy oil perfumes the fish," he said, "and the texture this technique achieves is remarkably luscious and light." It's a gentle way of cooking, low and slow. "If your fillets are small you can even turn off the heat after adding them," Mr. Wiley said. "Then watch, because they'll be done in under 10 minutes." You'll know the fish is overcooking if you see foamy white albumin, a protein, seeping out of the fillets -- a sure sign it's time to lift them out of the pot. Here Mr. Wiley serves the cod on a bed of "couscous" made by pulsing blanched cauliflower in a food processor -- "a great option for gluten-free guests," he said. Tossed with a lemony dressing and plenty of mint and chives, it makes a bright, herbal counterpoint to the sumptuous fish. --- TOTAL TIME: 30 minutes SERVES: 4 Kosher salt 1/2 large head cauliflower, separated into florets 1 1/4 tablespoon sesame seeds, toasted 1 teaspoon smoked paprika Zest and juice of 1 lemon 1 large garlic clove, minced 4 1/4 cups olive oil 4 (4-ounce) cod fillets Leaves from 7 sprigs mint, roughly torn 10 chives, minced 1. Bring a medium pot of salted water to a boil over high heat. Add cauliflower and boil until beginning to soften but still resistant when pierced, about 3 minutes. Strain cauliflower and toss dry. In a food processor, pulse cauliflower until it resembles fluffy couscous. 2. In a large bowl, whisk together sesame seeds, paprika, lemon zest, half the juice, garlic and 1/4 cup olive oil. Season with salt to taste and adjust other seasonings as needed. Fold in cauliflower couscous until evenly dressed. Add more salt, oil or lemon to taste. 3. Season cod liberally on both sides with salt. Pour remaining olive oil into a medium heavy pot over low heat. Once hot but not bubbling, or at 135 degrees, slide in cod fillets and make sure they are just covered in oil, working in batches if necessary to avoid overcrowding. Gently poach cod, keeping temperature steady, until it offers no resistance when pierced, about 6 minutes. If white albumin leeches out, immediately and gently lift fish out with a fish spatula. Blot cod dry on paper towels. 4. Toss chives and mint into couscous. To serve, distribute couscous among 4 plates and place one cod fillet over each helping. Credit: By Kitty Greenwald
Subject: Olive oil; Recipes
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: D.12
Publication year: 2016
Publication date: Dec 3, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: Feature
ProQuest document ID: 1845366372
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845366372?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon CEO Now a Contender for Donald Trump's Secretary of State; President-elect widens circle of candidates for top diplomatic job and will interview more prospects
Author: Lee, Carol E; Nicholas, Peter
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Dec 2016: n/a.
Abstract:
Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration.
Full text: President-elect Donald Trump is widening the circle of candidates for secretary of state and will interview more prospects this week, transition officials said, a sign that after multiple meetings with high-profile hopefuls he still isn't sold on whom he wants as the nation's top diplomat. Though Mr. Trump's transition team said last week that the search had narrowed to four finalists , new candidates have emerged, including Rex Tillerson, chairman and chief executive of Exxon Mobil Corp., one transition adviser said. Mr. Tillerson is scheduled to meet with Mr. Trump for an interview this week. Alan Jeffers, an Exxon spokesman, declined to comment. Vice President-elect Mike Pence, appearing Sunday on NBC, said the list of secretary of state candidates "might grow a little bit." On Sunday evening, Mr. Trump's transition officials said another candidate for both secretary of state and energy secretary is Sen. Joe Manchin (D., W.Va.). The conservative Democrat would add a bipartisan dimension to the Trump cabinet if chosen. Mr. Manchin has experience in both realms, serving on the Senate's Energy and Natural Resources Committee and the Armed Services Committee. His office didn't respond to a request for comment. And U.S. Rep. Dana Rohrabacher (R., Calif.) said in an interview Sunday he is talking to Trump transition officials about the secretary of state job. He said he has pitched to them an arrangement in which he would serve in the top job and a deputy would be John Bolton, a former ambassador to the United Nations. Mr. Bolton--who also is in the running for the secretary of state post--held a private meeting with the president-elect Friday at Trump Tower. Kellyanne Conway, a senior Trump adviser, told reporters Sunday: "It is true that he's broadened the search...He's very fortunate to have interest among serious men and women who, all of whom need to understand that their first responsibility as secretary of state would be to implement and adhere to the president-elect's America First foreign policy, if you will, his view of the world." A final decision could come by week's end, the transition adviser said. Secretary of state is the most prominent missing piece in a national security team that is quickly taking shape. At a rally in Cincinnati last week, Mr. Trump announced he selected retired Gen. James Mattis to head the Pentagon as defense secretary. He has tapped another retired general, Michael Flynn, to serve as his national security adviser. Normally an opaque process, the hunt for the next secretary of state has played out in an unusually public fashion. Another top candidate is 2012 Republican presidential nominee Mitt Romney, who clashed bitterly with Mr. Trump during the GOP primaries this year. Last Tuesday, Mr. Trump had dinner with Mr. Romney in Manhattan. Setting aside the campaign hostilities and perhaps trying to make amends with Mr. Trump's supporters, Mr. Romney told reporters afterward that he was "impressed" with the transition effort. Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration. Gen. Petraeus pleaded guilty in 2015 to a misdemeanor charge of mishandling classified material in a case involving his biographer, with whom he said he had an extramarital affair. He addressed his legal troubles in an appearance Sunday on ABC, saying, "I made a mistake. I have again acknowledged it. Folks will have to factor that in and determine whether that is indeed disqualifying or not." One of the questions Mr. Trump faces is whether he wants a trifecta of generals as his core national security team. That would be the upshot if he picks Mr. Petraeus. Coming to the presidency with no foreign policy or government experience, Mr. Trump could rely more heavily on his national security team than his predecessors. So far he has chosen to largely freestyle his engagement with foreign leaders, rather than rely on the State Department's guidance for such conversations. Mr. Trump sent shock waves through the diplomatic community Friday when he spoke with President Tsai Ing-wen of Taiwan, the first conversation between a U.S. president-elect, or president, and the leader of Taiwan since 1979. The conversation ran against Beijing's efforts to block formal U.S. relations with the island off China's coast, which it has long considered a Chinese territory and not a sovereign nation. Choosing a secretary of state with scant foreign policy background, such as Exxon's Mr. Tillerson, could further unnerve government officials serving in an institution that functions on strict protocols. Mr. Trump also faces a decision on whether he wants a more hawkish foreign policy or one favoring diplomacy over military engagement. During the campaign, he signaled that he wants a military posture that is less interventionist, eschewing "nation-building" and "regime-change." Yet he has vowed to intensify military action against Islamic State. "The balance of personalities in the [White House] Situation Room is really important. It's one of the few places where all the parts of government come together to shape foreign policy and presidential decision making," said Phil Carter, director of the Military, Veterans and Society Program at the Center for a New American Security, a bipartisan think tank. "They have to bring their personalities and their judgment to the table," Mr. Carter said. "Who you have in that room and in that decision process can have a big impact." Mr. Tillerson, 64 years old, grew up in Texas and joined Exxon in 1975. He leads a company with operations in more than 50 countries, from Canada to Papua New Guinea, that often exerts itself abroad with the sweep of a sovereign nation. He is slated to retire next year and Exxon has identified Darren Woods as a successor. As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders, including Russia's Vladimir Putin, with whom he has had dealings for more than a decade . Mr. Tillerson's close ties to the company, including tens of millions of dollars of Exxon shares that will become available to him in the coming decade, could complicate his efforts to lift sanctions or intervene in trade disputes where Exxon has a financial interest. It would be almost impossible for him to recuse himself from working with all the countries in which Exxon operates or markets products. Mr. Tillerson's corporate pedigree would make him an unconventional choice, foreign policy analysts said. Jon Alterman, a Middle East expert at the nonpartisan Center for Strategic and International Studies, noted that former Secretary of State John Foster Dulles was a lawyer at a top New York City firm, but not a CEO, and that George Shultz was president of Bechtel Corp., but also served in government. "Both are far, far, far smaller companies than Exxon Mobil," Mr. Alterman said. "I can't think of a CEO with no government experience becoming secretary of state." As head of a company with a massive global footprint, Mr. Tillerson, though, is no stranger to foreign leaders. As Exxon's chief executive, he has spoken against sanctions on Russia, where the company in 2012 signed a $3.2 billion deal that Mr. Putin said could eventually reach $500 billion in investments. "We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," Mr. Tillerson said at the company's annual meeting in May 2014. Mr. Tillerson has some of the closest ties among U.S. CEOs to Mr. Putin and Russia, with his work there dating back to when Mr. Putin rose to power after Boris Yeltsin's resignation. The 2012 deal gave Exxon access to prized arctic resources. Later that year, the Kremlin bestowed the country's Order of Friendship on the American businessman. Mr. Tillerson supported a Trump rival in the Republican primaries: Former Florida Gov. Jeb Bush. He gave the maximum $2,700 to the Bush campaign, and another $5,000 to the Right to Rise, the super PAC that backed Mr. Bush. He didn't make a contribution to Mr. Trump's campaign, according to the Center for Responsive Politics, which tracks political giving. Bradley Olson and James V. Grimaldi contributed to this article. Write to Carol E. Lee at carol.lee@wsj.com and Peter Nicholas at peter.nicholas@wsj.com Credit: By Carol E. Lee and Peter Nicholas
Subject: Presidents; Foreign policy; International relations; Political campaigns; National security
Location: United States--US
People: Pence, Mike Mattis, James Rohrabacher, Dana
Company / organization: Name: Department of Defense; NAICS: 928110; Name: United Nations--UN; NAICS: 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 4, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845549112
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845549112?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Futures Ease in Asia Following OPEC Bounce; February Brent crude lost 50 cents, or 0.9%, to $53.96 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract:
New drilling activity in the U.S. had been slipping this year, but Baker Hughes Inc. reported that the number of rigs drilling for oil in the U.S. rose by three in the last week to 477.
Full text: Oil futures slipped in Asia trading on Monday, giving back ground following last week's sharp rally touched off by a new supply agreement by OPEC. Light, sweet crude for January delivery lost 43 cents, or 0.9%, to $51.25 a barrel on the Globex Electronic session of the New York Mercantile Exchange. February Brent crude lost 50 cents, or 0.9%, to $53.96 a barrel. Futures retreated as traders continued to weigh last week's deal by the Organization of the Petroleum Exporting Countries. Nymex and Brent crude both gained more than 12% last week after the agreement to cut the equivalent of 1% of global supply. The deal is set to take effect in January, though questions remain over the deal's enforcement. But news that non-OPEC members, such as Russia and Oman, could also reduce their output bolsters the deal's credibility, analysts said. "The agreement of some non-OPEC members to join the pack marks how significant the deal is," wrote Stuart Ive, private client manager at OM Financial. Many analysts expect greater volatility in the next year as prices seek out a new floor. Citigroup said in the oil market, "we expect price swings of as much as $20 to $25 a barrel to become part of the new norm." Some market watchers have noted that higher prices are likely to simply lead to higher production from U.S.-based shale producers, whose output is more profitable with oil above $50 a barrel. New drilling activity in the U.S. had been slipping this year, but Baker Hughes Inc. reported that the number of rigs drilling for oil in the U.S. rose by three in the last week to 477. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 128 points to $1.5463 a gallon, while January diesel traded at $1.6481, 100 points lower. ICE gasoil for December changed hands at $472.75 a metric ton, down $2.25 from Friday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil; Cartels; Agreements
Location: Russia United States--US Oman Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845630050
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845630050?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rose 12% Last Week
Author: Sider, Alison; Salvaterra, Neanda
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Dec 2016: B.11.
Abstract:
Crude prices have surged since the Organization of the Petroleum Exporting Countries agreed to pull back output by 1.2 million barrels a day.
Full text: Oil prices rose for a third straight day on Friday, after OPEC's agreement to cut output for the first time in eight years. U.S. crude futures rose 62 cents, or 1.2%, to $51.68 a barrel on the New York Mercantile Exchange, its highest settlement since July 2015. Brent, the global benchmark, gained 52 cents, or 0.96%, to $54.46 on London's ICE Futures Exchange. Crude prices have surged since the Organization of the Petroleum Exporting Countries agreed to pull back output by 1.2 million barrels a day. "At this point I don't think too many people are willing to stand in front of it," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates. U.S. crude futures gained 12.2% this past week -- the largest weekly percentage gain since 2009. But some market participants say crude's rally could be running out of steam. "I think it's getting close to the end of its rope," said Mark Waggoner, president of Excel Futures. "I see it getting tired and falling back. I just don't see this as a game changer when they're pumping as much as they are." The deal to cut production is expected to take effect in January, and participating oil-producing nations will reassess in six months with an option to extend the accord for an additional six months. Skepticism over members' compliance with production quotas remains, as members have cheated their quotas in the past by underreporting or producing beyond their allotted limits. Credit: By Alison Sider and Neanda Salvaterra
Subject: Commodity prices; Crude oil
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2016
Publication date: Dec 5, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845685562
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845685562?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Continue OPEC Rally; Prices rise to fresh one-year high after the Organization of the Petroleum Exporting Countries agreed to pull back output
Author: Puko, Timothy; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract:
Russia increased its oil production to a record 11.2 million barrels a day in November. Since Moscow has indicated that any production cut would be based on the November level, the country would still be producing significantly more crude oil in the first half of 2017 than it was just a few months ago, said Commerzbank in an analyst note.\n
Full text: Oil prices edged up to a fresh one-year high Monday, adding to last week's sharp rally from OPEC's agreement to cut production. The market is extending gains as many analysts raise hopes the Organization of the Petroleum Exporting Countries is more likely to abide by this deal than others from years past. Its members are notorious for exceeding production quotas, but this time severely bloated stockpiles and the past month's rise in prices may make them more likely to follow through, analysts said. "Beside they only must be on their best behavior for a few months to get the market into a daily supply deficit," Phil Flynn, senior market analyst at the Price Futures Group in Chicago, said in a note. Light, sweet crude for January delivery settled up 11 cents, or 2%, to $51.79 a barrel on the New York Mercantile Exchange. It is the highest settlement since July 14, 2015. Crude prices gained almost 15% last week after OPEC agreed to pull back output by 1.2 million barrels a day. Investors are now waiting for the outcome of a Dec. 10 meeting between the cartel and non-OPEC producers such as Russia, which will also focus on production limits. Russia has said it is willing to participate in the OPEC deal. But Moscow has failed to follow through on similar agreements in the past. Energy Aspects is assuming Russian production freezes at 11 million barrels a day, just below its current record high. It also expects OPEC to cut output to 32.8 million barrels a day, within about 400,000 barrels of the cap the group announced last week. The London consultancy is forecasting 82% compliance from within the group, saying Iraq will likely not follow through, but Iran will peak about 200,000 barrels a day below its quota. "The market should not assume this is just a six-month deal," Amrita Sen, Energy Aspects' chief oil analyst said in a note. "OPEC's primary goal is to run down the inventory overhang rather than target higher prices." Inventories should shrink by 500,000 barrels a day in the first half of next year because of the agreement, she added. That should keep prices stable at this higher level until investment cuts from outside OPEC lead to more shortfalls and even higher prices starting after 2018, according to Piper Jaffray Cos.' Simmons & Co. International. But the bank is capping its price forecast until then at about $60 a barrel, it said in a note Monday morning. Inventories are still so high and U.S. shale-drillers could immediately put more oil on the market to take advantage of the recent rally, capping it in a new range between $50 and $60 a barrel, the bank said. But some are still skeptical of the deal, especially the linchpin of Russian participation. OPEC expects producers from outside the cartel, including Russia, to join with additional cuts totaling 600,000 barrels a day. "I would be surprised to see any significant action on this side," said Eugen Weinberg, head of commodity research at Commerzbank AG. "Russia is the ultimate beneficiary of this deal because not only do they benefit from the higher oil price but also from the market share they can take from OPEC." Russia increased its oil production to a record 11.2 million barrels a day in November. Since Moscow has indicated that any production cut would be based on the November level, the country would still be producing significantly more crude oil in the first half of 2017 than it was just a few months ago, said Commerzbank in an analyst note. Gasoline futures lost 0.16 cent, or 0.1%, to $1.5575. Diesel futures lost 0.1 cent, or 0.1%, to $1.6571 a gallon. Benoit Faucon and Georgi Kantchev contributed to this article. Write to Timothy Puko at tim.puko@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Timothy Puko and Neanda Salvaterra
Subject: Crude oil; Inventory; Crude oil prices; Petroleum production
Location: Russia
Company / organization: Name: Piper Jaffray Cos; NAICS: 523120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845714230
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845714230?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Riverstone Investing $150 Million in Mexican Energy Company; Avant Energy will build oil-and-gas infrastructure in Mexico
Author: Garcia, Luis
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract:
First Reserve Corp. and BlackRock Inc. in March 2015 announced the acquisition of stakes in Los Ramones II, a network of 744-kilometer pipelines that will transport cheaper natural gas from the fields in South Texas into Mexico's market.
Full text: Energy investor Riverstone Holdings made an initial $150 million line-of-equity investment in Avant Energy S. de R.L. de C.V., a newly formed Mexican energy company, according to a news release. The deal is the latest of a series of private-equity investments in builders and operators of oil-and-gas infrastructure in Mexico as investors aim to take advantage of the country's opening of its energy sector to foreign and private capital. Riverstone's investment can be increased to $300 million once the initial capital has been deployed. Avant Energy executives also made additional capital commitments "for undisclosed amounts," according to the release. With offices in Mexico City, Monterrey and Houston, Avant Energy will concentrate on the development, construction and operation of infrastructure for Mexico's oil, natural gas, refined products and electricity sectors, as well as participate in Mexico's recently liberalized markets for these products and services, according to the release. As Mexico auctions rights to its deep-water fields Monday, one of the most anticipated bids since reforms ended the state's monopoly of the energy sector in 2013, private-equity firms are investing in the infrastructure necessary to sustain the expected expansion of Mexican oil-and-gas industry. First Reserve Corp. and BlackRock Inc. in March 2015 announced the acquisition of stakes in Los Ramones II, a network of 744-kilometer pipelines that will transport cheaper natural gas from the fields in South Texas into Mexico's market. Two months later, Partners Group made a $500 million new investment in Fermaca Enterprises S. de R.L. de C. V.--a pipeline builder and operator in which the European firm had acquired a controlling stake in 2014--while KKR & Co. formed a joint venture with Monterra Energy LLC, which plans to construct a 270-kilometer pipeline to transport imported refined products from the port city of Tuxpan to Central Mexico. New-York-based Riverstone makes buyout and growth-capital investments in the exploration and production, midstream, oil-field services, power and renewable sectors of the energy industry. Credit: By Luis Garcia
Subject: Pipelines; Acquisitions & mergers; Equity; Infrastructure; Natural gas; Energy industry; Private equity
Location: Mexico
Company / organization: Name: First Reserve Corp; NAICS: 523920; Name: Partners Group; NAICS: 523920; Name: Kohlberg Kravis Roberts & Co LP; NAICS: 523920; Name: BlackRock Inc; NAICS: 523930, 525910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Pro Private Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845849091
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845849091?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Australia's BHP Billiton Wins Bidding for Stake in Mexico's Trion Oil Field; BP and BHP Billiton were only two bidders on partnership with Pemex
Author: Whelan, Robbie; Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--The world's largest oil companies won rights to develop Mexico's offshore oil deposits in an auction that led to twice as many awards as officials expected and could generate $40 billion in investment. Eight of the 10 exploration blocks available were snatched up in competitive bidding by firms including Exxon Mobil Corp., Chevron Corp., and China's state-run China National Offshore Oil Corp. Australia's BHP Billiton also made history by becoming the first foreign company to join state oil firm Petróleos Mexicanos in developing the already discovered Trion oil field in the Gulf of Mexico. The Trion partnership and the deep-water auctions were the centerpiece of President Enrique Peña Nieto's 2013 energy reform laws, which opened Mexico's energy industry to foreign investment for the first time since nationalization in 1938. "We've very happy that this investment will come to Mexico," said Juan Carlos Zepeda, head of the country's energy regulator, the National Hydrocarbons Commission. "The energy reform initiated by President Pena is a success." Mexican energy officials said the eight blocks plus Trion eventually should lead to production of 900,000 barrels a day of oil equivalent. BHP Billiton outbid BP PLC for a 60% stake in the Trion field, believed to contain 485 million barrels of crude oil, by offering a bonus payment $624 million, just $18 million more than its British rival. Among the biggest winners was China's Cnooc, which won rights to explore and develop two blocks in the oil-rich central portion of the Gulf of Mexico. Cnooc offered some of the highest royalty payments, committing to pay 15.01% of its gross income on one block and 17.01% on another. "We salute that the Chinese business has come to compete in Mexico and to win," said Pedro Joaquín Coldwell, Mexico's Secretary of Energy. "When we talk about diversification, we don't only refer to the scale of the companies...we also refer to nationalities." "The way the Chinese are approaching Mexico's energy industry is very similar to the way they approached Brazil," said R. Evan Ellis a Latin American studies professor at the U.S. Army War College, referring to the policy of investing in small companies and setting up investment funds first, then taking exploratory steps to develop caches of resources. Cnooc couldn't be reached for comment. Other successful foreign bidders include a consortium included France's Total SA alongside Statoil ASA and BP, and another group including Murphy Oil Corp., Ophir Energy and Malaysia's Petronas Carigali. Aside from securing a partner for Trion, Pemex won one block in a consortium with Chevron and Japan's Inpex Corp., and lost in another in which it bid alone. They were the first competitive bids for Pemex, which had a monopoly on oil exploration and production in Mexico since 1938. "Pemex is realizing the need to change and adjusting to the new reality," said Pablo Medina, a Latin America upstream analyst at energy research firm Wood Mackenzie. For Trion, both Billiton and BP offered additional royalties of 4%, on top of the minimum royalty payment of 7.5%, while Billiton offered an additional cash commitment of $624 million, higher than the $606 million offered by BP. Billiton will have 60% of the project and Pemex 40%, and as winning bidder is obliged to make a minimum investment of $570 million. Timothy Callahan, a director general with BHP Billiton, said his company became more confident in its bid after Pemex in early November changed certain terms in the Trion joint operating agreement, including voting procedures governing the contract. The auction is the fourth under the 2013 opening of the Mexican oil industry, but the first for deep-water reserves and the first to attract the interest of major oil companies. The Trion field was discovered in 2012 and is thought to contain about 485 million barrels of commercial reserves. It is expected to cost about $11 billion to develop the field, with capital expenditures of $7.5 billion, according to Mexican oil regulator National Hydrocarbons Commission. Write to Robbie Whelan at robbie.whelan@wsj.com and Anthony Harrup at anthony.harrup@wsj.com Related Reading * Mexico Outlines Plan to Open Oil Fields to Private Companies (Aug. 13, 2014) * Mexico's Pemex Makes Offshore Crude-Oil Discoveries (Sept. 13) * Mexico Begins New Round of Oil Auctions With Shallow Water Blocks (July 19) * Petróleos Mexicanos Posts $4.4 Billion Second-Quarter Loss (July 28) Credit: By Robbie Whelan and Anthony Harrup
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845849267
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845849267?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
CFTC Leaves Shaping Position Limits Rule to Trump Administration; Regulator fails to complete long-delayed rule to curb speculation in commodities like oil and gold
Author: Ackerman, Andrew; Osipovich, Alexander
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract:
The Commodity Futures Trading Commission voted unanimously Monday to float, for the third time since 2011, a proposed rule that would cap the size of trading positions firms could take in more than two dozen core commodity contracts, including a variety of energy and precious-metals commodities, to curb any one trader's influence.
Full text: WASHINGTON--U.S. regulators failed to put the finishing touches on a much-debated, long-delayed rule to limit speculation in commodities like oil and gold, opting instead to propose a scaled-back version that leaves its outcome in the hands of the Trump administration. The Commodity Futures Trading Commission voted unanimously Monday to float, for the third time since 2011, a proposed rule that would cap the size of trading positions firms could take in more than two dozen core commodity contracts, including a variety of energy and precious-metals commodities, to curb any one trader's influence. The move punts a decision on the rule's final contours to the Trump administration, which has pledged to dismantle the Dodd-Frank financial law that authorized the restrictions. "I did not want to finalize a rule that next year the commission would choose not to defend or implement," CFTC Chairman Timothy Massad said on a call with reporters. Specifically, the latest proposal would restrict a firm from owning more than the equivalent of 25% of a commodity's estimated "deliverable supply" in a given month. In some cases, however, it would effectively raise the position limits because it would increase the estimated supply of the commodities. Monday's version also gives traders more leeway than prior iterations of the measure if they are managing business risks. Mr. Massad, who is expected to step down by early next year, had pledged at his 2014 Senate confirmation hearing to "make it a priority" to finalize the controversial "position limits" rule, aimed at curbing speculation by Wall Street trading in certain commodity contracts. The rule gained traction in Congress during an oil-price spike in 2008, which some attributed to excessive speculation by short-term traders. On Monday, Mr. Massad said the commission worked hard to complete the measure during his tenure but its complexity led to delays. Indeed, Monday's proposal spans more than 900 pages and has over 1,000 footnotes, up from about 200 pages in 2013. Mr. Massad said the bulk of the sprawling proposal is not rule text, but rather summaries of the extensive comments and analysis the agency has received over the years. The rules stem from the 2010 Dodd-Frank regulatory overhaul that gave the CFTC authority to extend trading restraints, or position limits, to commodities such as natural gas and silver. Agricultural and livestock commodities have long had limits on speculation. Gary Gensler, the CFTC's hard-charging former chairman, originally proposed the curbs in 2011, but they were overturned by a federal court in 2012 only to be revised and again proposed by Mr. Gensler in late 2013. Those rules were never completed. Monday's unexpected decision to revise the 2013 proposal is an ominous sign for other unfinished priority projects set by the Obama administration for Wall Street oversight. These include efforts by the Securities and Exchange Commission to rein in the use of risky financial instruments in mutual funds that are sold to the public, restrictions on the payday-lending industry floated by the Consumer Financial Protection Bureau, and the Federal Reserve's efforts to force big banks to issue debt that can be converted to equity in a crisis, reducing the need for a taxpayer bailout. Antonio Weiss, a senior Treasury official, said Monday at a conference on financial regulation that he's "hopeful" that a pending rule reining in executive compensation at large financial institutions "will be finalized" but added that "it's certainly at risk due to fragmentation." The CFTC's decision to delay a final version of the rule contrasts sharply with the position taken by European policy makers, who moved last week to complete their own version of the rule, effective in January 2018. Though Republican lawmakers have warned regulators not to rush to complete rules in the waning days of the Obama administration, J. Christopher Giancarlo, the CFTC's sole Republican, said he backed Monday's scaled-back measure. Mr. Giancarlo, who is expected to become acting chairman early next year, said in a written statement that he is "comfortable" that Monday's proposal "provides the basis for the implementation of a final position-limits rule that I could support." Tyson Slocum, director of Public Citizen's energy program, which has advocated for the curbs, said Monday's decision is "really disappointing" and that Mr. Massad should have finalized the rule months ago. "Chairman Massad had plenty of time to finalize this rule earlier this year and his failure to do so is going to end up harming consumers," he said. Monday's proposal, unlike the 2013 version, would give energy firms greater leeway to avoid the restrictions by broadening the "bona fide hedge exemptions" available to energy firms that use futures and swaps to protect against swings in commodity prices. Industry groups had lobbied the CFTC to broaden the exemptions, saying they were needed to prevent the rule from inadvertently preventing the legitimate hedging strategies of oil producers, electric utilities and other energy firms. Critics worry the exemptions could be used to circumvent the limits and allow speculation under the guise of hedging. Write to Andrew Ackerman at andrew.ackerman@wsj.com and Alexander Osipovich at alexander.osipovich@dowjones.com Credit: By Andrew Ackerman and Alexander Osipovich
Subject: Futures trading; Regulation of financial institutions; Commodity futures; Executive compensation
Location: United States--US
Company / organization: Name: Congress; NAICS: 921120; Name: Commodity Futures Trading Commission; NAICS: 926140, 926150
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845853882
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC to Seek More Oil-Output Cuts from Nonmembers; Representatives from 14 countries invited to meet in Vienna on Saturday
Author: Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract:
Oil-producing countries want to remove supply from the market, bring it back into balance with demand and force prices to rise after over two years of cheap energy.
Full text: OPEC's agreement to slash oil output faces its first test Saturday, when it asks producers outside the cartel to make production-cut commitments intended to amplify the effect of the landmark deal. The Organization of the Petroleum Exporting Countries has invited representatives from 14 countries to meet in Vienna on Saturday to discuss joining the cartel after it agreed last week to slash 1.2 million barrels of daily oil production--over 1% of global output. In all, OPEC wants its non-OPEC counterparts to slash 600,000 barrels a day. Four countries have committed to attend Saturday: Russia, Oman, Bahrain and Azerbaijan. OPEC officials believe Mexico and Kazakhstan are also likely to come. Their participation is crucial, OPEC officials say. Without it, the oil-price gains of the past week would be imperiled, and the OPEC production deal itself could be severely undermined, OPEC officials said. Saudi Arabia "absolutely" expects non-OPEC producers to reduce their output, one of these officials said. The kingdom helped orchestrate the first OPEC production cut in eight years by promising that non-OPEC producers would join in. Oil-producing countries want to remove supply from the market, bring it back into balance with demand and force prices to rise after over two years of cheap energy. Oil prices have soared over 15% since OPEC announced its first production-cut deal since 2008, with Brent crude, the international benchmark, rising above $55 a barrel for the first time this year on Monday. Saturday's meeting is a potential "hurdle for the bulls," said Dominick Chirichella's Energy Market Analysis in a note Monday. On Saturday, OPEC plans to press its rivals to agree to specific cuts and allow production to be monitored by a committee with three OPEC members and two non-OPEC members. In an interview, OPEC Secretary General Mohammad Barkindo said it would be "the first time OPEC [and] non-OPEC will agree to a joint, binding supply-management agreement." At a speech in India on Monday, Mr. Barkindo said OPEC had "institutionalized" its ability to cooperate with non-OPEC countries. But getting non-OPEC members to agree may be a tougher sell than expected. Russia, the world's largest producer of crude oil, has already said it would "gradually" reduce production by 300,000 barrels a day next year in coordination with OPEC. It didn't give a time frame, as OPEC members did last week, nor did it say it would accept international monitoring of its output. In the interview, Mr. Barkindo said Russia had "agreed in principle" "Details will be discussed and agreed upon" Saturday, he said. Moscow's participation was essential to OPEC's ability to agree last week, people familiar with the matter said. The first call Saudi energy minister Khalid al-Falih made after the OPEC deal was sealed was to Russian energy minister Alexander Novak, to get assurances that Moscow would commit to cuts, the people said. Russia has said it would join OPEC output cuts in the past, only to renege. In a note Monday, Vienna-based oil consultancy JBC said it was "quite skeptical that [a Russian output cut] will actually happen." Russian oil production reached a new post-Soviet high in November at 11.22 million barrels a day. The other countries expected to attend talks in Vienna offer a complex picture. Kazakhstan was reluctant to join production cuts this year. A giant new oil field there, called Kashagan, recently started producing, and the cash-strapped central Asian country is expected to increase output by 210,000 barrels a day to 1.77 million barrels a day in 2017, according to OPEC projections. Kazakhstan hasn't confirmed its participation and didn't respond to requests for comment. Oman and Bahrain produce 1 million barrels a day and 200,000 barrels a day, respectively, but their output is supposed to stagnate in 2017, according to OPEC. That means cutting may be easier to swallow there. Officials in these countries declined to comment on their production plans beyond confirming their attendance. In Azerbaijan, where output is set to fall by 30,000 barrels a day to 840,000 barrels a day in 2017, the energy minister Natig Aliyev said in a news release that he would support the OPEC deal. Azeri officials didn't respond to requests for comment. In Mexico, where oil companies produce 2.1 million barrels a day, the country's output is expected to fall next year by almost 10%. Write to Benoit Faucon at benoit.faucon@wsj.com and Summer Said at summer.said@wsj.com Credit: By Benoit Faucon and Summer Said
Subject: Cartels; Petroleum production; Energy industry; Crude oil
Location: Oman Bahrain Azerbaijan Russia Kazakhstan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845853986
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon CEO Now a Contender for Donald Trump's Secretary of State; President-elect widens circle of candidates for top diplomatic job and will interview more prospects
Author: Lee, Carol E; Nicholas, Peter
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract:
Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration.
Full text: President-elect Donald Trump is widening the circle of candidates for secretary of state and will interview more prospects this week, transition officials said, a sign that after multiple meetings with high-profile hopefuls he still isn't sold on whom he wants as the nation's top diplomat. Though Mr. Trump's transition team said last week that the search had narrowed to four finalists , new candidates have emerged, including Rex Tillerson, chairman and chief executive of Exxon Mobil Corp., one transition adviser said. Mr. Tillerson is scheduled to meet with Mr. Trump for an interview this week. Alan Jeffers, an Exxon spokesman, declined to comment. Vice President-elect Mike Pence, appearing Sunday on NBC, said the list of secretary of state candidates "might grow a little bit." On Sunday evening, Mr. Trump's transition officials said another candidate for both secretary of state and energy secretary is Sen. Joe Manchin (D., W.Va.). The conservative Democrat would add a bipartisan dimension to the Trump cabinet if chosen. Mr. Manchin has experience in both realms, serving on the Senate's Energy and Natural Resources Committee and the Armed Services Committee. His office didn't respond to a request for comment. And U.S. Rep. Dana Rohrabacher (R., Calif.) said in an interview Sunday he is talking to Trump transition officials about the secretary of state job. He said he has pitched to them an arrangement in which he would serve in the top job and a deputy would be John Bolton, a former ambassador to the United Nations. Mr. Bolton--who also is in the running for the secretary of state post--held a private meeting with the president-elect Friday at Trump Tower. Kellyanne Conway, a senior Trump adviser, told reporters Sunday: "It is true that he's broadened the search...He's very fortunate to have interest among serious men and women who, all of whom need to understand that their first responsibility as secretary of state would be to implement and adhere to the president-elect's America First foreign policy, if you will, his view of the world." A final decision could come by week's end, the transition adviser said. Secretary of state is the most prominent missing piece in a national security team that is quickly taking shape. At a rally in Cincinnati last week, Mr. Trump announced he selected retired Gen. James Mattis to head the Pentagon as defense secretary. He has tapped another retired general, Michael Flynn, to serve as his national security adviser. Normally an opaque process, the hunt for the next secretary of state has played out in an unusually public fashion. Another top candidate is 2012 Republican presidential nominee Mitt Romney, who clashed bitterly with Mr. Trump during the GOP primaries this year. Last Tuesday, Mr. Trump had dinner with Mr. Romney in Manhattan. Setting aside the campaign hostilities and perhaps trying to make amends with Mr. Trump's supporters, Mr. Romney told reporters afterward that he was "impressed" with the transition effort. Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration. Gen. Petraeus pleaded guilty in 2015 to a misdemeanor charge of mishandling classified material in a case involving his biographer, with whom he said he had an extramarital affair. He addressed his legal troubles in an appearance Sunday on ABC, saying, "I made a mistake. I have again acknowledged it. Folks will have to factor that in and determine whether that is indeed disqualifying or not." One of the questions Mr. Trump faces is whether he wants a trifecta of generals as his core national security team. That would be the upshot if he picks Mr. Petraeus. Coming to the presidency with no foreign policy or government experience, Mr. Trump could rely more heavily on his national security team than his predecessors. So far he has chosen to largely freestyle his engagement with foreign leaders, rather than rely on the State Department's guidance for such conversations. Mr. Trump sent shock waves through the diplomatic community Friday when he spoke with President Tsai Ing-wen of Taiwan, the first conversation between a U.S. president-elect, or president, and the leader of Taiwan since 1979. The conversation ran against Beijing's efforts to block formal U.S. relations with the island off China's coast, which it has long considered a Chinese territory and not a sovereign nation. Choosing a secretary of state with scant foreign policy background, such as Exxon's Mr. Tillerson, could further unnerve government officials serving in an institution that functions on strict protocols. Mr. Trump also faces a decision on whether he wants a more hawkish foreign policy or one favoring diplomacy over military engagement. During the campaign, he signaled that he wants a military posture that is less interventionist, eschewing "nation-building" and "regime-change." Yet he has vowed to intensify military action against Islamic State. "The balance of personalities in the [White House] Situation Room is really important. It's one of the few places where all the parts of government come together to shape foreign policy and presidential decision making," said Phil Carter, director of the Military, Veterans and Society Program at the Center for a New American Security, a bipartisan think tank. "They have to bring their personalities and their judgment to the table," Mr. Carter said. "Who you have in that room and in that decision process can have a big impact." Mr. Tillerson, 64 years old, grew up in Texas and joined Exxon in 1975. He leads a company with operations in more than 50 countries, from Canada to Papua New Guinea, that often exerts itself abroad with the sweep of a sovereign nation. He is slated to retire next year and Exxon has identified Darren Woods as a successor. As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders, including Russia's Vladimir Putin, with whom he has had dealings for more than a decade . Mr. Tillerson's close ties to the company, including tens of millions of dollars of Exxon shares that will become available to him in the coming decade, could complicate his efforts to lift sanctions or intervene in trade disputes where Exxon has a financial interest. It would be almost impossible for him to recuse himself from working with all the countries in which Exxon operates or markets products. Mr. Tillerson's corporate pedigree would make him an unconventional choice, foreign policy analysts said. Jon Alterman, a Middle East expert at the nonpartisan Center for Strategic and International Studies, noted that former Secretary of State John Foster Dulles was a lawyer at a top New York City firm, but not a CEO, and that George Shultz was president of Bechtel Corp., but also served in government. "Both are far, far, far smaller companies than Exxon Mobil," Mr. Alterman said. "I can't think of a CEO with no government experience becoming secretary of state." As head of a company with a massive global footprint, Mr. Tillerson, though, is no stranger to foreign leaders. As Exxon's chief executive, he has spoken against sanctions on Russia, where the company in 2012 signed a $3.2 billion deal that Mr. Putin said could eventually reach $500 billion in investments. "We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," Mr. Tillerson said at the company's annual meeting in May 2014. Mr. Tillerson has some of the closest ties among U.S. CEOs to Mr. Putin and Russia, with his work there dating back to when Mr. Putin rose to power after Boris Yeltsin's resignation. The 2012 deal gave Exxon access to prized arctic resources. Later that year, the Kremlin bestowed the country's Order of Friendship on the American businessman. Mr. Tillerson supported a Trump rival in the Republican primaries: Former Florida Gov. Jeb Bush. He gave the maximum $2,700 to the Bush campaign, and another $5,000 to the Right to Rise, the super PAC that backed Mr. Bush. He didn't make a contribution to Mr. Trump's campaign, according to the Center for Responsive Politics, which tracks political giving. Bradley Olson and James V. Grimaldi contributed to this article. Write to Carol E. Lee at carol.lee@wsj.com and Peter Nicholas at peter.nicholas@wsj.com Credit: By Carol E. Lee and Peter Nicholas
Subject: Presidents; Foreign policy; International relations; Political campaigns; National security
Location: United States--US
People: Pence, Mike Mattis, James Rohrabacher, Dana
Company / organization: Name: Department of Defense; NAICS: 928110; Name: United Nations--UN; NAICS: 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845871254
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845871254?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
ProShares, US Commodity Funds Move to Fill Gap for Oil Bets; Both are competing to replace two VelocityShares oil ETNs being dropped by Credit Suisse
Author: Loder, Asjylyn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract:
The company's two oil futures ETFs, which provide doubled exposure to the rise and fall of oil prices, traded record volume on Nov. 30, the day the Organization of the Petroleum Exporting Countries announced that it would cut oil production to curb a global supply glut.
Full text: With just days left to bet on oil prices using two of the most popular and controversial products on the market, competing exchange-traded fund companies are racing to fill the gap. ProShare Advisors LLC on Monday announced its plans to launch triple-leveraged oil exchange-traded funds. And US Commodity Funds, the company behind the U.S. Oil Fund ETF, filed a preliminary prospectus to do the same on Nov. 29. Both companies are competing to replace two exchange-traded notes issued by Credit Suisse AG. Credit Suisse announced Nov. 16 that it will delist the VelocityShares 3x Long Crude Oil ETN and the VelocityShares 3x Inverse Crude Oil ETN. The products will be delisted after Thursday. ProShares' existing oil ETFs have seen an uptick in volume and assets since the Credit Suisse announcement. The company's two oil futures ETFs, which provide doubled exposure to the rise and fall of oil prices, traded record volume on Nov. 30, the day the Organization of the Petroleum Exporting Countries announced that it would cut oil production to curb a global supply glut. "I wouldn't be surprised if some of the increase in volume is attributable to the announcement," said ProShares Chief Executive Michael Sapir. Credit Suisse has been trimming its exchange-traded business as financial regulations push banks to shrink their balance sheets and hold more capital against possible losses. ETNs trade in real time like ETFs, and promise to deliver the returns of stocks, bonds and commodities. But ETFs own the assets they're meant to track, while ETNs are debt issued by banks promising to pay the same return as investments ranging from crude oil to Indian stocks. If a bank can't pay its debts, ETN investors can be left with nothing. Investors are also shifting away from Credit Suisse's popular ETNs tied to the CBOE Volatility Index, Wall Street's "fear gauge." Credit Suisse has not said whether it will delist or liquidate its volatility ETNs, but ProShares has also seen an uptick of trading and assets in its competing products. "It could be related to investor concern about the long-term viability of ETNs," said Sapir. Triple-levered products have come under fire from regulators after retail investors got burned. The daily rebalancing of leveraged products can substantially erode returns, and issuers warn that the ETFs aren't intended for buy-and-hold strategies. Both ProShares and U.S. Commodity Funds will use a commodity pool structure that will exempt the funds from certain requirements under the Investment Company Act of 1940, including investor protections overseen by the U.S. Securities and Exchange Commission. Rules proposed by the SEC last year would limit the use of leverage and derivatives by retail investment funds governed by the law. Write to Asjylyn Loder at asjylyn.loder@wsj.com Credit: By Asjylyn Loder
Subject: Exchange traded funds; Crude oil; Commodities; Regulation of financial institutions; Petroleum production
Company / organization: Name: Credit Suisse Group; NAICS: 522110; Name: ProShare Advisors LLC; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845873757
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845873757?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Brazil's Petrobras to Raise Gas and Diesel Prices; State-controlled oil company to raise prices at refineries by 9.5% for diesel fuel, 8.1% for gas
Author: Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.
Abstract: None available.
Full text: RIO DE JANEIRO--Brazilian state-controlled oil company Petróleo Brasileiro SA said Monday it will raise domestic fuel prices after production cuts announced last week by the Organization of the Petroleum Exporting Countries triggered a rally in global oil markets. Petrobras said it would raise prices at its refineries by 9.5% for diesel fuel and 8.1% for gasoline, starting Tuesday. It cited a spike in oil prices in recent days and a depreciation in Brazil's currency. The move came as Petrobras' relatively new management team, led by Chief Executive Pedro Parente, seeks to burnish his market-friendly credentials in the eyes of investors. Before his appointment in May, the company was seen as more susceptible to political pressure that, in years past, led it to waste billions of dollars subsidizing fuel prices to help the government meet its inflation target. Partly due to that mismanagement, Petrobras is now struggling to pay down $123 billion in debt, the largest amount of any company in the oil industry. Turning a profit in its refining business will likely prove crucial toward meeting the ambitious deleveraging targets set by the new CEO. Under Mr. Parente, Petrobras says it will review fuel prices at least once every 30 days. Monday's hikes will largely reverse the sizable price reductions Petrobras announced on Nov. 8, which raised concern among some investors and may have contributed to a selloff in its shares following the U.S. election. A number of analysts noted in recent days that OPEC's deal to reduce oil output last week would amount to a key test for Mr. Parente. Following the rise in oil prices and the depreciation in the real over the past month, Brasil Plural estimated Petrobras was selling gasoline and diesel at a 1% and 3% discount to international prices. Write to Paul Kiernan at paul.kiernan@wsj.com Credit: By Paul Kiernan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 5, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845874019
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845874019?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Australia's BHP Billiton Wins Bidding for Stake in Mexico's Trion Oil Field; BP and BHP Billiton were only two bidders on partnership with Pemex
Author: Whelan, Robbie; Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--The world's largest oil companies won rights to develop Mexico's offshore oil deposits in an auction that led to twice as many awards as officials expected and could generate $40 billion in investment. Eight of the 10 exploration blocks available were snatched up in competitive bidding by firms including Exxon Mobil Corp., Chevron Corp., and China's state-run China National Offshore Oil Corp. Australia's BHP Billiton also made history by becoming the first foreign company to join state oil firm Petróleos Mexicanos in developing the already discovered Trion oil field in the Gulf of Mexico. The Trion partnership and the deep-water auctions were the centerpiece of President Enrique Peña Nieto's 2013 energy reform laws, which opened Mexico's energy industry to foreign investment for the first time since nationalization in 1938. "We've very happy that this investment will come to Mexico," said Juan Carlos Zepeda, head of the country's energy regulator, the National Hydrocarbons Commission. "The energy reform initiated by President Pena is a success." Mexican energy officials said the eight blocks plus Trion eventually should lead to production of 900,000 barrels a day of oil equivalent. BHP Billiton outbid BP PLC for a 60% stake in the Trion field, believed to contain 485 million barrels of crude oil, by offering a bonus payment $624 million, just $18 million more than its British rival. Among the biggest winners was China's Cnooc, which won rights to explore and develop two blocks in the oil-rich central portion of the Gulf of Mexico. Cnooc offered some of the highest royalty payments, committing to pay 15.01% of its gross income on one block and 17.01% on another. "We salute that the Chinese business has come to compete in Mexico and to win," said Pedro Joaquín Coldwell, Mexico's Secretary of Energy. "When we talk about diversification, we don't only refer to the scale of the companies...we also refer to nationalities." "The way the Chinese are approaching Mexico's energy industry is very similar to the way they approached Brazil," said R. Evan Ellis a Latin American studies professor at the U.S. Army War College, referring to the policy of investing in small companies and setting up investment funds first, then taking exploratory steps to develop caches of resources. Cnooc couldn't be reached for comment. Other successful foreign bidders include a consortium included France's Total SA alongside Statoil ASA and BP, and another group including Murphy Oil Corp., Ophir Energy and Malaysia's Petronas Carigali. Aside from securing a partner for Trion, Pemex won one block in a consortium with Chevron and Japan's Inpex Corp., and lost in another in which it bid alone. They were the first competitive bids for Pemex, which had a monopoly on oil exploration and production in Mexico since 1938. "Pemex is realizing the need to change and adjusting to the new reality," said Pablo Medina, a Latin America upstream analyst at energy research firm Wood Mackenzie. For Trion, both Billiton and BP offered additional royalties of 4%, on top of the minimum royalty payment of 7.5%, while Billiton offered an additional cash commitment of $624 million, higher than the $606 million offered by BP. Billiton will have 60% of the project and Pemex 40%, and as winning bidder is obliged to make a minimum investment of $570 million. Timothy Callahan, a director general with BHP Billiton, said his company became more confident in its bid after Pemex in early November changed certain terms in the Trion joint operating agreement, including voting procedures governing the contract. The auction is the fourth under the 2013 opening of the Mexican oil industry, but the first for deep-water reserves and the first to attract the interest of major oil companies. The Trion field was discovered in 2012 and is thought to contain about 485 million barrels of commercial reserves. It is expected to cost about $11 billion to develop the field, with capital expenditures of $7.5 billion, according to Mexican oil regulator National Hydrocarbons Commission. Write to Robbie Whelan at robbie.whelan@wsj.com and Anthony Harrup at anthony.harrup@wsj.com Related * Mexico Outlines Plan to Open Oil Fields to Private Companies (Aug. 13, 2014) * Mexico's Pemex Makes Offshore Crude-Oil Discoveries (Sept. 13) * Mexico Begins New Round of Oil Auctions With Shallow Water Blocks (July 19) * Petróleos Mexicanos Posts $4.4 Billion Second-Quarter Loss (July 28) Credit: By Robbie Whelan and Anthony Harrup
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845879711
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845879711?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Army Corps Gives the Left a Last Stand in North Dakota; The White House tries to kill another pipeline for U.S. oil.
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
The U.S. Army Corps of Engineers on Sunday delivered a symbolic victory to the environmental left by denying a permit to complete the 1,200-mile Dakota Access oil pipeline.
Full text: The U.S. Army Corps of Engineers on Sunday delivered a symbolic victory to the environmental left by denying a permit to complete the 1,200-mile Dakota Access oil pipeline. The political obstruction illustrates why it's so hard to build anything in America these days. Construction is almost complete on the Dakota Access, which aims to transport a half million barrels of oil each day from the Bakken Shale in North Dakota to Illinois for delivery to refiners on the East and Gulf coasts. About 99% of the pipeline doesn't require federal permitting because it traverses private lands. But the Corps must sign off on an easement to drill under Lake Oahe that dams the Missouri River. After an exhaustive consultation with Native American tribes, the Corps in July issued an environmental assessment of "no significant impact." Construction is unlikely to harm tribal totems because the Dakota Access would parallel an existing gas pipeline. The route has been modified 140 times in North Dakota to avoid upsetting sacred cultural resources. After largely refusing to engage in the Corps's review, the Standing Rock Sioux sued. A federal court in September rejected the tribe's claims, only to be overruled by the Obama Administration, which ordered a temporary suspension to work around Lake Oahe. Although the D.C. Circuit Court of Appeals in October refused to enjoin construction on the pipeline, the Corps has maintained its administrative injunction. Tensions have escalated between local law enforcement and protesters, who have signaled an intent to defy Corps orders to disband before Dec. 5. North Dakota winters are cold, and a charitable reading of the Corps's political mediation is that the Administration is trying to allow squatters to save face so that they can disperse before imperiling their own safety. However, the Corps's switcheroo has jeopardized its integrity and created a legal quagmire by requiring an exhaustive new environmental impact statement that considers alternative routes. This process could take years and is not normally required when an environmental assessment concludes no significant impact. The pipeline builder Energy Transfer Partners could sue the Corps for violating due process, though a judge might rule the company lacks standing since the government hasn't made a final determination. Energy Transfer is likely better off waiting for the Trump Administration. A spokesman for Mr. Trump said the President-elect supports construction of the pipeline but would "review the full situation when we're in the White House and make the appropriate determination at that time." This protects the Trump Administration from claims of predetermination, but it won't stop environmental groups from suing if Mr. Trump reverses the Obama Administration's course. Energy Transfer devised the least intrusive route to expedite permitting but it still got caught between the Standing Rock tribe and no-fossil-fuels greens who have turned the Dakota Access into a Battle of the Alamo. If Mr. Trump wants to build more infrastructure, a top-to-bottom renovation of permitting regulations is a good place to start.
Subject: Pipelines; Federal court decisions; Construction
Location: Illinois Lake Oahe Missouri River North Dakota
Company / organization: Name: Army Corps of Engineers; NAICS: 928110; Name: Energy Transfer Partners; NAICS: 486210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845879712
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845879712?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Origin to Sell Oil-and-Gas Operations Through IPO; Australian energy company to focus on utility business and LNG sales in effort to slash debt
Author: Stewart, Robb M
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
Origin, one of Australia's biggest energy producers and retailers, was badly stretched by its funding of the A$24.7 billion Australia-Pacific LNG, or APLNG, project on Australia's east coast , one of three big operations in Queensland state that convert methane trapped in seams of underground coal into chilled natural gas that can be exported on tanker ships to meet the anticipated growth in Asia's energy consumption.
Full text: MELBOURNE, Australia--Origin Energy Ltd. plans to sell its conventional oil-and-gas operations and focus on energy markets and liquefied-natural-gas sales in an effort to further slash debt built up investing in a massive gas-export plant in eastern Australia. Origin said on Tuesday it would bundle its upstream operations into a company known for now as NewCo and sell them through an initial public offering next year. The move would accelerate debt reduction and reduce ongoing spending requirements, while also lifting earnings per share in the years ahead, the Australian company said. Ben Wilson, an analyst at RBC Capital Markets in Sydney, estimated the business to be floated has an enterprise value of about A$1.6 billion-A$1.8 billion (US$1.2 billion-US$1.34 billion), including the oil-sale liability, although there remained questions over issues such as debt. That would position it in line with midsize oil-and-gas company Beach Energy Ltd., which has a market value of close to A$1.6 billion. Speculation that Origin would split its utility businesses from its oil-and-gas operations has heightened since former energy markets boss Frank Calabria took over as chief executive from Grant King in October. A sale would take advantage of a recovery in oil prices this year , and a recent jump in prices following an agreement by Organization of the Petroleum Exporting Countries to reduce crude output . "Given Origin's ability to invest capital in the NewCo assets is constrained, their long-term value will be better supported by them being an independent business," Chairman Gordon Cairns said. Origin said it wouldn't retain a stake in NewCo following the IPO and the proceeds would be used to repay debt, after closing out of two hedging contracts to sell oil. Origin, one of Australia's biggest energy producers and retailers, was badly stretched by its funding of the A$24.7 billion Australia-Pacific LNG, or APLNG, project on Australia's east coast , one of three big operations in Queensland state that convert methane trapped in seams of underground coal into chilled natural gas that can be exported on tanker ships to meet the anticipated growth in Asia's energy consumption. The start-up of the plant in late 2015 coincided with a slump in oil prices, which underpin most long-term LNG contracts, denting earnings for producers. Origin had committed to further reducing net debt that was slashed by A$4 billion to about A$9.1 billion through asset sales and an equity raising in the year to June 30. Origin said it has ended a planned sale of its assets in Australia's western Perth Basin, despite interest in the operations, and would instead add that to NewCo alongside interests in the Otway Gas Project, BassGas Project, Kupe Gas Project, and the Cooper, Bonaparte and Canterbury basins. That would allow Origin to focus on a portfolio of power-generation assets and retail businesses in eastern Australia, as well as the APLNG project and the coal-seam gas operations that feed it. The APLNG venture, with partners ConocoPhillips and China Petrochemical Corp., recently began exports from a second production line. Origin also plans to put contracts in place with NewCo to give it access to resources to support Origin's east-coast gas portfolio. A listing of NewCo on the Australian Stock Exchange next year will be subject to market conditions but won't need shareholder approval, Origin said. It plans to release further details on its plans in due course but said NewCo would have a sound capital structure and diverse exposure to markets in eastern and western Australia and in New Zealand. The operations had production in the year through June of 75 petajoules equivalent, a measure of the volume of different petroleum products based on energy content. Origin appointed Macquarie Capital and UBS Group AG as joint financial advisers and lead managers for the IPO. Write to Robb M. Stewart at robb.stewart@wsj.com Related * Origin Energy Bets on Asia Demand With Natural Gas Investment * Origin Energy to Raise Over a Billion Dollars * Origin Energy Swings to Loss on Impairments Credit: By Robb M. Stewart
Subject: Earnings per share; Energy industry; Acquisitions & mergers; Natural gas
Location: United States--US
Company / organization: Name: Beach Energy Ltd; NAICS: 211111; Name: Origin Energy Ltd; NAICS: 221210; Name: RBC Capital Markets; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845881891
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845881891?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Ease From Highs in Asia Amid Profit Taking; February Brent crude lost 37 cents, or 0.7%, to $54.57 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
Oil futures retreated from one-year highs in Asian trade on Tuesday, as traders took profits following the sharp rally in the wake of last week's decision by the Organization of the Petroleum Exporting Countries to cut production.
Full text: Oil futures retreated from one-year highs in Asian trade on Tuesday, as traders took profits following the sharp rally in the wake of last week's decision by the Organization of the Petroleum Exporting Countries to cut production. Light, sweet crude for January deliver fell 48 cents, or 0.9%, to $51.31 a barrel during the Globex session on the New York Mercantile Exchange. February Brent crude lost 37 cents, or 0.7%, to $54.57 a barrel. Crude futures had hit fresh one-year highs during the New York session. Oil prices have rallied sharply in the sessions before and after last week's deal by OPEC to cut output. Analysts said the oil market looks increasingly likely to head higher, with occasional pullbacks as traders take money off the table. "The market is buying into this rebalancing story, assisted by a cut from OPEC," said Virendra Chauhan, an oil analyst at Energy Aspects. Oil prices rose almost 15% after last week's OPEC deal, which would remove about 1% of supply from the market when it takes effect in January. He added that oil futures expiring into next year have come closer into alignment with front-month prices, a typical sign of a market coming back into balance. "There have been substantial shifts [in trading] at least two to three years out" into the future, he said. Separately, oil prices could see another move later this week on U.S. inventory data from the Department of Energy. The data is due Wednesday morning during New York trading hours, while similar data from the American Petroleum Institute is due later Tuesday during New York trading hours. S&P Global Platts said it expects U.S. oil stockpiles fell 1.7 million barrels last week, though the pricing agency added that the OPEC agreement "could inadvertently lead to greater U.S. production down the road" as prices rise. In refined product markets, Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 52 points to $1.5523 a gallon, while January diesel traded at $1.6529, 42 points lower. ICE gasoil for December changed hands at $474.75 a metric ton, down $2.25 from Monday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil prices; Crude oil
Location: United States--US New York
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845881923
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845881923?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC to Seek More Oil-Output Cuts from Nonmembers; Representatives from 14 countries invited to meet in Vienna on Saturday
Author: Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
Oil-producing countries want to remove supply from the market, bring it back into balance with demand and force prices to rise after over two years of cheap energy.
Full text: OPEC's agreement to slash oil output faces its first test Saturday, when it asks producers outside the cartel to make production-cut commitments intended to amplify the effect of the landmark deal. The Organization of the Petroleum Exporting Countries has invited representatives from 14 countries to meet in Vienna on Saturday to discuss joining the cartel after it agreed last week to slash 1.2 million barrels of daily oil production--more than 1% of global output. In all, OPEC wants its non-OPEC counterparts to slash 600,000 barrels a day. Four countries have committed to attend Saturday: Russia, Oman, Bahrain and Azerbaijan. OPEC officials believe Mexico and Kazakhstan are also likely to come. Their participation is crucial, OPEC officials say. Without it, the oil-price gains of the past week would be imperiled, and the OPEC production deal itself could be severely undermined, OPEC officials said. Saudi Arabia "absolutely" expects non-OPEC producers to reduce their output, one of these officials said. The kingdom helped orchestrate the first OPEC production cut in eight years by promising that non-OPEC producers would join in. Oil-producing countries want to remove supply from the market, bring it back into balance with demand and force prices to rise after over two years of cheap energy. Oil prices have soared more than 15% since OPEC announced its first production-cut deal since 2008, with Brent crude, the international benchmark, rising above $55 a barrel for the first time this year on Monday. Saturday's meeting is a potential "hurdle for the bulls," said Dominick Chirichella's Energy Market Analysis in a note Monday. On Saturday, OPEC plans to press its counterparts to agree to specific cuts and allow production to be monitored by a committee with three OPEC members and two non-OPEC members. In an interview, OPEC Secretary General Mohammad Barkindo said it would be "the first time OPEC [and] non-OPEC will agree to a joint, binding supply-management agreement." At a speech in India on Monday, Mr. Barkindo said OPEC had "institutionalized" its ability to cooperate with non-OPEC countries. But getting non-OPEC members to agree may be a tougher sell than expected. Russia, the world's largest producer of crude oil, has already said it would "gradually" reduce production by 300,000 barrels a day next year in coordination with OPEC. It didn't give a time frame, as OPEC members did last week, nor did it say it would accept international monitoring of its output. In the interview, Mr. Barkindo said Russia had "agreed in principle" to have a joint committee overseeing the cuts. "Details will be discussed and agreed upon" Saturday, he said. Moscow's participation was essential to OPEC's ability to agree last week, people familiar with the matter said. The first call Saudi energy minister Khalid al-Falih made after the OPEC deal was sealed was to Russian energy minister Alexander Novak, to get assurances that Moscow would commit to cuts, the people said. Russia has said it would join OPEC output cuts in the past, only to renege. In a note Monday, Vienna-based oil consultancy JBC said it was "quite skeptical that [a Russian output cut] will actually happen." Russian oil production reached a new post-Soviet high in November of 11.22 million barrels a day. The other countries expected to attend talks in Vienna offer a complex picture. Kazakhstan was reluctant to join production cuts this year. A giant new oil field there, called Kashagan, recently started producing, and the cash-strapped Central Asian country is expected to increase output by 210,000 barrels a day to 1.77 million barrels a day in 2017, according to OPEC projections. Kazakhstan hasn't confirmed its participation and didn't respond to requests for comment. Oman and Bahrain produce 1 million barrels a day and 200,000 barrels a day, respectively, but their output is supposed to stagnate in 2017, according to OPEC. That means cutting may be easier to swallow there. Officials in these countries declined to comment on their production plans beyond confirming their attendance. In Azerbaijan, where output is set to fall by 30,000 barrels a day to 840,000 barrels a day in 2017, energy minister Natig Aliyev said in a news release that he would support the OPEC deal. Azeri officials didn't respond to requests for comment. In Mexico, where oil companies produce 2.1 million barrels a day, the country's output is expected to fall next year by almost 10%. Write to Benoit Faucon at benoit.faucon@wsj.com and Summer Said at summer.said@wsj.com Credit: By Benoit Faucon and Summer Said
Subject: Cartels; Petroleum production; Energy industry; Crude oil
Location: Oman Bahrain Azerbaijan Russia Kazakhstan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845881937
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845881937?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
ProShares, US Commodity Funds Move to Fill Gap for Oil Bets; Both are competing to replace two VelocityShares oil ETNs being dropped by Credit Suisse
Author: Loder, Asjylyn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
The company's two oil futures ETFs, which provide doubled exposure to the rise and fall of oil prices, traded record volume on Nov. 30, the day the Organization of the Petroleum Exporting Countries announced that it would cut oil production to curb a global supply glut.
Full text: With just days left to bet on oil prices using two of the most popular and controversial products on the market, competing exchange-traded fund companies are racing to fill the gap. ProShare Advisors LLC on Monday announced its plans to launch triple-leveraged oil exchange-traded funds. And US Commodity Funds, the company behind the U.S. Oil Fund ETF, filed a preliminary prospectus to do the same on Nov. 29. Both companies are competing to replace two exchange-traded notes issued by Credit Suisse AG. Credit Suisse announced Nov. 16 that it will delist the VelocityShares 3x Long Crude Oil ETN and the VelocityShares 3x Inverse Crude Oil ETN. The products will be delisted after Thursday. ProShares' existing oil ETFs have seen an uptick in volume and assets since the Credit Suisse announcement. The company's two oil futures ETFs, which provide doubled exposure to the rise and fall of oil prices, traded record volume on Nov. 30, the day the Organization of the Petroleum Exporting Countries announced that it would cut oil production to curb a global supply glut. "I wouldn't be surprised if some of the increase in volume is attributable to the announcement," said ProShares Chief Executive Michael Sapir. Credit Suisse has been trimming its exchange-traded business as financial regulations push banks to shrink their balance sheets and hold more capital against possible losses. ETNs trade in real time like ETFs, and promise to deliver the returns of stocks, bonds and commodities. But ETFs own the assets they're meant to track, while ETNs are debt issued by banks promising to pay the same return as investments ranging from crude oil to Indian stocks. If a bank can't pay its debts, ETN investors can be left with nothing. Investors are also shifting away from Credit Suisse's popular ETNs tied to the CBOE Volatility Index, Wall Street's "fear gauge." Credit Suisse has not said whether it will delist or liquidate its volatility ETNs, but ProShares has also seen an uptick of trading and assets in its competing products. "It could be related to investor concern about the long-term viability of ETNs," said Sapir. Triple-levered products have come under fire from regulators after retail investors got burned. The daily rebalancing of leveraged products can substantially erode returns, and issuers warn that the ETFs aren't intended for buy-and-hold strategies. Both ProShares and U.S. Commodity Funds will use a commodity pool structure that will exempt the funds from certain requirements under the Investment Company Act of 1940, including investor protections overseen by the U.S. Securities and Exchange Commission. Rules proposed by the SEC last year would limit the use of leverage and derivatives by retail investment funds governed by the law. Write to Asjylyn Loder at asjylyn.loder@wsj.com Credit: By Asjylyn Loder
Subject: Exchange traded funds; Crude oil; Commodities; Regulation of financial institutions; Petroleum production
Company / organization: Name: Credit Suisse Group; NAICS: 522110; Name: ProShare Advisors LLC; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845890472
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845890472?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Banking & Finance: Firms Move to Offer Competing Oil ETFs
Author: Loder, Asjylyn
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Dec 2016: B.8.
Abstract:
The company's two oil futures ETFs traded record volume last Wednesday, the day the Organization of the Petroleum Exporting Countries said that it would cut oil production to curb a global supply glut.
Full text: With just days left to bet on oil prices using two of the most popular and controversial products on the market, competing exchange-traded-fund companies are racing to fill the gap. ProShare Advisors LLC on Monday announced plans to launch triple-leveraged oil exchange-traded funds. And U.S. Commodity Funds, the company behind the U.S. Oil Fund ETF, filed a preliminary prospectus to do the same last week. Both companies are competing to replace two exchange-traded notes issued by Credit Suisse Group AG. Credit Suisse said on Nov. 16 that it will delist the VelocityShares 3x Long Crude Oil ETN and the VelocityShares 3x Inverse Crude Oil ETN. The products will be delisted after Thursday. ProShares' existing oil ETFs have seen an uptick in volume and assets since the Credit Suisse announcement. The company's two oil futures ETFs traded record volume last Wednesday, the day the Organization of the Petroleum Exporting Countries said that it would cut oil production to curb a global supply glut. Credit Suisse has been trimming its exchange-traded business as financial regulations push banks to shrink their balance sheets and hold more capital against possible losses. ETNs trade in real time like ETFs, and promise to deliver the returns of stocks, bonds and commodities. But ETFs own the assets they are meant to track, while ETNs are debt issued by banks promising to pay the same return as investments ranging from crude oil to Indian stocks. If a bank can't pay its debts, ETN investors can be left with nothing. Investors also are shifting away from Credit Suisse's popular ETNs tied to the CBOE Volatility Index, known as the "fear gauge." Credit Suisse hasn't said whether it will delist or liquidate its volatility ETNs, but ProShares also has seen an uptick of trading and assets in its competing products. Triple-levered products have come under fire from regulators after individual investors got burned. The daily rebalancing of leveraged products can substantially erode returns, and issuers warn that the ETFs aren't intended for buy-and-hold strategies. Credit: By Asjylyn Loder
Subject: Petroleum production; Crude oil; Exchange traded funds
Company / organization: Name: ProShare Advisors LLC; NAICS: 523110; Name: United States Commodity Funds LLC; NAICS: 523110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.8
Publication year: 2016
Publication date: Dec 6, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845922113
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845922113?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mexico Awards Oil Rights
Author: Whelan, Robbie; Harrup, Anthony
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Dec 2016: B.1.
Abstract:
Eight of the 10 exploration blocks available were snatched up in competitive bidding by firms including Exxon Mobil Corp., Chevron Corp., and China's state-run China National Offshore Oil Corp. Australia's BHP Billiton also made history by becoming the first foreign company to join state oil firm Petroleos Mexicanos in developing the already discovered Trion oil field in the Gulf of Mexico.
Full text: MEXICO CITY -- The world's largest oil companies won rights to develop Mexico's offshore oil deposits in an auction that led to twice as many awards as officials expected and could generate $40 billion in investment. Eight of the 10 exploration blocks available were snatched up in competitive bidding by firms including Exxon Mobil Corp., Chevron Corp., and China's state-run China National Offshore Oil Corp. Australia's BHP Billiton also made history by becoming the first foreign company to join state oil firm Petroleos Mexicanos in developing the already discovered Trion oil field in the Gulf of Mexico. The Trion partnership and the deep-water auctions were the centerpiece of President Enrique Pena Nieto's 2013 energy reform laws, which opened Mexico's energy industry to foreign investment for the first time since 1938. "We've very happy that this investment will come to Mexico," said Juan Carlos Zepeda, head of the country's energy regulator, the National Hydrocarbons Commission. "The energy reform initiated by President Pena is a success." Mexican energy officials said the eight blocks plus Trion eventually should lead to production of 900,000 barrels a day of oil equivalent. BHP Billiton outbid BP PLC fora 60% stake in the Trion field, believed to contain 485 million barrels of crude oil, by offering a bonus payment $624 million, just $18 million more than its British rival. Among the biggest winners was China's Cnooc, which won rights to explore and develop two blocks in the oil-rich central portion of the Gulf of Mexico. Cnooc offered some of the highest royalty payments, committing to pay 15.01% of its gross income on one block and 17.01% on another. "We salute that the Chinese business has come to compete in Mexico and to win," said Pedro Joaquin Coldwell, Mexico's Secretary of Energy. Cnooc couldn't be reached for comment. Other successful foreign bidders included France's Total SA alongside Statoil ASA and BP, and another group including Murphy Oil Corp., Ophir Energy and Malaysia's Petronas Carigali. Aside from securing a partner for Trion, Pemex won one block in a consortium with Chevron and Japan's Inpex Corp. Pemex's chief executive, Jose Antonio Gonzalez Anaya said he's confident the Trion partnership will bring significant advantages, such as technology, to Pemex. He said the field will be producing around 120,000 barrels a day by 2025. Timothy Callahan, a director general with BHP Billiton, said his company became more confident in its bid after Pemex changed certain terms in the joint operating agreement, including voting procedures governing the contract. The auction is the fourth under the 2013 opening of the Mexican oil industry, but the first for deep-water reserves and the first to attract the interest of major oil companies. Credit: By Robbie Whelan and Anthony Harrup
Subject: Foreign investment; Joint operating agreements--JOA; Energy industry; Auctions; Offshore oil wells
Location: Mexico
Company / organization: Name: CNOOC Ltd; NAICS: 211111; Name: BHP Billiton; NAICS: 211111, 212231, 212234; Name: Petroleos Mexicanos; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2016
Publication date: Dec 6, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845923773
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845923773?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Slip After Rallying to One-Year High; Concerns remain whether OPEC will follow through with agreement to cut production
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
Many traders and analysts have become more confident the Organization of the Petroleum Exporting Countries is likely to follow through on production cuts, but there are still many others who believe OPEC members will cheat on new quotas.
Full text: Oil prices slipped off one-year highs Tuesday with OPEC skeptics taking control of the market again after several days of surging prices because of cutbacks promised by the world's oil exporters. Many traders and analysts have become more confident the Organization of the Petroleum Exporting Countries is likely to follow through on production cuts, but there are still many others who believe OPEC members will cheat on new quotas. On Tuesday, skeptics pointed to data forecasting another monthly increase to record-high output in November and to a deeper-than-expected price cut Saudi Arabia just issued for Asian customers. An increase in U.S. stockpiles also may be weighing on prices, brokers said. Stockpiles at Cushing, Okla., rose by about 3 million barrels in the week ended Friday, data provider Genscape Inc. said on Monday, according to people who saw the report. That limited gains Monday and appeared to be adding to losses again Tuesday, ahead of the official U.S. government update on stockpiles scheduled for Wednesday, brokers said. Light, sweet crude for January delivery settled down 86 cents, or 1.7%, at $50.93 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost $1.01, or 1.8%, to $53.93 a barrel on ICE Futures Europe. The loss snaps a four-session winning streak for both benchmarks. A stall in the rally wasn't surprising, even within a week of OPEC's decision, Amrita Sen, chief oil analyst at Energy Aspects in London, said in an email. "We have always said prices will move up on the news, then sell off till the market finds evidence of the cuts and then move higher." Brokers and traders weren't finding it Tuesday. Several pointed to data showing output from OPEC has kept growing, seemingly up to the very day of the deal. That makes it harder for OPEC to hit its target for cutbacks, said Tim Pickering, president at Auspice, which manages $300 million. "It points to further evidence OPEC is not to be trusted," he said. Oil had rallied around 15% in just a week, hitting a one-year high after OPEC's decision to cut output by 1.2 million barrels a day, equivalent to around 1% of global supply. But that isn't a very strong rally--considering oil's price above $100 a barrel just two years ago--and isn't likely to get much stronger, said Dennis Gartman, writer of Wall Street's well-known daily Gartman Letter. Speaking to a conference for coal traders in New York, he said leaders of the cartel's biggest producers and its biggest rivals feel urgency to produce as much as they can even now. Technological advancements will eventually lead to cleaner sources of power that render oil and other fossil fuels obsolete, so those exporters always have an incentive to produce, he said. Many traders had been spooked by the still-growing production and questions about whether a meeting planned for Saturday between OPEC and nonmembers, including Russia, happens the way it is supposed to, brokers said. OPEC wants its non-OPEC counterparts to slash 600,000 barrels a day. Commerzbank cast doubt on such a deal partly because Saudi Arabia, the quasi-head of OPEC, appears to be waiting until January to seasonally adjust its production to its lower winter level while also cutting its January selling price for Asian consumers, maintaining its strategy of defending market share. If Iran cuts prices in response, it could be a big problem for oil prices, said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. "They'll all cheat," Mr. Gartman said. "Believe me, Saudi Arabia is here to say 'We have oil for sale.' The Russians have crude oil for sale." Analysts and traders surveyed by The Wall Street Journal also expect upcoming data to show fuel stockpiles increased last week, though they do expect crude stockpiles declined. The 11 analysts and traders surveyed by the Journal estimate a 1.7-million-barrel increase in gasoline stockpiles and a 1.5-million-barrel increase in distillate inventories, including diesel fuel, in the week ended Friday. Their average forecast for crude is a 900,000-barrel decline. The Energy Information Administration issues its official data Wednesday at 10:30 a.m. EST. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2.2-million-barrel decrease in crude supplies, a 800,000-barrel increase in gasoline stocks and a 4-million-barrel increase in distillate inventories, according to a market participant. Gasoline futures lost 1.4% to $1.5359 a gallon. Diesel futures lost 1.2% to $1.6379 a gallon. Sarah McFarlane and Dan Strumpf contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Crude oil prices; Cartels; Exports; Price cuts
Location: United States--US Saudi Arabia
People: Gartman, Dennis
Company / organization: Name: Genscape Inc; NAICS: 511140, 518210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1845974865
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845974865?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Oil Production Deal Still Faces Hurdles; Countries would need to stick to production quotas for the deal to succeed
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract: None available.
Full text: Oil prices rallied to their highest level in more than a year following OPEC's agreement last week to curb production, but analysts foresee a number of hurdles ahead that could keep the market volatile. The Organization of the Petroleum Exporting Countries agreed to slash its output by 1.2 million barrels a day , or more than 1% of global output, and said that other producers will also join the effort. If implemented, the cuts would shrink the oversupply that has plagued the industry for more than two years and further boost prices next year, with some analysts seeing crude rising above $60 a barrel. The success of OPEC's deal, however, will depend on several factors, including the participation of nonmember countries, the cartel's own checkered history of cheating such agreements, and the ability of U.S. shale drillers to quickly ramp up production as prices rise. On Tuesday morning, Brent crude, the global oil benchmark, was down 0.3% to $54.80 a barrel. From Russia with cuts Less than two weeks after clinching the deal in Vienna, OPEC members will be back in the Austrian capital on Saturday, this time to meet with suppliers outside the group. OPEC wants its non-OPEC counterparts to slash their combined output by 600,000 barrels a day, and officials from the cartel say that without the participation of nonmember nations the OPEC deal itself could be severely undermined. Some analysts, however, are skeptical that countries such as Russia will limit their output, even though Moscow has pledged to "gradually" reduce production by 300,000 barrels a day next year. For one, Russia has said it would join OPEC output cuts in the past, only to renege. Cutting output might also present technical challenges. Renaissance Capital, a Russian investment bank, said that because Russia's oil production is largely comprised of many wells pumping relatively small amounts of oil, reducing output by 300,000 barrels a day would require shutting down over 4,000 wells. The cost of doing that would outweigh any potential benefits from higher prices, the bank said. Africa rising Returning barrels from African members of the cartel that have suffered supply disruptions could make OPEC's target harder to reach, analysts say. Libya and Nigeria were exempted from the deal because months of militant activity curbed their output. Now that the situation in both countries is stabilizing, production is slowly returning. According to Commerzbank, the two members, along with Angola, were chiefly responsible for the increase in overall OPEC oil production last month. Libya is aiming to nearly double its output in the next few months, to 900,000 barrels a day. While that is a small chunk of OPEC's overall output of more than 33 million barrels a day, it means other members will have to shoulder more of the production cuts to reach the deal target. The cheating game If agreeing on a deal to cut production was the first step, adhering to it might be a bigger hurdle for OPEC, analysts say. Most member states have a history of overshooting their individual targets, so compliance will be key, analysts say. After clinching the deal last week, the organization said that a committee comprised of Algeria, Venezuela and Kuwait will monitor compliance with the agreement, though it didn't specify how noncompliance would be defined, deterred or punished. "Cheating on quotas is simply too enticing in today's environment of budget constraints," said Norbert Rücker, head of commodities research at Julius Baer. Some analysts, therefore, say the group might overshoot this target of 32.5 million barrels a day starting in January. Bjarne Schieldrop, commodities analyst at SEB Markets, forecasts OPEC production at around 33 million barrels a day in the first half of next year given that "cheating is a natural habit among OPEC's members." Investors will get a first glimpse of how compliant producers are to the agreement in the beginning of February when the first 2017 production data will be available. Shale's OPEC lifeline Some analysts have called the OPEC deal a gift to American shale oil producers who can ramp up drilling quickly as prices rise. U.S. producers have increased their efficiency in recent years, driving down the cost at which they could produce to as low as $40 a barrel. The number of rigs drilling for crude in the U.S. has been rising since the summer. With crude now above $50, "OPEC's deal is a lifeline to U.S. shale oil," said analysts at BNP Paribas. "The rebalancing of the oil market faces a hurdle, given that the much-anticipated decline in shale oil production was a key part of the process." What's more, U.S. oil and gas companies have drilled thousands of wells they have yet to tap, creating a ready reserve of fuel that could surge onto the market as oil prices recover. There are more than 5,000 such drilled but uncompleted wells, or DUCs in the industry parlance. "Given the high level of DUC inventory, U.S. production should be able to respond fairly quickly to stronger prices," said Warren Patterson, commodity strategist at ING Bank. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846017261
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846017261?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Rex Tillerson, a Candidate for Secretary of State, Has Ties to Vladimir Putin; Exxon Mobil CEO could redefine U.S. interests abroad
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
(Dec. 6) Exxon Mobil Corp. Chief Executive Rex Tillerson, who was meeting with Donald Trump on Tuesday to discuss becoming his secretary of state, is a seasoned deal-maker whose close ties to Vladimir Putin and other world leaders could redefine American interests abroad.
Full text: Corrections & Amplifications: A headline on an earlier version of this article misspelled Russian President Vladimir Putin's first name as Vladmir. (Dec. 6) Exxon Mobil Corp. Chief Executive Rex Tillerson, who was meeting with Donald Trump on Tuesday to discuss becoming his secretary of state, is a seasoned deal-maker whose close ties to Vladimir Putin and other world leaders could redefine American interests abroad. His emergence as a candidate to be the nation's top diplomat despite having no government experience surprised senior Exxon officials--including Mr. Tillerson, according to people familiar with the matter. Friends of the 64-year-old Texas oilman, whom they describe as a staunch conservative, said they expect he would consider the job due to his sense of patriotic duty and because he is set to retire from the company next year. The meeting was taking place Tuesday morning at Trump Tower in New York, according to a transition official. His appointment would introduce the potential for sticky conflicts of interest because of his financial stake in Exxon, which explores for oil and gas on six of the world's seven continents and has operations in more than 50 countries. He owns Exxon shares worth $151 million, according a recent securities filing. Alan Jeffers, an Exxon spokesman, said Mr. Tillerson wouldn't comment on his candidacy. It is unclear how Mr. Tillerson, a strong supporter of free trade, would fit ideologically with Mr. Trump, who has spoken out repeatedly against trade deals. Little is known of the foreign-policy views held by Mr. Tillerson, who as secretary of state would be expected to handle any changes to the 2015 nuclear agreement with Iran, sanctions on Russia and disputes with China, the subject of repeated barbs from Mr. Trump on the campaign trail. People familiar with the transition also place Mr. Tillerson, a late entry in the president-elect's wide-ranging search for a secretary of state, behind the three top contenders-- Mitt Romney, Rudy Giuliani and David Petraeus . Friends and associates said few U.S. citizens are closer to Mr. Putin than Mr. Tillerson, who has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. "He has had more interactive time with Vladimir Putin than probably any other American with the exception of Henry Kissinger," said John Hamre, a former deputy defense secretary during the Clinton administration and president of the Center for Strategic and International Studies, a Washington think tank where Mr. Tillerson is a board member. In 2011, Mr. Tillerson struck a deal giving Exxon access to prized Arctic resources in Russia as well as allowing Russia's state oil company, OAO Rosneft, to invest in Exxon concessions all over the world. The following year, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson. The deal would have been transformative for Exxon. Mr. Putin at the time called it one of the most important involving Russia and the U.S., forecasting that the partnership could eventually spend $500 billion. But it was subsequently blocked by sanctions on Russia that the U.S. and its allies imposed two years ago after the country's invasion of Crimea and conflicts with Ukraine. Mr. Tillerson spoke against the sanctions at the company's annual meeting in 2014. "We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said. One of the first issues Mr. Tillerson would have to resolve as secretary of state would be his holdings of Exxon shares, many of which aren't scheduled to vest for almost a decade. The value of those shares could go up if the sanctions on Russia were lifted. The shares would likely have to be sold under State Department ethics rules, Chase Untermeyer, a former U.S. Ambassador to Qatar, said in an interview. "He could not erase his strong relationship with a particular country," Mr. Untermeyer said. "The best protection from a conflict of interest is transparency." Mr. Trump has also faced repeated questions about how he will untangle himself from his real-estate empire to avoid potential conflicts as president. He has yet to clarify what steps he would take, saying on Twitter shortly after he was elected that he can't have a conflict of interest as president. On Nov. 30, he tweeted he would soon "leave his great business in total," promising to disclose details at a Dec. 15 press conference. Mr. Tillerson has over the years shown ideological flexibility on certain topics when he deems it strategically important to the companies or institutions he has led. He helped shift Exxon's response to climate change when he took over as CEO in 2006. He embraced a carbon tax as the best potential policy solution and has said climate change is a global problem that warrants action. That was a break from his predecessor, Lee Raymond. Still, Mr. Tillerson is a polarizing figure among Democrats and environmental activists. They have accused Exxon of sowing doubt about the impacts of climate change during Mr. Raymond's tenure and say Mr. Tillerson hasn't done enough to disclose the future impact of climate-change regulations on the company's ability to get oil out of the ground. "This is certainly a good way to make clear exactly who'll be running the government in a Trump administration--just cut out the middleman and hand it directly to the fossil-fuel industry," said Bill McKibben, the environmental activist and founder of 350.org. Exxon has disputed the criticism and accused activists and Democratic attorneys general of conspiring against the company. The son of a local Boy Scouts administrator, Mr. Tillerson was born in Wichita Falls, Texas. He attended the University of Texas, where he studied civil engineering, was a drummer in the Longhorn band and participated in a community service-oriented fraternity. He joined Exxon in 1975 and has spent his entire career at the company. For most of his adult life, he has also been closely involved with the Boy Scouts of America, even occasionally incorporating the Scout Law and Scout Oath into his speeches. Mr. Tillerson played an instrumental role in leading the organization to change its policy to allow gay youth to participate in 2013, Mr. Hamre said. Former Defense Secretary Robert Gates subsequently moved to lift the organization's ban on gay adult leaders as Boy Scouts president in 2015. "Most of the reason that organizations fail at change is pretty simple: People don't understand why," Mr. Tillerson said in a speech after the 2013 decision, urging leaders to communicate about the policy to help make it successful. "We're going to serve kids and make the leaders of tomorrow." Peter Nicholas, Gordon Lubold and Jim Oberman contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com Related * Trump Moves Sights to Boeing Credit: By Bradley Olson
Subject: Presidents; Sanctions; Political campaigns
Location: Texas United States--US Russia
People: Petraeus, David H Giuliani, Rudolph W Romney, W Mitt Yeltsin, Boris Putin, Vladimir Kissinger, Henry A
Company / organization: Name: OAO Rosneft; NAICS: 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846021358
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846021358?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
New Market Aims to Make Trading Natural Gas More Like Oil; CME, Intercontinental Exchange plan derivatives designed to ease the trading of liquefied natural gas
Author: McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
There is no global price benchmark for LNG. Since the late 1990s, the majority of the world's oil has been priced off Brent, the international benchmark, and WTI, its U.S. equivalent.
Full text: Two U.S. exchanges plan to launch derivatives that could make it easier to trade a type of natural gas, potentially revolutionizing this market in the way that the Brent and West Texas Intermediate benchmarks did for crude oil, according to people familiar with the matter. The moves by CME Group Inc. and Intercontinental Exchange Inc. come as increasing shipments of liquefied natural gas from the U.S. and elsewhere have helped create a spot, or short term market, for this commodity, which is transported on ships in liquid form. Having a spot market makes it easier to launch futures contracts, which will attract a wider pool of investors while offering the sort of real-time prices currently available in oil, gold and many other major commodities. Companies and investors use commodities-futures markets to speculate on the price of a commodity and to hedge its risk against turns in the market. Currently, buyers and sellers mainly agree to yearslong LNG contracts priced off oil, gas that is piped, and price reporting agencies' data. There is no global price benchmark for LNG. Since the late 1990s, the majority of the world's oil has been priced off Brent, the international benchmark, and WTI, its U.S. equivalent. There are already several benchmarks for pipeline gas including the U.S.'s Henry Hub and Europe's NBP and TTF markets. In LNG, "you're seeing an evolution toward more market-based pricing, but there hasn't been that real consolidation around a couple of benchmarks yet," said Jason Feer, head of business intelligence at consultancy Poten & Partners. "Oil was a fragmented market and then over time it consolidated around Brent and it consolidated around WTI," he said. To be sure, companies have already tried before to create LNG pricing benchmarks with limited success, including Japan OTC Exchange and the Singapore Exchange, better known as SGX. But industry analysts say that the chance of success is greater with an increasingly large spot market underpinning the futures contract--an agreement to buy or sell an underlying asset. The CME wants to launch a futures contract next year underpinned by U.S. Gulf Coast LNG exports, two people familiar with the matter said. ICE is also working on a U.S. Gulf Coast LNG futures contract, one of the people said. Peter Keavey, managing director of energy products at CME Group, declined to comment on specific plans, but said the exchange is constantly talking to its customers about new products. "There's definitely an interest in creating a liquid and transparent spot market and then further down the road, from an exchange standpoint, a liquid futures contract would have to follow that liquid spot market," Mr. Keavey said. ICE declined to comment. That spot market is being driven by a number of factors. For a start, there is just more gas being consumed. Gas is expected to make up around one quarter of the world's primary energy mix by 2040, up from around a fifth, according to the International Energy Agency. New buyers, including Jordan, Egypt and Pakistan emerged in 2015. Meanwhile, supply has exploded, mainly due to the U.S. shale boom and through new projects in Australia. Earlier this year, Cheniere Energy Inc. exported the first U.S. LNG in decades through a terminal it converted for this purpose in Louisiana. At least another four LNG export terminals are expected to start up on the U.S. Gulf coast in the next three years. That would bring U.S. capacity to over 60 million metric tons annually, compared with the world's top exporter Qatar's 77 million metric tons a year. Energy major BP PLC predicts LNG will overtake pipeline gas as the dominant form of traded gas within the next two decades. "The market will need to evolve and come up with different pricing mechanisms," said Anatol Feygin, Cheniere's chief commercial officer. The new pool of gas and people to buy it has created a more actively traded spot market. The spot market, defined as cargoes delivered within 90 days of a sale being agreed, made up around 15% of LNG trade in 2015, according to the International Group of Liquefied Natural Gas Importers. There are signs that spot trades rose sharply this year. Bookings of LNG ships for less than a year--one indicator of spot market activity--have risen by 60% for the January-August period, compared with the same period last year, according to data from gas-shipping company GasLog Ltd. Another factor boosting the LNG spot market is the growing participation of large trade houses. These giant commodities traders also helped create a global spot market in oil in the 1980s, earning U.S. trader Marc Rich the title 'the king of oil.' Trade houses, including Trafigura Group Pte., Vitol Group and Gunvor Group, are buying and selling LNG in the spot market, adding liquidity. "Traders have made a difference in boosting liquidity, we're not the only factor but we've played a role," said Hadi Hallouche, head of LNG at Trafigura. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Sarah McFarlane
Subject: Natural gas; LNG; Chemical industry; International trade; Benchmarks; Futures; Pipelines
Location: United States--US
Company / organization: Name: Intercontinental Exchange Inc; NAICS: 523210; Name: CME Group; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846030900
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846030900?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Successful Auction Encourages Mexico to Step Up Oil Opening; Mexico plans to hold a second, bigger deep-water auction around October next year, while Petróleos Mexicanos will likely seek as many as 25 partnerships with private firms
Author: Montes, Juan; Whelan, Robbie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--Buoyed by the results of Mexico's first deep-water oil auction , widely seen as a big success, President Enrique Peña Nieto's government plans to raise the bet. Mexico intends to hold a second, much bigger deep-water auction around October next year, while state firm Petróleos Mexicanos will likely seek as many as 25 partnerships with private firms over the next two years, Energy Minister Pedro Joaquín Coldwell said in an interview. "We're going to be more ambitious, we'll take a step forward because we now have more experience," said Mr. Coldwell. "What we'll very likely see are auctions with many more oil blocks than what we have seen so far." Mexico awarded eight out of 10 deep-water oil blocks in the Gulf of Mexico on Monday, exceeding expectations and attracting such oil majors as Exxon Mobil Corp. and the China National Offshore Oil Corporation, despite a difficult backdrop of low oil prices and steep cuts in oil investments . In a separate auction, Australia's BHP Billiton won rights to partner with Pemex to develop the Trion field near the Mexico-U.S. maritime border--the first time Mexico's state-oil firm partners with a private company to share risks and profits. The results "encourage us to be much more ambitious in the coming auctions," Mr. Coldwell said. "The menu [of blocks] is going to widen considerably." The Energy Ministry is still preparing the second deep-water auction, which would likely also include shallow-water blocks, but Mr. Coldwell said at least 20 blocks would be offered, probably in September or October. The positive results from the latest auction promise to provide a boost for an economy suffering from low oil prices, government budget cuts and uncertainty over what U.S. President-elect Donald Trump's administration will mean for Mexico's export manufacturing industry . The first production of deep-water oil -- which carries higher risk but offers higher rewards than traditional deposits -- is still several years away. The auction could also help the flagging approval ratings of President Peña Nieto, as the economic overhauls passed in his first two years in office have yet to translate into robust economic growth and Mexicans have been dismayed at government corruption scandals and a resurgence of violent crime in the past year. Mr. Coldwell said this week's oil auction provides decisive support for the 2013 energy overhaul, which amended the Constitution to open the oil industry to private investors after 75 years of state monopoly. Monday's oil auction was the fourth, and the first involving deep-water reserves. Mr. Coldwell said the government plans six more by the end of Mr. Peña Nieto's administration in late 2018. Mexican law doesn't permit presidential re-election. Three auctions, including shallow-water and onshore blocks, are already scheduled between March and July. After the second deep-water auction next fall, two more are planned for 2018 which will likely include shale oil and gas for the first time. "That would mean that by then, the energy reform would be very advanced as far as oil is concerned," Mr. Coldwell said. The government expects to have awarded nearly 100 oil contracts to private firms by the end of the administration. During that time, Pemex will seek partners for 20 to 25 oil blocks, including shallow and deep water, onshore, and shale deposits. Those projects could contain commercial reserves, which are a major attraction for private oil firms. Partnerships will improve the outlook for Pemex, which is immersed in deep financial difficulties and lacks the money or the technology to produce oil in more difficult and expensive deep-water blocks. A confident Mr. Coldwell said Pemex's partnerships "are going to be one of the largest investment destinations in the oil industry in the next two years." Write to Juan Montes at juan.montes@wsj.com and Robbie Whelan at robbie.whelan@wsj.com Credit: By Juan Montes and Robbie Whelan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846031030
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846031030?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Bank of Canada Expected to Stand Pat Again on Rates; Decision coming amid improving economic data, higher oil prices
Author: Kim Mackrael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
Bank of Nova Scotia economist Derek Holt said there are several issues the Bank of Canada will want to keep an eye on going forward, including an expected rise in interest rates by the U.S. Federal Reserve and any changes to U.S. trade policy under President-elect Donald Trump.
Full text: The Bank of Canada is widely expected to hold its key interest rate steady again on Wednesday amid improving economic data and higher oil prices. All 11 primary dealers of Canadian government securities surveyed by The Wall Street Journal expect the central bank to maintain its current rate at 0.5% during its scheduled announcement on Wednesday. "Overall, the economy has done no worse than expected and maybe a bit better," BMO Capital Markets economist Doug Porter said. "I think it's tough to make the case that the economy is crying out for lower rates at this point." Mr. Porter, whose firm doesn't anticipate another Bank of Canada policy move before 2018, said higher oil prices and expectations that the U.S. will engage in heavy stimulus spending are both good signs for the Canadian economy. At the same time, he said, inflation remains close to the Bank of Canada's 2% target and economic growth has recovered from a weak second quarter. Canada's gross domestic product fell 1.6% annualized during the second quarter after wildfires in the oil-rich province of Alberta forced some energy firms to halt production. But the country's growth rebounded in the subsequent three-month period , with GDP rising 3.5% annualized to beat the central bank's expectations. The Canadian economy has struggled over the past two years to adjust to lower prices for crude oil and other commodities, which prompted the Bank of Canada to cut interest rates twice last year. The central bank has remained on hold so far in 2016, but Governor Stephen Poloz said in October that policy makers had seriously considered a rate cut ahead of their most recent interest-rate decision in October. Stronger economic data since then suggest the central bank is unlikely to repeat that comment in its policy statement on Wednesday, CIBC World Markets economist Avery Shenfeld said. However, he said the Bank of Canada may want to use the opportunity to address the recent rise in bond yields. Simply raising the topic could help "draw attention to the fact that a rise in market rates runs against the Bank of Canada's desire to keep rates low for the time being," Mr. Shenfeld said. Bank of Nova Scotia economist Derek Holt said there are several issues the Bank of Canada will want to keep an eye on going forward, including an expected rise in interest rates by the U.S. Federal Reserve and any changes to U.S. trade policy under President-elect Donald Trump. Other uncertainties include the impact of tighter mortgage rules on the Canadian housing market and the effects of the Canadian government's stimulus spending, he said. "Given these considerations, it probably makes sense for the [Bank of Canada] to keep its powder dry for now," Mr. Holt said in a note to clients. Write to Kim Mackrael at kim.mackrael@wsj.com Credit: By Kim Mackrael
Subject: Central banks; Interest rates; Canadian dollar; Federal Reserve monetary policy; Economic growth; Gross Domestic Product--GDP; Economists
Location: United States--US
People: Poloz, Stephen Trump, Donald J
Company / organization: Name: Bank of Nova Scotia; NAICS: 522110; Name: Bank of Canada; NAICS: 521110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846073540
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846073540?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil-Output Cuts Could Hit Russian Energy Companies; Large producers due to launch new projects that could be difficult to delay
Author: Mills, Laura
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
Russian production has risen at a breakneck pace in recent months: in October, it reached 11.22 million barrels a day, up more than 4% from October last year. Since the end of July, Russia has brought some 370,000 barrels a day online.
Full text: MOSCOW--The Russian government is committed to cutting oil production in line with world producers but now comes the hard part: making it happen. Russian Energy Minister Alexander Novak pledged last week to cut production by up to 300,000 barrels a day by mid-2017. Russia, which pumps more crude oil than any other country, has had a spotty record with implementing production cuts in the past, pledging to reduce output and ramping up drilling instead. Things haven't got easier since: the collapse of the Russian ruble and a tax regime that offers tax breaks and incentives for new, more complex projects have made it relatively easy for Russian companies to shield profits and keep pumping through the downturn. Major Russian producers--including the country's two largest, PAO Lukoil and PAO Rosneft--are launching new projects late this year or early next year, guaranteeing a ramp up in production that could be difficult to delay. Russian production has risen at a breakneck pace in recent months: in October, it reached 11.22 million barrels a day, up more than 4% from October last year. Since the end of July, Russia has brought some 370,000 barrels a day online. For most of the year, Russia has said it prefers a freeze over a cut, which Moscow argued amounted to a reduction given Russia's plans to ramp up output further in 2017. Even now, Mr. Novak's pledge to cut has left room for interpretation: Russia will gradually reduce production by up to 300,000 barrels a day "based on its technical capacity." Mr. Novak and oil ministers from several other non-OPEC producers like Oman and Azerbaijan will meet OPEC officials on Saturday at the cartel's Vienna headquarters to hash out details . OPEC wants commitments of 600,000 barrels a day in reduced output from other countries to amplify the 1.2 million barrels a day cut the cartel agreed to last week. Mr. Novak has said Russia's commitment to limit output was contingent on OPEC's own compliance with a cut, which will become clear early next year. The head of PAO Transneft, Russia's oil pipeline operator, told state news agencies that Russian producers would begin production cuts in March. Some Russian producers say achieving cuts is easy from a technical standpoint: Russia's tax regime offers incentives for more costly new projects and heavy burdens on older wells like those in West Siberia, which produces the bulk of Russian crude. That makes it easier for companies to terminate production at older fields, bringing them in line with expected cuts without damaging profits, said Lukoil Vice President Leonid Fedun in an interview. "(Fields) that are high-cost and low-income will stop, there are no problems," he said. "Quite the opposite, it will allow Lukoil to increase cash flow." At the same time, Mr. Fedun said in a separate interview with Russian state television that the company expected the Russian government to offer some kind of compensation for any potential losses from the cut. Some analysts agree that companies could easily cut back drilling at older fields, which will continue to decline naturally in 2017, helping Russia achieve at least a partial cut. "You don't need to stop certain wells, you just need to not drill additional wells," said Maxim Nechaev, head of Russian consulting at IHS Markit, who estimated Russia could bring production down by 100,000 to 150,000 barrels a day in the first half of the year by doing so. "Production falls naturally--you just don't drill." Others believe that reaching promised targets would force Russia to shut down thousands of wells, a logistical headache which would be made difficult by extreme cold at some fields and the inaccessibility of others during warmer months. Separately, Lukoil, Rosneft and other Russian oil companies are bringing on new production as well. For example, a new Caspian Sea field is expected to produce some 90,000 barrels a day in 2017, Lukoil has said. Finally, it is unclear how much the Russian government itself would benefit. With companies pledging cuts at older fields with the heaviest tax burden, the budget could lose out if producers cut back there. "Oil companies will have to sacrifice some growth. and since production at fields which have almost no tax breaks whatsoever are going to be cut first, that has a rather negative impact for the budget," said Alexander Kornilov, an energy analyst at Aton Brokerage. "The cut might happen, but it might not necessarily work out in an efficient way for Russia," he added. Write to Laura Mills at Laura.Mills@wsj.com Related News * OPEC Oil Production Deal Still Faces Hurdles * OPEC to Seek More Oil-Output Cuts from Nonmembers * Russia Willing to Freeze Crude Production at November Levels Credit: By Laura Mills
Subject: International markets; Pipelines; Petroleum production
Location: Russia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846073558
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846073558?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Decreasing in DOE Data; Energy Information Administration report is due at 10:30 a.m. EST Wednesday
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2.2-million-barrel decrease in crude supplies, an 800,000-barrel increase in gasoline stocks and a 4.0-million-barrel increase in distillate inventories, according to a market participant.
Full text: U.S. crude-oil stocks are expected to show a decrease in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 11 analysts and traders surveyed showed that U.S. oil inventories are projected to have decreased by 900,000 barrels, on average, in the week ended Dec. 2. Three analysts expect stockpiles to rise and eight expect them to decline. Forecasts range from a decrease of 2.3 million barrels to an increase of 1.9 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show an increase of 1.7 million barrels on average, according to analysts. Nine analysts expect them to rise and two analysts expect them to fall. Estimates range from a fall of 1 million barrels to an increase of 4 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to grow by 1.5 million barrels. Nine analysts expect an increase and two expect a decrease. Forecasts range from a decline of 2 million barrels to an increase of 3.9 million barrels. Refinery use is seen gaining 0.8 percentage point to 90.6% of capacity, based on EIA data. Seven analysts expect an increase, one expects a decrease and three did not report expectations. Forecasts range from a decrease of 0.5 point to an increase of 1.5 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2.2-million-barrel decrease in crude supplies, an 800,000-barrel increase in gasoline stocks and a 4.0-million-barrel increase in distillate inventories, according to a market participant. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Inventory; Price increases
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 6, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuestdocument ID: 1846119273
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Futures Extend Pullback in Asia; Brent crude lost 42 cents, or 0.8%, to $53.51 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2016: n/a.
Abstract:
[...]compliance by both OPEC and non-OPEC members will be essential, otherwise the market will likely remain in oversupply to at least" the third quarter.
Full text: Oil futures eased in Asia trading Wednesday, as the market sought direction after last week's meeting of the Organization of the Petroleum Exporting Countries. Light, sweet crude for January delivery fell 47 cents, or 0.9%, to $50.45 a barrel during the Globex electronic session of the New York Mercantile Exchange. Brent crude lost 42 cents, or 0.8%, to $53.51 a barrel. Futures extended a pullback after the OPEC decision, with skepticism rising recently over how likely individual cartel members will abide by production quotas. Questions also linger over whether non-OPEC members such as Russia will follow through on commitments to also cut output. A meeting between OPEC and several nonmembers is set for Saturday. Reports of higher production by OPEC in November have also damped sentiment, analysts said. "[Skeptics] are also questioning how the cuts will be enforced, especially given OPEC's past history of breaking their own rules," said Stuart Ive, private client manager at OM Financial. "These types of arguments trigger profit-taking and price consolidation, but there is always a flip side to these views." Still, traders widely expect prices to remain elevated into 2017 now that OPEC has reasserted its clout. BMI Research said it expects Brent prices to average $55 a barrel next year as the oversupply that has long weighed down prices comes to an end. "The OPEC decision will essentially bring forward rebalancing by more than six months, leveraging stronger seasonal demand in the summer to unwind the bloated crude stocks," BMI analysts wrote in a note to clients. "Naturally, compliance by both OPEC and non-OPEC members will be essential, otherwise the market will likely remain in oversupply to at least" the third quarter. Separately, data from the U.S. Department of Energy is expected to show oil stockpiles there fell 900,000 barrels last week, according to a survey of analysts by The Wall Street Journal. The data are due Wednesday morning during New York trading hours. Data from the American Petroleum Institute showed a decrease in oil stocks of 2.2 million barrels, according to a market participant. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 26 points to $1.5333 a gallon, while January diesel traded at $1.6289, 89.99999 points lower. ICE gas oil for December changed hands at $467.50 a metric ton, down $3.25 from Tuesday's settlement. Tim Puko contributed to this article. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Cartels; Crude oil; Prices
Location: Russia Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 7, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846143352
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846143352?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Changes Loom for Trading LNG --- New derivatives are expected to do for market what crude contracts did for oil
Author: McFarlane, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Dec 2016: B.17.
Abstract:
There is no global price benchmark for LNG. Since the late 1990s, the majority of the world's oil has been priced off Brent, the international benchmark, and WTI, its U.S. equivalent.
Full text: Two U.S. exchanges plan to launch derivatives that could make it easier to trade a type of natural gas, potentially revolutionizing this market in the way that the Brent and West Texas Intermediate benchmarks did for crude oil, according to people familiar with the matter. The moves by CME Group Inc. and Intercontinental Exchange Inc. come as increasing shipments of liquefied natural gas from the U.S. and elsewhere have helped create a spot, or short-term market, for this commodity, which is transported on ships in liquid form. Having a spot market makes it easier to initiate futures contracts, which will attract a wider pool of investors while offering the sort of real-time prices now available in oil, gold and many other major commodities. Companies and investors use commodities-futures markets to speculate on the price of a commodity and to hedge the risk against turns in the market. Currently, buyers and sellers mainly agree to yearslong LNG contracts priced off oil, piped natural gas and data from price-reporting agencies. There is no global price benchmark for LNG. Since the late 1990s, the majority of the world's oil has been priced off Brent, the international benchmark, and WTI, its U.S. equivalent. There are already several benchmarks for pipeline gas, including the U.S.'s Henry Hub and Europe's NBP and TTF markets. In LNG, "you're seeing an evolution toward more market-based pricing, but there hasn't been that real consolidation around a couple of benchmarks yet," said Jason Feer, head of business intelligence at consultancy Poten & Partners. "Oil was a fragmented market, and then over time it consolidated around Brent and it consolidated around WTI," he said. Companies have tried before to develop LNG pricing benchmarks, with limited success, including Japan OTC Exchange and the Singapore Exchange, better known as SGX. But industry analysts say that the chance of success is greater with an increasingly large spot market underpinning the futures contract, which is an agreement to buy or sell an underlying asset. The CME wants to start a futures contract next year underpinned by U.S. Gulf Coast LNG exports, people familiar with the matter said. ICE is also working on a U.S. Gulf Coast LNG futures contract, one of the people said. Peter Keavey, managing director of energy products at CME Group, declined to comment on specific plans but said the exchange is constantly talking to its customers about new products. "There's definitely an interest in creating a liquid and transparent spot market, and then, further down the road, from an exchange standpoint, a liquid futures contract would have to follow that liquid spot market," Mr. Keavey said. ICE declined to comment. That spot market is being driven by a number of factors. For a start, there is just more gas being consumed. Gas is expected to make up around one-quarter of the world's primary energy mix by 2040, up from around a fifth, according to the International Energy Agency. New buyers, including Jordan, Egypt and Pakistan, emerged in 2015. Meanwhile, supply has exploded, mainly because of the U.S. shale boom and through new projects in Australia. Earlier this year, Cheniere Energy Inc. exported the first U.S. LNG in decades through a terminal it converted for this purpose in Louisiana. At least an additional four LNG export terminals are expected to start up on the U.S. Gulf Coast in the next three years. That would bring U.S. capacity to more than 60 million metric tons annually, compared with the world's top exporter Qatar's 77 million metric tons a year. Energy company BP PLC predicts LNG will overtake pipeline gas as the dominant form of traded gas within two decades. "The market will need to evolve and come up with different pricing mechanisms," said Anatol Feygin, Cheniere's chief commercial officer. The new pool of gas and people to buy it has created a more actively traded spot market. The spot market made up around 15% of LNG trade in 2015, according to the International Group of Liquefied Natural Gas Importers. Credit: By Sarah McFarlane
Subject: Natural gas; LNG; Derivatives; Commodities trading
Location: United States--US
Company / organization: Name: Intercontinental Exchange Inc; NAICS: 523210; Name: CME Group; NAICS: 523210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.17
Publication year: 2016
Publication date: Dec 7, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: Englis h
Document type: News
ProQuest document ID: 1846234654
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846234654?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Hurdles Abound For Pact On Oil
Author: Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Dec 2016: B.17.
Abstract:
According to Commerzbank, the two members, along with Angola, were chiefly responsible for the increase in overall OPEC oil production last month.
Full text: Oil prices rallied to their highest level in more than a year following OPEC's agreement last week to curb production, but analysts see a number of hurdles ahead that could keep the market volatile. The Organization of the Petroleum Exporting Countries agreed to cut its output by 1.2 million barrels a day, or more than 1% of global output, and said that other producers also will join the effort. If implemented, the cuts would shrink the oversupply that has plagued the industry for more than two years and further boost prices next year, with some analysts seeing crude rising above $60 a barrel. The success of OPEC's deal, however, will depend on several factors, including the participation of nonmember countries, the cartel's own checkered history of cheating on such agreements and the ability of U.S. shale drillers to quickly ramp up production as prices rise. On Tuesday, U.S. crude fell 1.7% to $50.93 a barrel. Brent lost 1.8% to $53.93. Less than two weeks after clinching the deal in Vienna, OPEC members will be back in the Austrian capital Saturday to meet with suppliers outside the group. OPEC wants its non-OPEC counterparts to pare their combined output by 600,000 barrels a day, and officials from the cartel say that without the participation of nonmember nations the OPEC deal itself could be severely undermined. Some analysts, however, are skeptical that countries such as Russia will limit their output, even though Moscow has pledged to "gradually" reduce production by 300,000 barrels a day next year. Returning barrels from African members of the cartel that have suffered supply disruptions could make OPEC's target harder to reach, analysts say. Libya and Nigeria were exempted from the deal because months of militant activity curbed their output. Now that the situation in both countries is stabilizing, production is slowly returning. According to Commerzbank, the two members, along with Angola, were chiefly responsible for the increase in overall OPEC oil production last month. If agreeing on a deal to cut production was the first step, adhering to it might be a bigger hurdle for OPEC, analysts say. Most member states have a history of overshooting their individual targets, so compliance will be key, analysts say. After clinching the deal last week, the organization said that a committee composed of Algeria, Venezuela and Kuwait will monitor compliance with the agreement, though it didn't specify how noncompliance would be defined, deterred or punished. "Cheating on quotas is simply too enticing in today's environment of budget constraints," said Norbert Rucker, head of commodities research at Julius Baer. Credit: By Georgi Kantchev
Subject: Commodity prices; Crude oil
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.17
Publication year: 2016
Publication date: Dec 7, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846234656
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846234656?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Signs Preliminary Iran Oil Deal Despite Uncertainty Over Trump; The oil company's potential return to Iran could be a watershed for the country's energy industry, but Trump's rhetoric poses a risk
Author: Faucon, Benoit; Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2016: n/a.
Abstract:
LONDON--Royal Dutch Shell PLC on Wednesday said it had signed an agreement with Iran's state oil company to explore future projects, signaling that giant energy companies are unlikely to be deterred by President-elect Donald Trump's pledge to undo the Iran nuclear deal . Iran has complained that the remaining U.S. restrictions have made European companies too cautious about returning and have stunted the flow of foreign investment expected from the nuclear deal. [...]the Shell and Total deals, few big energy companies had made any commitments in Iran.
Full text: LONDON--Royal Dutch Shell PLC on Wednesday said it had signed an agreement with Iran's state oil company to explore future projects, signaling that giant energy companies are unlikely to be deterred by President-elect Donald Trump's pledge to undo the Iran nuclear deal . Shell is the largest company to wade back into Iran since the U.S. and other world powers lifted sanctions in January in exchange for Tehran putting strict limits on its nuclear program. The British-Dutch firm follows France's Total SA, which last month signed a $4.8 billion deal to develop a large natural-gas field in Iran and now is negotiating an oil deal. Wednesday's agreement could help open a new chapter in the turbulent history of Iran's oil sector, which has been marked by waves of nationalizations and successive sanctions. Shell halted most of its activities in Iran in 2010 . Shell, Total and other companies looking to bet again on Iran face potential risks from an incoming Trump administration. Mr. Trump has called the Iran nuclear pact a "disaster" and "the worst deal ever negotiated." He has vowed to renegotiate it or pull out altogether. The president-elect has aggressively confronted corporate decision makers, singling out companies that plan to move jobs to Mexico and on Tuesday criticizing Boeing Co. for the cost of building a new Air Force One jet. That hasn't fazed Western companies even outside the energy industry, which also have stepped up efforts to return to Iran since Mr. Trump's election. Last month, French aircraft manufacturer Airbus Group SE got the Obama administration to back the export of more than 100 jetliners to Iran . On Friday, Faurecia SA, an affiliate of French automotive giant Groupe PSA, signed two joint ventures to make car parts with Iranian companies. Mr. Trump's transition team didn't respond to requests for comment on Wednesday. American companies remain largely prohibited from doing business in Iran because the U.S. government still bans many transactions in dollars with the country . Separate U.S. sanctions on Iran over terrorism, human rights and weapons have impeded investment. In addition, foreign oil companies are concerned with the terms Iran wants to impose on joint projects. Iran has complained that the remaining U.S. restrictions have made European companies too cautious about returning and have stunted the flow of foreign investment expected from the nuclear deal. Until the Shell and Total deals, few big energy companies had made any commitments in Iran. Iranian President Hassan Rouhani has intensified a push to sign deals with high-profile companies since Mr. Trump's victory to bolster his own chances in presidential election in May next year, said Roozbeh Aliabadi, managing partner at Global Growth Advisors, who advises foreign companies investing in Iran. "They are desperately looking for success stories," Mr. Aliabadi said. The Rouhani "administration is pushing for big names to be vocal about their interest for Iran without demanding an immediate commitment to invest." The scope of Shell's deal remains unclear. A Shell spokesman said the firm and the National Iranian Oil Co. signed a memorandum of understanding to "further explore areas of potential cooperation." The agreement is nonbinding and doesn't come with an investment commitment, unlike Total's deal . Earlier on Wednesday, the Iranian oil ministry said it and Shell were examining agreements to develop two large oil fields that could give a big boost to the country's output. Shell didn't confirm those talks. Shell has said it would proceed with caution as it mulls re-entering Iran. Saying that Iran has "fantastic resources," Shell CEO Ben van Beurden told The Wall Street Journal last month that the company would "only want to take significant investment risk if we see reasonable stability of [Iran's] legal status and--equally important--we will only engage in projects that do make economic sense." Both Total and Shell have substantial American operations. That means they must be mindful of U.S. policies. But their recent moves suggest the companies believe they can build ties with Iran and handle any fallout with the incoming Trump administration. Speaking to reporters last week, Arnaud Breuillac, Total's head of exploration and production, said he was "not particularly" worried about a Trump administration impeding his company's Iran plans. The comments came after Mr. Breuillac met Iran's oil minister Bijan Zanganeh in Vienna. Shell's announcement comes a week after the Organization of the Petroleum Exporting Countries agreed to cut production in a move to rebalance global oil supply in line with demand. Oil prices have surged since the deal, lifting hopes of a sustained oil market rally and new investment in the beleaguered energy industry. Iran's oil ministry said Shell was interested in developing the South Azadegan and Yadavaran oil fields and the Kish gas field. The two oil fields are among the largest oil discoveries of the past 20 years, said Homayoun Falakshahi, Middle East research analyst at energy consulting firm Wood Mackenzie. Azadegan is the largest field in Iran. Combined, the two fields have recoverable resources of 8.2 billion barrels--the equivalent of 15% of the proved crude reserves in the U.S. Shell will have stiff competition for those fields. State-owned China Petroleum & Chemical Corp., known as Sinopec, already operates Yadavaran and is negotiating the second phase of development there. Total is also studying South Azadegan. Even trickier, Shell or any other company selected to develop those fields would likely have to become partners with local Iranian oil companies. A unit of the hard-line Iranian Revolutionary Guard is vying for South Azadegan, and Shell would likely run afoul of current U.S. sanctions if it partners with the corps. "As in all cases, we will comply with all relevant laws," a Shell spokesman said. Shell was among a handful of Western oil companies to re-enter Iran as the nation opened its oil sector to foreign companies back in the 1990s, more than a decade after the country had kicked them out following the Islamic Revolution. Moves to expand investment were ultimately stymied by tightening sanctions. Shell's interest in Iran comes at a time when the oil giant is retrenching in other regions. The company is in the midst of a $30 billion divestment plan that could see it exit as many as 10 countries, completing a transformation into a liquefied-natural-gas and deepwater-production behemoth following its acquisition of BG Group earlier this year . Inti Landauro contributed to this article Write to Benoit Faucon at benoit.faucon@wsj.com and Sarah Kent at sarah.kent@wsj.com Related * Russia Sells a Stake in Oil Giant * Oil Rally Slows Ahead of Meeting of Producer Nations * Shell's Oil Deal With Iran -- At a Glance * Total to Finance Iran Project With Euros (Nov. 8) * A Brief History of the Iranian Oil Industry (April 3, 2015) Credit: By Benoit Faucon and Sarah Kent
Subject: Agreements; Foreign investment; Sanctions; Energy industry
Location: United States--US Iran
People: Rouhani, Hassan
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Total SA; NAICS: 447190, 324110, 211111; Name: Boeing Co; NAICS: 336411, 336413, 336414
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 7, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846256978
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846256978?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Drops on Production Cut Skepticism; Sentiment may change this weekend when OPEC and non-OPEC producers meet to discuss output cuts
Author: Baxter, Kevin; Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2016: n/a.
Abstract:
[...]compliance by both OPEC and non-OPEC members will be essential, otherwise the market will likely remain in oversupply to at least" the third quarter.
Full text: Oil prices fell Wednesday following waning optimism that major oil producers will cut production and inventory data that showed rising stockpiles in key areas. Light, sweet crude for January delivery settled down $1.16, or 2.3%, at $49.77 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 93 cents, or 1.7% to $53 a barrel. The Organization of the Petroleum Exporting Countries will meet with non-OPEC producers to discuss output cuts this weekend. While OPEC's agreement to cut production boosted oil prices to a one-year high this week, some remain skeptical on the ability of major producers to adhere to output limits. "There's continued uncertainty about whether or not OPEC and some non-OPEC producers can effectively cut in accordance with the agreement," said Tony Headrick, energy analyst at CHS Hedging. Oil has hit "a bit of a soft patch here." The cartel wants nonmembers to slash production by 600,000 barrels a day. Many market observers believe that a negative outcome of the coming meeting could damp positive sentiment. Growing doubts over OPEC's ability to enforce cuts would make it even more difficult to persuade non-OPEC producers to curb output, especially if OPEC members already exempt from the production deal such as Nigeria start ramping up exports. Germany's Commerzbank said that it would be difficult to get OPEC to cut production even if the likes of Nigeria and Libya maintained current output. It will be almost impossible to do so if those countries start pumping larger volumes. Still, traders widely expect prices to remain elevated into 2017 now that OPEC has reasserted its clout. BMI Research said it expects Brent prices to average $55 a barrel next year as the oversupply that has long weighed down prices comes to an end. "The OPEC decision will essentially bring forward rebalancing by more than six months, leveraging stronger seasonal demand in the summer to unwind the bloated crude stocks," BMI analysts wrote. "Naturally, compliance by both OPEC and non-OPEC members will be essential, otherwise the market will likely remain in oversupply to at least" the third quarter. On Wednesday the U.S. Energy Information Administration showed that crude-oil stockpiles declined by 2.4 million barrels for the week ended Dec. 2. from the previous week, a larger-than-expected fall in storage. However, oil prices were pressured by a 3.8 million barrel increase at the Cushing, Okla., delivery point for U.S. stocks, which outweighed the overall decline in inventory. "The EIA report kind of accentuated some selling pressure," said Jim Ritterbusch, president of Ritterbusch & Associates. "The data by and large looked bearish to me," Stockpiles of gasoline and distillates saw big gains for the week ended Dec. 2, which analysts said also weighed on the crude oil market. According to the EIA, gasoline stockpiles jumped by 3.4 million barrels and distillates increased by 2.5 million barrels. Gasoline futures fell 1.8% to $1.5082 a gallon and diesel futures fell 1.2% to $1.6184 a gallon. Dan Strumpf contributed to this article. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Stephanie Yang at stephanie.yang@wsj.com Credit: By Kevin Baxter and Stephanie Yang
Subject: Crude oil prices; Cartels; Inventory
Location: Nigeria
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 7, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846278480
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846278480?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Trafigura Profit Falls, Despite Booming Oil Volumes; Commodities trader Trafigura Group reported a fall in 2016 annual net profit, as falling margins outweighed buoyant trading volumes in oil and metals.
Author: McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2016: n/a.
Abstract:
Commodities trader Trafigura Group Pte Ltd. reported a fall in 2016 annual net profit on Wednesday, as falling margins outweighed buoyant trading volumes in oil and metals.
Full text: Commodities trader Trafigura Group Pte Ltd. reported a fall in 2016 annual net profit on Wednesday, as falling margins outweighed buoyant trading volumes in oil and metals. Profit at the privately-held trading firm fell 12% to $975 million in the financial year ended Sept. 30. Gross margin narrowed to 2.3% from 2.7% the previous year. Earnings before interest, taxes, depreciation and amortization were down 13% to $1.63 billion, having hit a record in 2015. Chief Executive Jeremy Weir said the company's oil trading division had benefited from volatile conditions, while the metals market was more challenging. Oil markets have been particularly volatile over the past year with prices ranging between over $50 a barrel to below $30. Last year, many oil traders benefited from so-called contango, in which prices are higher in future versus the spot price, which benefits those who can store crude. But that proved less profitable this year. "The year before 2016 there was exceptional market conditions due to contango," said Christophe Salmon, Trafigura's Chief Financial Officer. The world's third-largest independent oil trader recorded a sharp rise in traded volumes, with oil up 42% to a daily average of 4.3 million barrels, while the metals and minerals division was up 13% at 59 million tons. Trafigura's oil trading volumes have more than doubled since 2012. The company's volumes were likely boosted by its close relationship with Russia's state-controlled oil giant PAO Rosneft in a period when that country's oil production was at post-Soviet Union records. Trafigura is the largest buyer of oil and products from Rosneft. The companies strengthened ties in October with the purchase of India's Essar Oil Ltd. which could further boost Trafigura's oil trading volumes in future. "We want to be positioned as equity owner of a world class refinery in India, a market that is growing by more than 10% a year," Mr. Salmon said. Trafigura, like other traders, including Vitol Group, Gunvor Group and Mercuria Energy Group, limits its exposure to commodity price direction by holding fewer production assets than oil majors and mining companies. It instead focuses on physical trading which benefits from market volatility. Even so, the firm recorded impairments of $365 million to the value of a number of its industrial assets. "We expect challenging conditions to persist in commodities markets through 2017, with pressure increasing on producers and other players with large asset footprints," said Mr. Salmon. Trafigura, owned by around 600 of its staff, paid out $719 million to shareholders in 2016 via a share buyback its accounts showed. This was down slightly from $776 million the previous year. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Sarah McFarlane
Subject: Corporate profits; Petroleum production
Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Essar Oil Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 7, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846289803
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846289803?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil-Output Cuts Could Hit Russian Energy Companies; Large producers due to launch new projects that could be difficult to delay
Author: Mills, Laura
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2016: n/a.
Abstract:
Russian production has risen at a breakneck pace in recent months: in October, it reached 11.22 million barrels a day, up more than 4% from October last year. Since the end of July, Russia has brought some 370,000 barrels a day online.
Full text: MOSCOW--The Russian government is committed to cutting oil production in line with world producers but now comes the hard part: making it happen. Russian Energy Minister Alexander Novak pledged last week to cut production by up to 300,000 barrels a day by mid-2017. Russia, which pumps more crude oil than any other country, has had a spotty record with implementing production cuts in the past, pledging to reduce output and ramping up drilling instead. Things haven't got easier since: the collapse of the Russian ruble and a tax regime that offers tax breaks and incentives for new, more complex projects have made it relatively easy for Russian companies to shield profits and keep pumping through the downturn. Major Russian producers--including the country's two largest, PAO Lukoil and PAO Rosneft--are launching new projects late this year or early next year, guaranteeing a ramp up in production that could be difficult to delay. Russian production has risen at a breakneck pace in recent months: in October, it reached 11.22 million barrels a day, up more than 4% from October last year. Since the end of July, Russia has brought some 370,000 barrels a day online. For most of the year, Russia has said it prefers a freeze over a cut, which Moscow argued amounted to a reduction given Russia's plans to ramp up output further in 2017. Even now, Mr. Novak's pledge to cut has left room for interpretation: Russia will gradually reduce production by up to 300,000 barrels a day "based on its technical capacity." Mr. Novak and oil ministers from several other non-OPEC producers like Oman and Azerbaijan will meet OPEC officials on Saturday at the cartel's Vienna headquarters to hash out details . OPEC wants commitments of 600,000 barrels a day in reduced output from other countries to amplify the 1.2 million barrels a day cut the cartel agreed to last week. Mr. Novak has said Russia's commitment to limit output was contingent on OPEC's own compliance with a cut, which will become clear early next year. The head of PAO Transneft, Russia's oil pipeline operator, told state news agencies that Russian producers would begin production cuts in March. Some Russian producers say achieving cuts is easy from a technical standpoint: Russia's tax regime offers incentives for more costly new projects and heavy burdens on older wells like those in West Siberia, which produces the bulk of Russian crude. That makes it easier for companies to terminate production at older fields, bringing them in line with expected cuts without damaging profits, said Lukoil Vice President Leonid Fedun in an interview. "(Fields) that are high-cost and low-income will stop, there are no problems," he said. "Quite the opposite, it will allow Lukoil to increase cash flow." At the same time, Mr. Fedun said in a separate interview with Russian state television that the company expected the Russian government to offer some kind of compensation for any potential losses from the cut. Some analysts agree that companies could easily cut back drilling at older fields, which will continue to decline naturally in 2017, helping Russia achieve at least a partial cut. "You don't need to stop certain wells, you just need to not drill additional wells," said Maxim Nechaev, head of Russian consulting at IHS Markit, who estimated Russia could bring production down by 100,000 to 150,000 barrels a day in the first half of the year by doing so. "Production falls naturally--you just don't drill." Others believe that reaching promised targets would force Russia to shut down thousands of wells, a logistical headache which would be made difficult by extreme cold at some fields and the inaccessibility of others during warmer months. Separately, Lukoil, Rosneft and other Russian oil companies are bringing on new production as well. For example, a new Caspian Sea field is expected to produce some 90,000 barrels a day in 2017, Lukoil has said. Finally, it is unclear how much the Russian government itself would benefit. With companies pledging cuts at older fields with the heaviest tax burden, the budget could lose out if producers cut back there. "Oil companies will have to sacrifice some growth. and since production at fields which have almost no tax breaks whatsoever are going to be cut first, that has a rather negative impact for the budget," said Alexander Kornilov, an energy analyst at Aton Brokerage. "The cut might happen, but it might not necessarily work out in an efficient way for Russia," he added. Write to Laura Mills at Laura.Mills@wsj.com Related News * OPEC Oil Production Deal Still Faces Hurdles * OPEC to Seek More Oil-Output Cuts from Nonmembers * Russia Willing to Freeze Crude Production at November Levels Credit: By Laura Mills
Subject: International markets; Pipelines; Petroleum production
Location: Russia
People: Putin, Vladimir
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 7, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846453020
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846453020?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Russia Sells Stake in Oil Giant Rosneft to Glencore, Qatar; Kremlin's account of the deal's terms appears to differ from Glencore's description of the agreement
Author: Marson, James; Patterson, Scott
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2016: n/a.
Abstract:
The sale of a stake could also help Rosneft expand its access to global oil markets through a relationship with a major oil trader, said Michael Moynihan, research director, Russia for energy consulting firm Wood Mackenzie.
Full text: MOSCOW--Russia said it sold a 19.5% stake in state-controlled oil giant PAO Rosneft to a consortium formed by Glencore PLC and Qatar in a deal valued at some [euro]10.5 billion ($11.3 billion), a move by Russia that would bring in much-needed cash by selling a portion of one of its crown jewels. Russian President Vladimir Putin and Rosneft Chief Executive Igor Sechin discussed the deal in a meeting late Wednesday, according to a transcript on the Kremlin's website. The Russian state will retain a controlling stake in Rosneft, which is also partly owned by U.K. oil major BP PLC. But there appeared to be some differences between the Kremlin account of the deal's terms and Glencore's description of the deal. The Switzerland-based mining company said it was in "final-state negotiations" about the deal, and said it was committing [euro]300 million. It also received a five-year right to purchase an additional 220,000 barrels of oil a day from Rosneft for its trading business. The balance of the purchase price would be provided by Qatar and bank lending, Glencore said. Glencore said the deal's structure meant its risk is limited to its [euro]300 million investment, equivalent to about 0.54% of Rosneft. Mr. Sechin said Glencore and the Qatar Investment Authority sovereign-wealth fund would each take half of the 19.5% stake. Qatar's fund couldn't be reached for comment Wednesday night. Russia has long suggested it could sell a stake in Rosneft, the world's largest-listed oil producer, but held off until weak oil prices and a two-year recession starved the federal budget, apparently forcing the Kremlin's hand. Even though Russia has pumped and exported more oil this year, its revenue from those sales has plunged because of low crude prices. From January through August, Russian oil export revenues dropped 27% to $46 billion, according to the country's Federal Customs Service. Selling a Rosneft stake would be a boon for Mr. Putin, whose country is under sanctions from the U.S. and the European Union over its military interventions in Ukraine. Russia has largely looked to China for financing, and Chinese and Indian state-owned energy companies were seen by analysts as likely buyers for the Rosneft stake. Rosneft is among the companies under U.S. sanctions that restrict its ability to raise debt in U.S. dollars. The deal could ease concerns about budget funding through the next Russian presidential elections in spring 2018, said Chris Weafer, senior partner at Macro Advisory Ltd., a Moscow-based consultancy. "It's diversification in political relationships and investment," Mr. Weafer said. "It shows that there is more than one buyer in town and that Russia doesn't have to just sell cheaply to China or India." The sale of a stake could also help Rosneft expand its access to global oil markets through a relationship with a major oil trader, said Michael Moynihan, research director, Russia for energy consulting firm Wood Mackenzie. In a meeting in the Kremlin late Wednesday, Mr. Putin congratulated Mr. Sechin on the deal, saying the sale came at a favorable time, as the oil price rose after the Organization of the Petroleum Exporting Countries agreed on production cuts last week. Russia has also agreed to trim its crude output by 300,000 barrels a day and is expected to complete that agreement this weekend, in a deal that could mean Rosneft has to trim back output along with its new shareholder, Qatar, an influential OPEC member which is allied closely with top global crude exporter Saudi Arabia. Rosneft has moved recently to consolidate the Russian state's control of the oil sector, acquiring a controlling stake in midsize Russian oil producer PAO Bashneft in October for the equivalent of around $5 billion. Rosneft bought rival TNK-BP in 2013 in a $55 billion deal. Some government ministers have long pressed for the sale of a stake in Rosneft. But Mr. Sechin has fought to preserve and increase state control over the oil sector, which provides critical revenues to the federal budget. Glencore Chief Executive Ivan Glasenberg has been focused on selling assets and paring back debt since the firm's stock plunged last year amid a collapse in commodity prices. The company suspended its dividend and sold assets ranging from Peruvian gold to stakes in its Canadian agricultural business. Last week, Glencore marked a turning point when it said it planned to reinstate its dividend next year. The move was in part vindication for Mr. Glasenberg, a highflying CEO whose aggressive investment strategy and reliance on sky-high debt fell under a shadow as commodity prices plunged in 2015 amid slowing demand from China and elsewhere. Lynn Cook contributed to this article. Write to James Marson at james.marson@wsj.com and Scott Patterson at scott.patterson@wsj.com Related * Shell Sets Deal With Iran Oil Firm Credit: By James Marson and Scott Patterson
Subject: International markets; Presidential elections
Location: Qatar Russia United States--US United Kingdom--UK
Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Glencore PLC; NAICS: 211111, 212210, 212234, 311314; Name: European Union; NAICS: 926110, 928120; Name: Qatar Investment Authority; NAICS: 523930
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 7, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846492622
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846492622?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Pause After Recent Slide; February Brent crude gained two cents, less than 0.1%, to $53.02
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2016: n/a.
Abstract:
"After last week's OPEC meeting, where a significant production cut agreement was announced, Brent crude oil futures prices jumped" toward $55 a barrel, analysts at Citigroup wrote in a note to clients.
Full text: Oil futures halted their recent pullback in Asian trade Thursday, as traders weighed the recent pact by the Organization of the Petroleum Exporting Countries and await preliminary data on Chinese oil imports. Light, sweet crude for January delivery gained 14 cents, or 0.3%, to $49.91 a barrel in the Globex electronic session of the New York Mercantile Exchange. February Brent crude gained two cents, less than 0.1%, to $53.02. Traders continued to assess the market impact of last week's decision to cut output by the Organization of the Petroleum Exporting Countries. After rallying sharply in the days before and after the deal was announced, oil prices retreated slightly on skepticism over the cartel's commitment to follow through on its commitments. "After last week's OPEC meeting, where a significant production cut agreement was announced, Brent crude oil futures prices jumped" toward $55 a barrel, analysts at Citigroup wrote in a note to clients. "Since then, doubts have crept back in the run-up to the end-week meeting with non-OPEC countries." This weekend, OPEC members are set to meet with non-OPEC countries to discuss coordinated output cuts. OPEC wants other big producing countries that aren't in the cartel to cut production by 600,000 barrels a day. Also weighing down prices was weekly inventory data from the U.S. Department of Energy, which showed a large increase in stockpiles at the U.S. oil hub of Cushing, Okla. Energy Aspects called it the biggest weekly build since 2009. Later Thursday, data on China's foreign trade for November could offer clues on oil demand in the world's second-biggest oil consumer. Chinese oil imports have risen sharply this year as domestic production has declined. China's demand has remained robust and Beijing has been buying crude on the cheap in order to fill its strategic oil stockpiles. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 28 points to $1.5054 a gallon, while January diesel traded at $1.6151, 33 points lower. ICE gas oil for December changed hands at $464.75 a metric ton, down $3.75 from Wednesday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil; Cartels
Location: China
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: New York Mercantile Exchange; NAICS: 523210; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846534657
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846534657?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mexico Collects $2.65 Billion from 2016 Oil Hedges; Gain marks second consecutive year that oil-hedging program has paid off
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--The Mexican government collected $2.65 billion from oil-price hedges taken out to protect the 2016 budget from a drop in prices, the Finance Ministry said Wednesday. The government hedged oil for this year at $49 a barrel to cover a budget estimate of $50. The remainder is made up with money in budget-stabilization funds. It marked the second consecutive year that Mexico has collected on its oil-hedging program. In 2015, the government made a record $6.3 billion from the program after hedging oil at $76.40 a barrel, when the actual price averaged about $43. The average price of Mexican oil in the first 10 months of this year was $34.58 a barrel. Mexican crude priced Tuesday at $43.32 a barrel. Mexican governments have for years used derivatives to protect the budget against declines in world oil prices. The hedges act as an insurance policy: if the average price of Mexican crude is below the hedged amount, the government receives money on the contracts at the end of the year. If the price is equal or higher, then the cost is the amount paid for the options. The 2017 budget is based on an oil-price estimate of $42 a barrel . The government paid about $1 billion to lock in a price of $38 a barrel next year and would use stabilization funds to cover the rest, if necessary. Along with the decline in oil prices of the past two years, which have forced the government to make budget cuts, Mexico has suffered from falling production. As a result, oil and related taxes and royalties now account for less than 20% of federal revenue, from more than a third in previous years. State oil company Petróleos Mexicanos exported an average of 1.2 million barrels a day of oil between January and October of this year but projects that exports next year would slip below 1 million barrels a day. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 184654602 2
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846546022?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Russia Sells a Stake in Oil Giant
Author: Marson, James; Patterson, Scott
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]08 Dec 2016: B.2.
Abstract:
The sale of a stake could also help Rosneft expand its access to global oil markets through a relationship with a major oil trader, said Michael Moynihan, research director, Russia for energy consulting firm Wood Mackenzie.
Full text: MOSCOW -- Russia said it sold a 19.5% stake in state-controlled oil giant PAO Rosneft to a consortium formed by Glencore PLC and Qatar in a deal valued at some 10.5 billion euros ($11.3 billion), a move by Russia that would bring in much-needed cash by selling a portion of one of its crown jewels. Russian President Vladimir Putin and Rosneft Chief Executive Igor Sechin discussed the deal in a meeting late Wednesday, according to a transcript on the Kremlin's website. The Russian state will retain a controlling stake in Rosneft, which is also partly owned by U.K. oil major BP PLC. But there appeared to be some differences between the Kremlin account of the deal's terms and Glencore's description of the deal. The Switzerland-based mining company said it was in "final-state negotiations" about the deal, and said it was committing 300 million euros. It also received a five-year right to purchase an additional 220,000 barrels of oil a day from Rosneft for its trading business. The balance of the purchase price would be provided by Qatar and bank lending, Glencore said. Glencore said the deal's structure meant its risk is limited to its 300 million investment euros, equivalent to about 0.54% of Rosneft. Mr. Sechin said Glencore and the Qatar Investment Authority sovereign-wealth fund would each take half of the 19.5% stake. Qatar's fund couldn't be reached for comment Wednesday night. Russia has long suggested it could sell a stake in Rosneft, the world's largest-listed oil producer, but held off until weak oil prices and a two-year recession starved the federal budget. Even though Russia has pumped and exported more oil this year, its revenue from those sales has plunged because of low crude prices. From January through August, Russian oil export revenues dropped 27% to $46 billion, according to the country's Federal Customs Service. Selling a Rosneft stake would be a boon for Mr. Putin, whose country is under sanctions from the U.S. and the European Union over its military interventions in Ukraine. Russia has largely looked to China for financing, and Chinese and Indian state-owned energy companies were seen by analysts as likely buyers for the Rosneft stake. Rosneft is among the companies under U.S. sanctions that restrict its ability to raise debt in U.S. dollars. The sale of a stake could also help Rosneft expand its access to global oil markets through a relationship with a major oil trader, said Michael Moynihan, research director, Russia for energy consulting firm Wood Mackenzie. In a meeting in the Kremlin late Wednesday, Mr. Putin congratulated Mr. Sechin on the deal, saying the sale came at a favorable time, as oil price rose after the Organization of the Petroleum Exporting Countries agreed on production cuts last week. Russia has also agreed to trim its crude output by 300,000 barrels a day and is expected to complete that agreement this weekend, in a deal that could mean Rosneft has to trim back output along with its new shareholder, Qatar, an influential OPEC member which is allied closely with top global crude exporter Saudi Arabia. Rosneft has moved recently to consolidate the Russian state's control of the oil sector, acquiring a controlling stake in midsize Russian oil producer PAO Bashneft in October for the equivalent of around $5 billion. Rosneft bought rival TNK-BP in 2013 in a $55 billion deal. Some government ministers have long pressed for the sale of a stake in Rosneft. But Mr. Sechin has fought to preserve and increase state control over the oil sector. --- Lynn Cook contributed to this article. Credit: By James Marson and Scott Patterson
Subject: Equity stake; Petroleum production; Divestiture
Location: Qatar Russia
People: Sechin, Igor Putin, Vladimir
Company / organization: Name: Glencore PLC; NAICS: 211111, 212210, 212234, 311314; Name: Qatar Investment Authority; NAICS: 523930; Name: OAO Rosneft; NAICS: 324110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.2
Publication year: 2016
Publication date: Dec 8, 2016
column: Business & Finance
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846608536
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846608536?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Sets Deal With Iran Oil Firm --- Pact signals big energy companies are unlikely to be deterred by Trump nuclear pledge
Author: Faucon, Benoit; Kent, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]08 Dec 2016: B.1.
Abstract:
Iran has complained that the remaining U.S. restrictions have made European companies too cautious about returning and have stunted the flow of foreign investment expected from the nuclear deal. [...]the Shell and Total deals, few big energy companies had made any commitments in Iran.
Full text: LONDON -- Royal Dutch Shell PLC on Wednesday said it had signed an agreement with Iran's state oil company to explore future projects, signaling that giant energy companies are unlikely to be deterred by President-elect Donald Trump's pledge to undo the Iran nuclear deal. Shell is the largest company to wade back into Iran since the U.S. and other world powers lifted sanctions in January in exchange for Tehran putting strict limits on its nuclear program. The British-Dutch firm follows France's Total SA, which last month signed a $4.8 billion deal to develop a large natural-gas field in Iran and now is negotiating an oil deal. Wednesday's agreement could help open a new chapter in the turbulent history of Iran's oil sector, which has been marked by waves of nationalizations and successive sanctions. Shell halted most of its activities in Iran in 2010. Shell, Total and other companies looking to bet again on Iran face potential risks from a Trump administration. Mr. Trump has called the Iran nuclear pact a "disaster" and "the worst deal ever negotiated." He has vowed to renegotiate it or pull out altogether. The president-elect has aggressively confronted corporate decision makers, singling out companies that plan to move jobs to Mexico, and on Tuesday criticizing Boeing Co. for the cost of building a new Air Force One jet. That hasn't fazed Western companies, even those outside the energy industry, which also have stepped up efforts to return to Iran since Mr. Trump's election. Last month, French aircraft manufacturer Airbus Group SE got the Obama administration to back the export of more than 100 jetliners to Iran. On Friday, Faurecia SA, an affiliate of French automotive giant Groupe PSA, signed two joint ventures to make car parts with Iranian companies. Mr. Trump's transition team didn't respond to requests for comment on Wednesday. American companies remain largely prohibited from doing business in Iran because the U.S. government still bans many transactions in dollars with the country. Separate U.S. sanctions on Iran over terrorism, human rights and weapons have impeded investment. In addition, foreign oil companies are concerned with the terms Iran wants to impose on joint projects. Iran has complained that the remaining U.S. restrictions have made European companies too cautious about returning and have stunted the flow of foreign investment expected from the nuclear deal. Until the Shell and Total deals, few big energy companies had made any commitments in Iran. Iranian President Hassan Rouhani has intensified a push to sign deals with high-profile companies since Mr. Trump's victory to bolster his own chances in presidential election in May next year, said Roozbeh Aliabadi, managing partner at Global Growth Advisors, who advises foreign companies investing in Iran. "They are desperately looking for success stories," Mr. Aliabadi said. The scope of Shell's deal remains unclear. A Shell spokesman said the firm and the National Iranian Oil Co. signed a memorandum of understanding to "further explore areas of potential cooperation." The agreement is nonbinding and doesn't come with an investment commitment, unlike Total's deal. Earlier on Wednesday, the Iranian oil ministry said it and Shell were examining agreements to develop two large oil fields that could give a big boost to the country's output. Shell didn't confirm those talks. Shell has said it would proceed with caution as it mulls re-entering Iran. Saying that Iran has "fantastic resources," Shell CEO Ben van Beurden told The Wall Street Journal last month that the company would "only want to take significant investment risk if we see reasonable stability of [Iran's] legal status and -- equally important -- we will only engage in projects that do make economic sense." Speaking to reporters last week, Arnaud Breuillac, Total's head of exploration and production, said he was "not particularly" worried about a Trump administration impeding his company's Iran plans. The comments came after Mr. Breuillac met Iran's oil minister Bijan Zanganeh in Vienna. Shell's announcement comes a week after the Organization of the Petroleum Exporting Countries agreed to cut production in a move to rebalance global oil supply in line with demand. Oil prices have surged since the deal. --- Inti Landauro contributed to this article. Credit: By Benoit Faucon and Sarah Kent
Subject: Agreements; Foreign investment; Oil exploration
Location: France United States--US Iran
People: Rouhani, Hassan
Company / organization: Name: Total SA; NAICS: 447190, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: National Iranian Oil Co; NAICS: 324110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2016
Publication date: Dec 8, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846608979
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846608979?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Glencore Explores Its Limits in Russian Oil Patch; A stake in Rosneft gives the commodities giant fresh oil to play with
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2016: n/a.
Abstract: None available.
Full text: Corrections & Amplifications: Glencore has proposed to commit [euro]300 million ($323 million) in equity. The overall deal is worth [euro]10.2 billion, according to the company. An earlier version of this article incorrectly stated that the commodities giant had proposed to commit £300 million ($380 million) in equity and that the overall deal was worth $13 billion. (12.08.16) Glencore is back as an acquirer of assets--that was the clear message of Wednesday's surprise announcement of a planned minority stake in Russian oil giant Rosneft . The deal, priced at a 5% discount to Rosneft's Tuesday valuation, according to Rosneft chief executive Igor Sechin, could be a smart way for Glencore to boost its exposure to oil and potentially raise revenues at its trading arm, which it is counting on to underpin its newly reinstated dividend for 2017. The full terms of the deal are yet to be disclosed, but the commodities giant has proposed to commit [euro]300 million ($323 million) in equity in partnership with the Qatar Investment Authority to acquire a 19.5% stake and the offtake rights to 220,000 barrels a day of Rosneft oil. The overall deal is worth [euro]10.2 billion, according to Glencore. It is a reasonable enough outlay, even if Glencore's balance-sheet rebuild remains a work in progress. Thanks to asset sales and rebounding commodities, Glencore has managed to halve its net debt since mid 2015, and had nearly $5 billion in cash and short term investments on hand at the end of June. But it has also just committed to a big new dividend , so it will have to make a deal like this pay off without delay. Most of the firm's 2015 earnings came from industrial metals and coal, so adding more oil gives Glencore a modicum of diversification at a time when Rosneft is gasping for cash. Oil production and energy marketing revenues were only 11% of earnings before interest, taxes depreciation and amortization last year, compared with nearly 50% for coal and copper production alone. Since global oil demand is less China centric than metals and coal , prices might also hold up better if China's property boom runs out of steam next year. Given the firm's years of living dangerously , it may feel like early days for more acquisitions. But oil seems a better bet than more metals. Credit: By Nathaniel Taplin
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 8, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846609807
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846609807?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Airline Profits to Reach Record Heights Before 2017 Descent; IATA says higher oil prices, overcapacity and political turbulence working together to drive down margins
Author: Wall, Robert
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2016: n/a.
Abstract:
Overcapacity, rising fuel costs and political turmoil are combining to spell an end to a five-year run of improving earnings, the International Air Transport Association, representing more than 200 carriers, said Thursday.
Full text: Corrections & Amplifications: Emirates Airline is the world's largest carrier by international traffic. An earlier version of this article said it was the largest by traffic. (Dec. 8) GENEVA--The financial outlook for airlines is deteriorating with collective industry profit set to peak this year as the industry's leading trade group downgrades its financial outlook. Overcapacity, rising fuel costs and political turmoil are combining to spell an end to a five-year run of improving earnings, the International Air Transport Association, representing more than 200 carriers, said Thursday. Airlines are expected to deliver a combined record net profit this year of $35.6 billion, IATA said. That represents an increase from $35.3 billion last year, though a lower profit for 2016 than IATA forecast six months ago when the trade group projected total returns of $39.4 billion. Industrywide profit should retreat next year and reach $29.8 billion, IATA said. Profitability also is declining. Net profit margins are expected to fall to an average of 4.1% next year from 5.1% this year. "Even though we expect conditions to be more difficult, we see a soft landing safely in profitable territory," said IATA Director General Alexandre de Juniac. The industry that often has lost money will have been in the black for eight years, he added. The North American airline market reflects the trend. North American carriers have propelled industrywide profit growth after a period of consolidation in the U.S. allowed airlines there to deliver record profits, aided also by a period of low fuel prices. But profit for airlines in North America will fall slightly this year to $20.3 billion from $21.5 billion in 2015. Profit will fall further next year to $18.1 billion, IATA projects. Airlines already are bracing for a tougher time ahead. Tim Clark, president of Emirates Airline, the world's largest carrier by international traffic, Wednesday said he saw demand growth for air travel slowing in the next few years. The rapidly expanding Dubai-based carrier would use the relatively slow period to improve internal operations rather than chase expansion, he said. Plans to buy either Boeing Co. 787 Dreamliners or Airbus Group SE A350 long-range planes remain on the agenda, Mr. Clark said at the Aviation Club in London, though with less urgency given prevailing market uncertainties. Among the industry headwinds are rising oil prices. The upward movement got a boost through an agreement reached last week by the Organization of the Petroleum Exporting Countries to curb oil production , which has caused crude prices to surge. That darkens the financial outlook for airlines for which fuel typically represents one of their single highest costs. "Unit costs are no longer falling faster than unit revenue," IATA chief economist Brian Pearce said, largely reflecting rising fuel costs. IATA's forecast assumes no further rise in oil prices beyond those triggered by the OPEC accord, he said. The combined fuel bill for airlines is expected to rise to $129 billion next year from $124 billion in 2016. Airlines also have had to contend with a series of other shocks, including terrorist attacks at major airports in Brussels and Istanbul. Mr. de Juniac said governments needed to do more to boost security after a year when airports in Brussels and Istanbul were bombed. Intelligence collection needs to be improved, he said, and shared more widely between countries and the air transport industry. Even so, the total number of people flying is set to rise to 3.8 billion passengers and further increase to 4 billion in 2017. North American carriers this year and next are expected to remain the top financial performers among all regions. Net profit for European airlines this year should be flat at $7.5 billion before retreating to $5.6 billion. Profit for Asia-Pacific airlines will slip by $500 million this year to $7.3 billion and fall another $1 billion in 2017. The Middle East, home to rapidly expanding carrier such as Emirates Airline and Qatar Airways, will see profit fall this year to $900 million from $1.1 billion in 2015. Profits will retreat further to $300 million next year, IATA forecasts. Write to Robert Wall at robert.wall@wsj.com Credit: By Robert Wall
Subject: Airlines; Airports; Profit margins; Petroleum production
People: de Juniac, Alexandre Clark, Tim
Company / organization: Name: Emirates Airline; NAICS: 481111; Name: Boeing Co; NAICS: 336411, 336413, 336414
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 8, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846656457
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846656457?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Recovers but Doubts About OPEC Production Cuts Remain; Chinese oil imports rebounded strongly in November
Author: Baxter, Kevin; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2016: n/a.
Abstract:
Traders continued to assess the market impact of last week's decision to cut output by the Organization of the Petroleum Exporting Countries, and the rally that followed the announcement of the deal has slowed in recent days.
Full text: Oil prices clawed back some of Wednesday's losses to close above $50 a barrel as market participants turned their attention to a planned meeting between OPEC and non-OPEC producers to discuss coordinating cuts in production. U.S. crude futures rose $1.07, or 2.15%, at $50.84 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 89 cents, or 1.68%, to $53.89. Traders continued to assess the market impact of last week's decision to cut output by the Organization of the Petroleum Exporting Countries, and the rally that followed the announcement of the deal has slowed in recent days. OPEC has agreed to cut output by nearly 1.2 million barrels a day for six months starting in January. The group expects other big producing countries to reduce output by another 600,000 barrels, and Russia has indicated it will take on half of that. Those cuts will be discussed at a meeting between OPEC and non-OPEC countries planned for Saturday. U.S. crude futures dropped as low as $49.77 during the session after reports that Russia might seek to postpone the meeting. But a Russian energy ministry representative said later that the meeting is still on track. "Obviously there's some anxiety over whether they can find that 600,000 barrels," said Bob Yawger, head of the futures division at Mizuho Securities USA. "This is an underachieving market compared to what it was the other day." Some market participants say oil has gone about as high as it can without more evidence that producers will follow through on their promises, and anticipate that oil prices will stay around $50 a barrel until the extent of the cuts becomes clear. "The dramatic 15% price spike off the OPEC deal was a bit exaggerated and the market is spending much of this week simply assessing and digesting the OPEC 'event,'" Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a client note. While many remain doubtful that OPEC will follow through on its commitment, other analysts say that major producers have endured so much pain from low prices that they'll be motivated to stick to the cuts. And some countries couldn't produce more if they wanted to, since they're already pumping close to what they're capable of. Gasoline futures fell 0.35 cents, or 0.23%, to $1.5047 a gallon. Diesel futures gained 0.75 cents, or 0.46%, to $1.6259 a gallon. Dan Strumpf contributed to this article. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Kevin Baxter and Alison Sider
Subject: Crude oil prices; Price increases; Cartels; Crude oil; Futures
Location: Russia United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846678586
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846678586?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Canadian Oil Producers Cenovus, Crescent Point Ramp Up Spending; As crude prices rebound, capital spending and production plans do too
Author: McKinnon, Judy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2016: n/a.
Abstract:
Cenovus Energy Inc. and Crescent Point Energy Corp., two big Canadian oil-sands producers, signaled a return to growth in the country's oil patch with bolstered spending plans and stronger production guidance for 2017.
Full text: Cenovus Energy Inc. and Crescent Point Energy Corp., two big Canadian oil-sands producers, signaled a return to growth in the country's oil patch with bolstered spending plans and stronger production guidance for 2017. Calgary, Alberta-based Cenovus, which like its peers has been cutting costs amid a prolonged downturn in oil prices, increased its capital spending plan for next year by about 24% and said it expects total oil production to be up about 14% from 2016 levels. Cenovus said part of its 2017 budget has been earmarked for the restart of construction on an expansion at its Christina Lake oil-sands project and for investments in conventional oil drilling projects in southern Alberta. The company had deferred some project plans as plunging crude-oil prices pushed its oil-sands operations below break-even levels. Benchmark West Texas Intermediate oil started the year around $37 a barrel and has risen to around $50 currently. Prices were closer to $100 a barrel from around 2011 to 2014. "With the tremendous progress we've made over the last two years in reducing operating costs and sustaining capital, we're confident we can move forward with projects that have strong potential to drive shareholder value," Cenovus Chief Executive Brian Ferguson said in a release. Separately, Crescent Point said late Wednesday it had increased its planned 2017 capital budget about 32% from projected 2016 spending levels, and expects to exit next year with production growth of about 10%. It said around 89% of its planned 1.45 billion Canadian dollar ($1.1 billion) budget for next year will be allocated to drilling and development activities. It guided for a 2017 production exit rate of about 183,000 barrels of oil equivalent a day. Cenovus, which has set its 2017 spending plan at between C$1.2 billion and C$1.4 billion, said about 70% of the budget will be targeted for sustaining oil-sands production and base production at its other operations. It said it plans to resume work on its Phase G expansion at its Christina Lake oil-sands operation in the first half of next year, noting it shelved the project in late 2014 due to declining oil prices. It said first oil from the expansion, which has a capacity of 50,000 barrels a day, is expected in the second half of 2019. Cenovus is guiding for overall 2017 oil production of between 223,000 and 240,000 barrels a day, which includes a 20% increase in oil-sands production from planned 2016 levels. Write to Judy McKinnon at judy.mckinnon@wsj.com Credit: By Judy McKinnon
Subject: Oil sands; Budgets; Petroleum production
Location: Calgary Alberta Canada
Company / organization: Name: Cenovus Energy Inc; NAICS: 211111; Name: Crescent Point Energy Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 8, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846718585
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846718585?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Petrobras Reaffirms Plans to Sell Assets by Year's End; Despite court rulings challenging Brazilian oil company's divestment program
Author: Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2016: n/a.
Abstract: None available.
Full text: RIO DE JANEIRO--Brazilian state-run oil company Petróleo Brasileiro SA, or Petrobras, reiterated Thursday its goal of selling more than $4 billion in assets by the end of the year, despite court rulings challenging its divestment program this week. Petrobras said Thursday it still expects to meet its target of selling $15.1 billion in assets between 2015 and 2016, despite only having announced transactions worth about $10.7 billion. The company's statement came in response to a preliminary ruling by Brazil's federal auditing court, known as the TCU, that suspended all but five asset sales that are already under way. Petrobras told the court that these five assets, which weren't identified, could bring in around $3.3 billion. The TCU move came days after Edmilson da Silva Pimenta, a federal judge in the impoverished northeastern state of Sergipe, ordered Petrobras to suspend its planned sale of a majority stake in its fuel distribution subsidiary, BR Distribuidora. Both rulings could be reversed. But analysts said they highlight the unexpected roadblocks that Petrobras, a company that has little experience downsizing, could face as it seeks to raise massive amounts of cash in a market that is already flooded with energy assets due to the downturn in oil prices. "They just delay things at a bad time," said Adriano Pires, an oil-industry consultant in Rio. "Brazil needs investment, we need to clean up Petrobras, so it's not good." Asset sales are the keystone of Petrobras' effort to reduce its $123 billion debt pile, the largest in the global oil industry. In addition to the target for 2015-16, the company aims to raise another $19.5 billion in 2017 and 2018. But the TCU's ruling questioned a law under which Petrobras has been conducting negotiations for its divestment behind closed doors, saying secrecy potentially increases "the risks that illegal acts may occur." The court cited the bid-rigging and bribery scandal that has engulfed Petrobras in recent years as evidence of these risks. Petrobras executives have said confidentiality is strategically necessary to get good deals for its assets. Write to Paul Kiernan at paul.kiernan@wsj.com Credit: By Paul Kiernan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 8, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 18 46843793
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846843793?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Army Corps Gives the Left a Last Stand in North Dakota; The White House tries to kill another pipeline for U.S. oil.
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2016: n/a.
Abstract:
The U.S. Army Corps of Engineers on Sunday delivered a symbolic victory to the environmental left by denying a permit to complete the 1,200-mile Dakota Access oil pipeline.
Full text: The U.S. Army Corps of Engineers on Sunday delivered a symbolic victory to the environmental left by denying a permit to complete the 1,200-mile Dakota Access oil pipeline. The political obstruction illustrates why it's so hard to build anything in America these days. Construction is almost complete on the Dakota Access, which aims to transport a half million barrels of oil each day from the Bakken Shale in North Dakota to Illinois for delivery to refiners on the East and Gulf coasts. About 99% of the pipeline doesn't require federal permitting because it traverses private lands. But the Corps must sign off on an easement to drill under Lake Oahe that dams the Missouri River. After an exhaustive consultation with Native American tribes, the Corps in July issued an environmental assessment of "no significant impact." Construction is unlikely to harm tribal totems because the Dakota Access would parallel an existing gas pipeline. The route has been modified 140 times in North Dakota to avoid upsetting sacred cultural resources. After largely refusing to engage in the Corps's review, the Standing Rock Sioux sued. A federal court in September rejected the tribe's claims, only to be overruled by the Obama Administration, which ordered a temporary suspension to work around Lake Oahe. Although the D.C. Circuit Court of Appeals in October refused to enjoin construction on the pipeline, the Corps has maintained its administrative injunction. Tensions have escalated between local law enforcement and protesters, who have signaled an intent to defy Corps orders to disband before Dec. 5. North Dakota winters are cold, and a charitable reading of the Corps's political mediation is that the Administration is trying to allow squatters to save face so that they can disperse before imperiling their own safety. However, the Corps's switcheroo has jeopardized its integrity and created a legal quagmire by requiring an exhaustive new environmental impact statement that considers alternative routes. This process could take years and is not normally required when an environmental assessment concludes no significant impact. The pipeline builder Energy Transfer Partners could sue the Corps for violating due process, though a judge might rule the company lacks standing since the government hasn't made a final determination. Energy Transfer is likely better off waiting for the Trump Administration. A spokesman for Mr. Trump said the President-elect supports construction of the pipeline but would "review the full situation when we're in the White House and make the appropriate determination at that time." This protects the Trump Administration from claims of predetermination, but it won't stop environmental groups from suing if Mr. Trump reverses the Obama Administration's course. Energy Transfer devised the least intrusive route to expedite permitting but it still got caught between the Standing Rock tribe and no-fossil-fuels greens who have turned the Dakota Access into a Battle of the Alamo. If Mr. Trump wants to build more infrastructure, a top-to-bottom renovation of permitting regulations is a good place to start.
Subject: Pipelines; Federal court decisions; Construction
Location: Illinois Lake Oahe Missouri River North Dakota
Company / organization: Name: Army Corps of Engineers; NAICS: 928110; Name: Energy Transfer Partners; NAICS: 486210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 8, 2016
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1846961678
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846961678?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Not So Risky Climate Business; A new study dismantles the logic of oil and gas 'systemic risk.'
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Dec 2016: n/a.
Abstract:
What if an abrupt change in policy strands fossil-fuel resources in the ground, which in turn crashes oil companies and then the global economy? IHS consulting recently released a rebuttal to this "carbon bubble" babble, and the dismantling deserves more attention.
Full text: Among the many doomsday scenarios floated by the climate-change lobby is a theory that asks: What if an abrupt change in policy strands fossil-fuel resources in the ground, which in turn crashes oil companies and then the global economy? IHS consulting recently released a rebuttal to this "carbon bubble" babble, and the dismantling deserves more attention. Daniel Yergin and Elena Pravettoni of IHS looked at whether oil and gas assets pose a "systemic risk" to the world financial system, a danger floated by more than a few regulators. No less than Bank of England Governor Mark Carney warned in 2015 that limits on carbon could crater asset valuations and "potentially destabilize markets," as the damage rippled through insurers and banks with portfolios in oil. Not so much, says IHS. Oil-and-gas companies are not going belly up in an event similar to the collapse of Lehman Brothers. One reason is that about 80% of the value of most publicly traded oil companies is derived from "proved reserves," which are projects that will happen within a decade or so. In other words, companies aren't assuming as assets every drop of oil in the ground that they may or may not be able to develop. Regardless of forced carbon reductions or temperature spikes, the switch to alternative fuels will take decades. For some perspective, the authors note that the oil industry started up in 1859 but did not overtake coal as the world's largest energy source for about a century. Barring some technological breakthrough, no one expects oil to be a minority source of energy before 2050. Financial markets and insurance contracts can manage risks as they evolve year-to-year or even day-to-day. Perhaps the strongest evidence that oil companies won't blow up the world economy is that they've been stress-tested by the recent crash in commodity prices. Some 82 global oil companies burned off 42% of their value between June 2014 and December 2015, or about $1.4 trillion in market capitalization. Yet the report notes that since oil dipped below $100 a barrel in 2014, the Dow Jones Industrial Average has risen 6%. The panic over climate risk is really a pretext for more regulation. Mr. Carney chairs the Financial Stability Board, an international outfit that exists to flag financial risks and offer itself as the answer. An FSB task force later this month will deliver "guidelines for voluntary disclosure" that could cover assets and risk practices for oil companies as well as their investors. The report will likely be submitted to major country financial ministers for approval. Mr. Carney and the FSB are playing to climate activists, who want to use such disclosure as ammunition to pound pension and other investment funds to divest from fossil-fuel companies. Mr. Carney has also highlighted the climate-change free-speech probe led by New York's Attorney General Eric Schneiderman, which is based on flimsier evidence than even Mr. Carney's conjectures. The real financial risks are from Mr. Carney's attempt to turn certain kinds of legal investments into political targets. The political allocation of capital into housing was one of the root causes of the 2008 panic. Let's not politicize energy investing in the same way.
Subject: Carbon; Disclosure; Natural gas utilities
Company / organization: Name: Lehman Brothers Holdings Inc; NAICS: 523110, 551112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 9, 2016
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847027061
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847027061?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Pause in Asia Trade Ahead of Producers Meeting; February Brent crude lost six cents, or 0.1%, to $53.83 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Dec 2016: n/a.
Abstract:
"An agreement by non-OPEC members to cut production is achievable, given support from Russia and a number of countries facing structural output declines," analysts at BMI Research said in a note to clients.
Full text: Oil futures paused in Asia trading Friday, as traders looked ahead to the outcome of a weekend meeting among major oil-producing countries. Light, sweet crude for January delivery rose nine cents, or 0.2%, to $50.93 a barrel during the Globex electronic session of the New York Mercantile Exchange. February Brent crude lost six cents, or 0.1%, to $53.83 a barrel. The pause follows a rebound in the previous session that saw the Nymex contract return to above $50 a barrel. Oil prices have see-sawed around the low $50-a-barrel level in the days since last week's decision to cut production by the Organization of the Petroleum Exporting Countries. The cartel has agreed to cut output by 1.2 million barrels a day, equivalent to about 1% of global production, starting next month. OPEC is hoping to get other big producers not in the group to join with an output cut of another 600,000 barrels at a meeting set for Saturday. Russia is expected to take on half that burden. "An agreement by non-OPEC members to cut production is achievable, given support from Russia and a number of countries facing structural output declines," analysts at BMI Research said in a note to clients. But the size of the cut remains in question: "The pace of these declines alongside technical challenges surrounding Russian production suggests the ... target will be difficult to achieve in full." Many analysts believe that oil prices are likely to slowly trend higher into the coming year, now that OPEC has reasserted its willingness to nudge the market with production cuts. For years, OPEC has sat on the sidelines amid rising production from U.S. shale drillers, sending prices dramatically lower and bringing an end to an era of high oil prices. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 3 points to $1.5044 a gallon, while January diesel traded at $1.6210, 49 points lower. ICE gasoil for December changed hands at $468.25 a metric ton, up $1.50 from Thursday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil prices; Crude oil; Cartels
Location: Russia Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publicationdate: Dec 9, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847053172
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847053172?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Jo urnal
Crude Oil Swings Back Above $50
Author: Baxter, Kevin; Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Dec 2016: B.13.
Abstract:
Oil prices clawed back some of Wednesday's losses to close above $50 a barrel as market participants turned their attention to a planned meeting between OPEC and non-OPEC producers to discuss coordinating output cuts.
Full text: Oil prices clawed back some of Wednesday's losses to close above $50 a barrel as market participants turned their attention to a planned meeting between OPEC and non-OPEC producers to discuss coordinating output cuts. U.S. crude futures rose $1.07, or 2.15%, at $50.84 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 89 cents, or 1.68%, to $53.89. OPEC has agreed to cut output by nearly 1.2 million barrels a day starting in January. The group expects other countries to reduce output by another 600,000 barrels, and Russia has indicated it will take on half of that. Those cuts will be discussed at a meeting planned for Saturday. Front-month Nymex crude fell as low as $49.77 after reports that Russia might seek to postpone the meeting. But a Russian energy ministry representative said later that the meeting is still on track. Credit: By Kevin Baxter and Alison Sider
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.13
Publication year: 2016
Publication date: Dec 9, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847381597
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847381597?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Oil Deal Faces Test as Cartel Tries to Pin Down Russia on Details of Cuts; Cartel says non-OPEC nations have pledged 600,000 barrels a day in cuts
Author: Faucon, Benoit; Amon, Michael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Dec 2016: n/a.
Abstract:
"The amount of coordination, the amount of meeting with non-OPEC countries, made them, if you like, as if they are part of OPEC," said Mohammed Bin Saleh al-Sada, OPEC's president and Qatar's oil minister, on the day of the deal. OPEC pressed other non-OPEC producers to make cuts to offset the possibility of U.S. production returning when prices rise.
Full text: Two days before OPEC ministers gathered in Vienna on Nov. 30, Iran's oil minister passed a message to his boss, President Hassan Rouhani, people familiar with the matter said: Saudi Arabia wouldn't agree to cut production without a commitment from Russia. Mr. Rouhani called Russian President Vladimir Putin that night, the Kremlin said. By the time OPEC met, Russia, which isn't part of the Organization of the Petroleum Exporting Countries, had told Saudi Arabia's energy minister that Moscow would join the group's push to reduce global output . The intervention of the two world leaders underscores how badly all sides wanted a pact that would boost oil prices and their economies . It was also a decisive show by OPEC and its de facto leader, Saudi Arabia, of the group's demand that all future deals involve coordinated cuts by non-OPEC producers. The reason: The Saudi kingdom isn't willing to let other producers steal its market share when it pulls back. Russia's commitment will be put to the test Saturday when it, and at least four other non-OPEC producers, gather at the group's headquarters in Vienna for a meeting that was put off until OPEC had a deal. The non-OPEC countries--expected to include Sudan, South Sudan, Malaysia, Oman, Azerbaijan, Kazakhstan and Mexico--account for 18% of the world's daily production. Russian Energy Minister Alexander Novak expressed optimism Friday after arriving in Vienna. "I think we'll reach agreement," he told reporters. Saudi Energy Minister Khalid al-Falih said Friday night in Vienna that he expected 10 or 11 non-OPEC producers to contribute to output cuts. OPEC officials said the organization now sees itself as a loose coalition of producing countries, some in OPEC, some not. "The amount of coordination, the amount of meeting with non-OPEC countries, made them, if you like, as if they are part of OPEC," said Mohammed Bin Saleh al-Sada, OPEC's president and Qatar's oil minister, on the day of the deal. "Today's unity is a very explicit sign." The 14-member group has said non-OPEC nations have pledged 600,000 barrels a day in cuts. Factoring in the group's own pledge of 1.2 million barrels a day, together they would remove almost 2% of the world's oil supply. Over its 56-year history, the group has often called on non-OPEC producers to join output cuts. In the late 1990s, Norway, Mexico and others cut back with OPEC after prices crashed during the Asian financial crisis. But in 2008, Russia said it would help OPEC trim global production and then reneged. This time, the rise of nimble U.S. shale-oil producers has made coordinating with other big producers more important. American output nearly doubled from 2007 to 2015, hitting about 9.4 million barrels a day last year and contributing to a global oversupply of oil that helped sink prices from over $100 a barrel in 2014 to under $28 a barrel early this year. That crash squeezed enough U.S. producers to reduce American output by about 600,000 barrels a day in 2016. OPEC pressed other non-OPEC producers to make cuts to offset the possibility of U.S. production returning when prices rise. The strategy is fraught with risks , including getting all the countries to comply. OPEC members have a checkered history of sticking to the cartel's agreements. "The real issue is what's going to be the implementation," said U.S. Energy Secretary Ernest Moniz. "I'm not the only one who would say [that] in particular Russia's implementation I think remains up in the air." Mr. Novak earlier Thursday reiterated Moscow's commitment to cut 300,000 barrels a day, Russian news agencies reported. But he said producers still had to nail down when the country would cut. Russia has said it would cut "gradually," while OPEC has pledged to implement cuts by Jan. 1. Kazakhstan, where a giant new oil field recently opened, has been reluctant to join production cuts. OPEC forecasts the central Asian nation will produce 210,000 barrels a day more in 2017. Other issues include what statistics to use in drawing up the cuts, how long limits will last and whether a country with output that is naturally declining, like Mexico, can treat that as an output "cut." Mexico has said it would maintain its production plan for 2017--a forecast decline of 200,000 barrels a day, or 10%. The drop will "contribute to the stability of the international oil market," the country's oil ministry said Nov. 30. "Mexico is the wild card. If you don't have natural decline [counting as a cut], I don't know how you get Mexico on board," Helima Croft, chief commodities strategist at RBC Capital Markets. OPEC officials said only declines that aren't currently forecast by the group could count as a cut. A production cut that includes natural declines wouldn't move the oil price up, analysts said. "The market has already priced that in," said Harold York, vice president for integrated energy at consulting firm Wood Mackenzie. Ahmed Al Omran, Summer Said and Neanda Salvaterra contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com and Michael Amon at michael.amon@wsj.com Credit: By Benoit Faucon and Michael Amon
Subject: Supply & demand; Cartels
Location: Mexico United States--US Kazakhstan Russia Iran Saudi Arabia
People: Novak, Alexander Putin, Vladimir Rouhani, Hassan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 9, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847415256
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847415256?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Firm Ahead of Non-OPEC Meeting; OPEC hopes non-OPEC producers will cut 600,000 barrels a day
Author: McFarlane, Sarah; Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Dec 2016: n/a.
Abstract:
[...]we do not expect the outcome of this meeting to play a significant role in rebalancing the oil market," said JBC in a note to clients.
Full text: Oil futures firmed on Friday, consolidating gains ahead of a weekend meeting of major oil-producing countries for a deal to cut production. Brent crude, the global oil benchmark, rose 0.5% to $54.17 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures rose 0.8% to $51.24 a barrel. Oil prices surged above $50 a barrel last week after the Organization of the Petroleum Exporting Countries committed to a 1.2 million barrel a day cut, equivalent to around 1% of global output. Traders and analysts are now awaiting the outcome of a meeting between OPEC members and oil producers from outside the cartel , including Russia. OPEC is hoping to get big producers outside the cartel to cut a further 600,000 barrels a day. Russia has indicated it will take on half that burden. Analysts warned that as production has declined in many countries, including Mexico, over the past two years due to investment cutbacks, it could be challenging to secure additional cuts. "I have my doubts on whether they are willing to do that and then the market might be disappointed," said Hans Van Cleef, senior energy economist at ABN AMRO. ABN AMRO forecasts Brent crude will average $55 a barrel in 2017. Energy consultancy JBC said that it would be difficult to differentiate between cut agreements and natural decline rates already expected. "In short, we do not expect the outcome of this meeting to play a significant role in rebalancing the oil market," said JBC in a note to clients. Analysts are also skeptical about whether OPEC members will adhere to production quotas and will keenly eye first-quarter production numbers for evidence of cuts. At the same time, U.S. shale producers are expected to ramp up output, taking advantage of the recent rise in prices and offsetting any cuts from the recent deal. The number of oil rigs drilling in the U.S. has been steadily increasing since early summer. Nymex reformulated gasoline blendstock--the benchmark gasoline contract--rose 0.4% to $1.51 a gallon. ICE gasoil changed hands at $477.00 a metric ton, up $5.50 from the previous settlement. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Dan Strumpf at daniel.strumpf@wsj.com Credit: By Sarah McFarlane and Dan Strumpf
Subject: Crude oil; Cartels; Price increases; Futures
Location: Russia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 9, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847418285
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847418285?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Rises by 21 to 498, Baker Hughes Says; The increase was one of the largest of the year and came as oil prices jumped to more than $50 a barrel
Author: Minaya, Ezequiel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Dec 2016: n/a.
Abstract:
The number of oil rigs in the U.S. jumped by 21 in the past week to a total of 498, according to oil-field services company Baker Hughes Inc. The increase ranks among the largest of the year as oil prices surged above $50 a barrel after the Organization of the Petroleum Exporting Countries committed to a 1.2-million-barrel-a-day cut, equivalent to around 1% of global output.
Full text: The number of oil rigs in the U.S. jumped by 21 in the past week to a total of 498, according to oil-field services company Baker Hughes Inc. The increase ranks among the largest of the year as oil prices surged above $50 a barrel after the Organization of the Petroleum Exporting Countries committed to a 1.2-million-barrel-a-day cut, equivalent to around 1% of global output. OPEC is hoping to get big producers outside the cartel to cut a further 600,000 barrels a day. Russia has indicated it will take on half that burden. The U.S. oil-rig count is typically viewed as a proxy for activity in the oil sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. The count has trended upward since the summer, however. The nation's gas-rig count rose by six to 125 in the past week, according to Baker Hughes. And the U.S. offshore-rig count was unchanged at 22, which is one fewer than a year ago. On Friday, oil prices firmed ahead of a weekend meeting of major oil-producing countries, rising 1.12% to $51.41 a barrel in recent trading on Friday. Write to Ezequiel Minaya at ezequiel.minaya@wsj.com Credit: By Ezequiel Minaya
Subject: Oil service industry; Supply & demand
Location: Russia United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 9, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847492567
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847492567?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon's Rex Tillerson Is Top Candidate for Secretary of State; CEO with ties to Russia's Vladimir Putin would bring an executive's experience to the diplomatic role, a transition official said
Author: Nicholas, Peter; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Dec 2016: n/a.
Abstract:
Exxon Mobil Corp. Chief Executive Rex Tillerson has emerged as the leading candidate to become President-elect Donald Trump's pick for secretary of state, according to two transition officials, marking the latest twist in a multi-week search for a top diplomat.
Full text: Exxon Mobil Corp. Chief Executive Rex Tillerson has emerged as the leading candidate to become President-elect Donald Trump's pick for secretary of state, according to two transition officials, marking the latest twist in a multi-week search for a top diplomat. Mr. Tillerson moved ahead of other candidates, including 2012 Republican presidential nominee Mitt Romney, who have had multiple conversations with Mr. Trump about the job. Mr. Tillerson is viewed by some of Mr. Trump's advisers as a mold-breaking pick who would bring an executive's experience to the diplomatic role, according to a person involved in the process. Messrs. Trump and Tillerson met on Tuesday and are expected to speak again over the weekend, the person said. Mr. Trump has said he would like to make a formal announcement about his State Department pick next week. Mr. Trump said in a statement on Friday that former New York Mayor Rudy Giuliani had taken himself out of the running for the diplomatic job and other administration posts late last month. "Before I joined the campaign I was very involved and fulfilled by my work with my law firm and consulting firm and I will continue that work with even more enthusiasm," Mr. Giuliani said in a statement on Friday. An Exxon spokesman declined to comment. If Mr. Trump selects Mr. Tillerson, it would add a seasoned business executive to a team that already includes three retired generals. As Exxon's CEO since 2006, Mr. Tillerson, 64 years old, could leverage existing relationships with numerous world leaders. Among those considered for the post, Mr. Tillerson has perhaps the closest ties to Russian President Vladimir Putin, having negotiated a 2012 energy partnership deal with Russia that Mr. Putin said could eventually be worth as much as $500 billion. In 2012, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson. This pre-existing relationship with Mr. Putin complements Mr. Trump's push to improve ties between the U.S. and Russia. A number of Republicans have urged Mr. Trump to be wary of working closely with Russia, warning that it is trying to expand its influence in a way that runs counter to U.S. interests in places such as Ukraine and Syria. Exxon has a large global presence, but this could introduce sticky conflicts of interest if Mr. Tillerson is selected. The company explores for oil and gas on six of the world's continents and has operations in more than 50 countries. Mr. Tillerson, who is slated to retire next year, has a pension worth tens of millions of dollars, a value that could potentially be affected by State Department activities. For example, he could benefit from such potential department actions as the lifting of sanctions on Russia. The Obama administration and European allies have imposed several rounds of economic sanctions against Russia following its annexation of Crimea in 2014. The Obama administration also has accused the Kremlin of backing militants in eastern Ukraine even after the annexation of Crimea. As Exxon's CEO, Mr. Tillerson has spoken against sanctions on Russia. Mr. Tillerson's work there dates to when Mr. Putin rose to power after Boris Yeltsin's resignation. "We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said at the company's annual meeting in May 2014. Mr. Tillerson grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government. While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration. Meanwhile, Mr. Trump is expected to tap Rep. Cathy McMorris Rodgers (R., Wash.) to lead the Interior Department, according to a person familiar with the matter. If confirmed by the Senate, Ms. McMorris Rodgers would lead Mr. Trump's efforts to open up federal lands and waters to fossil-fuel development and reverse environmental policies the Obama administration has pursued. Since her first election to Congress in 2004, Ms. McMorris Rodgers has risen in the ranks and is the now fourth-highest-ranking Republican in the House and the highest-ranking GOP woman in Congress. She also serves on the Energy and Commerce Committee. Damian Paletta and Amy Harder contributed to this article. Write to Peter Nicholas at peter.nicholas@wsj.com and Bradley Olson at Bradley.Olson@wsj.com Credit: By Peter Nicholas and Bradley Olson
Subject: Sanctions; Political campaigns; Presidents
Location: Russia
People: Giuliani, Rudolph W Romney, W Mitt
Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 9, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847513313
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847513313?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil-Producing Countries Agree to Cut Output Along With OPEC; The deal, if complied with, would represent an unprecedented level of cooperation among oil-producing countries
Author: Faucon, Benoit; Hodge, Nathan; Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Dec 2016: n/a.
Abstract:
VIENNA--Oil-producing nations struck a deal Saturday to cut output along with the Organization of the Petroleum Exporting Countries, a pact designed to reduce a global oversupply of crude, lift prices and lend support to economies hurt by a two-year market slump. The non-OPEC cuts, if carried out as described over the first half of 2017, would represent an unprecedented level of cooperation among oil-producing countries that have been groping for ways to lift oil prices out of a two-year funk.
Full text: VIENNA--Oil-producing nations struck a deal Saturday to cut output along with the Organization of the Petroleum Exporting Countries, a pact designed to reduce a global oversupply of crude, lift prices and lend support to economies hurt by a two-year market slump. The agreement would remove 558,000 barrels a day of crude oil from the market. That would come on top of 1.2 million barrels a day in cuts already agreed to by OPEC, amounting to a total of almost 2% of global oil supply. The non-OPEC cuts, if carried out as described over the first half of 2017, would represent an unprecedented level of cooperation among oil-producing countries that have been groping for ways to lift oil prices out of a two-year funk. "This is truly a historic event," Russian Energy Minister Alexander Novak said. "It is the first time that so many oil-producing countries from different parts of the world have gathered in one room to accomplish what we have done." The bulk of the cuts -- 300,000 barrels a day--have been pledged by Russia, which produces more crude oil than any other country. Other output reductions are promised by 10 other countries, including Oman, Azerbaijan and Sudan. Big questions remain going forward. OPEC members themselves have a spotty record of enforcing their own agreements, and there is no legally binding way to deter producers inside or outside the cartel from cheating on their pledges. For now, it also remains unknown how much of the cuts promised Saturday would have happened anyway through natural decline rates that were expected. Neither OPEC nor its non-OPEC allies provided a detailed list of production cuts. Saudi Energy Minister Khalid al-Falih said countries could count such natural declines toward the production cut. "This agreement leaves for countries to decide how to implement," he said. Oil-market analysts said prices wouldn't go up if many of the cuts were from countries where production is expected to fall anyway. Nevertheless, the deal represents a diplomatic breakthrough for OPEC as it grapples with a world where other oil producers have as much or more power over the market as the 13-nation cartel. It is the first time OPEC has convinced non-OPEC producers to join in output cuts since 2001, when the Sept. 11 attacks sparked a recession and a fall in oil demand. Saturday's agreement cuts deeper and involves more countries than the 2001 deal. It also is the first time since the 1970s that a coalition of countries whose oil production amounts to more than half of global supply has come together to influence crude prices. OPEC's own market share hasn't been that large since the 1970s, and previous deals with non-OPEC producers have been less comprehensive. Oil-industry analysts have said the production cuts could speed up a long-awaited rebalancing of global oil supply with consumer demand, which have been out of whack for more than two years. An American oil boom over the past eight years flooded the market. OPEC--especially its biggest member, Saudi Arabia--initially ratcheted up its own output to defend its market share, abandoning its traditional role of regulating supply to keep prices high. But prices fell farther and for longer than the industry expected, falling below $28 a barrel this year from highs of more than $100 a barrel in 2014. OPEC members such as Venezuela and Nigeria have experienced economic disasters, while Saudi Arabia began burning through its cash reserves to plug a gap caused by falling oil revenue. OPEC decided Nov. 30 to return to its old form and cut production back to boost prices, but members such as Saudi Arabia insisted Russia and other countries outside the cartel pitch in as well. Saturday's agreement formalizes commitments non-OPEC producers made to OPEC. Seeking to address concerns about compliance, Saturday's deal includes the creation of a five-country compliance commission with three OPEC members--Venezuela, Algeria and Kuwait--and Russia and an unnamed non-OPEC producer. The group will produce a report in six months on compliance, but it doesn't appear to have any formal powers to punish countries for noncompliance. "We have full faith compliance will be high," said Mr. Falih, the Saudi energy minister, who added that his country could cut even more than the 486,000 barrels a day that was promised Nov. 30. Saturday's deal helped form a sort of launch pad for the OPEC production-cut agreement. OPEC member Algeria's oil minister, Noureddine Bouterfa, told The Wall Street Journal that he will order production cuts to begin Jan. 1 when he returns to Algiers this weekend. Foreign producers in Algeria include BP PLC of the U.K., Total SA of France and Eni SpA of Italy. Mr. Falih also said his country had begun notifying crude buyers of its intention to cut. A senior OPEC official said the Saudi cuts would affect supplies to the U.S., where he said stored-oil levels were high enough to handle the cut. Write to Benoit Faucon at benoit.faucon@wsj.com , Nathan Hodge at nathan.hodge@wsj.com and Summer Said at summer.said@wsj.com Related Articles * OPEC Faces Test as Cartel Tries to Pin Down Russia on Details of Cuts * Oil Surges on OPEC Deal to Cut Production (Nov. 30) Credit: By Benoit Faucon, Nathan Hodge and Summer Said
Subject: Crude oil; Cartels; Agreements; Compliance; Crude oil prices; Petroleum production
Location: Russia
People: Novak, Alexander
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 10, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847548238
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847548238?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Qatar Investment Authority to Invest $2.6 Billion in Rosneft Deal; Weak oil prices and a two-year budget crisis have created a cash crunch and forced Russia to sell off a huge stake in the state-owned oil giant
Author: Patterson, Scott
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Dec 2016: n/a.
Abstract:
The Russian state will retain a controlling stake in Rosneft, which is also partly owned by U.K. oil major BP PLC. "Glencore looks forward to working with both parties to take advantage of the significant opportunities which are expected to be presented across the Russian and global oil markets," Glencore Chief Executive Ivan Glasenberg said in a statement.
Full text: LONDON--Glencore PLC and Qatar finalized a deal Saturday to take a one-fifth stake in the state-owned Russian oil giant Rosneft for [euro]10.2 billion (about $10.8 billion), sealing a deal that will bring much needed cash to Russia during an economic crunch. The Qatar Investment Authority will invest [euro]2.5 billion, on top of the [euro]300 million Glencore will commit to the deal, the Swiss commodity giant said in a statement late Saturday. The remainder of the investment will be provided by a consortium of banks led by Italian firm Intesa Sanpaolo. Russian banks will also provide financing for the deal, Glencore said. The value of the assets for Glencore's side of the transaction--50% of the investment--is [euro]5.1 billion, the firm said. It said the profits for those assets in 2015 was [euro]511 million. Details of the investment emerged earlier this week in a transcript of a meeting between Rosneft Chief Executive Igor Sechin and Russian President Vladimir Putin. The Russian state will retain a controlling stake in Rosneft, which is also partly owned by U.K. oil major BP PLC. "Glencore looks forward to working with both parties to take advantage of the significant opportunities which are expected to be presented across the Russian and global oil markets," Glencore Chief Executive Ivan Glasenberg said in a statement. Weak oil prices and a two-year budget crisis have hurt the Russian economy, creating a cash crunch and forcing it to sell off a huge stake in Rosneft, one of the country's state-owned crown jewels. The deal marks a shift away from China, where Russia has largely gone to for financing in recent years. Rosneft is among the companies under U.S. sanctions that restrict its ability to raise debt in U.S. dollars. Write to Scott Patterson at scott.patterson@wsj.com Credit: By Scott Patterson
Subject: Euro
Location: Qatar United States--US Russia
People: Glasenberg, Ivan Putin, Vladimir
Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Glencore PLC; NAICS: 211111, 212210, 212234, 311314; Name: Qatar Investment Authority; NAICS: 523930
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 10, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847579176
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847579176?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon's Rex Tillerson Is Top Candidate for Secretary of State; CEO with ties to Russia would bring executive's experience to the diplomatic role, transition official says
Author: Nicholas, Peter; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Dec 2016: n/a.
Abstract:
Since Mr. Trump began vetting candidates for secretary of state, Mr. Tillerson's stock has climbed steadily.
Full text: President-elect Donald Trump is expected to nominate Exxon Mobil Corp. Chief Executive Rex Tillerson to be secretary of state, a transition official said Saturday, a selection that would reach outside the traditional foreign policy establishment to elevate a global business deal-maker. Mr. Trump hasn't yet made a final decision, the official said, but the president-elect heaped praise on Mr. Tillerson in an interview released Saturday. "He's more than a business executive; he's a world-class player,'' Mr. Trump told Fox News in the interview, to be broadcast Sunday. "He's in charge of I guess the largest company in the world." Mr. Trump called it "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia." Those deals would be certain to come under scrutiny in confirmation hearings before the Senate. A number of Republicans have urged Mr. Trump to be wary of Russia, warning that it is trying to expand its influence in ways that run counter to U.S. interests in places such as Ukraine and Syria. The nomination would also put Mr. Trump's intentions toward Russia in the spotlight just as controversy is intensifying over reports that the Central Intelligence Agency has concluded that a Russian-led hacking effort of U.S. email accounts was intended to boost Mr. Trump's election chances. Mr. Tillerson, 64 years old, met privately with Mr. Trump on Saturday, four days after their first meeting. Among those considered for the post, Mr. Tillerson has perhaps the closest ties to Russian President Vladimir Putin, having negotiated a 2011 energy partnership deal with Russia that Mr. Putin said could eventually be worth as much as $500 billion. In 2012, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson. This pre-existing relationship with Mr. Putin complements Mr. Trump's push to improve U.S.-Russia ties. Since Mr. Trump began vetting candidates for secretary of state, Mr. Tillerson's stock has climbed steadily. He moved ahead of better-known hopefuls with established political credentials--including 2012 Republican presidential nominee Mitt Romney --who had multiple conversations with Mr. Trump about the job. Mr. Tillerson is viewed by some of Mr. Trump's advisers as a mold-breaking pick who would bring an executive's experience to the diplomatic role, said a person involved in the process. Tapping Mr. Tillerson for the job would be a "Trumpian" move, the transition official said. Mr. Trump is expected to make a formal announcement about his State Department pick in the coming days. An Exxon spokesman declined to comment. Mr. Trump said in a statement on Friday that former New York Mayor Rudy Giuliani had taken himself out of the running for the diplomatic job and other administration posts late last month. With Mr. Trump's decision not yet final, other candidates who remain in the running, apart from Mr. Romney, are former Central Intelligence Agency director David Petraeus, former U.S. Ambassador to the United Nations John Bolton, and U.S. Sen. Bob Corker (R., Tenn.), people familiar with the matter said. If Mr. Trump selects Mr. Tillerson, it would add a seasoned business executive to a team that already includes three retired generals. As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders. Exxon has a large global presence, and this could introduce sticky conflicts of interest if Mr. Tillerson is selected. The company explores for oil and gas on six of the world's continents and has operations in more than 50 countries. Mr. Tillerson, who is slated to retire next year, has retirement funds worth tens of millions of dollars, a value that could potentially be affected by State Department activities. For example, he could benefit from such potential department actions as the lifting of sanctions on Russia. Democrats signaled that they would raise such issues in a confirmation hearing. Sen. Bob Menendez (D., N.J.), a Foreign Relations Committee member, said Mr. Tillerson would bring a number of conflicts of interest to the job and called his expected nomination "alarming and absurd," offering Russia "a willing accomplice in the president's cabinet guiding our nation's foreign policy." The Obama administration and European allies have imposed several rounds of economic sanctions against Russia following its annexation of Crimea in 2014. The Obama administration also has accused the Kremlin of backing militants in eastern Ukraine even after the annexation of Crimea. As Exxon's CEO, Mr. Tillerson has spoken against sanctions on Russia. Mr. Tillerson's work there dates to when Mr. Putin rose to power after Boris Yeltsin's resignation. "We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said at the company's annual meeting in May 2014. Mr. Tillerson grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government. While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration. Mr. Trump also is expected to tap Rep. Cathy McMorris Rodgers (R., Wash.) to lead the Interior Department, according to a person familiar with the matter. If confirmed by the Senate, she would lead Mr. Trump's efforts to open up federal lands and waters to fossil-fuel development and reverse environmental policies the Obama administration has pursued. Since her first election to Congress in 2004, Ms. McMorris Rodgers has risen in the ranks and is now the fourth-highest-ranking Republican in the House and the highest-ranking GOP woman in Congress. She also serves on the Energy and Commerce Committee. Damian Paletta, Amy Harder and Mara Gay contributed to this article. Write to Peter Nicholas at peter.nicholas@wsj.com and Bradley Olson at Bradley.Olson@wsj.com Credit: By Peter Nicholas and Bradley Olson
Subject: Political appointments; Presidents; Nominations; Conflicts of interest; Diplomatic & consular services; Foreign policy; International relations
Location: United States--US Russia
People: Giuliani, Rudolph W Romney, W Mitt
Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Fox News Channel; NAICS: 515120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 11, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847586053
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847586053?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Donald Trump Says Exxon's Rex Tillerson Would Be 'World-Class Player' as Secretary of State; Likely pick for secretary of state knows world leaders and 'does massive deals in Russia,' Trump says on Fox
Author: McKinnon, John D; Morath, Eric
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Dec 2016: n/a.
Abstract:
Donald Trump on Sunday defended Exxon Mobil Corp. Chief Executive Rex Tillerson--expected to be the president-elect's choice as secretary of state--as a "world-class player" who knows international leaders well. Since Mr. Trump began vetting candidates for secretary of state, Mr. Tillerson's stock has climbed steadily.
Full text: Donald Trump on Sunday defended Exxon Mobil Corp. Chief Executive Rex Tillerson--expected to be the president-elect's choice as secretary of state--as a "world-class player" who knows international leaders well. "He's more than a business executive,'' Mr. Trump told Fox News in an interview broadcast Sunday. "He's in charge of, I guess, the largest company in the world." Mr. Trump called it "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia." Those deals would be certain to come under scrutiny in Senate confirmation hearings. A number of Republicans have urged Mr. Trump to be wary of Russia, warning that it is trying to expand its influence in ways that run counter to U.S. interests in places such as Ukraine and Syria. Sen. Bob Menendez (D., N.J.), a senior Democrat on the Senate Foreign Relations Committee, said the selection of Mr. Tillerson would be "guaranteeing Russia has a willing accomplice in the president's cabinet guiding our nation's foreign policy." The nomination would also put Mr. Trump's intentions toward Russia in the spotlight just as controversy is intensifying over reports that the CIA has concluded that a Russian-led hacking effort of U.S. email accounts was intended to boost Mr. Trump's election chances. In a separate Fox News interview, Trump transition team official Kellyanne Conway said Mr. Tillerson is "not a typical politician or even a typical diplomat," but a seasoned executive accustomed to negotiating globally and managing a world-wide workforce. "This is the Trump effect," she said, adding Mr. Trump wouldn't fit into "conventional boxes." Mr. Tillerson, 64 years old, met privately with Mr. Trump Saturday, four days after their first meeting. Among those considered for the post, Mr. Tillerson has perhaps the closest ties to Russian President Vladimir Putin, having negotiated a 2011 energy partnership deal with Russia that Mr. Putin said could eventually be worth as much as $500 billion. In 2012, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson. Mr. Trump is expected to make a formal announcement about his State Department pick in the coming days. An Exxon spokesman declined to comment. Mr. Trump in the Fox News interview also promised quick decisions on two proposed oil pipelines, the Dakota Access and Keystone lines. He said he is studying next steps on the Paris climate agreement, which he worries could give an advantage to China and other developing economies. "I do say this: I don't want that agreement to put us at a competitive disadvantage with other countries," he said. "And as you know, there are different times and different time limits on that agreement. I don't want that to give China, or other countries signing agreements an advantage over us." Mr. Trump also defended his sometimes pointed recent attacks on companies, such as Boeing Co., saying, "I want us to make good deals for this country." He cited the high expected costs for new Air Force One aircraft. "I don't need a $4.2 billion airplane to fly around in, OK?" he said. Since Mr. Trump began vetting candidates for secretary of state, Mr. Tillerson's stock has climbed steadily. He moved ahead of better-known hopefuls with established political credentials--including 2012 Republican presidential nominee Mitt Romney--who had multiple conversations with Mr. Trump about the job. Mr. Tillerson is viewed by some of Mr. Trump's advisers as a mold-breaking pick who would bring an executive's experience to the diplomatic role, said a person involved in the process. Mr. Trump said in a statement on Friday that former New York Mayor Rudy Giuliani had taken himself out of the running for the diplomatic job and other administration posts late last month. With Mr. Trump's decision not yet final, other candidates who remain in the running, apart from Mr. Romney, are former CIA director David Petraeus, former U.S. Ambassador to the United Nations John Bolton, and U.S. Sen. Bob Corker (R., Tenn.), people familiar with the matter said. If Mr. Trump selects Mr. Tillerson, it would add a seasoned business executive to a team that already includes three retired generals. As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders. Exxon has a large global presence, and this could introduce potential conflicts if Mr. Tillerson is selected. The company explores for oil and gas on six of the world's continents and has operations in more than 50 countries. Mr. Tillerson is slated to retire next year and has retirement funds worth tens of millions of dollars, a value that could potentially be affected by State Department activities. For example, he could benefit from such potential department actions as the lifting of sanctions on Russia. The Obama administration and European allies have imposed several rounds of economic sanctions against Russia following its annexation of Crimea in 2014. The Obama administration also has accused the Kremlin of backing militants in eastern Ukraine even after the annexation of Crimea. As Exxon's CEO, Mr. Tillerson has spoken against sanctions on Russia. Mr. Tillerson's work there dates to when Mr. Putin rose to power after Boris Yeltsin's resignation. "We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said at the company's annual meeting in May 2014. Mr. Tillerson grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government. While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration. Mr. Trump also is expected to tap Rep. Cathy McMorris Rodgers (R., Wash.) to lead the Interior Department, according to a person familiar with the matter. If confirmed by the Senate, she would lead Mr. Trump's efforts to open up federal lands and waters to fossil-fuel development and reverse environmental policies the Obama administration has pursued. Since her first election to Congress in 2004, Ms. McMorris Rodgers has risen in the ranks and is now the fourth-highest-ranking Republican in the House and the highest-ranking GOP woman in Congress. She also serves on the Energy and Commerce Committee Write to John D. McKinnon at john.mckinnon@wsj.com and Eric Morath at eric.morath@wsj.com Credit: By John D. McKinnon and Eric Morath
Subject: Agreements; Diplomatic & consular services; International relations; Television news
Location: United States--US Russia
Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Fox News Channel; NAICS: 515120; Name: Senate-Foreign Relations, Committee on; NAICS: 921120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 11, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847638302
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847638302?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Nikkei Up on U.S. Policy Hopes; Energy Stocks Gain After Oil Deal; Nikkei is up 1.2% at 19214.34
Author: Narioka, Kosaku
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract: None available.
Full text: 0027 GMT [Dow Jones] Japanese stocks are up as hopes for U.S. President-elect Donald Trump's new economic policies boost shares on Wall Street. Financials are leading the market. Daiwa Securities Group (8601.TO) is up 2.9% at 782.8 yen. Sony Financial Holdings (8729.TO) is 3.2% higher at Y1,881. Energy stocks are up after oil-producing nations, including Russia and Oman, reached a deal Saturday to cut output along with the Organization of the Petroleum Exporting Countries. Oil explorer Inpex (1605.TO) is up 3.1% at Y1,286.5. Oil distributor Showa Shell Sekiyu (5002.TO) gains 2.3% at Y1,192. Nikkei is up 1.2% at 19214.34. Write to Kosaku Narioka at kosaku.narioka@wsj.com Credit: By Kosaku Narioka
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847734899
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847734899?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon CEO Rex Tillerson Faces Senate Dissent as Potential State Pick; Trump's top choice for secretary of state faces bipartisan resistance over ties to Putin
Author: Peterson, Kristina; Nicholas, Peter; Ballhaus, Rebecca
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract:
Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.
Full text: WASHINGTON--Exxon Mobil Corp. Chief Executive Rex Tillerson, the top choice for secretary of state in a Trump administration, faces bipartisan resistance in Congress over his ties to Russian President Vladimir Putin. Republican hesitation over Mr. Tillerson marked the first sign of division between congressional GOP and the Trump team over its likely cabinet picks. All of President-elect Donald Trump's other nominees so far appear likely to be confirmed by the Senate. Mr. Tillerson, a seasoned deal-maker whose company has a long history of doing business in Russia, is drawing unease from senators on both sides of the aisle. Republicans can likely afford to lose only two GOP votes next year in the new Congress when it meets to consider Mr. Trump's nominees. "It's a matter of concern to me that he has such a close personal relationship with Vladimir Putin," Sen. John McCain (R., Ariz.) said Sunday on CBS, noting that the two men had done "enormous deals" together. "That would color his approach to Vladimir Putin and the Russian threat." Sen. Ben Cardin of Maryland, the top Democrat on the Foreign Relations Committee, said Sunday on CNN that he was "concerned about his [Mr. Tillerson's] relationship with Russia. We want to make sure that the secretary of state is a person who represents America." Mr. Trump defended Mr. Tillerson as a "world-class player" and said it was "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia." "He's more than a business executive,'' Mr. Trump told Fox News in an interview broadcast Sunday. Trump transition officials said the president-elect is likely to announce his choice for secretary of state midweek. Mr. Trump has given himself time to alter course should his views change or if he concludes Mr. Tillerson couldn't win Senate confirmation. Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations. "It's not over, but it looks like Mr. Tillerson is certainly way out in front right now," said U.S. Rep. Dana Rohrabacher (R., Calif.), who also had discussions with Trump transition officials about becoming secretary of state. No Senate Republicans have yet said they would vote against Mr. Tillerson. Mr. Corker said in a tweet Saturday that the CEO is "a very impressive individual." Still, a number of senators expressed reservations. Sen. Marco Rubio (R., Fla.), a member of the Foreign Relations Committee, the panel that would hold confirmation hearings on the nomination, said in a tweet Sunday that "being a 'friend of Vladimir' is not an attribute I am hoping for" in the next secretary of state. The U.S. and its allies imposed sanctions two years ago on Russia after the country's invasion of Crimea and its conflicts with Ukraine. Exxon has spent years lobbying the State Department on trade and energy issues, including hydraulic fracturing and U.S. relations with Russia. In 2014, the company lobbied the department on a bill that sought to broaden the U.S. economic sanctions, according to federal lobbying disclosures. The bill didn't pass. In a Securities and Exchange Commission filing that year, Exxon said those sanctions were costing the company $1 billion. Exxon declined to comment on Mr. Tillerson or his ties to Russia. Mr. Tillerson is set to retire from Exxon next year. His appointment would still generate the possibility of conflicts of interest because of his financial stake in the company, which explores for oil and gas on six of the world's seven continents and has operations in more than 50 countries. He owns Exxon shares worth $151 million, according a recent securities filing, and many of those shares aren't scheduled to vest for almost a decade. Mr. Tillerson has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. In a sign of the close relationship, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson after he struck a 2011 deal that gave Exxon access to prized Arctic resources and allowed Russia state oil company OAO Rosneft to invest in Exxon concessions around the world. Mr. Tillerson's past opposition to sanctions on Russia is likely to trigger blowback among Senate Republicans, many of whom have rejected Mr. Trump's more conciliatory stance toward the country and its president. Mr. Tillerson spoke in opposition to the sanctions on Russia at Exxon's annual meeting in 2014, after implementation of the company's 2011 deal with Russia had been blocked by the sanctions. Michael McFaul, who served as U.S. ambassador to Russia in the Obama administration, said on Sunday sanctions were imposed because of Russia's intervention in Ukraine and should only be lifted if Moscow meets certain conditions. "I worry that because of his [Tillerson's] previous relationship with these people...that he would have a particular perspective on that issue," he said. Because of a rules change pushed through by Senate Democrats in November 2013, most presidential nominees can be confirmed with a simple majority, or 51 votes when all senators are present. Previously, nominees needed 60 votes to clear procedural hurdles. Republicans will hold 52 seats in the Senate next year, giving them little room for internal dissension over Mr. Trump's nominees. The GOP can effectively lose no more than two votes, if all Democrats oppose a nominee, since Vice President-elect Mike Pence could cast a tiebreaking vote. In a push that could make the margin even narrower, Democrats are urging Sen. Jeff Sessions (R., Ala.), Mr. Trump's nominee for attorney general, to recuse himself from voting on potential cabinet colleagues. Mr. Sessions' staff didn't immediately respond to a request for comment. Still, Republicans so far have treaded cautiously in opposing Mr. Trump. Last week they played down their differences with the president-elect after he called for 35% tariffs on companies that move factories out of the U.S., a move that would fly in the face of traditional GOP free-market ideology. In 2011, Exxon lobbied the State Department on "discussions related to the Colombia, Panama and Korea Free Trade agreements, and Russia's ascension into World Trade Organization," according to the company's disclosures. That year, the WTO cleared the way to allow Russia to join, a move that opened Russian markets to foreign competitors by cutting tariffs and breaking down trade barriers. Exxon has had a "continuous business presence" in Russia for the last two decades, according to its website. This year, the company has lobbied the State Department largely on trade and energy issues, including an agreement that would open up closed sectors of China's economy. Overall, Exxon spent $8.8 million on lobbying the federal government in the first three quarters of this year, making it the top lobbyist in the oil-and-gas industry, according to a Center for Responsive Politics analysis of the most recent disclosures. The company's deals in Russia would be certain to come under scrutiny in Senate confirmation hearings. A number of Republicans have urged Mr. Trump to be wary of Russia, warning that it is trying to expand its influence in ways that run counter to U.S. interests in places such as Ukraine and Syria. Sen. Bob Menendez of New Jersey, a senior Democrat on Foreign Relations, said the selection of Mr. Tillerson would be "guaranteeing Russia has a willing accomplice in the president's cabinet guiding our nation's foreign policy." Mr. Tillerson, 64 years old, grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government. While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration. Eric Morath and John D. McKinnon contributed to this article. Write to Kristina Peterson at kristina.peterson@wsj.com , Peter Nicholas at peter.nicholas@wsj.com and Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com Related * Trump Adds to Criticism of Companies Credit: By Kristina Peterson, Peter Nicholas and Rebecca Ballhaus
Subject: Nominations; Bills; Sanctions; International relations; Congressional committees
Location: United States--US Russia
People: Rubio, Marco Rohrabacher, Dana Corker, Bob Petraeus, David H Romney, W Mitt Putin, Vladimir McCain, John
Company / organization: Name: Congress; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: United Nations--UN; NAICS: 928120; Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Fox News Channel; NAICS: 515120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847734905
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847734905?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Surge as Non-OPEC Producers Agree to Cut Output; Brent is up 4.3% at $56.68 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract: None available.
Full text: 0128 GMT [Dow Jones] Oil prices jumped more than 4% in early Asia trade Monday after non-OPEC producers agreed to cut production by 558,000 barrels a day, pushing the oil market toward a rebalance. "The latest step shows that the OPEC has overcome that hurdle," says Vivek Dhar, commodities strategist at Commonwealth Bank of Australia, who cautioned that going forward, compliance by agreed parties will be the key indicator to watch. Nymex is up 4.5% at $53.83 a barrel. Brent is up 4.3% at $56.68 a barrel. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847737535
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847737535?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Surges as More Producers Join Output Cuts; Crude jumps after producers outside OPEC agree to scale back
Author: Neandra Salvaterra Jenny W. Hsu; Alison Sider; Neandra Salvaterra Jenny W. Hsu; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract:
Oil prices surged Monday after more oil-producing nations agreed to slash production , a move aimed at pushing the oversupplied oil market into balance, or even a deficit, to prop up a crude market that had been stuck in a two-year slump.
Full text: Oil prices surged Monday after more oil-producing nations agreed to slash production , a move aimed at pushing the oversupplied oil market into balance, or even a deficit, to prop up a crude market that had been stuck in a two-year slump. U.S. crude futures rose $1.33, or 2.58%, to $52.83 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained $1.36, or 2.5%, to $55.69 a barrel on London's ICE Futures Exchange. Over the weekend, a group of big oil producers outside of the Organization of the Petroleum Exporting Countries, including Russia, agreed to scale back their output by 558,000 barrels a day. That is on top of the cut of 1.2 million barrels a day agreed to by OPEC in late November. The total reduction represents almost 2% of the global supply. The deal is viewed as a feather in the cap for Saudi Arabia, the oil cartel's de facto leader and the world's top exporter of crude. The market got an extra boost of confidence on reports that Saudi Arabia indicated that, if necessary, the kingdom may be willing to take a deeper cut than the 486,000-barrel cut it had agreed in the November meeting. "It's very important that they all got together," said Shawn Reynolds, portfolio manager with the VanEck Global Hard Assets Fund. "I can't remember the last time I've seen such sense of urgency" from OPEC, he said, pointing to "the dramatic reversal in Saudi Arabia's stance." The non-OPEC cuts, if carried out as described over the first half of 2017, would represent an unprecedented level of cooperation among oil-producing countries that have been groping for ways to lift oil prices out of a two-year funk. The bulk of the cuts--300,000 barrels a day--have been pledged by Russia, which produces more crude oil than any other country. Other output reductions are promised by 10 other countries, including Oman, Azerbaijan and Sudan. "This is truly a historic event," Russian Energy Minister Alexander Novak said. "It is the first time that so many oil-producing countries from different parts of the world have gathered in one room to accomplish what we have done." The deal helped breathe new life into an oil rally that had started to sputter last week. West Texas Intermediate, the U.S. benchmark, climbed to $54.51 in overnight trading before pulling back. Crude prices are at their highest level since July 2015. "It definitely jumped the markets, there's no doubt about that," said Mark Waggoner, president of Excel Futures said of the deal between major producers inside and outside of OPEC. "I think it was a bit of a knee-jerk reaction." Bernstein Research noted that some of the non-OPEC supply cuts would come from natural decline but that most would come from self-imposed cuts. Analysts also warned that compliance by the all of the parties remains a glaring downside risk, given these oil producers haven't always been forthcoming about their production levels, despite their pledges to rein in output. The production-cut deal will take effect Jan. 1, and the oil producers will reconvene in six months to assess the deal. "At this stage, the safe assumption is that they will be [compliant], especially, in the first few months," said Ric Spooner, chief market analyst at CMC Markets. Another concern is how fast the U.S. shale producers will ramp up their production in a bid to benefit from the higher prices. SEB Markets analysts noted in a report that the number of oil rigs operating in the U.S. jumped by 21 last week--the biggest one week gain since July 2015, the analysts said. "Our main concern is that market has become comfortably numb in relation to rising rig counts," said Bjarne Schieldrop, chief commodities analyst at SEB Markets. "We won't really see any physical supply response from the added rigs before the second half of 2017. I think this is setting in motion a new boom-and-bust cycle with a big rise in oil rigs," said Mr. Schieldrop. Gasoline futures rose 3.57 cents, or 2.37%, to $1.5430 a gallon. Diesel futures rose 3.43 cents, or 2.09%, to $1.6717 a gallon. Benoit Faucon, Nathan Hodge, Summer Said, Willa Plank and Rachel Rosenthal contributed to this article. Write to Jenny W. Hsu at jenny.hsu@wsj.com and Alison Sider at alison.sider@wsj.com More * An Oil Curveball for Global Bonds * OPEC Has a Deal, But Will Members Cheat? Credit: By Neandra Salvaterra, Jenny W. Hsu and Alison Sider
Subject: Crude oil prices; Futures; Crude oil; Price increases
Location: United States--US Russia Saudi Arabia
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847739705
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduce d with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon CEO Faces Senate Dissent
Author: Peterson, Kristina; Nicholas, Peter; Ballhaus, Rebecca
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]12 Dec 2016: A.1.
Abstract:
Exxon Mobil Corp. Chief Executive Rex Tillerson, the top choice for secretary of state in a Trump administration, faces bipartisan resistance in Congress over his ties to Russian President Vladimir Putin. Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.
Full text: WASHINGTON -- Exxon Mobil Corp. Chief Executive Rex Tillerson, the top choice for secretary of state in a Trump administration, faces bipartisan resistance in Congress over his ties to Russian President Vladimir Putin. GOP hesitation over Mr. Tillerson marked the first sign of division between congressional Republicans and the Trump team over its likely cabinet picks. All of President-elect Donald Trump's other nominees so far appear likely to be confirmed by the Senate. Mr. Tillerson, a seasoned deal-maker whose company has a long history of doing business in Russia, is drawing unease from senators on both sides of the aisle. Republicans can likely afford to lose only two GOP votes next year in the new Congress when it meets to consider Mr. Trump's nominees. "It's a matter of concern to me that he has such a close personal relationship with Vladimir Putin," Sen. John McCain (R., Ariz.) said Sunday on CBS, noting that the two men had done "enormous deals" together. "That would color his approach to Vladimir Putin and the Russian threat." Sen. Ben Cardin of Maryland, the top Democrat on the Foreign Relations Committee, the panel that would hold confirmation hearings on the nomination, said Sunday on CNN that he was "concerned about his [Mr. Tillerson's] relationship with Russia. We want to make sure that the secretary of state is a person who represents America." Mr. Trump defended Mr. Tillerson as a "world-class player" and said it was "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia." "He's more than a business executive," Mr. Trump told Fox News in an interview broadcast Sunday. Trump transition officials said the president-elect is likely to announce his choice for secretary of state midweek. Mr. Trump has given himself time to alter course should his views change or if he concludes Mr. Tillerson couldn't win Senate confirmation. Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations. "It's not over, but it looks like Mr. Tillerson is certainly way out in front right now," said U.S. Rep. Dana Rohrabacher (R., Calif.), who also had discussions with Trump transition officials about becoming secretary of state. No Senate Republicans have yet said they would vote against Mr. Tillerson. Mr. Corker said in a tweet Saturday that the CEO is "a very impressive individual." Still, a number of senators expressed reservations. Sen. Marco Rubio (R., Fla.), a member of the Foreign Relations Committee, said in a tweet Sunday that "being a 'friend of Vladimir' is not an attribute I am hoping for" in the next secretary of state. The U.S. and its allies imposed sanctions two years ago on Russia after the country's invasion of Crimea and its conflicts with Ukraine. Exxon has spent years lobbying the State Department on trade and energy issues, including hydraulic fracturing and U.S. relations with Russia. In 2014, the company lobbied the department on a bill that sought to broaden the U.S. economic sanctions, according to federal lobbying disclosures. The bill didn't pass. In a Securities and Exchange Commission filing that year, Exxon said those sanctions were costing the company $1 billion. Exxon declined to comment on Mr. Tillerson or his ties to Russia. Mr. Tillerson is set to retire from Exxon next year. His appointment would still generate the possibility of conflicts of interest because of his financial stake in the company. He owns Exxon shares worth $151 million, according a recent securities filing, and many of those shares aren't scheduled to vest for almost a decade. Mr. Tillerson has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. In a sign of the close relationship, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson after he struck a 2011 deal that gave Exxon access to prized Arctic resources and allowed Russia state oil company OAO Rosneft to invest in Exxon concessions globally. Mr. Tillerson's past opposition to sanctions on Russia is likely to trigger blowback among Senate Republicans, many of whom have rejected Mr. Trump's more conciliatory stance toward the country and its president. Mr. Tillerson spoke in opposition to the sanctions on Russia at Exxon's annual meeting in 2014, after implementation of the company's 2011 deal with Russia had been blocked by the sanctions. Michael McFaul, who served as U.S. ambassador to Russia in the Obama administration, said on Sunday sanctions were imposed because of Russia's intervention in Ukraine and should only be lifted if Moscow meets certain conditions. "I worry that because of his [Tillerson's] previous relationship with these people. . .that he would have a particular perspective on that issue," he said. Because of a rules change pushed through by Senate Democrats in 2013, most presidential nominees can be confirmed with a simple majority, or 51 votes when all senators are present. Previously, nominees needed 60 votes to clear procedural hurdles. Republicans will hold 52 seats in the Senate next year, giving them little room for internal dissension over Mr. Trump's nominees. The GOP can effectively lose no more than two votes, if all Democrats oppose a nominee, since Vice President-elect Mike Pence could cast a tiebreaking vote. --- Eric Morath and John D. McKinnon contributed to this article. --- Spelling Out a New Challenge to China President-elect Donald Trump said the telephone call he took from Taiwan President Tsai Ing-wen earlier this month came to his attention an "hour or two" before the call and wasn't planned for several weeks. He said not taking the call would have been disrespectful. The conversation broke with decades of U.S. policy and runs counter to the longstanding effort by Beijing to avoid formal U.S. diplomatic relations with Taiwan. "I fully understand the one-China policy," he said in a Fox News interview. "But I don't know why we have to be bound by a one-China policy unless we make a deal with China having to do with other things, including trade." He said the U.S. should only be bound to such a policy when China works more closely with the U.S. on currency issues, South China Sea disputes and North Korea. -- Eric Morath Credit: By Kristina Peterson, Peter Nicholas and Rebecca Ballhaus
Subject: Political appointments; Cabinet
Location: United States--US
People: Tillerson, Rex W Trump, Donald J
Company / organization: Name: Republican Party; NAICS: 813940; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2016
Publication date: Dec 12, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847765035
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Financial Shares Pressure U.S. Stocks; Dow industrials tick higher again, while U.S. crude oil jumps as a group of oil producers agrees to cut output
Author: Gold, Riva; Otani, Akane
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract:
The blue-chip index rose for a sixth consecutive session to hit another record, with gains in Johnson & Johnson and Exxon Mobil helping to offset declines in Goldman Sachs Group and American Express.
Full text: The Dow Jones Industrial Average crept higher Monday, even as a pullback in shares of financial companies pressured major U.S. stock indexes. The blue-chip index rose for a sixth consecutive session to hit another record, with gains in Johnson & Johnson and Exxon Mobil helping to offset declines in Goldman Sachs Group and American Express. It was a rare postelection retreat for financial firms, which have benefited in part from expectations of looser regulation under the Donald Trump administration. The S&P 500's financial sector has closed lower in four sessions since Nov. 8, adding 17% over that period compared with the S&P 500's 5.5% gain. Financials have also risen alongside expectations for higher interest rates, which should increase banks' lending profitability. Many investors believe the Federal Reserve will raise benchmark interest rates later this week and remain on a gradual tightening path. "I think it's possible we're going into a new phase of the bull market, marked by higher interest rates and maybe a strong dollar," said Rick Anderson, chief investment officer of Hull Investments. The Dow Jones Industrial Average rose 39.58 points, or 0.2%, to 19796.43. The S&P 500 lost 2.57 points, or 0.1%, to 2256.96, led by a 0.9% fall in the financials sector. The Nasdaq Composite lost 31.96 points, or 0.6%, to 5412.54, largely on declines in pharmaceutical shares. The Nasdaq Biotechnology Index fell 0.7%. Energy shares rallied with oil prices after a group of oil producers agreed to scale back their output along with the Organization of the Petroleum Exporting Countries. The S&P 500's energy sector rose 0.7%. Exxon Mobil gained $1.98, or 2.2%, to $90.98, FMC Technologies added 72 cents, or 2%, to 36.08 and Helmerich & Payne gained 1.43, or 1.7%, to 83.18. The Stoxx Europe 600 dropped 0.5% following five consecutive sessions of gains. Italy's FTSE MIB index advanced 0.4% after Italian President Sergio Mattarella asked departing Foreign Minister Paolo Gentiloni to form a new government . Prime Minister Matteo Renzi resigned last week after a defeat in a Dec. 4 referendum on constitutional overhauls. In Asia, the Shanghai Composite Index shed 2.5% in its worst day since June. Analysts said shares were dragged down by a crackdown on stock purchases by insurance companies and comments from Mr. Trump suggesting there might be a change in the U.S.'s acceptance of the "one China" principle. Japan's Nikkei Stock Average rose 0.8%, gaining for a fifth session in a row. Shares were lifted by a weaker yen, which makes the country's exports more competitive. Write to Riva Gold at riva.gold@wsj.com and Akane Otani at akane.otani@wsj.com Credit: By Riva Gold and Akane Otani
Subject: Interest rates; Stock exchanges; Securities markets
Location: United States--US
People: Renzi, Matteo Mattarella, Sergio Trump, Donald J
Company / organization: Name: American Express Co; NAICS: 522210, 551111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: Johnson & Johnson; NAICS: 339113, 339115, 325412, 325611, 325 620
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847768169
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Eni to Sell Egyptian Gas-Field Stake to Rosneft for $1.6 Billion; Italian energy company could sell another smaller tranche in Zohr field to Russian oil producer
Author: Sylvers, Eric
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract: None available.
Full text: Eni SpA agreed to sell a 30% stake in giant Egyptian gas field Zohr to PAO Rosneft for $1.58 billion, part of the Italian energy company's plans to raise cash to confront low oil prices. Russia's Rosneft, which has an option to buy another 5% of the field under the same conditions, will pay $1.13 billion for its stake as well as an additional $450 million to cover development costs already incurred by Eni. Eni has been among the most successful in the industry in recent years at finding new oil and gas fields and has often sold stakes early on to share development costs and raise funds. Including the sale to Rosneft, Eni has raised $6.3 billion in the past four years selling stakes in its recently discovered oil and gas fields. Last month, Eni sold a 10% stake in the same Egyptian gas field to BP PLC for $525 million. The Italian company in March promised [euro]7 billion ($7.42 billion) in asset sales by 2019 with most of that coming through divestments in oil and gas projects. Eni, which is 30%-owned by the Italian government, is planning to sell part of its holding in another large field off the coast of Mozambique that could raise several billion dollars. Monday, Brent hit its highest level since July 2015 after non-OPEC oil-producing countries agreed over the weekend to reduce output, but at about $57 a barrel crude is still less than half of where it was 2½ years ago. In the wake of crude's fall to under $30 a barrel, Eni slashed its dividend and announced heavy cost cuts to accompany the asset sales. While the most recent announced production cuts coupled with those pledged last month by producers in the Organization of the Petroleum Exporting Countries have been cheered by the markets, oil companies remain cautious because compliance among the cartel's members has often failed to live up to promises. The Zohr field, discovered in mid-2015, is the largest ever gas find in the Mediterranean with 30 trillion cubic feet of gas. The first gas is expected to come to market at the end of next year. If Rosneft and BP both exercise their options to buy additional 5% stakes in Zohr, Eni's holding will fall to 50%, a level it has said it won't breach. Write to Eric Sylvers at eric.sylvers@wsj.com Credit: By Eric Sylvers
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847784371
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847784371?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
An Oil Curveball for Global Bonds; Rise in oil prices is payback for a long period where bond markets had everything going their way
Author: Barley, Richard
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract:
The U.S. Federal Reserve is set this week to raise rates; the European Central Bank last week extended its bond-purchase program but also said it would reduce the pace .
Full text: In a world where the peak of monetary-policy easing may lie in the past, higher oil prices are piling fresh pressure on beleaguered bonds. The weekend's deal by non-members of the Organization of the Petroleum Exporting Countries to cut output along with OPEC nations pushed Brent crude up by around 4% Monday to about $56.50 a barrel. That will spur headline inflation, as the tailwind from energy prices builds. Bonds took a hit as a result, with another barrier breached: Ten-year U.S. Treasury yields rose above 2.5% early Monday for the first time since late 2014. In some ways, it is odd that bond markets should react in this way. Oil's influence on inflation could be short-lived and is a pure base effect. But it is payback for a long period where bond markets had everything going their way. Take the path of yields this year: In the first two months of the year, they fell along with oil prices. But when oil rebounded, bond yields didn't follow. And after June's Brexit vote, bonds rallied hard based on expectations of more monetary easing. Except in the U.K., that easing didn't arrive. Monetary policy has been a one-way street for bonds until now. Citigroup calculates that the average advanced-economy policy rate, weighted by gross domestic product, has fallen by close to 3.8 percentage points since August 2007. This year brought more rate cuts outside the U.S. But that support can't be taken for granted. The U.S. Federal Reserve is set this week to raise rates; the European Central Bank last week extended its bond-purchase program but also said it would reduce the pace . Some in Japan are even floating the idea of curtailing stimulus . That implies less support for long-dated bonds. Central banks have exerted unusual influence on long-dated bonds, leading to flatter yield curves. With that influence fading, the impact of factors like oil prices on yields suddenly looms larger than in the past. Write to Richard Barley at richard.barley@wsj.com Credit: By Richard Barley
Subject: Bond issues; International finance; Bond markets; Central banks
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: European Central Bank; NAICS: 521110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest documentID: 1847842204
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847842204?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Russia Welcomes Idea of Rex Tillerson as Secretary of State; Exxon Mobil CEO has appeared as the top choice for secretary of state in a Trump administration
Author: Grove, Thomas
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract:
"Regarding confirmation of whether he has good or bad ties with the Russian Federation, there is a large difference between being a secretary and being the head of even a very large company," he said. [...]any personal sympathy, so to speak, must take a back seat."
Full text: MOSCOW--President-elect Donald Trump's top choice for secretary of state has met President Vladimir Putin on several occasions in the course of discussing oil deals in Russia, a spokesman for the Kremlin said Monday. Exxon Mobil Corp. Chief Executive Rex Tillerson, a seasoned deal-maker whose company has a long history of doing business in Russia, is expected to be Mr. Trump's pick, a transition official said Saturday. "They [Messrs. Putin and Tillerson] have held business meetings. Indeed, the president has met Mr. Tillerson together with his partners in the Russian Federation," spokesman Dmitry Peskov told Russian news agencies. Mr. Peskov said the Kremlin would hope to have a good relationship with Mr. Tillerson, which could facilitate a constructive relationship between Washington and Moscow. "Regarding confirmation of whether he has good or bad ties with the Russian Federation, there is a large difference between being a secretary and being the head of even a very large company," he said. "Therefore, any personal sympathy, so to speak, must take a back seat." Mr. Putin awarded Mr. Tillerson the Order of Friendship in 2013 for boosting ties between Russia and the U.S. before bilateral relations plunged in the wake of the separatist uprising in Ukraine and Russia's annexation of Crimea. The executive was given the order after Exxon Mobil clinched an Arctic exploration pact with state-controlled PAO Rosneft. "He carried out his duties extremely professionally," Mr. Peskov said. Drilling under that pact was later put on hold after the U.S. applied sanctions on Russia over Ukraine. Write to Thomas Grove at thomas.grove@wsj.com Credit: By Thomas Grove
Subject: Presidents
Location: United States--US Russia Ukraine
People: Trump, Donald J
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847873008
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847873008?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or dis tribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Dollar Falls Against Oil-Linked Currencies; U.S. crude prices rose more than 2% after more oil-producing nations agreed to slash production
Author: Dulaney, Chelsey
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract:
"The greenback's performance going forward will depend heavily on the extent to which the Fed signals openness to faster policy normalization in 2017 or conversely, signals a continued cautious tone on the U.S. recovery," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
Full text: The dollar fell Monday as a rally in crude oil prices depressed the greenback against the currencies of commodity producers. The WSJ Dollar Index, which measures the U.S. currency against 16 others, was recently down 0.6% to 91.32. The dollar fell 2.4% against the Russian ruble, 0.4% against the Canadian dollar and 0.7% against the Norwegian krone. U.S. oil prices rose more than 2% after more oil-producing nations agreed to slash production , a move aimed at propping up prices in the oversupplied oil market. Higher oil prices are beneficial for oil-producing nations and their currencies. Meanwhile, investors looked ahead to a slew of central-bank meetings this week. The Fed will announce its latest policy decision Wednesday, and investors expect the central bank to lift U.S. borrowing costs for the first time in a year. Investors will focus on the Fed's statements for hints the central bank could raise interest rates more aggressively going forward . "The greenback's performance going forward will depend heavily on the extent to which the Fed signals openness to faster policy normalization in 2017 or conversely, signals a continued cautious tone on the U.S. recovery," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange. Higher rates typically boost the dollar by making dollar assets more attractive to yield-seeking investors. The Fed had expected to raise rates multiple times this year but was repeatedly stymied by global market turmoil and weak economic data. Recently, upbeat economic reports and President-elect Donald Trump's stimulus plans have fueled optimism that the Fed could normalize policy at a faster clip. The pound was up 0.8% to $1.2675. The Bank of England is scheduled to meet Thursday, but most investors expect the central bank to leave rates unchanged. Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com Credit: By Chelsey Dulaney
Subject: Central banks; Crude oil prices; American dollar
Location: United States--US
People: Trump, Donald J
Company / organization: Name: Bank of England; NAICS: 521110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847904110
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847904110?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
In Exxon Case, Judge Cancels Massachusetts AG's Dallas Deposition; Earlier order from Texas federal district judge required Maura Healey's appearance on Tuesday to answer questions under oath on climate-change probe
Author: Orden, Erica
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.
Abstract:
Typically, the "bad faith standard" is reserved for a situation in which a judge observes "a level of personal aggrandizement," said James Tierney, program director of the National State Attorneys General Program and the former attorney general of Maine.
Full text: Massachusetts Attorney General Maura Healey won't have to be deposed in Dallas on Tuesday in a lawsuit by Exxon Mobil Corp. against her office after a federal district judge reversed his earlier order. The Monday cancellation by U.S District Court Judge Ed Kinkeade represents the latest development in a potentially lengthy and costly legal fight touched off in June, when the oil giant sued Ms. Healey and New York Attorney General Eric Schneiderman for launching an allegedly illegal investigation into whether the company misled investors on climate change. The attorneys general, both Democrats, have been exploring perceived discrepancies between Exxon's public statements on global warming and their internal research on climate change over several decades. On Monday, Judge Kinkeade also ordered the parties to submit briefs regarding whether the district court has proper authority to hear a case involving the two attorneys general. The standoff between Exxon and the attorneys general has escalated in recent weeks, as the prosecutors have fought the unusual order from the Texas federal judge requiring Ms. Healey and possibly Mr. Schneiderman to fly to Dallas to sit for questioning by Exxon's lawyers. That directive came on top of another legal rarity: Judge Kinkeade's authorization for Exxon to do more fact-finding, delivered in an opinion that raised questions about whether Ms. Healey's office was investigating Exxon in bad faith. That step, said legal experts, is what sets the case apart. Typically, the "bad faith standard" is reserved for a situation in which a judge observes "a level of personal aggrandizement," said James Tierney, program director of the National State Attorneys General Program and the former attorney general of Maine. He cited as an example a hypothetical scenario in which a prosecutor is seen as pursuing a probe of someone who dated the prosecutor's sister, and had a bad break-up. "The implications of this are really, really serious," said Mr. Tierney, a Democrat who has worked with attorneys general of both political parties, noting that he believes the effect is that it "chills all legitimate investigations. This isn't about Exxon. This is about an attempt to chill government's ability to investigate malfeasance." A spokesman for Exxon declined to comment on Monday. In the past, Exxon has said it follows all financial rules and regulations, and has said, "we have no choice but to defend ourselves against politically motivated investigations that are biased, in bad faith and without legal merit." Exxon's extraordinary progress in its lawsuit has been met with forceful pushback. In its appeal to the Fifth Circuit, Ms. Healey's office wrote that "[i]t is settled in this Circuit that it is inappropriate to probe the mental processes of a government official absent extraordinary circumstances (none of which are present here)..." Mr. Schneiderman's office has been examining both Exxon's accounting practices--the company having maintained the value of its huge oil and gas reserves in the face of declining energy prices--as well as Exxon's past knowledge of the impact of climate change and how it could affect its future business. "Exxon's unprecedented litigation in Texas represents nothing more than a blatant attempt to avoid accountability under New York law in New York courts where--just the other day, in open court--Exxon again acknowledged the legitimacy of the Attorney General's investigation and agreed to comply with our subpoenas," said Eric Soufer, a spokesman for Mr. Schneiderman. Chloe Gotsis, a spokeswoman for Ms. Healey, called the company's tactics tantamount to an infringement of state prosecutorial jurisdiction. "Exxon's tactics are a direct assault on the authority of states to enforce our laws," Ms. Gotsis said. On Monday she added that Ms. Healey's office "has argued strongly that the Texas court has no jurisdiction over our investigation and we will continue to urge it to dismiss Exxon's lawsuit against us." Write to Erica Orden at erica.orden@wsj.com Earlier Coverage * Massachusetts AG Protests Order Summoning Her to Texas for Exxon Deposition (Nov. 28, 2016) * Exxon Judge to New York and Massachusetts AGs: Prepare to Testify in Dallas (Nov. 18, 2018) * Exxon's Accounting Practices Are Investigated (Sept. 16, 2016) * Exxon Fires Back at Climate-Change Probe (April 13, 2016) Credit: By Erica Orden
Subject: Attorneys general; Climate change; Bad faith; Federal court decisions
Location: Texas Massachusetts New York
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 12, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847942632
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847942632?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Moderate as Doubts Over OPEC's Output Cut Plan Set in; February Brent crude on London's ICE Futures exchange fell $0.01 to $55.68 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
Crude oil prices lost steam in early Asian trade Tuesday as investors turned bearish over oil producers' commitment to observe a deal aimed at easing supply to the market.
Full text: Crude oil prices lost steam in early Asian trade Tuesday as investors turned bearish over oil producers' commitment to observe a deal aimed at easing supply to the market. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $52.67 a barrel at 0233 GMT, down $0.16 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.01 to $55.68 a barrel. Over the weekend, 11 non-OPEC countries, including Russia, agreed to slash their output by 558,000 barrels a day, in concert with OPEC's own pledge to cut 1.2 million barrels a day. The total sum represents almost 2% of global supply. The deal will take effect on Jan. 1 but the reduction will be carried out in phases. Participating countries will meet in six months to evaluate progress. Analysts say if producers fully adhere to agreed quotas, the oil market could shift into a deficit. OPEC's own calculations forecasts world crude demand will hit 95.5 million barrels a day in 2017, an increase of 1.2 million barrels a day. Removing excess barrels will lift prices, possibly into the $60 to $70 per barrel band, but it would mostly hinge on the compliance of the producers who have been known to cheat, said BMI Research. "We note that the higher the barrel price, the greater the temptation to break allocated quotas," the firm said. In 17 production cuts since 1982, OPEC members have reduced output by an average of just 60% of their commitments, according to Goldman Sachs. Production from Nigeria and Libya, the two OPEC members currently exempt from the deal, also add downside risks to the success of the OPEC plan, said Morgan Stanley. The OPEC deal was based on production data in October in which had Libya's production at 528,000 barrels a day. However, energy consulting firm Rapdian Group now predicts the odds of Libyan's oil production hitting 750,000 barrels a day are now 55%, buoyed by ongoing talks between the government and insurgent groups to reopen a key pipeline. Oil production in Nigeria has also edged up in past few months. However, situation there remain murky with several new militias in the Niger Delta reportedly sabotaging the recovery process. The effect of higher oil prices on demand is also fueling market skepticism over how successful the deal will be, said JBC Energy. The firm says recent growth in the number of active oil rigs in the U.S. shows shale producers are ready to swoop in to benefit from the higher prices. "How long countries making cuts are able to hold out at lower supply levels? Are they prepared to do so on an extended basis?" the firm asked. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 19 points to $1.5411 a gallon, while January diesel traded at $1.6716, 1 points lower. ICE gasoil for January changed hands at $490.00 a metric ton, down $1.00 from Monday's settlement. Credit: By Jenny Hsu
Subject: Crude oil prices; Crude oil; Energy economics; Petroleum production
Location: Libya Nigeria Russia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: Morgan Stanley; NAICS: 523110, 523120, 523920; Name: ICE Futures; NAICS: 523210; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States , New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847979156
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Donald Trump Chooses Exxon Mobil CEO Rex Tillerson as Secretary of State; Trump rejects campaign allies and political figures with pick; nomination expected to face bipartisan resistance in Senate
Author: Nicholas, Peter; Lee, Carol E
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
WASHINGTON--President-elect Donald Trump has named Exxon Mobil Corp. Chief Executive Rex Tillerson as his secretary of state, a transition official said Monday, picking a veteran CEO who has had extensive overseas business dealings but whose relationships with foreign leaders could complicate his confirmation prospects. Yet he's seen as one of the most hawkish members of the Republican Party in recent decades, advocating for the U.S. to bomb Iranian nuclear sites and opposing any diplomatic negotiations with North Korea.
Full text: WASHINGTON--President-elect Donald Trump has named Exxon Mobil Corp. Chief Executive Rex Tillerson as his secretary of state, a transition official said Monday, picking a veteran CEO who has had extensive overseas business dealings but whose relationships with foreign leaders could complicate his confirmation prospects. Mr. Tillerson was a comparatively late entry in the secretary of state competition, but he impressed the president-elect as a successful deal-maker in what one transition aide called the "Trumpian" mold. If confirmed by the U.S. Senate, Mr. Tillerson will be the public face of a diplomatic approach that envisions more cooperation with Russia and concessions from China on trade and security matters. "His tenacity, broad experience and deep understanding of geopolitics make him an excellent choice for Secretary of State," Mr. Trump said in a statement. "He will promote regional stability and focus on the core national security interests of the United States. Rex knows how to manage a global enterprise, which is crucial to running a successful State Department, and his relationships with leaders all over the world are second to none. Mr. Trump injected a bit of theater into what is normally a staid and behind-the-scenes process, offering personal impressions of the candidates and tweeting out his timetable for a decision. On Sunday, he tweeted that Mr. Tillerson is a "world class player and dealmaker." "Stay tuned!" he wrote. Word of Mr. Trump's selection began leaking out Monday night. One of the finalists, 2012 Republican presidential nominee Mitt Romney, wrote a message on Facebook that suggested he was out of the running. Mr. Romney wrote: "It was an honor to have been considered for secretary of state of our great country." In choosing Mr. Tillerson, the president-elect passed over various campaign allies and established political figures. Among those he considered--and rejected--were former New York City Mayor Rudy Giuliani, one of his closest campaign advisers; U.S. Sen. Bob Corker (R., Tenn.), chairman of the Senate Foreign Relations Committee; and David Petraeus, a former director of the CIA. In the days after the election, Mr. Giuliani was seen as the top contender. But Mr. Giuliani, one of Mr. Trump's most loyal campaign supporters, took himself out of contention on Nov. 29, Mr. Trump said. Mr. Corker was the most traditional candidate. The current and previous secretaries of state, John Kerry and Hillary Clinton, came out of the Senate. Gen. Petraeus, a former commander of troops in Iraq and Afghanistan, would have brought extensive military and intelligence experience to the job. He was director of the Central Intelligence Agency during the Obama administration. But Gen. Petraeus also faced scrutiny of his 2015 guilty plea to a misdemeanor charge of mishandling classified material in a case involving his biographer, with whom he said he had an extramarital affair. In addition, John Bolton, who served as U.S. ambassador to the United Nations in the George W. Bush administration, was a candidate with a background in diplomatic service. Also during the Bush administration, Mr. Bolton served as the State Department's counterproliferation czar and focused specifically on the Iranian and North Korean threats. Yet he's seen as one of the most hawkish members of the Republican Party in recent decades, advocating for the U.S. to bomb Iranian nuclear sites and opposing any diplomatic negotiations with North Korea. He could have been at odds with Mr. Trump on some issues, given the president-elect has suggested the U.S. should pull back from overseas intervention. Mr. Tillerson's nomination faces bipartisan resistance in the Senate over his ties to Russian President Vladimir Putin. His company has long done business in Russia. He has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. In a sign of the close relationship, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson after he struck a 2011 deal that gave Exxon access to prized Arctic resources and allowed Russian state oil company OAO Rosneft to invest in Exxon concessions around the world. Mr. Tillerson's past opposition to sanctions on Russia is likely to trigger blowback among Senate Republicans, many of whom have rejected Mr. Trump's more conciliatory stance toward the country and its president. No Senate Republicans have yet said they would vote against Mr. Tillerson. But a number of senators expressed reservations. Sen. Marco Rubio (R., Fla.), a member of the Foreign Relations Committee, the panel that would hold confirmation hearings on the nomination, said in a tweet Sunday that "being a 'friend of Vladimir' is not an attribute I am hoping for" in the next secretary of state. Mr. Trump's secretary of state will have to navigate a host of high-stakes foreign policy challenges across the globe. The country's top diplomat also will be tasked with carrying out Mr. Trump's vision for the U.S. role on the world stage, which is so far not entirely clear. A Trump administration will quickly have to contend with a volatile Middle East. Military involvement by Russia and Iran to boost the Assad regime in Syria has complicated the fight against Islamic State. The next secretary of state would be at the forefront of any negotiations with Russia on a resolution to the Syrian conflict while also tending to U.S. allies in the region who oppose the Assad regime. Mr. Trump's approach to U.S. relations with Russia will be one of his most closely watched moves, given his comments about Russian President Vladimir Putin and U.S. intelligence assessment that Moscow used cyberattacks to try to help Mr. Trump in the election. Republican leaders in Congress recently have expressed deep misgivings about any warming to Mr. Putin. Mr. Trump also has signaled that he wants to implement a more adversarial relationship with China , challenging Beijing on trade and security measures. Mr. Trump's relations with China are already off to a rocky start, with Beijing balking at his protocol-breaking phone call with the president of Taiwan . Mr. Trump will need China, however, in efforts to address the growing threat from North Korea. China is seen as one of the few countries in the world with influence over Pyongyang. President Barack Obama told Mr. Trump that he believes North Korea is the biggest foreign policy challenge he faces once in office. He'll have to decide whether to adhere to the international Paris climate change agreement and to continue with the re-establishment of U.S. relations with Cuba. Both were among Mr. Obama's top foreign policy initiatives and have drawn opposition from Republicans. Mr. Trump hasn't specifically said whether he will roll back the deal the U.S. and other world powers reached with Iran to restrain its nuclear program, though he has been a fierce critic of the agreement. Israeli Prime Minister Benjamin Netanyahu has already begun to put pressure on Mr. Trump to back out of the deal, while Mr. Obama has tried to convince his successor that doing so would be a bad idea. U.S. relations with Israel have been deeply strained by disagreements between Messrs. Obama and Netanyahu on the Iran deal and other issues. "I am honored by President-elect Trump's nomination and share his vision for restoring the credibility of the United States' foreign relations and advancing our country's national security," Mr. Tillerson said in a statement. "We must focus on strengthening our alliances, pursuing shared national interests and enhancing the strength, security and sovereignty of the United States." Bradley Olson and Kristina Peterson contributed to this article Write to Peter Nicholas at peter.nicholas@wsj.com and Carol E. Lee at carol.lee@wsj.com Read More * Rubio Has 'Serious Concerns' With Tillerson Pick * Deals With Putin Helped Fuel Tillerson's Rise * GOP Leaders Join Call for Probe of Russian Hacking * Russia Welcomes Idea of Tillerson as Secretary of State * Tillerson Faces Senate Dissent as Potential State Pick * Exxon's Transition to Tillerson's Successor Likely to Accelerate * Trump Says Sons 'Plus Executives' Will Run Business * Trump Postpones News Conference on Business Interests Credit: By Peter Nicholas and Carol E. Lee
Subject: Presidents; Bills; Elections; International relations; Political campaigns
Location: China Russia United States--US
People: Putin, Vladimir Corker, Bob Romney, W Mitt Clinton, Hillary Kerry, John F
Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Senate; NAICS: 921120; Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847989623
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847989623?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rise on Supply Hopes; Producers' output cuts raise confidence balance will be restored
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
If members of the Organization of the Petroleum Exporting Countries and non-OPEC nations follow through on promises to cut production for the next six months, the market likely will become undersupplied by the first half of next year, the International Energy Agency's monthly oil report said .
Full text: Oil prices edged up amid hopes that a move by OPEC and other major producers to cut output could help bring crude supply and demand into balance more quickly. Crude for January delivery advanced 15 cents, or 0.3%, to $52.98 a barrel on the New York Mercantile Exchange, for the fourth successive day of gains. Brent, the global benchmark, rose three cents, or 0.05%, to $55.72 on London's ICE Futures Exchange, also for the fourth day in a row. If members of the Organization of the Petroleum Exporting Countries and non-OPEC nations follow through on promises to cut production for the next six months, the market likely will become undersupplied by the first half of next year, the International Energy Agency's monthly oil report said . "For the most part the market is kind of consolidating," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates. "Bullish sentiment is still out there. I don't think there is any reason to think it is all topped out yet." Oil prices wavered during the day--the IEA report also showed global oil supplies increased in November to 98.2 million barrels a day as rising OPEC output outweighed a drop in non-OPEC production. OPEC's production rose 300,000 barrels a day last month to a record, even as members were negotiating pledges to cut back. Even Saudi Arabia, which drove the agreement to cut output, produced more, the agency said. OPEC would now have to cut 1.7 million barrels a day to reach its target ceiling of 32.5 million barrels a day, more than the 1.2 million-barrel-a-day cut it initially envisioned. "There were definitely some bearish nuggets in there that threw cold water on a superheated OPEC story," said Bob Yawger, director of the futures division of Mizuho Securities USA. The market got a shot of confidence this week after a deal struck over the weekend formalized the cooperation of countries outside of OPEC. Countries including Russia agreed to cut output by a combined 558,000 barrels a day. Reports that Saudi Arabia would be willing to take a deeper cut than the 486,000 barrel-a-day reduction it agreed to in November also boosted crude prices. But members of the 14-member group have a spotty record for adhering to production quotas, causing some doubt over whether the cuts will fully materialize. Removing excess barrels will lift prices, possibly into the target range of $60 to $70 a barrel, but it would mostly hinge on the compliance of the producers who have been known to cheat, BMI Research said. "We note that the higher the barrel price, the greater the temptation to break allocated quotas," the firm said. Higher prices could also lure U.S. shale producers to ramp up their own output, potentially undermining the benefits of the OPEC deal. The U.S. Energy Information Administration said Monday U.S. shale production is likely to increase in January. "It's going to get tougher for the market to gobble up as much ground as it did yesterday," said Gene McGillian, research manager at Tradition Energy. "The market could show continued strength--it is just that as it attempts to push through yesterday's high, there will be greater resistance until we see signs that there is no cheating," or that U.S. producers aren't rushing back in. Market participants are also looking ahead to the EIA's weekly report on U.S. stockpiles, which will be released Wednesday. Analysts surveyed by The Wall Street Journal expect the EIA to report that crude stocks fell by 1.7 million barrels during the week ended Dec. 9. Last week's report showed that oil inventories fell overall, but supplies at the Cushing, Okla., storage hub surged by 3.8 million barrels, the largest weekly increase since 2009. The American Petroleum Institute, an industry group, said late Tuesday its data for the week showed a 4.7 million-barrel increase in crude supplies, a 3.9 million-barrel rise in gasoline stocks and a 230,000-barrel increase in distillate inventories, according to a market participant. Gasoline futures rose 0.77 cent, or 0.5%, to $1.5507 a gallon. Diesel futures rose 0.3 cent, or 0.2%, to $1.6747 a gallon. Benoit Faucon and Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Alison Sider and Sarah McFarlane
Subject: Crude oil prices; Supply & demand; Cartels; Futures
Location: United States--US Saudi Arabia
Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1847999362
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Judge Reverses Exxon Ruling
Author: Orden, Erica
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Dec 2016: B.5.
Abstract:
Typically, the "bad faith standard" is reserved for a situation in which a judge observes "a level of personal aggrandizement," said James Tierney, program director of the National State Attorneys General Program and the former attorney general of Maine.
Full text: Massachusetts Attorney General Maura Healey won't have to be deposed in Dallas on Tuesday in a lawsuit by Exxon Mobil Corp. against her office after a federal judge reversed his earlier order. The Monday cancellation by U.S. District Judge Ed Kinkeade represents the latest development in a potentially lengthy and costly legal fight touched off in June, when the oil company sued Ms. Healey and New York Attorney General Eric Schneiderman for launching an allegedly illegal investigation into whether the company misled investors on climate change. The attorneys general, both Democrats, have been exploring perceived discrepancies between Exxon's public statements on global warming and its internal research on climate change over several decades. On Monday, Judge Kinkeade also ordered the parties to submit briefs regarding whether the court has authority to hear a case involving the two attorneys general. The standoff between Exxon and the attorneys general has escalated in recent weeks, as prosecutors have fought the unusual order from the Texas federal judge requiring Ms. Healey and possibly Mr. Schneiderman to travel to Dallas to sit for questioning by Exxon's lawyers. That directive came in addition to another legal rarity: Judge Kinkeade's authorization for Exxon to do more fact-finding, delivered in an opinion that raised questions about whether Ms. Healey's office was investigating Exxon in bad faith. That step, said some legal observers, is what sets the case apart. Typically, the "bad faith standard" is reserved for a situation in which a judge observes "a level of personal aggrandizement," said James Tierney, program director of the National State Attorneys General Program and the former attorney general of Maine. "The implications of this are really, really serious," said Mr. Tierney, a Democrat who has worked with attorneys general of both political parties, noting that he believes the effect is that it "chills all legitimate investigations." A spokesman for Exxon declined to comment. In the past, Exxon has said it follows all financial rules and regulations. Chloe Gotsis, a spokeswoman for Ms. Healey, called the company's tactics tantamount to an infringement of state prosecutorial jurisdiction. Credit: By Erica Orden
Subject: Federal court decisions; Climate change
People: Healey, Maura T
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.5
Publication year: 2016
Publication date: Dec 13, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848023836
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848023836?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journa l
Oil Jumps Again After Vow of More Cuts --- Non-OPEC members' agreement to join the cartel in cutbacks puts crude at two-year high
Author: Salvaterra, Neandra; Hsu, Jenny W; Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Dec 2016: B.11.
Abstract:
Oil prices surged Monday after more oil-producing nations agreed to cut production, a move aimed at pushing the oversupplied oil market into balance, or even a deficit, to prop up a crude market that had been stuck in a two-year slump.
Full text: Oil prices surged Monday after more oil-producing nations agreed to cut production, a move aimed at pushing the oversupplied oil market into balance, or even a deficit, to prop up a crude market that had been stuck in a two-year slump. U.S. crude futures advanced $1.33, or 2.58%, to $52.83 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained $1.36, or 2.5%, to $55.69 a barrel on London's ICE Futures Exchange. Over the weekend, a group of big oil producers outside of the Organization of the Petroleum Exporting Countries, including Russia, agreed to scale back their output by 558,000 barrels a day. The cutbacks agreed to by the non-OPEC members are on top of the cut of 1.2 million barrels a day agreed to by OPEC in late November. The total reduction represents almost 2% of the global supply. The deal is viewed as a feather in the cap for Saudi Arabia, the oil cartel's de facto leader and the world's top exporter of crude. The market got an extra boost of confidence following reports that Saudi Arabia indicated that, if necessary, the kingdom may be willing to take a deeper cut than the 486,000-barrel reduction it had agreed in the November meeting. "It's very important that they all got together," said Shawn Reynolds, portfolio manager with the VanEck Global Hard Assets Fund. "I can't remember the last time I've seen such sense of urgency" from OPEC, he said, pointing to "the dramatic reversal in Saudi Arabia's stance." The non-OPEC cuts, if carried out as described over the first half of 2017, would represent an unprecedented level of cooperation among oil-producing countries that have been groping for ways to lift oil prices out of a two-year funk. The bulk of the cuts -- 300,000 barrels a day -- have been pledged by Russia, which produces more crude oil than any other country. Other output reductions are promised by 10 other countries, including Oman, Azerbaijan and Sudan. "This is truly a historic event," Russian Energy Minister Alexander Novak said. "It is the first time that so many oil-producing countries from different parts of the world have gathered in one room to accomplish what we have done." The deal helped breathe new life into an oil-futures rally that had started to sputter last week. West Texas Intermediate, the U.S. benchmark, climbed to $54.51 in overnight trading before pulling back by the end of the session. Crude-oil prices are trading at their highest level since July 2015. "It definitely jumped the markets, there's no doubt about that," Mark Waggoner, president of Excel Futures, said of the deal between major producers inside and outside of OPEC. "I think it was a bit of a knee-jerk reaction." Bernstein Research noted that some of the non-OPEC supply cuts would come from natural decline but that most would come from self-imposed cuts. Analysts also warned that compliance by the all of the parties remains a glaring downside risk, given these oil producers haven't always been forthcoming about their production levels, despite their pledges to rein in output. The production-cut deal will take effect Jan. 1, and the oil producers will reconvene in six months to assess the deal. "At this stage, the safe assumption is that they will be [compliant], especially, in the first few months," said Ric Spooner, chief market analyst at CMC Markets. Another concern is how fast the U.S. shale producers will ramp up their production in a bid to benefit from the higher prices. SEB Markets analysts noted in a report that the number of oil rigs operating in the U.S. jumped by 21 last week -- the biggest one week gain since July 2015, the analysts said. "Our main concern is that market has become comfortably numb in relation to rising rig counts," said Bjarne Schieldrop, chief commodities analyst at SEB Markets. "We won't really see any physical supply response from the added rigs before the second half of 2017. I think this is setting in motion a new boom-and-bust cycle with a big rise in oil rigs," Mr. Schieldrop said. Gasoline futures rose 3.57 cents, or 2.37%, to $1.5430 a gallon. Diesel futures climbed 3.43 cents, or 2.09%, to $1.6717 a gallon. --- Benoit Faucon, Nathan Hodge, Summer Said, Willa Plank and Rachel Rosenthal contributed to this article.
Credit: By Neandra Salvaterra, Jenny W. Hsu and Alison Sider
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2016
Publication date: Dec 13, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848031098
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Deals With Vladimir Putin Helped Fuel Rise of Secretary of State Nominee Rex Tillerson; The Exxon Mobil chief chosen by Donald Trump has ties with Russian leader, others with strained relations with U.S.
Author: Scheck, Justin; Marson, James; Gold, Russell
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
Leading Exxon, Mr. Tillerson's challenge has been to get access to oil and gas deposits, often in far-flung nations, by building relationships with leaders controlling big chunks of the world's fossil-fuel wealth--some of them strongmen on the wrong side of the U.S. government. Using its might as one of the world's largest non-state-owned oil companies and one of a handful with the engineering expertise to tackle difficult projects, Exxon has been more direct, more demanding, and more likely to make take-it-or-leave-it offers to foreign leaders than others, according to a former executive at a rival who partnered with Exxon in joint ventures.
Full text: Rex Tillerson was propelled to the top of Exxon Mobil Corp. partly by negotiating a deal with Vladimir Putin to kickstart an oil project in Russia's Far East, one of a series of agreements between the pair stretching back to 1999. That relationship is both Mr. Tillerson's biggest claim to the nomination as Donald Trump's secretary of state , and potentially the biggest concern about him in Congress--where members of both parties are pushing for an investigation into Russia's alleged hacking and its impact on the U.S. election. "I have a very close relationship with" Mr. Putin, Mr. Tillerson told students at the University of Texas, his alma mater, in February. "I don't agree with everything he's doing. I don't agree with everything a lot of leaders are doing. But he understands that I am a businessman. And I have invested a lot of money, our company has invested a lot of money, in Russia, very successfully." Leading Exxon, Mr. Tillerson's challenge has been to get access to oil and gas deposits, often in far-flung nations, by building relationships with leaders controlling big chunks of the world's fossil-fuel wealth--some of them strongmen on the wrong side of the U.S. government. He has done business with dictators in Chad and Angola and talked oil with the former Libyan leader Moammar Gadhafi. Exxon didn't respond to questions about Mr. Tillerson's tenure on Monday. Like other big oil players, Mr. Tillerson's Exxon partnered with companies owned by Saudi Arabia, a longtime U.S. ally that also been a recent target of American politicians. Such efforts required diplomacy of sorts, but on behalf of Exxon and its shareholders--as he told his Texas audience that he often reminds his foreign counterparts. "I'm not here to represent the United States government's interest. I'm not here to defend it nor am I here to criticize it. That's not what I do--I'm a businessman," he said. That has meant operating in a way that wasn't always aligned with U.S. interests, and sometimes without so much as a courtesy call to local U.S. embassies, according to two former U.S. diplomats who worked in countries where Exxon operated. Using its might as one of the world's largest non-state-owned oil companies and one of a handful with the engineering expertise to tackle difficult projects, Exxon has been more direct, more demanding, and more likely to make take-it-or-leave-it offers to foreign leaders than others, according to a former executive at a rival who partnered with Exxon in joint ventures. "This is what we want," Mr. Tillerson would tell regimes, the former rival said, "That is what you will get." Mr. Tillerson's career has been defined most by his work in Russia, where he sometimes negotiated major deals directly with Mr. Putin. He was a rising star at Exxon in the late 1990s when he was tasked with handling a politically and technologically complex oil project in Russia. The $17 billion development to drill for oil on Russia's Pacific island of Sakhalin had been tied up in bureaucratic knots for years. He was successful, in part because he negotiated with Mr. Putin. That helped him catapult past other executives to lead the company in 2006. As the project was progressing in the early 2000s, Mr. Putin's Kremlin was becoming more assertive in its dealings with Western oil companies, which some felt had received too-favorable deals in the 1990s. Mr. Tillerson navigated that situation in part by keeping state-controlled PAO Rosneft as a partner in the project. Rosneft has since grown to become the one of the largest publicly traded oil producers in the world. Mr. Tillerson teamed up again with Rosneft in 2011 as global majors were jostling for a piece of potentially huge resources in the Russian Arctic. BP PLC Chief Executive Robert Dudley was trying to secure plum Arctic fields for the U.K.-based oil company; but his partners in another Russian venture, TNK-BP, managed to block the deal, and Mr. Tillerson swooped in. At a meeting with Mr. Putin in June 2012, Mr. Tillerson said Exxon's Arctic deal enhanced ties between the U.S. and Russia. "I agree, as you point out, that nothing strengthens relationships between countries better than business enterprise," a Kremlin transcript quoted him as saying. The next year, Mr. Putin awarded him Russia's Order of Friendship for his work. But the company suffered a setback in its efforts to profit from its Russia dealings after the Kremlin annexed Crimea , and official ties deteriorated between the U.S. and Russia. After Moscow's military intervened in eastern Ukraine, the Obama administration added more sanctions, including on Russian energy companies such as Rosneft, forcing a halt to drilling in the Arctic. William W. George, an Exxon board member until last year, said Mr. Tillerson opposed the U.S. sanctions . But "Rex didn't fight it,'' Mr. George said. "He didn't go to court.'' Mr. George, a former chief executive of Medtronic Inc. who now teaches leadership as a senior fellow at Harvard, said Mr. Tillerson's extensive dealings with foreign leaders like Mr. Putin should help him as secretary of state. "He would never put Putin's interests ahead of Exxon's when I was there,'' said Mr. George. Under Mr. Tillerson, Exxon dealt extensively with countries near the top of Transparency International's most-corrupt list, including Chad, Papua New Guinea, Venezuela, Libya, Iraq, Angola and Equatorial Guinea. He led Exxon into Iraq's semiautonomous Kurdistan region in 2011 against the wishes of the Baghdad government--and the U.S. State Department. Along the way, Mr. Tillerson has sometimes run into criticism. He kept pumping oil in Chad, for example, even after international oil profits were being used to support the autocratic government's military operations. In January 2006, in his first days of Mr. Tillerson's tenure at the top of Exxon, Chadian leader Idriss Deby and the World Bank argued over oil revenue generated by an Exxon-led consortium. The World Bank froze assets to pressure the military ruler to abide by an agreement that allowed outside groups to use some oil proceeds on health clinics and schools. Exxon stuck to its contract, even though that meant making multimillion payments to the ruler, who used the money for military protection to stay in power. "They had a job to do and their job was to get oil out. They had a contract and they were going to stick to it," said a person with direct knowledge of the situation. Compared with his extensive dealings with Russia, Mr. Tillerson's contact with China has been limited to building a large refinery and petrochemical facility in Fujian province. "I don't think he's very well known to the Chinese government leaders," said Victor Gao, a former top executive at state-owned oil company Cnooc Ltd. Mr. Tillerson's Russian oil diplomacy was on display during a visit to Moscow in June, when he was asked about the economic sanctions that have blocked Exxon from reaping the benefits of the Arctic-drilling agreement and partnership he helped broker in 2011. Referring to Igor Sechin, the head of Rosneft and a close ally of Mr. Putin, he said: "As to the sanctions questions, I'll use the same approach that my friend Mr. Sechin took. That's a question for the government. So if there's a U.S. government official here who'd like to respond, I'm happy to toss it to them." Mr. Sechin burst into laughter and gave Mr. Tillerson a thumbs-up. Joann S. Lublin, Brian Spegele and Joe Parkinson contributed to this article. Write to Justin Scheck at justin.scheck@wsj.com , James Marson at james.marson@wsj.com and Russell Gold at russell.gold@wsj.com Credit: Justin Scheck, James Marson, Russell Gold
Subject: Acquisitions & mergers; Diplomatic & consular services; Presidents
Location: Chad Russia United States--US
People: Qaddafi, Muammar El Trump, Donald J
Company / organization: Name: Congress; NAICS: 921120; Name: OAO Rosneft; NAICS: 324110; Name: University of Texas; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848085514
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848085514?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon CEO Rex Tillerson Faces Senate Dissent as Potential State Pick; Trump's top choice for secretary of state faces bipartisan resistance over ties to Putin
Author: Peterson, Kristina; Nicholas, Peter; Ballhaus, Rebecca
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.
Full text: WASHINGTON--Exxon Mobil Corp. Chief Executive Rex Tillerson, the top choice for secretary of state in a Trump administration, faces bipartisan resistance in Congress over his ties to Russian President Vladimir Putin. GOP hesitation over Mr. Tillerson marked the first sign of division between congressional Republicans and the Trump team over its likely cabinet picks. All of President-elect Donald Trump's other nominees so far appear likely to be confirmed by the Senate. Mr. Tillerson, a seasoned deal-maker whose company has a long history of doing business in Russia, is drawing unease from senators on both sides of the aisle. Republicans can likely afford to lose only two GOP votes next year in the new Congress when it meets to consider Mr. Trump's nominees. "It's a matter of concern to me that he has such a close personal relationship with Vladimir Putin," Sen. John McCain (R., Ariz.) said Sunday on CBS, noting that the two men had done "enormous deals" together. "That would color his approach to Vladimir Putin and the Russian threat." Sen. Ben Cardin of Maryland, the top Democrat on the Foreign Relations Committee, the panel that would hold confirmation hearings on the nomination, said Sunday on CNN that he was "concerned about his [Mr. Tillerson's] relationship with Russia. We want to make sure that the secretary of state is a person who represents America." Mr. Trump defended Mr. Tillerson as a "world-class player" and said it was "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia." "He's more than a business executive,'' Mr. Trump told Fox News in an interview broadcast Sunday. Trump transition officials said the president-elect is likely to announce his choice for secretary of state midweek. Mr. Trump has given himself time to alter course should his views change or if he concludes Mr. Tillerson couldn't win Senate confirmation. Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations. "It's not over, but it looks like Mr. Tillerson is certainly way out in front right now," said U.S. Rep. Dana Rohrabacher (R., Calif.), who also had discussions with Trump transition officials about becoming secretary of state. No Senate Republicans have yet said they would vote against Mr. Tillerson. Mr. Corker said in a tweet Saturday that the CEO is "a very impressive individual." Still, a number of senators expressed reservations. On Tuesday, another member of the Foreign Relations Committee, Sen. Marco Rubio (R., Fla.), said he had "serious concerns" about Mr. Trump's selection of Mr. Tillerson to be secretary of state. Mr. Rubio said the Exxon Mobil CEO "is a respected businessman," but the senator noted he had broader questions about whether Mr. Tillerson was the right person for the job. Two days earlier, Mr. Rubio said in a tweet that "being a 'friend of Vladimir' is not an attribute I am hoping for" in the next secretary of state. The U.S. and its allies imposed sanctions two years ago on Russia after the country's invasion of Crimea and its conflicts with Ukraine. Importantly, Mr. Rubio didn't say Tuesday that he would oppose Mr. Tillerson, only that he would "do my part to ensure he receives a full and fair but also thorough hearing before the Senate Foreign Relations Committee." Exxon has spent years lobbying the State Department on trade and energy issues, including hydraulic fracturing and U.S. relations with Russia. In 2014, the company lobbied the department on a bill that sought to broaden the U.S. economic sanctions, according to federal lobbying disclosures. The bill didn't pass. In a Securities and Exchange Commission filing that year, Exxon said those sanctions were costing the company $1 billion. Exxon declined to comment on Mr. Tillerson or his ties to Russia. Mr. Tillerson is set to retire from Exxon next year. His appointment would still generate the possibility of conflicts of interest because of his financial stake in the company, which explores for oil and gas on six of the world's seven continents and has operations in more than 50 countries. He owns Exxon shares worth $151 million, according a recent securities filing, and many of those shares aren't scheduled to vest for almost a decade. Mr. Tillerson has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. In a sign of the close relationship, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson after he struck a 2011 deal that gave Exxon access to prized Arctic resources and allowed Russia state oil company OAO Rosneft to invest in Exxon concessions around the world. Mr. Tillerson's past opposition to sanctions on Russia is likely to trigger blowback among Senate Republicans, many of whom have rejected Mr. Trump's more conciliatory stance toward the country and its president. Mr. Tillerson spoke in opposition to the sanctions on Russia at Exxon's annual meeting in 2014, after implementation of the company's 2011 deal with Russia had been blocked by the sanctions. Michael McFaul, who served as U.S. ambassador to Russia in the Obama administration, said on Sunday sanctions were imposed because of Russia's intervention in Ukraine and should only be lifted if Moscow meets certain conditions. "I worry that because of his [Tillerson's] previous relationship with these people...that he would have a particular perspective on that issue," he said. Because of a rules change pushed through by Senate Democrats in November 2013, most presidential nominees can be confirmed with a simple majority, or 51 votes when all senators are present. Previously, nominees needed 60 votes to clear procedural hurdles. Republicans will hold 52 seats in the Senate next year, giving them little room for internal dissension over Mr. Trump's nominees. The GOP can effectively lose no more than two votes, if all Democrats oppose a nominee, since Vice President-elect Mike Pence could cast a tiebreaking vote. In a push that could make the margin even narrower, Democrats are urging Sen. Jeff Sessions (R., Ala.), Mr. Trump's nominee for attorney general, to recuse himself from voting on potential cabinet colleagues. Mr. Sessions' staff didn't immediately respond to a request for comment. Still, Republicans so far have treaded cautiously in opposing Mr. Trump. Last week they played down their differences with the president-elect after he called for 35% tariffs on companies that move factories out of the U.S., a move that would fly in the face of traditional GOP free-market ideology. In 2011, Exxon lobbied the State Department on "discussions related to the Colombia, Panama and Korea Free Trade agreements, and Russia's ascension into World Trade Organization," according to the company's disclosures. That year, the WTO cleared the way to allow Russia to join, a move that opened Russian markets to foreign competitors by cutting tariffs and breaking down trade barriers. Exxon has had a "continuous business presence" in Russia for the last two decades, according to its website. This year, the company has lobbied the State Department largely on trade and energy issues, including an agreement that would open up closed sectors of China's economy. Overall, Exxon spent $8.8 million on lobbying the federal government in the first three quarters of this year, making it the top lobbyist in the oil-and-gas industry, according to a Center for Responsive Politics analysis of the most recent disclosures. The company's deals in Russia would be certain to come under scrutiny in Senate confirmation hearings. A number of Republicans have urged Mr. Trump to be wary of Russia, warning that it is trying to expand its influence in ways that run counter to U.S. interests in places such as Ukraine and Syria. Sen. Bob Menendez of New Jersey, a senior Democrat on Foreign Relations, said the selection of Mr. Tillerson would be "guaranteeing Russia has a willing accomplice in the president's cabinet guiding our nation's foreign policy." Mr. Tillerson, 64 years old, grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government. While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration. Eric Morath and John D. McKinnon contributed to this article. Write to Kristina Peterson at kristina.peterson@wsj.com , Peter Nicholas at peter.nicholas@wsj.com and Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com Related * Trump Adds to Criticism of Companies Credit: By Kristina Peterson, Peter Nicholas and Rebecca Ballhaus
Subject: Nominations; Bills; Sanctions; International relations; Congressional committees
Location: United States--US Russia
People: Rohrabacher, Dana Corker, Bob Petraeus, David H Romney, W Mitt Putin, Vladimir McCain, John
Company / organization: Name: Congress; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: United Nations--UN; NAICS: 928120; Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Fox News Channel; NAICS: 515120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York , N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848113096
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848113096?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Board to Meet on 'Transition' After Tillerson Nomination; Board congratulates Tillerson after being nominated by Trump as next secretary of state
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
"The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," said Suzanne McCarron, Exxon's vice president of public and government affairs, according to an email from the company.
Full text: Exxon Mobil Corp.'s board of directors sent well wishes Tuesday to the oil company's chief executive, Rex Tillerson, who has been chosen by President-elect Donald Trump to be the next secretary of state . "The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," said Suzanne McCarron, Exxon's vice president of public and government affairs, according to an email from the company. "The board will be meeting shortly regarding transition." Earlier Tuesday on the social media site Twitter, Mr. Trump confirmed he chose Tillerson, calling him "one of the truly great business leaders of the world." In a follow-up tweet , Mr. Trump said "the thing I like best about Rex Tillerson is that he has vast experience at dealing successfully with all types of foreign governments." Write to Dan Molinski at Dan.Molinski@wsj.com Read More * Deals With Putin Helped Fuel Rise of Rex Tillerson at Exxon * Tillerson's New U.S. Diplomatic Role Sparks Alarm...and Praise * Trump Chooses Exxon Mobil CEO Rex Tillerson as Secretary of State * Exxon CEO Rex Tillerson Faces Senate Dissent as Potential State Pick Credit: By Dan Molinski
Subject: Chief executive officers; Social networks
Location: United States--US
People: Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848113098
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848113098?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
With Tillerson Tapped for Cabinet, Darren Woods Likely to Lead Exxon; Next leader of oil and gas giant will need to navigate tough business and political obstacles
Author: Olson, Bradley; Cook, Lynn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
The appointment of a major American chief executive to a cabinet post isn't without precedent, according to historians, who point to former Secretary of Defense Robert McNamara, a former president of Ford Motor Co., and former Secretary of Defense Charles Wilson, a former chief executive of General Motors Co. Mr. Wilson's stock holdings in GM became a point of conflict during confirmation hearings in 1953, during which he famously told members of Congress he hadn't seen any conflict because he thought that "what was good for our country was good for General Motors, and vice versa."
Full text: Corrections & Amplifications: Rex Tillerson is the CEO of Exxon Mobil. A caption in an earlier version of this article incorrectly spelled the company name as Exxon Mobile. (Dec. 13) President-elect Donald Trump's selection of Rex Tillerson as his secretary of state complicates the challenges facing Exxon Mobil Corp., which now must speed a transition to a new leader while managing the intense scrutiny Mr. Tillerson's new public role could bring to the oil and gas giant. While the U.S. hasn't seen a chief executive as powerful as Mr. Tillerson go straight from the boardroom to a presidential cabinet in decades, the election in 2000 of former Vice President Dick Cheney, a former Halliburton Co. chief executive, provides a recent parallel. Halliburton became a political lightning rod after the U.S.-led invasion of Iraq in 2003, when the company won billions in contracts to work Iraq oil fields and support the U.S. military. A Halliburton spokeswoman declined to comment Tuesday. Exxon could face similar tests as Mr. Tillerson leads a Trump diplomatic team that will make decisions on such foreign policy issues as sanctions on Russia, human-rights abuses in resource-rich countries and climate change, experts said. Although Exxon hasn't formally announced a successor to Mr. Tillerson, Darren Woods, 51 years old, emerged as Mr. Tillerson's heir apparent last December when he was appointed president of the company and took a seat on the board. Succession planning is serious business at Exxon, and Mr. Tillerson, chairman and chief executive since 2006, is supposed to retire in March when he turns 65, according to company rules. "The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," Suzanne McCarron, Exxon's vice president of public and government affairs, said Tuesday. "The board will be meeting shortly regarding transition." Exxon declined further comment. Far from worried, investors have reacted with glee to news of Mr. Tillerson's secretary of state candidacy. Exxon shares rose 2% to $92.80 Tuesday as the president-elect officially announced Mr. Tillerson as his choice. "This won't faze the company in the least as their succession planning is among the most rigorous in the industry," said Les Csorba, an executive recruiter at Heidrick & Struggles International Inc. in Houston who also helped manage national security appointments in the administration of President George H.W. Bush. The appointment of a major American chief executive to a cabinet post isn't without precedent, according to historians, who point to former Secretary of Defense Robert McNamara, a former president of Ford Motor Co., and former Secretary of Defense Charles Wilson, a former chief executive of General Motors Co. Mr. Wilson's stock holdings in GM became a point of conflict during confirmation hearings in 1953, during which he famously told members of Congress he hadn't seen any conflict because he thought that "what was good for our country was good for General Motors, and vice versa." The business background of those appointees was less controversial because American corporations occupied a different place in American society at that time. "McNamara himself, as the principal architect of an unsuccessful Vietnam War strategy, may have elevated public and political skepticism about CEOs in Cabinet positions," said Donald Hafner, a professor of history at Boston College. Exxon, by contrast, now confronts some of the biggest political and business obstacles it has faced since its origins as part of the 1911 breakup of John D. Rockefeller's Standard Oil Co. Exxon has struggled to find enough new oil and gas after three big bets made by Mr. Tillerson have failed thus far to deliver on their promise. It suffered a serious setback when the U.S. and its allies imposed economic sanctions on Russia in 2014, after Mr. Tillerson brokered a major Arctic drilling deal with the country in 2011. The company also poured billions into Canada's oil sands over the last decade but in October told investors it recognized as many as 4.6 billion barrels of future reserves, primarily in Canada, may no longer be profitable to produce at today's prices. And it got into the shale drilling boom late with a purchase of XTO Energy Inc. valued at $31 billion when it was announced in 2009. Earlier this year, Exxon lost the sterling triple-A credit rating from Standard & Poor's it had held since before the Great Depression. Last year, it failed to replace all of the oil and gas reserves that it produced for the first time in more than two decades. If the Trump administration lifts sanctions on Russia and Exxon reboots its energy partnership with Rosneft, the company stands to reap billions in profits. Back in the U.S., however, Exxon is embroiled in several disputes, including an investigation opened earlier this year by the U.S. Securities and Exchange Commission over how Exxon accounts for its oil and gas reserves and communicates with investors about climate change. Exxon is also in a protracted legal battle with state attorneys general in New York, Massachusetts and elsewhere over investigations that Democratic officials have started into Exxon's history of climate research and how it discloses information about the business risk of climate change in its reports to shareholders and regulators. While Mr. Woods's expected ascension to the chief executive role isn't yet official, and still must be approved by the company's board, Exxon has consistently promoted from within its ranks, elevating future leaders to the role of president before they take over. Mr. Woods is a 24-year Exxon employee with an engineering degree from Texas A&M University. He rose up the ranks in the oil giant's vast refining and chemical business. Mr. Tillerson had moved up through the company's exploration and oil-pumping side. While executives at the company's headquarters in Irving, Texas take pride in taking a long view of their businesses, Mr. Tillerson's successor will have to steer Exxon through short-term headwinds as fierce as any since the Exxon Valdez oil spill in Alaska in 1989. Mr. Woods couldn't be reached for comment Tuesday. Christopher M. Matthews contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com and Lynn Cook at lynn.cook@wsj.com More * Trump Picks Exxon Chief for State Department * Deals With Putin Helped Fuel Tillerson's Rise at Exxon Credit: By Bradley Olson and Lynn Cook
Subject: Succession planning; Chief executive officers; Presidents; Investments
Location: United States--US Russia Iraq
People: Bush, George H W Cheney, Richard B
Company / organization: Name: Heidrick & Struggles International Inc; NAICS: 541612; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Boston College; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848137901
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848137901?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
North Dakota Crude Oil Output Rises to Five-Month High; Crude production rose 7.4% on the month to 1.04 million barrels a day in October
Author: Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
North Dakota's production is centered on the Bakken Shale formation, one of the world's highest-cost oil fields.
Full text: North Dakota's crude-oil production in October rose to a five month high and climbed back above the one million barrel a day level for the first time since July, the state's Department of Mineral Resources said Tuesday. Crude production surged 7.4% on the month to 1.04 million barrels a day in October, the most recent month for which data is available. That is the highest level since May and follows a drop to more than two year lows in September. North Dakota's production is centered on the Bakken Shale formation, one of the world's highest-cost oil fields. Crude prices rose above $50 a barrel in October, making it more profitable for producers in the state to boost output per well. "Operators responded to that by opening up wells they had on restricted production and hydraulic fracturing of several big [well] producers," Lynn Helms, director of the department, said at a press conference in Bismarck. Most oil in North Dakota is extracted by hydraulic fracturing, or fracking, where a mixture of water, sand and chemicals is pumped into rock formations to push oil out. Such wells are first drilled and then put into production after being fracked, or completed. After a dip back below $50 a barrel in November, prices have rallied following the Organization of the Petroleum Exporting Countries' agreement late last month to cut production. In midday trading on Tuesday, U.S. crude futures fell 36 cents, or 0.68%, to $52.47 a barrel on the New York Mercantile Exchange. Mr. Helms said prices need to hit $60 a barrel for sustained production increases from the state, but that output from the Bakken is unlikely to decline significantly as long as prices stay above $50 a barrel. "The worst should be behind us," he told reporters. Total production in North Dakota came to 32.3 million barrels of oil in October, up from 29.2 million barrels in September, the state said. North Dakota's active rig count currently stands at 40 rigs, up from 37 in November, the state said. The all-time high for the state was 218 rigs in May 2012. The number of wells completed, or brought into production, fell to 25 in October, down from 73 in September, according to provisional state figures. Natural-gas production in North Dakota rose 6.4% in October to 1.72 billion cubic feet a day, state figures showed. Energy producers burned off, or flared, 14.6% of gas output, up from 11.9% in September. Gas is a byproduct of oil production. Write to Chester Dawson at chester.dawson@wsj.com Credit: By Chester Dawson
Subject: Hydraulic fracturing; Natural gas; Petroleum production
Location: North Dakota
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848139572
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848139572?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Inventories Seen Decreasing in DOE Data; The Energy Information Administration survey is due at 10:30 a.m. EST Wednesday
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Tuesday its data for the week showed a 4.7 million-barrel increase in crude supplies, a 3.9 million-barrel rise in gasoline stocks and a 230,000-barrel increase in distillate inventories, according to a market participant.
Full text: U.S. crude-oil stocks are expected to show a decrease in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 14 analysts and traders surveyed showed that U.S. oil inventories are projected to have decreased by 1.7 million barrels, on average, in the week ended Dec. 9. One analyst expects stockpiles to rise and 13 expect them to decline. Forecasts range from a decrease of 3.5 million barrels to an increase of 2 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show an increase of 1.8 million barrels on average, according to analysts. Eleven analysts expect them to rise and two analysts expect them to fall. One did not report expectations. Estimates range from a fall of 1.5 million barrels to an increase of 3.4 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to grow by 1 million barrels. Ten analysts expect an increase and three expect a decrease. One did not report expectations. Forecasts range from a decline of 1.5 million barrels to an increase of 3.2 million barrels. Refinery use is seen gaining 0.4 percentage point to 90.8% of capacity, based on EIA data. Nine analysts expect an increase, two expect a decrease, one expects no change, and two did not report expectations. Forecasts range from a decrease of 0.5 point to an increase of 1 point. The American Petroleum Institute, an industry group, said late Tuesday its data for the week showed a 4.7 million-barrel increase in crude supplies, a 3.9 million-barrel rise in gasoline stocks and a 230,000-barrel increase in distillate inventories, according to a market participant. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Inventory; Price increases
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848152110
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848152110?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Politics Beats Environmental Sense in Dakota; Oil is already crossing the Missouri just north of the Sioux reservation--in 100-tank-car railroad trains over an old railroad bridge.
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
Flimflam sells in this country, and environmental activists are running wild using it the last eight years, since they have found an administration that considers them to be useful idiots in its sustained effort to sell its questionable green-energy program; a multitrillion-dollar boondoggle with no honest cost-benefit analysis.
Full text: Regarding your editorial "Obama's Last Stand " (Dec. 6): The Sioux's Fort Yates water intake, the prime subject of the oil pipeline protest, will be permanently shut down in early 2017 and replaced with water piped in from a faraway safe and very reliable source. The replacement project has been in the works a long time, so why do people think they need to protect the water taken in at Fort Yates? Oil is already crossing the Missouri just north of the Sioux reservation--in 100-tank-car railroad trains over an old railroad bridge. This is a far greater danger to the river water and environment than a pipeline. In effect, the protest has left the water intake at Fort Yates at more risk than it would be if the pipeline were completed, not that it matters much anyway, because the Fort Yates intake will be shut down soon with or without the protests. Jim McManus Phoenix You note that the U.S. Army Corps of Engineers' decision to scuttle the Dakota Access pipeline "has jeopardized its integrity." But this wasn't the first time the Corps ignored its own research to block energy development. Earlier this year, in a lesser known decision, the Corps cited an internal study to stop drilling around Joe Pool Lake in North Texas. Specifically, the study said that the exclusion zone needed to be expanded to a 4,000-foot radius around a nearby dam. But the study actually concluded that the existing exclusion zone--3,000 feet--was "reasonable for protecting the dam." The study even said that "an exclusion zone of 3,000 feet is recommended." Critics often claim that the federal government is stifling oil and gas development. It is political decisions like these that fuel those concerns. Steve Everley North Texans for Natural Gas Dallas The Dakota Access pipeline controversy is one small but glaring example of how a few ideologues, "professional disruptors," can hold up entire societies with frivolous and hugely expensive demands. When they find favor at the state or federal level, they become even more empowered. Why are a few Native American leaders holding up completion of a $4 billion project now with it 99% in place? Is it really because it involves "sacred cultural resources"? Nonsense. If that land is so sacred, why was the Corps of Engineers not faced with this religious frenzy when it built the dam that created Lake Oahe, under which another uncontroversial pipeline exists? Flimflam sells in this country, and environmental activists are running wild using it the last eight years, since they have found an administration that considers them to be useful idiots in its sustained effort to sell its questionable green-energy program; a multitrillion-dollar boondoggle with no honest cost-benefit analysis. The Dakota Access pipeline is merely collateral damage in an environmental jihad that threatens the economic growth of the nation. Roland Martin Carmel, Calif. The Dakota pipeline is yet another example of the Obama administration pandering to hoodlums and politicizing institutions such as the Corps of Engineers. Once again, the administration is disregarding the rule of law to boost its street cred. How does it expect complicated projects like this to ever get done when companies are subject to such arbitrary whims? The interference has allowed the pipeline project to drag on to the point where it is attracting all sorts of bored, often unemployed protesters with nothing better to do. It's outrageous that the media portray this as a David against Goliath struggle. Rather this is a rabble disregarding the law, supporting a tribe which failed to participate in the permitting process when requested, not that 99% of the protesters have a legitimate stake in the case. We can hope that Donald Trump stands behind his pledge to enforce law and order. Kirk Schlup Woodbury, Conn.
Subject: Demonstrations & protests
Location: Missouri
Company / organization: Name: Army Corps of Engineers; NAICS: 928110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848170853
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848170853?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
North Dakota Says Crude Oil Spilled into Waterway; Leak from pipeline has contaminated more than five miles of creek, regulators say
Author: Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract:
Pressure on oil companies from environmentalists and farmers prompted state regulators earlier this month to approve new spill prevention and mitigation rules on oil and gas infrastructure, but those measures don't go into effect until Jan. 1.
Full text: North Dakota regulators said Tuesday that nearly 75% of an estimated 4,200 barrels of crude oil that leaked from a pipeline has flowed into a creek, contaminating 5.4 miles of the waterway in a remote area in the westernmost part of the state. A six-inch-diameter pipeline operated by Belle Fourche Pipeline, a unit of Casper, Wyo.-based True Oil LLC, spilled the oil into Ash Coulee Creek northwest of Dickinson, N.D., the state department of health said. The leak has been contained and the cause is under investigation, it said. The spill is the latest in the state's Bakken Shale oil-producing zone that involve crude oil or related materials such as salty wastewater pumped out of the ground in the process of drilling for oil and gas. It is the largest uncontrolled release of crude since a spill of 21,600 barrels of oil by a Tesoro Logistics LP pipeline in 2013, according to state data. The leak occurred as protests continue on the other side of the state, where environmental and Native American demonstrators have camped out for weeks in opposition to the much larger Dakota Access crude oil pipeline . That proposed project, sponsored by Energy Transfer Partners LP, has been blocked from receiving a permit for a key river crossing by the Obama administration over concerns of inadequate consultation with local tribes. The Belle Fourche leak, which was discovered on Dec. 5, came from a section of a 1980s-era pipeline that had been replaced in 2012, said Alison Ritter, a spokeswoman for the state's Department of Mineral Resources. That work didn't require a state inspection, she said. True Oil, which operates another pipeline that spilled as much as 1,200 barrels of oil into the Yellowstone River last year, issued a statement saying it regretted the incident and is taking steps to clean it up. "The focus of our team on the ground is now oil recovery and environmental cleanup," it said. "Severe weather and rough terrain is making the recovery difficult." "It's not a drinking water source for humans, but it is for cattle," said Bill Suess, the health department spill investigation program manager. Two cows have been found dead in the area and their cause of death is being investigated, he said. The breach occurred on private land and was first detected by the landowner, but the spillover flowed onto land controlled by the U.S. Forest Service, Mr. Suess said. Nearly 900 barrels of oil have been recovered from the site, which leaked an estimated 3,100 barrels of crude into the creek, the state said. Pressure on oil companies from environmentalists and farmers prompted state regulators earlier this month to approve new spill prevention and mitigation rules on oil and gas infrastructure, but those measures don't go into effect until Jan. 1. Write to Chester Dawson at chester.dawson@wsj.com Credit: By Chester Dawson
Subject: Pipelines; Oil spills; Crude oil; Creeks & streams; Oil recovery
Location: North Dakota
Company / organization: Name: Tesoro Logistics LP; NAICS: 486110, 213112; Name: Forest Service-US; NAICS: 924120, 926140
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848187888
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848187888?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Maersk Looks to Join Supply Chain Management Big League; CEO of Danish shipping-and-oil conglomerate says aim is to become 'global integrator of container logistics'
Author: Paris, Costas; Chopping, Dominic
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.
Abstract: None available.
Full text: A.P. Moller-Maersk A/S is looking for more shipping takeovers and plans to integrate its transport and logistics business to offer more supply-chain management services like United Parcel Service Inc. and FedEx Corp. "Our aim is to become a global integrator of container logistics," Maersk Chief Executive Soren Skou told investors on Tuesday at the group's capital markets day gathering in Copenhagen. In a major shake-up announced in September, the Danish shipping-and-oil conglomerate said it would split the group into two divisions focused on transport and energy. Maersk Line, its shipping unit, would oversee the transport division, while the group's oil interests would be consolidated into the energy division that will embark on joint ventures, mergers or independent listings over the next two years. More than half of the company's revenue comes from Maersk Line, the world's biggest container operator by capacity, which moves about 19% of all seaborne container cargo and is seen as a barometer of global trade. Maersk plans to move more ships in and out of APM Terminals, its own global ports operator, and move more cargo inland through DAMCO, its supply-management division handling air freight, trucks and warehouses around the world, Mr. Skou said. Maersk aims to replace the roughly $10 billion revenue that would be lost from the energy division--about a quarter of the group's total revenue--with the expansion in transport and logistics, he said. Maersk shares closed up 4% in Copenhagen trading. Maersk Line earlier in December bought German container operator Hamburg Süd for about $4 billion, and it is looking for more acquisitions to boost its market share. "For those who want to invest in the industry, merging and acquiring capacity is the most rational way to do it," Mr. Skou said. Container ships move 95% of manufactured goods, from designer dresses to heavy machinery. But over the past two years, the industry has seen freight rates tumble amid a capacity glut that prompted price wars between operators that have pushed freight rates to levels barely covering fuel costs. That has kicked off a round of consolidation in which the top players are trying to bulk up to obtain more pricing power when the industry recovers. Vincent Clerc, the chief commercial officer of Maersk Line, said a "violent price war" is starting to self-correct. Compared with the rest of the world, freight rates out of China were hardest hit in the current downturn, but they appear to have bottomed out, he added. Freight rates have averaged around $700 a container a month since the start of last year on the benchmark Asia-to-Europe route with the break-even point at $1,400. Shipping executives estimate the top 20 operators will post this year combined losses of as much as $10 billion. Write to Costas Paris at costas.paris@wsj.com and Dominic Chopping at dominic.chopping@wsj.com Related Coverage * Hyundai Merchant Marine Reaches Cargo Agreement With 2M Alliance (Dec. 11) * Hyundai Merchant No Longer Considered for 2M Alliance, Maersk Says (Dec. 9) * Shipping Industry Feels Shock Waves From Donald Trump Election (Nov. 9) * Maersk's Profit Tumbles on Weak Freight Rates, Low Oil Prices (Nov. 2) * Maersk CEO Soren Skou: Freight Rates Are Rising (Nov. 2) Credit: By Costas Paris and Dominic Chopping
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 13, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848275719
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848275719?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
How Rex Tillerson, a Late Entry to Be Secretary of State, Got Donald Trump's Nod; Exxon CEO wasn't on anyone's radar until a former defense secretary suggested him to the president-elect
Author: Nicholas, Peter; Bender, Michael C; Lee, Carol E
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract: None available.
Full text: President-elect Donald Trump was three weeks into his search for a secretary of state when former Defense Secretary Robert Gates arrived at his New York office for a private talk. The cabinet selection was bedeviling Mr. Trump. His first instinct to pick a loyal insider was undercut by reports of the prospective nominee's overseas money-making ventures, and his flirtation with a known political adversary was being hammered by his own supporters. What if, he asked Mr. Gates, he wiped the slate clean and started over? The former Pentagon chief offered a name that was on no one's radar, and one whose company happened to be one of his clients: Exxon Mobil Corp. head Rex Tillerson. Four days later, Mr. Trump held his first interview with Mr. Tillerson and was "blown away," a transition official said, adding: "That sort of reshuffled the deck." On Tuesday, Mr. Trump ended a messy five-week search for the plum cabinet post, selecting Mr. Tillerson from upwards of 10 candidates who included campaign backers, foreign-policy experts and established politicians. Mr. Trump's handling of the search offers an early window into an executive style that leaves even his own advisers guessing at what he will do right up until the last moment. He also went ahead with the Tillerson pick in the face of bipartisan resistance from senators who are wary of the oil executive's business ties to Russian President Vladimir Putin, which run deep enough that Mr. Tillerson was named to Russia's Order of Friendship in 2013. As those concerns were aired publicly on Monday, Mr. Trump became even more determined to buck the establishment and select Mr. Tillerson, a transition official said. "It's important to know that the one thing Mr. Trump understands is that he's in charge," said Ed Brookover, a former political adviser to Mr. Trump. "There can be all sorts of speculation and talking about what's going on, but a decision isn't made until he makes it." The upshot, though, is that winning Senate confirmation might not be easy, and Mr. Trump may need to spend considerable political capital to install Mr. Tillerson in the job. From the outset, the search and selection of the next secretary of state took on a life of its own, even as the Trump transition team set a brisk pace for filling other high-level positions. Initially, former New York Mayor Rudy Giuliani emerged as what seemed to be the prohibitive favorite. He topped the short list of candidates that Trump advisers handed the president-elect on Nov. 9, the day after the election. Mr. Giuliani had stood by Mr. Trump during the bleakest moments of his candidacy and was a frequent visitor to Trump Tower during the transition. At a Wall Street Journal CEO Council event on Nov. 14, Mr. Giuliani privately told attendees he would land the job, and he talked up his security contracts and paid speech-making overseas as part of his résumé. On stage, he was asked who would be a better secretary of state than John Bolton, a former diplomat also considered for the post. Mr. Giuliani replied, "Maybe me, I don't know." But Mr. Trump wasn't completely sold. One transition official said the president-elect was concerned Mr. Giuliani, 72 years old, might not have the necessary stamina for a job. "My stamina is unbelievable," Mr. Giuliani said in an interview on Tuesday. Meanwhile, other unexpected candidates began to emerge. Chief among them was Mitt Romney, the 2012 Republican presidential nominee who had become the primary voice of the "never Trump" corner during the primaries. The New York businessman met Mr. Romney at his golf club in New Jersey on Nov. 19 at the suggestion of his top strategic adviser, Steve Bannon, who wanted to show party unity before the media cameras. But the meeting went so well that Mr. Romney emerged as the front-runner for the job, to the chagrin of Mr. Bannon, who had run Breitbart News, a website that was critical of Mr. Romney. By Nov. 22, three days after that first meeting, Mr. Trump told associates that he was 95% of the way to picking Mr. Romney. Two days later, Trump senior adviser Kellyanne Conway tweeted that she was getting a "deluge" of comments about Mr. Romney's prospective appointment from Trump loyalists who hadn't forgiven him for his remarks during the campaign, including calling Mr. Trump "a phony, a fraud." Ms. Conway, who took her warnings onto the Sunday morning news shows, wasn't freelancing. People familiar with the matter said she was acting with Mr. Trump's approval. Mr. Romney played his cards close, making personal appeals to his allies to remain silent about the process in deference to Mr. Trump, according to people familiar with Mr. Romney's planning. The former Massachusetts governor spent the weekends with his grandchildren, and avoided a public fight with transition officials that might give Mr. Trump an easy excuse to scuttle his candidacy. Mr. Romney declined requests for comment. Mr. Trump had another meeting with Mr. Romney on Nov. 29. He invited the press to take pictures of a private dinner in the dining room of the Trump International Hotel & Tower in midtown Manhattan. Afterward, Mr. Romney offered a sort of mea culpa, commending Mr. Trump for "bringing people together" following the election. On the same day that Mr. Trump and Mr. Romney were served frog legs in the New York restaurant, Mr. Giuliani told Mr. Trump he was pulling back his name from consideration. Mr. Trump wasn't ready to limit his options, though, and the next day Trump aides told reporters Mr. Giuliani was still one of four finalists for the job. Three days later, Mr. Gates arrived at Trump Tower for his private meeting. That discussion was soon followed with a call to former Secretary of State Condoleezza Rice, in which Mr. Trump talked to her about Mr. Tillerson and other issues, a person familiar with the matter said. In a meeting with Mr. Trump and Vice President-elect Mike Pence, she talked up Mr. Tillerson as a top executive and as the "best in that breed." Both Ms. Rice and Mr. Gates are principals in the firm RiceHadleyGates, an international strategic-consulting firm. Mr. Gates said one of the firm's clients is Exxon Mobil. In an interview, Mr. Gates said Exxon is only "one of many clients of ours," and that he recommended Mr. Tillerson because of a personal relationship rooted in leadership roles they have both held in the Boy Scouts of America. He described talking with Mr. Tillerson in recent years after scouting events, and "over drinks and a cigar" talking about world affairs. Over this past weekend, Mr. Trump seemed to have made up his mind that he wanted to anoint Mr. Tillerson. "Stay tuned," he tweeted. "I'm getting very close," Mr. Trump told Fox News's Chris Wallace. Although his advisers said he had settled on Mr. Tillerson, some worried that his mind could change. One transition adviser said he had seen instances where Mr. Trump changed course based on his latest conversation. One of his last phone calls Monday night was to Ms. Rice, who saw in the business executive a figure who was already comfortable moving in a world that included presidents and kings. On Monday night, as word of the Tillerson pick began to leak, Mr. Romney posted a note on Facebook conceding he was out of the running, saying it was "an honor" to have been considered for the post. Bradley Olson and Mara Gay contributed to this article. Rex Tillerson Exxon Mobil CEO * Age: 64. * Résumé: Mr. Tillerson, who grew up in Texas, joined Exxon in 1975. He has spent his entire career so far at the company. Mr. Tillerson has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government. * Possible hurdle: With Exxon's long history of business in Russia, Mr. Tillerson's nomination faces potential bipartisan resistance in the Senate over his ties to Russian President Vladimir Putin. In 2013, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson. Read More on Capital Journal Capital Journal is WSJ.com's home for politics, policy and national security news. * Confirmation Battle Looms for Tillerson * Donald Trump Chooses Exxon Mobil CEO Rex Tillerson as Secretary of State * Trump's Pledge to Loosen Regulations on Businesses Is a Heavy Lift * Tillerson's New U.S. Diplomatic Role Sparks Alarm...and Praise * Deals With Putin Helped Fuel Rise of Rex Tillerson at Exxon Credit: By Peter Nicholas, Michael C. Bender and Carol E. Lee
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848275053
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848275053?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Cuba and Venezuela's Ties of Solidarity Fray; The oil from Caracas that once paid for doctors from Havana is running low, imperiling an ideological union
Author: Kurmanaev, Anatoly
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract: None available.
Full text: CIENFUEGOS, Cuba--Fidel Castro and Hugo Chávez proclaimed a decade ago that they presided over a single country, combining Cuba's educated workforce with Venezuela's oil wealth to challenge U.S. power across Latin America. Now Mr. Castro is gone , three years after Mr. Chávez's death, and the union between their two countries, while still strong on paper, is withering away fast. Daily shipments of more than 100,000 barrels of subsidized Venezuelan oil, the lifeblood of Cuba's economy, have dropped by more than half since 2013, according to oil traders and Cuban refinery workers. In November, Cuba had to buy oil on the open market for the first time in 12 years, because of Venezuela's plummeting output. Meanwhile, thousands of Cuban doctors who toiled in Venezuelan shantytowns to pay off the oil deliveries are quietly returning home, scaling back an important vestige of the popular social programs Mr. Chávez left to his now embattled successor, Nicolás Maduro. The air bridge between the two Caribbean countries is also dissolving: Cuba's flagship airline, Cubana de Aviación, stopped regular flights to Caracas earlier this year. Charters from Caracas to Havana have scaled back too as demand slumped. On the surface, leaders in both countries swear to an ironclad coupling, which detractors mockingly call Cubazuela. After Mr. Castro died last month, Venezuela's government declared three days of mourning; Mr. Maduro and a large delegation of high officials then spent several days in Cuba to pay respects. He sat to the right of Raúl Castro, Cuba's president and the elder Mr. Castro's successor, at the memorial ceremony in Havana, fighting back tears before his turn came to speak to the crowds. "Raúl, count on Venezuela," said Mr. Maduro, who as a young man underwent political training in Cuba. "We will carry on the path of victory, the path of Fidel." In the good times under Mr. Chávez, who cast himself as Fidel Castro's spiritual son, Venezuela restarted and expanded the oil refinery here in Cienfuegos, making it the city's largest employer. Venezuela built new houses and brought in new city buses. The largess helped this city partially recover from the collapse of the surrounding sugar mills and become a symbol of the economic union between the two countries. "Deep down, we are one single government, one single country," Mr. Chávez said during a 2007 visit to a nearby town. Reselling subsidized oil from Venezuela on the open market earned Cuba billions of dollars, allowing the country to get back on its feet after the demise of its Cold War-era benefactor, the Soviet Union. But all that has changed now in this port city, with its wide colonial boulevards and leafy coastal promenade. The posters and murals of Mr. Chávez hugging Mr. Castro or picturing the pair walking together through sunflower fields are now fading. Residents say their future lies with American tourists and investors, not with Mr. Maduro. "We are very grateful to Chávez, but we have to fend for ourselves now," said Antonio Alborniz, a former refinery truck driver who recently switched to driving a tourist taxi. "The oil is gone." Now the refinery sits idle. The last Venezuelan oil tanker docked here in August, according to oil traders. The shutdown has already sharply raised the cost of living for many residents, who had relied on cheap gasoline smuggled out of the refinery to alleviate hardship. Overall, Venezuelan exports of crude oil and refined products to Cuba, which generate most of the island's electricity, fell to about 55,000 barrels a day this year through October from the peak of 115,000 in 2008, according to data from Petro-Logistics SA, a consulting firm that tracks tanker movements. Traders say deliveries have fallen further since, though it is unclear by how much. Venezuela's crude production has fallen so much that state oil company Petróleos de Venezuela SA, known as PDVSA, had to resort to buying oil abroad to meet its minimum obligations to Cuba for December and January, according to oil traders involved in the deals. After that, the Cuban government may have to source most of its crude itself. Cuba's foreign ministry and PDVSA didn't reply to requests for comment. Venezuelan officials say the Cuban government has gone through many hardships since the fall of the Soviet Union, insisting it won't let Venezuela's economic crisis affect the alliance. "Fidel was very well aware of Venezuela's current problems," Ali Rodríguez, Venezuela's ambassador to Havana and a former guerrilla inspired by Mr. Castro, said in an interview. "The Cuban government understands that Venezuela can no longer provide them all the things that it used to." As Venezuelan oil dwindles, Cuba is being forced to reduce its side of the bargain, summoning home the medical personnel who helped make Mr. Chávez popular. There were 38,300 Cuban doctors and nurses working in Venezuela at the end of May, 4,000 fewer than three years ago, according to John Kirk, a professor at Dalhousie University in Halifax, Canada, who closely tracks Cuban medical missions. At its peak, 65,000 Cuban medical staff worked in Venezuela, according to Mr. Rodríguez, who declined to discuss the current levels. Many of the returning doctors aren't being replaced, and Cuban medical personnel are increasingly turning down Venezuelan postings because of spiraling violence in that country, according to interviews with half a dozen Cuban doctors who served in Venezuela. Hundreds posted in Venezuela also defected, hoping to reach the U.S. Cuba's exports of services, mostly medical missions, fell 15% to $470 million last year from 2013, according to government statistics. The loss of money from reselling Venezuelan oil coupled with the shrinking medical exports are putting pressure on Cuban foreign exchange earnings at the time when some here worry that U.S. President-elect Donald Trump will scale back remittances to the island from Cuban Americans, the annual value of which is greater than what Cuba earns in exports. Juan Forero in Havana and Mayela Armas in Caracas contributed to this article. Credit: By Anatoly Kurmanaev
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848275696
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848275696?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Confirmation Battle Looms for Rex Tillerson as Secretary of State; Some Republican senators question the Exxon Mobil CEO's closeness to Russian leaders
Author: Tau, Byron
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
WASHINGTON--Donald Trump pushed ahead Tuesday with his controversial pick for secretary of state, Exxon Mobil Corp. chief Rex Tillerson, setting up a likely battle with senators--including some Republicans--who have raised questions about his closeness to Russian leaders.
Full text: WASHINGTON--Donald Trump pushed ahead Tuesday with his controversial pick for secretary of state, Exxon Mobil Corp. chief Rex Tillerson, setting up a likely battle with senators--including some Republicans--who have raised questions about his closeness to Russian leaders. Republican Sens. Marco Rubio, John McCain and Lindsey Graham, influential voices in the chamber on foreign-policy issues, want to use the confirmation process to explore Mr. Tillerson's relationship with Russian President Vladimir Putin. Mr. Rubio went the furthest, saying Tuesday he had "serious concerns" about the nominee. The worries from Republicans signaled Mr. Tillerson could face trouble getting confirmed in the Senate, where he could lose no more than two GOP votes if all Democrats oppose him. Mr. Tillerson was officially unveiled as the president-elect's choice Tuesday morning after a long interview process that featured multiple candidates, including former New York City Mayor Rudy Giuliani and former Massachusetts Gov. Mitt Romney. Mr. Trump called the executive's life story the "embodiment of the American dream" and suggested his business background would empower Mr. Tillerson to cut deals as America's top diplomat. Senate Majority Leader Mitch McConnell (R., Ky.) praised Mr. Tillerson for his "forward-looking strategic planning, managing international partnerships and risk, and focused leadership around the world." He played down concerns over Mr. Tillerson's ties to Russia by saying he was confident he "will face each problem head on with American interests and security as his top priority." Mr. Tillerson also has the support of former Secretary of State Condoleezza Rice, former Defense Secretary Bob Gates and former national security adviser Stephen Hadley, the Trump team noted. The three are partners in an international consulting firm that has worked for Exxon. The Foreign Relations Committee chairman, Bob Corker (R., Tenn.), who was himself a candidate for the State Department post, said Mr. Tillerson is "a very impressive individual and has an extraordinary working knowledge of the world." Tom Pritzker, a billionaire Chicago businessman who serves with Mr. Tillerson on the board of the bipartisan Center for Strategic and International Studies in Washington, described Mr. Tillerson as a "brilliant choice." "He will be totally focused on U.S. national interests," Mr. Pritzker said. "It's a mistake to confuse knowing Russia with being pro-Russia. Rex knows Russia, which means he's ahead on the learning curve." Transition officials suggested some centrist Democrats might back Mr. Tillerson given his position on climate change, which he has said is a global problem that warrants action. Sen. Chris Coons (D., Del.) a member of the Foreign Relations panel, expressed concerns over what he viewed as Mr. Tillerson's potential conflicts, but said he was "intrigued" by reports the nominee had supported a carbon tax. "I didn't expect that from an oil-and-gas executive," he said. Mr. Coons added that he was skeptical that would shape the Trump administration's climate policy, given that Mr. Trump last week tapped climate skeptic Oklahoma Attorney General Scott Pruitt to lead the Environmental Protection Agency. Under Mr. Tillerson's leadership, Exxon has embraced a carbon tax as the best policy to address climate change, and this year the company stepped up its lobbying of fellow U.S. oil-and-gas companies to back a carbon tax over no climate policy at all. The oil giant also backs a global deal struck in Paris last year to cut greenhouse gas emissions. But Russia appears to be the main concern of senators of both parties. A number of Republicans have signaled they expect confirmation hearings in the Foreign Relations Committee to focus on questions about his relationship and business dealings in Russia, as well as his opposition to U.S. sanctions against Russia. He's also likely to draw similarly tough scrutiny from many Democrats in the Senate, who plan to use the confirmation hearings as a public forum on the nomination even if they lack the votes to halt it. Under his leadership, Exxon signed a joint agreement with the state-owned Russian oil company Rosneft on a drilling project. Mr. Tillerson was later awarded the Russian Order of Friendship because of the deal. Republicans will control 52 seats in the Senate to 48 held by Democrats and the two independents who caucus with them. That means Mr. Tillerson can lose no more than two GOP votes in the Senate if all Democrats oppose him. The Foreign Relations Committee in the most recent session had 10 Republican and nine Democratic members. The panel's composition in the next Congress is still being worked out, but it is likely Mr. Tillerson would need to offset any GOP defections with support from Democrats to win a positive confirmation recommendation from the panel. The top Foreign Relations panel Democrat, Ben Cardin of Maryland, said he was "deeply troubled by Mr. Tillerson's vocal opposition to U.S. sanctions on Russia following its illegal invasion, occupation and annexation of Crimea, Ukraine, and his close personal relationship with Vladimir Putin." "I also want to know more about Mr. Tillerson's worldview, because I found many of President-elect Trump's foreign-policy statements as a candidate, and now as the next president of the United States, to be disturbing at best and frightening at worst," Mr. Cardin said. Mr. Rubio, a Florida Republican and Foreign Relations committee member, didn't say he would oppose Mr. Tillerson--only that he would "do my part to ensure he receives a full and fair but also thorough hearing." Mr. McCain of Arizona, the Republican 2008 presidential candidate, told NPR this week he too had concerns "about what kind of business we do with a butcher, a murderer and a thug, which is exactly what Vladimir Putin is." Mr. Graham of South Carolina said that while Mr. Tillerson was a "talented businessman," he expected "the U.S.-Russian relationship to be front and center in his confirmation process." Other Senate Republicans also expressed reservations about Mr. Tillerson's ties to Russia--though without opposing the nomination outright. A spokesman for Nebraska GOP Sen. Ben Sasse, who has been a vocal critic of Mr. Trump, said the senator "looks forward to diving into every nominee's record. Mr. Tillerson is a man of tremendous accomplishment, but U.S. policy toward Russia's Soviet-style aggression demands rigorous oversight." Sen. Chuck Grassley, an Iowa Republican, warned that "both Trump and Tillerson need to know that Putin is Machiavellian," and added that Presidents Barack Obama and George W. Bush were "hoodwinked" by the Russian leader. Mr. Trump's team described Mr. Tillerson as a self-made man and said his international business dealings should be considered an asset, not a concern. "You can see he is not only a successful businessman, but someone who really has that sort of American dream story of rags to riches," said Sean Spicer, a Trump spokesman. Only three cabinet nominees have been rejected in the 20th century and none this century. The last time was in 1989 when former Sen. John Tower, George H.W. Bush's nominee to be defense secretary, was rejected by a Democratic Senate. In other cases, nominees have withdrawn rather than face a vote that they were certain to lose. Damian Paletta, Kristina Peterson, Michael C. Bender, Carol E. Lee, Amy Harder and Mark Maremont contributed to this article. Write to Byron Tau at byron.tau@wsj.com Rex Tillerson Exxon Mobil CEO * Age: 64. * Résumé: Mr. Tillerson, who grew up in Texas, joined Exxon in 1975. He has spent his entire career so far at the company. Mr. Tillerson has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government. * Possible hurdle: With Exxon's long history of business in Russia, Mr. Tillerson's nomination faces potential bipartisan resistance in the Senate over his ties to Russian President Vladimir Putin. In 2013, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson. Read More on Capital Journal Capital Journal is WSJ.com's home for Trump transition news. * How Tillerson, a Late Entry to Be Secretary of State, Got Donald Trump's Nod * Donald Trump's Pledge to Loosen Regulations on Businesses Is a Heavy Lift * Trump Picks Montana Congressman Ryan Zinke as Interior Secretary * Donald Trump Chooses Exxon Mobil CEO Rex Tillerson as Secretary of State * Tillerson's New U.S. Diplomatic Role Sparks Alarm...and Praise * Deals With Putin Helped Fuel Rise of Rex Tillerson at Exxon Credit: By Byron Tau
Subject: Hearings & confirmations; Nominations; Political appointments; Carbon; International relations; Environmental policy; Climate change; Leadership; Natural gas utilities; Environmental tax
Location: Russia United States--US
People: Corker, Bob Hadley, Stephen J Rice, Condoleezza McConnell, Mitch Romney, W Mitt Giuliani, Rudolph W Graham, Lindsey Putin, Vladimir McCain, John
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848275732
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848275732?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
North Dakota Says Crude Oil Spilled into Waterway; Leak from pipeline has contaminated more than five miles of creek, regulators say
Author: Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
Pressure on oil companies from environmentalists and farmers prompted state regulators earlier this month to approve new spill prevention and mitigation rules on oil and gas infrastructure, but those measures don't go into effect until Jan. 1.
Full text: North Dakota regulators said Tuesday that nearly 75% of an estimated 4,200 barrels of crude oil that leaked from a pipeline has flowed into a creek, contaminating 5.4 miles of the waterway in a remote area in the westernmost part of the state. A six-inch-diameter pipeline operated by Belle Fourche Pipeline, a unit of Casper, Wyo.-based True Oil LLC, spilled the oil into Ash Coulee Creek northwest of Dickinson, N.D., the state department of health said. The leak has been contained and the cause is under investigation, it said. The spill is the latest in the state's Bakken Shale oil-producing zone that involve crude oil or related materials such as salty wastewater pumped out of the ground in the process of drilling for oil and gas. It is the largest uncontrolled release of crude since a spill of 21,600 barrels of oil by a Tesoro Logistics LP pipeline in 2013, according to state data. The leak occurred as protests continue on the other side of the state, where environmental and Native American demonstrators have camped out for weeks in opposition to the much larger Dakota Access crude oil pipeline . That proposed project, sponsored by Energy Transfer Partners LP, has been blocked from receiving a permit for a key river crossing by the Obama administration over concerns of inadequate consultation with local tribes. The Belle Fourche leak, which was discovered on Dec. 5, came from a section of a 1980s-era pipeline that had been replaced in 2012, said Alison Ritter, a spokeswoman for the state's Department of Mineral Resources. That work didn't require a state inspection, she said. True Oil, which operates another pipeline that spilled as much as 1,200 barrels of oil into the Yellowstone River last year, issued a statement saying it regretted the incident and is taking steps to clean it up. "The focus of our team on the ground is now oil recovery and environmental cleanup," it said. "Severe weather and rough terrain is making the recovery difficult." The pipeline has a capacity of 24,000 barrels a day, but the company said it doesn't know how much crude oil was flowing when it sprung a leak. True Oil said it has diverted oil shipments affected by the outage to other systems. State officials said the spill posed no risk to local towns but damage to animals and vegetation was being assessed. "It's not a drinking water source for humans, but it is for cattle," said Bill Suess, the health department spill investigation program manager. Two cows have been found dead in the area and their cause of death is being investigated, he said. The breach occurred on private land and was first detected by the landowner, but the spillover flowed onto land controlled by the U.S. Forest Service, Mr. Suess said. Nearly 900 barrels of oil have been recovered from the site, which leaked an estimated 3,100 barrels of crude into the creek, the state said. Pressure on oil companies from environmentalists and farmers prompted state regulators earlier this month to approve new spill prevention and mitigation rules on oil and gas infrastructure, but those measures don't go into effect until Jan. 1. Write to Chester Dawson at chester.dawson@wsj.com Credit: By Chester Dawson
Subject: Pipelines; Crude oil; Creeks & streams; Oil recovery
Location: North Dakota
Company / organization: Name: Tesoro Logistics LP; NAICS: 486110, 213112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848294203
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848294203?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Drop on Rising U.S. Crude Stockpiles; February Brent crude on London's ICE Futures exchange fell $0.63 to $55.09 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
Prices were also weighed down by a report by the International Energy Agency that showed producers inside the Organization of the Petroleum Exporting Countries pumped at record levels in November, posing a challenge to the cartel's plan to slash oil output to support prices.
Full text: Oil prices slumped in early trade Wednesday in Asia after data showed U.S. crude stockpiles grew last week, triggering concerns that rising prices are enticing U.S. shale producers to ramp up production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $52.32 a barrel at 0228 GMT, down $0.66 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.63 to $55.09 a barrel. The American Petroleum Institute, an industry group, said late Tuesday its data for the week ended Dec. 9 showed a 4.7 million-barrel increase in crude supplies, a 3.9 million-barrel rise in gasoline stocks, and a 230,000-barrel increase in distillate inventories. Analysts surveyed by The Wall Street Journal expect the official Energy Information Administration report to be released later Wednesday to show that crude stock fell by 1.7 million barrels. "The API figures look bearish, with the data for crude oil and gasoline more than offsetting the marginally supportive distillate figure," said Citi Futures analyst Tim Evans. Oil investors are also taking a wait-and-see approach ahead of the U.S. Federal Reserve meeting to conclude later Wednesday. Many market watchers believe the meeting will culminate in a rate increase. A rise in interest rates will strengthen the dollar, the currency used in oil trading. This could make oil more expensive for those who trade oil in foreign currencies. Prices were also weighed down by a report by the International Energy Agency that showed producers inside the Organization of the Petroleum Exporting Countries pumped at record levels in November, posing a challenge to the cartel's plan to slash oil output to support prices. OPEC agreed Nov. 30 to cut output by 1.2 million barrels a day starting in January, a decision followed by a deal by other producers, such as Russia, to reduce their supplies by 558,000 barrels a day, at the moment when many countries were pumping full out. At historically high production levels, OPEC would now have to cut 1.7 million barrels a day to reach its ceiling of 32.5 million barrels a day, much more than the 1.2 million barrels a day initially envisioned. Saudi Arabia would also have to reduce output by 572,000 barrels a day, instead of 486,000 barrels a day. "Compliance remains one of the key uncertainties, and markets will only price in these cuts when there is evidence that producers are abiding by commitments," said Bernstein Research, which expects at least a 70% compliance rate. One silver lining in the IEA report, however, is the upward revision of global demand, which is forecast to hit 97.61 million barrels a day in 2017--1.32 million barrels a day higher than the previous estimate due to robust demand by China. In the first 11 months, China's domestic crude production fell 7% on year to 182.9 million tons, or about 3.9 million barrels a day, while the refining rate rose 2.7% on year to 493.1 million tons, according to the National Bureau of Statistics. The big gap has been filled by foreign crude imports that have surged 14% to 344.63 million tons in the same period. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 211 points to $1.5296 a gallon, while January diesel traded at $1.6611, 136 points lower. ICE gas oil for January changed hands at $486.75 a metric ton, down $3.25 from Tuesday's settlement. Benoit Faucon contributed to this article. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Supply & demand; Gasoline; Futures; Price increases
Location: United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848294214
Document URL: https://login.ezproxy.uta.edu/lo gin?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848294214?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. News: New Exxon Leadership Would Face Tough Challenges
Author: Olson, Bradley; Cook, Lynn
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Dec 2016: A.6.
Abstract:
"The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," Suzanne McCarron, Exxon's vice president of public and government affairs, said Tuesday.
Full text: President-elect Donald Trump's selection of Rex Tillerson as his secretary of state complicates the challenges facing Exxon Mobil Corp., which now must speed a transition to a new leader while managing the intense scrutiny Mr. Tillerson's new public role could bring to the oil and gas giant. While the U.S. hasn't seen a chief executive as powerful as Mr. Tillerson go straight from the boardroom to a presidential cabinet in decades, the election in 2000 of former Vice President Dick Cheney, a former Halliburton Co. chief executive, provides a recent parallel. Halliburton became a political lightning rod after the U.S.-led invasion of Iraq in 2003, when the company won billions in contracts to work Iraq oil fields and support the U.S. military. A Halliburton spokeswoman declined to comment Tuesday. Exxon could face similar tests as Mr. Tillerson leads a Trump diplomatic team that will make decisions on such foreign policy issues as sanctions on Russia, human-rights abuses in resource-rich countries and climate change, experts said. Although Exxon hasn't formally announced a successor to Mr. Tillerson, Darren Woods, 51 years old, emerged as Mr. Tillerson's heir apparent last December when he was appointed president of the company and took a seat on the board. Succession planning is serious business at Exxon, and Mr. Tillerson, chairman and chief executive since 2006, is supposed to retire in March when he turns 65, according to company rules. "The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," Suzanne McCarron, Exxon's vice president of public and government affairs, said Tuesday. "The board will be meeting shortly regarding transition." Exxon declined to comment further. Far from worried, investors have reacted with glee to news of Mr. Tillerson's secretary of state candidacy. Exxon shares rose 2% to $92.80 Tuesday as the president-elect officially announced Mr. Tillerson as his choice. "This won't faze the company in the least, as their succession planning is among the most rigorous in the industry," said Les Csorba, an executive recruiter at Heidrick & Struggles International Inc. in Houston who also helped manage national security appointments in the administration of President George H.W. Bush. Exxon now confronts some of the biggest political and business obstacles it has faced since its origins as part of the 1911 breakup of John D. Rockefeller's Standard Oil Co. Exxon has struggled to find enough new oil and gas after three big bets made by Mr. Tillerson have failed thus far to deliver on their promise. It suffered a serious setback when the U.S. and its allies imposed economic sanctions on Russia in 2014, after Mr. Tillerson brokered a major Arctic drilling deal with the country in 2011. The company also poured billions into Canada's oil sands over the past decade, but in October it told investors it recognized that as many as 4.6 billion barrels of future reserves, primarily in Canada, might no longer be profitable to produce at today's prices. And it got into the shale drilling boom late with a purchase of XTO Energy Inc. valued at $31 billion when it was announced in 2009. Earlier this year, Exxon lost the sterling triple-A credit rating from Standard & Poor's it had held since before the Great Depression. Last year, it failed to replace all of the oil and gas reserves that it produced for the first time in more than two decades. Exxon is also embroiled in several disputes, including an investigation opened earlier this year by the U.S. Securities and Exchange Commission over how Exxon accounts for its oil and gas reserves and communicates with investors about climate change. --- Christopher M. Matthews contributed to this article. --- Company Known For Succession Plans Exxon Mobil Corp. has among the most rigorous CEO succession processes in the U.S. corporate world, experts say. Darren Woods, 51, is widely expected to take over for Chief Executive Rex Tillerson as he leaves the company for a potential appointment to be the next U.S. secretary of state. While the expected ascension of Mr. Woods isn't yet official, and still must be approved by the company's board, Exxon has consistently promoted from within its ranks, elevating future leaders to the role of president before they take over. Mr. Woods is a 24-year Exxon employee with an engineering degree from Texas A&M University. He rose up the ranks in the oil giant's vast refining and chemical business. Mr. Tillerson had moved up through the company's exploration and oil-pumping side. While executives at the company's headquarters in Irving, Texas, are proud of taking a long view, Mr. Tillerson's successor will have to steer Exxon through short-term headwinds. Mr. Woods couldn't be reached for comment Tuesday. -- Bradley Olson and Lynn Cook Credit: By Bradley Olson and Lynn Cook
Subject: Chief executive officers; Succession planning
Location: United States--US
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.6
Publication year: 2016
Publication date: Dec 14, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848395821
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848395821?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
What Gas Stations in China Offer Investors; A $10 billion IPO of Sinopec's gas-station business will bring fatter margins for state-owned oil giant Sinopec.
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
Part of the rationale for Sinopec's previous 2014 sale of a nearly 30% stake in the retail arm to 20-odd mostly Chinese corporate investors was to nudge the company to focus more on growing nonfuel sales at its network of gas-station convenience stores.
Full text: China's largest refiner, Sinopec, is considering hitting up Hong Kong investors for another cool $10 billion, this time in the form of an initial public offering for its retail gas-station business. Although Sinopec has yet to confirm the plan and details are sparse, in theory there are reasons for shareholders to cheer a partial listing. Sinopec shares rose 3% in Hong Kong. Part of the rationale for Sinopec's previous 2014 sale of a nearly 30% stake in the retail arm to 20-odd mostly Chinese corporate investors was to nudge the company to focus more on growing nonfuel sales at its network of gas-station convenience stores. More welcoming Chinese roadside convenience stores, which tend to be grim establishments featuring dirty bathrooms, instant noodles, sugary tea and little else, would also be a welcome change for the Chinese public and adventurous foreigners eager to experience China's open roads. There are signs of progress on this front. Nonfuel retail revenue grew 67% and 40% in the first three quarters of 2015 and 2016 respectively, compared with just 15% during the same period for 2014. An IPO would give Sinopec more cash to invest in this fast-growing business and give it more insulation from fluctuations in fuel and crude prices. The downside for new investors, however, is that they are still unlikely to have much say in how the business is run. Chinese state-owned-enterprise reform under President Xi Jinping has tended to be more a matter of raising capital, reshuffling assets and sidelining political opponents than improving efficiency or actually giving up control of state assets to outsiders. Investors buying in can hope to own a small piece of the Chinese consumer story--which remains strong. Just understand that you're along for the ride, and back-seat driving won't (most likely) be appreciated. Credit: By Nathaniel Taplin
Subject: Convenience stores
Location: China Hong Kong
People: Xi Jinping
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848437213
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848437213?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Having Addressed Supply, Oil Market Faces New Threat: Low Demand; Demand for oil next year could increase at its slowest pace since 2014
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
Demand for crude in emerging markets, a growth driver for global consumption, tends to fall when U.S. rates rise, according to an analysis by Bank of America Merrill Lynch.
Full text: Even as oil has rallied in response to OPEC's agreement to cut supply, slowing demand could bring the price back down again. After years of healthy growth fueled by low prices and Asia's expanding appetite, demand for oil next year could increase at its slowest pace since 2014, some analysts say. That could douse a major oil rally sparked by the Organization of the Petroleum Exporting Countries' agreement, along with other major suppliers, to cut around 2% from global production. Emerging economies such as China aren't increasing demand for oil at the speed they once were. Analysts also expect higher U.S. interest rates to hit emerging-market demand. Higher U.S. rates have historically weighed on crude consumption there. The recent run-up in oil prices may also be self-defeating, as the extra expense curbs consumption. "In this new oil era, the first key data point that we are watching is global oil demand and its reaction to higher prices," said Rob Thummel, portfolio manager at Tortoise Capital Advisors, which manages $15 billion in energy assets. Some analysts think that if OPEC members stick to their agreement, it could boost prices to around $60 a barrel next year, a level crude hasn't traded at since July 2015. Brent, the global benchmark, settled down 3.3%, at $53.90 a barrel, on Wednesday. Consumers, who have become accustomed to more than two years of cheap fuel, may begin feeling the higher prices at the gasoline pump. In the U.S., average gas prices could rise by 20 cents to 30 cents next year, from just over $2 a gallon now. Several states could expect $3 a gallon by the summer, said Patrick DeHaan, senior petroleum analyst at GasBuddy, which provides information on gas prices. "Motorists should not expect to see a repeat of the bargain-basement prices seen during the first quarter of the year," he said. Even before the recent oil rally, analysts' expectations for demand growth weren't optimistic. The International Energy Agency, a top energy watchdog, said Tuesday that global oil demand next year would rise by 1.3 million barrels a day, down from 1.4 million this year and 1.9 million in 2015. Even that is too rosy a prediction for some institutions. OPEC itself forecasts oil demand will increase by 1.15 million barrels a day next year. Citigroup Inc. pegs demand growth at 1.1 million barrels a day. The biggest influence is likely to be China. The country has been expanding its national oil stockpiles over the past two years to take advantage of cheap crude prices. But with prices rising and the Chinese Strategic Petroleum Reserve topped up, those purchases might slow down. Michal Meidan, Asia analyst at consulting firm Energy Aspects, estimates that China deposited about 120 million barrels in the reserve this year, a number that he thinks could fall to 80 million barrels in 2017. "That would take away the most important support [for oil demand] that we have had in the last two years," said Abhishek Deshpande, an oil analyst at French bank Natixis. The Federal Reserve presents another risk to oil demand. It raised its benchmark rate by a quarter of a percentage point on Wednesday and expects to lift it faster than previously projected in the coming year. That is usually bad news for oil. Demand for crude in emerging markets, a growth driver for global consumption, tends to fall when U.S. rates rise, according to an analysis by Bank of America Merrill Lynch. Emerging economies are vulnerable to higher U.S. rates because their debts become costlier to finance and the stronger dollar makes many imports more expensive. That includes oil, which is priced in dollars and becomes more expensive for holders of other currencies as the greenback rises. "The most understated risk to oil prices would be a toxic combination of faster-than-expected U.S. interest-rate hikes next year, a much stronger dollar, and a potential trade war with China," the bank said in a report last week. "Oil prices could slip back below $40 a barrel under that scenario." All of this would be a challenge for OPEC and the oil rally, which already faces the risk of higher prices encouraging more U.S. shale drilling, and so greater supply. "If supply, consumption, or inventories respond too quickly to the new landscape, OPEC's short-term gain could lead to long-term pain," the Bank of America Merrill Lynch analysis said. Write to Georgi Kantchev at georgi.kantchev@wsj.com Related * OPEC Says It Needs Help to Clear Glut * Oil Retreats on Concerns of U.S. Stock Levels * OPEC Pumped at Record High as Cartel Agreed Output Cut, Says IEA (Dec. 13) * OPEC Has a Deal, But Will Its Members Cheat? (Dec. 11) * Oil-Producing Countries Agree to Cut Output Along With OPEC (Dec. 10) Credit: By Georgi Kantchev
Subject: Supply & demand; Interest rates; Agreements; Prices; Consumption; Emerging markets; Strategic petroleum reserve
Location: China Asia United States--US
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848437279
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848437279?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Global Deals That Made Exxon's CEO Now Pose Big Test; Secretary of state pick's ties to Putin and others with strained U.S. relations already are under scrutiny; 'I'm a businessman'
Author: Scheck, Justin; Marson, James; Paletta, Damian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
Other prominent cabinet secretaries with top corporate experience include former defense secretaries Caspar Weinberger, who also worked at Bechtel, and Robert McNamara, who served as president of Ford Motor Co. Before becoming George W. Bush's vice president, Dick Cheney spent five years as the chief executive of Halliburton Co. Mr. Tillerson joined Exxon in 1975.
Full text: Rex Tillerson rose to the top of Exxon Mobil Corp. partly by negotiating a deal with Russia's Vladimir Putin to kick-start an oil project on the Pacific Ocean island of Sakhalin, which had been tied up in bureaucratic knots for years. He also led Exxon into Iraq's semiautonomous Kurdistan region against the wishes of Baghdad and the State Department, and kept pumping oil in Chad after international oil profits were being used to support the autocratic government's military operations. In many ways, Mr. Tillerson's record since becoming chief executive in 2006 makes him the international energy equivalent of President-elect Donald Trump's claim to fame in real estate: a shrewd, opportunistic businessman who amassed daring investments and valuable assets around the world. Those same qualifications will also pose a test for Mr. Tillerson's nomination by the president-elect as secretary of state . The Exxon CEO's dealings outside the U.S., particularly in Russia, will be a feature of his confirmation review, testing whether Mr. Trump's affection for corporate chieftains as cabinet chiefs will fly in the world of international diplomacy. Mr. Trump has praised Mr. Tillerson, 64 years old, for having "relationships with leaders all over the world [that are] second to none." Other prominent supporters acclaim his wide knowledge of the world and note his experience outside corporate America, including as president of the Boy Scouts of America. "It's a mistake to pigeonhole him as another CEO with a very narrow background," said former Defense Secretary Robert Gates in an interview. Mr. Gates, a principal in a consulting firm that has Exxon as a client, said he recommended Mr. Trump consider Mr. Tillerson for the job. His relationship with Russia's president which stretches back to 1999, is already facing scrutiny from lawmakers in the Senate who will oversee his confirmation hearings next month. Members of both parties are also pushing for an investigation into Russia's alleged hacking and its impact on the U.S. election. U.S. officials and European leaders have accused Russia of illegally annexing part of Ukraine and supporting bombing campaigns in Syria that have killed thousands of civilians. Mr. Trump has said he would pursue less confrontation with Russia on the issues. "The real issue with Rex Tillerson's candidacy is going to be about Donald Trump's unusual views of Russia," said R. Nicholas Burns, a career foreign service officer who rose to be a top senior State Department official in the George W. Bush administration. "Will the Trump administration, the president he serves have a rational, tough-minded approach to Russia? Right now, I don't see it." Testing his skill set A key test of Mr. Tillerson's skill set will be how well he can translate his business acumen to international diplomacy. "Can he step out of the Exxon Mobil persona and then pursue a whole bunch of interests with interlocutors who don't share our interests?" said Steven Pifer, a retired foreign service officer who spent 25 years at the State Department and served as U.S. ambassador to Ukraine. Not enough was known about Mr. Tillerson's views on foreign policy to form a view, Mr. Pifer added. As secretary of state, "you are a juggler, you are a diplomat, you are a cage fighter, and you need to be bureaucrat par excellence or the permanent bureaucracy of the foreign service will destroy you," said Danielle Pletka, a senior vice president at the conservative-leaning American Enterprise Institute. While Mr. Tillerson is unusual for his lack of prior government experience, other business leaders have moved into cabinet posts and other high-ranking government positions. George Shultz served for seven years as secretary of state under President Ronald Reagan after rising to president of international engineering firm Bechtel Inc. Prior to Bechtel, Mr. Shultz spent five years in several top Washington posts, including as Treasury secretary. Other prominent cabinet secretaries with top corporate experience include former defense secretaries Caspar Weinberger, who also worked at Bechtel, and Robert McNamara, who served as president of Ford Motor Co. Before becoming George W. Bush's vice president, Dick Cheney spent five years as the chief executive of Halliburton Co. Mr. Tillerson joined Exxon in 1975. As he climbed the corporate ladder, he faced a common challenge at big, multinational oil companies: build relationships with leaders controlling chunks of the world's fossil-fuel wealth. Some of those leaders were strongmen on the wrong side of the U.S. government. Along with Mr. Putin, Mr. Tillerson has done business with dictators in Angola and Chad and talked oil with former Libyan leader Moammar Gadhafi. Under Mr. Tillerson, Exxon joined with companies owned by Saudi Arabia, a longtime U.S. ally that has been a recent target of American politicians. It's his work in Russia that has attracted the most attention in the Senate, particularly from defense hawks who worry Mr. Putin will continue trying to thwart U.S. interests. "I have a very close relationship with [Mr. Putin]," Mr. Tillerson told students at the University of Texas, his alma mater, in February. "I don't agree with everything he's doing. I don't agree with everything a lot of leaders are doing. But he understands that I am a businessman. And I have invested a lot of money, our company has invested a lot of money, in Russia, very successfully." Mr. Tillerson often used diplomacy of sorts to make international oil deals, but those were on behalf of Exxon and its shareholders. "I'm not here to represent the United States government's interest," he told his Texas audience in recounting his conversations with foreign officials. "I'm not here to defend it nor am I here to criticize it. That's not what I do--I'm a businessman," Mr. Tillerson said. That has meant operating in ways not always aligned with U.S. interests and sometimes without heeding the requests of local U.S. embassies, according to two former U.S. diplomats who worked in countries where Exxon operated. Tough negotiations Exxon has been more direct and more demanding with foreign leaders than other companies, according to a former executive at a rival who was a partner with Exxon in joint ventures. In China, by contrast, a country that will be a big part of Mr. Tillerson's portfolio if he is confirmed, his contact with government leaders has been limited to building a large refinery and petrochemical facility in Fujian province. "I don't think he's very well known to the Chinese government leaders," said Victor Gao, a former top executive at state-owned oil company Cnooc Ltd. In Russia, Mr. Tillerson sometimes worked on deals directly with Mr. Putin. The Exxon executive was a rising star at the company at the end of the 1990s when he handled the politically and technologically complex project on Sakhalin , a $17 billion development to drill for oil. Mr. Putin became Russian prime minister in 1999 and has run the country, either as president or prime minister, ever since. Mr. Tillerson's success, including on the Sakhalin deal, helped him catapult past other executives to lead Exxon. As the project was progressing in the early 2000s, Mr. Putin's Kremlin was becoming more assertive in its dealings with Western oil companies, which some felt had received too-favorable deals in the 1990s. Mr. Tillerson navigated that situation in part by keeping state-controlled PAO Rosneft as a partner in the project. Rosneft has since grown to become one of the world's largest publicly traded oil producers. Mr. Tillerson teamed up again with Rosneft in 2011 as global majors were jostling for a piece of potentially huge resources in the Russian Arctic. BP PLC Chief Executive Robert Dudley was trying to secure plum Arctic fields for the U.K.-based oil company, but his partners in another Russian venture, TNK-BP, managed to block the deal. Mr. Tillerson swooped in. At a June 2012 meeting with Mr. Putin, Mr. Tillerson said Exxon's Arctic deal enhanced U.S.-Russian ties. "I agree, as you point out, that nothing strengthens relationships between countries better than business enterprise," a Kremlin transcript quoted him saying. An award from Putin The next year, Mr. Putin awarded Mr. Tillerson Russia's Order of Friendship for his work. Exxon suffered a setback in its efforts to profit from its Russia dealings after the Kremlin annexed Crimea, at the time part of Ukraine, and ties deteriorated between the U.S. and Russia. After Moscow's military intervened in eastern Ukraine, the Obama administration added more sanctions, including on Russian energy companies such as Rosneft, forcing a halt to drilling in the Arctic. William W. George, an Exxon board member until last year, said Mr. Tillerson opposed the U.S. sanctions . Yet "Rex didn't fight it,'' he said. "He didn't go to court.'' Mr. George, a former chief executive of Medtronic Inc. who now teaches leadership as a senior fellow at Harvard Business School, said Mr. Tillerson's extensive dealings with foreign leaders like Mr. Putin should help him as secretary of state. "He would never put Putin's interests ahead of Exxon's when I was there,'' said Mr. George. Mr. Tillerson's Russian oil diplomacy was on display during a visit to Moscow in June, when he was asked about the economic sanctions that have blocked Exxon from reaping the benefits of the Arctic-drilling agreement and partnership that he helped broker in 2011. Referring to Igor Sechin, the head of Rosneft and a close ally of Mr. Putin, Mr. Tillerson said: "As to the sanctions questions, I'll use the same approach that my friend Mr. Sechin took. That's a question for the government. So if there's a U.S. government official here who'd like to respond, I'm happy to toss it to them." Mr. Sechin burst into laughter and gave Mr. Tillerson a thumbs-up. Russell Gold, Joann S. Lublin, Brian Spegele and Joe Parkinson contributed to this article. Write to Justin Scheck at justin.scheck@wsj.com , James Marson at james.marson@wsj.com and Damian Paletta at damian.paletta@wsj.com More * Confirmation Battle Looms for Rex Tillerson as Secretary of State * How Tillerson, a Late Entry to Be Secretary of State, Got Donald Trump's Nod * Trump Picks Exxon Chief for State * Darren Woods Likely to Take Over Helm at Exxon * Tillerson's Role Sparks Alarm and Praise * Trump: Sons, Executives to Run Business Credit: Justin Scheck, James Marson, Damian Paletta
Subject: Presidents; Engineering firms; Political campaigns; Diplomacy
Location: Chad Russia United States--US
People: Bush, George W
Company / organization: Name: Boy Scouts of America; NAICS: 813410
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848452870
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848452870?accountid=7117
Copyright: (c) 2016 Dow Jones & Company , Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Says Cartel Needs Help to Clear Oil Glut; Markets to rebalance by second half if producers keep their promises to cut production
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
According to OPEC's current forecast, Kazakh production will rise by about 210,000 barrels a day, compared with a commitment to cut by 20,000 barrels a day, and Russia's will increase by about 80,000 barrels a day, instead of a promised reduction of 300,000 barrels a day.
Full text: OPEC warned Wednesday that it would need non-OPEC producers to act on the pledge to join an output reduction if a global oil glut is to disappear, though markets could rebalance by the second half if both sides keep their promises. The Organization of the Petroleum Exporting Countries over the weekend reached an agreement with producers outside the group to jointly reduce global oil supplies by just under 1.8 million barrels a day. Yet questions have arisen about how much non-OPEC countries such as Russia, which have promised to reduce output by a combined 558,000 barrels a day, will enforce the cuts. Some oil-market watchers also believe trends in demand might be working against the petroleum cartel. After years of healthy growth fueled by low prices and Asia's expanding appetite, demand for oil next year could increase at its slowest pace since 2014, some analysts say. In its first monthly market report since the reduction was agreed, the 13-member group said the "OPEC production adjustment alone wouldn't be enough to clear the total overhang" of 300 million barrels, or 0.8 million barrels a day, currently in storage. "This clearly emphasizes the importance of non-OPEC producers' contribution to the production adjustment in support of market rebalancing." If both sides heed their pledges, it "will accelerate the reduction of global inventories and bring forward the rebalancing of the oil market to the second half of 2017," it said. The production cuts would bring production to the level of crude OPEC says the market need from its members in the second quarter--which is just under 32 million barrels a day. If the six-month OPEC ceiling of 32.5 million a day was extended to the whole year, it would bring "a slight stock draw of 0.1 million barrels a day in 2017, leading to a reduction in excess supply and an acceleration of the stock draw," the group said Wednesday. The numbers contained in the report show both OPEC and non-OPEC producers have a long way to go to carry out the cuts. The 13-member bloc increased output by about 150,000 barrels a day last month to 33.87 million barrels a day, based on independent data used by the group. That means the cartel would have to cut 1.37 million barrels a day to reach its ceiling. Separately, Saudi Arabia--the group's largest oil producer--also told OPEC it boosted its production by 95,000 barrels a day to 10.72 million barrels a day last month, though external estimates say output declined. Adjusting to its quota would involve a huge cut of 662,000 barrels a day for Saudi Arabia, but OPEC uses independent data that says the kingdom's production actually fell last month by 47,200 barrels a day to 10.51 million barrels a day. Non-OPEC oil supply in 2017 is expected to grow by 0.30 million barrels a day over 2016 after OPEC revised the upgraded the forecast by 70,000 barrels a day. A large part of that growth would be driven by a boost in production from Kazakhstan and Russia, two countries that have pledged to join the OPEC cuts. According to OPEC's current forecast, Kazakh production will rise by about 210,000 barrels a day, compared with a commitment to cut by 20,000 barrels a day, and Russia's will increase by about 80,000 barrels a day, instead of a promised reduction of 300,000 barrels a day. But oil production in Mexico and Azerbaijan is set to naturally decline by 130,000 barrels a day and 30,000 barrels a day, respectively--roughly in line with their agreed output reduction. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Supply & demand; Cartels; Petroleum production
Location: Russia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848452984
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848452984?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Retreats on Concerns of U.S. Stock Levels; Observers are turning their attention to the huge amount of crude held in storage
Author: Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
The price spike that followed the recent agreement among major oil producing nations from the Organization of the Petroleum Exporting Countries and non-OPEC members to reduce output has leveled, and observers are now turning their attention to the huge amount of crude held in storage.
Full text: Oil prices pulled back Wednesday as profit-taking from investors and lingering concerns about U.S. crude stock levels created a headwind in markets. The February contract for global crude benchmark Brent was down 1.11% at $55.11 a barrel while January deliveries of U.S. counterpart West Texas Intermediate fell 1.06% to $52.42. Crude prices have weakened over the past two days amid choppy trading conditions, especially during the later trading hours in the U.S., leading some observers to conclude that the current price level may be too optimistic. The price spike that followed the recent agreement among major oil producing nations from the Organization of the Petroleum Exporting Countries and non-OPEC members to reduce output has leveled, and observers are now turning their attention to the huge amount of crude held in storage. Germany's Commerzbank said there is serious doubt that OPEC could cut enough production to make a serious dent in the global overhang, and that it is likely that much more than the agreed 1.2 million barrels a day will need to be trimmed from OPEC's output to reach the target production of 32.5 million barrels a day from the cartel. Olivier Jakob, an analyst at Switzerland-based Petromatrix, said that Tuesday's estimate from industry group the American Petroleum Institute that U.S. crude stocks rose by 4.7 million barrels last week highlights the possibility that the market could stage a bearish reversal. "OPEC has set a target price of between $55-$60 a barrel for oil and it is now at the lower levels of that target. However, it will struggle to sustain itself at $60 a barrel unless the stocks start to come down," Mr. Jakob said. Meanwhile, Donald Trump's choices of Exxon Mobil Corp. Chief Executive Rex Tillerson for secretary of state and former Texas Governor Rick Perry as his energy secretary bode well for the domestic U.S. oil sector. Two oilmen in the president's cabinet could portend a focus on ramping up domestic shale oil. Nymex reformulated gasoline blendstock--the benchmark gasoline contract--fell 1.3% to $1.53 a gallon. ICE gasoil changed hands at $489.00 a metric ton, down $1.00 from the previous settlement. Credit: By Kevin Baxter
Subject: International markets; Price increases; Supply & demand
Location: United States--US
People: Perry, Rick Tillerson, Rex W Trump, Donald J
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848465279
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848465279?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Global Deals That Made Exxon's CEO Now Pose Big Test
Author: Scheck, Justin; Marson, James; Paletta, Damian
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Dec 2016: A.1.
Abstract:
Other prominent cabinet secretaries with top corporate experience include former defense secretaries Caspar Weinberger, who also worked at Bechtel, and Robert McNamara, who served as president of Ford Motor Co. Before becoming George W. Bush's vice president, Dick Cheney spent five years as the chief executive of Halliburton Co. Mr. Tillerson joined Exxon in 1975.
Full text: Rex Tillerson rose to the top of Exxon Mobil Corp. partly by negotiating a deal with Russia's Vladimir Putin to kick-start an oil project on the Pacific Ocean island of Sakhalin, which had been tied up for years. He also led Exxon into Iraq's semiautonomous Kurdistan region against the wishes of Baghdad and the State Department, and kept pumping oil in Chad after international oil profits were being used to support the autocratic government's military operations. In many ways, Mr. Tillerson's record since becoming chief executive in 2006 makes him the international energy equivalent of President-elect Donald Trump's claim to fame in real estate: a shrewd, opportunistic businessman who amassed daring investments and valuable assets around the world. Those same qualifications will also pose a test for Mr. Tillerson's nomination by the president-elect as secretary of state. The Exxon CEO's dealings outside the U.S., particularly in Russia, will be a feature of his confirmation review, testing whether Mr. Trump's affection for corporate chieftains as cabinet chiefs will fly in the world of international diplomacy. Mr. Trump has praised Mr. Tillerson, 64 years old, for having "relationships with leaders all over the world [that are] second to none." Other prominent supporters acclaim his wide knowledge of the world and note his experience outside corporate America, including as president of the Boy Scouts of America. "It's a mistake to pigeonhole him as another CEO with a very narrow background," said former Defense Secretary Robert Gates in an interview. Mr. Gates, a principal in a consulting firm that has Exxon as a client, said he recommended Mr. Trump consider Mr. Tillerson for the job. His relationship with Russia's president which stretches back to 1999, is already facing scrutiny from lawmakers in the Senate who will oversee his confirmation hearings next month. Members of both parties are also pushing for an investigation into Russia's alleged hacking and its impact on the U.S. election. U.S. officials and European leaders have accused Russia of illegally annexing part of Ukraine and supporting bombing campaigns in Syria that have killed thousands of civilians. Mr. Trump has said he would pursue less confrontation with Russia on the issues. "The real issue with Rex Tillerson's candidacy is going to be about Donald Trump's unusual views of Russia," said R. Nicholas Burns, a career foreign service officer who rose to be a top senior State Department official in the George W. Bush administration. "Will the Trump administration, the president he serves have a rational, tough-minded approach to Russia? Right now, I don't see it." A key test of Mr. Tillerson's skill set will be how well he can translate his business acumen to international diplomacy. "Can he step out of the Exxon Mobil persona and then pursue a whole bunch of interests with interlocutors who don't share our interests?" said Steven Pifer, a retired foreign service officer who spent 25 years at the State Department and served as U.S. ambassador to Ukraine. Not enough was known about Mr. Tillerson's views on foreign policy to form a view, Mr. Pifer added. As secretary of state, "you are a juggler, you are a diplomat, you are a cage fighter, and you need to be bureaucrat par excellence or the permanent bureaucracy of the foreign service will destroy you," said Danielle Pletka, a senior vice president at the conservative-leaning American Enterprise Institute. While Mr. Tillerson is unusual for his lack of prior government experience, other business leaders have moved into cabinet posts and other high-ranking government positions. George Shultz served for seven years as secretary of state under President Ronald Reagan after rising to president of engineering firm Bechtel Inc. Prior to Bechtel, Mr. Shultz spent five years in several top Washington posts, including as Treasury secretary. Other prominent cabinet secretaries with top corporate experience include former defense secretaries Caspar Weinberger, who also worked at Bechtel, and Robert McNamara, who served as president of Ford Motor Co. Before becoming George W. Bush's vice president, Dick Cheney spent five years as the chief executive of Halliburton Co. Mr. Tillerson joined Exxon in 1975. As he climbed the corporate ladder, he faced a common challenge at big, multinational oil companies: build relationships with leaders controlling chunks of the world's fossil-fuel wealth. Some of those leaders were strongmen on the wrong side of the U.S. government. Along with Mr. Putin, Mr. Tillerson has done business with dictators in Angola and Chad and talked oil with former Libyan leader Moammar Gadhafi. Under Mr. Tillerson, Exxon joined with companies owned by Saudi Arabia, a longtime U.S. ally that has been a recent target of American politicians. It's his work in Russia that has attracted the most attention in the Senate, particularly from defense hawks who worry Mr. Putin will continue trying to thwart U.S. interests. "I have a very close relationship with [Mr. Putin]," Mr. Tillerson told students at the University of Texas, his alma mater, in February. "I don't agree with everything he's doing. I don't agree with everything a lot of leaders are doing. But he understands that I am a businessman. And I have invested a lot of money, our company has invested a lot of money, in Russia, very successfully." Mr. Tillerson often used diplomacy of sorts to make international oil deals, but those were on behalf of Exxon and its shareholders. "I'm not here to represent the United States government's interest," he told his Texas audience in recounting his conversations with foreign officials. "I'm not here to defend it nor am I here to criticize it. That's not what I do -- I'm a businessman," Mr. Tillerson said. That has meant operating in ways not always aligned with U.S. interests and sometimes without heeding the requests of local U.S. embassies, according to two former U.S. diplomats who worked in countries where Exxon operated. Exxon has been more direct and more demanding with foreign leaders than other companies, according to a former executive at a rival who was a partner with Exxon in joint ventures. In China, by contrast, a country that will be a big part of Mr. Tillerson's portfolio, should be be confirmed, his contact with government leaders has been limited to building a large refinery and petrochemical facility in Fujian province. "I don't think he's very well known to the Chinese government leaders," said Victor Gao, a former top executive at state-owned oil company Cnooc Ltd. In Russia, Mr. Tillerson sometimes worked on deals directly with Mr. Putin. The Exxon executive was a rising star at the company at the end of the 1990s when he handled the politically and technologically complex project on Sakhalin, a $17 billion development to drill for oil. Mr. Putin became Russian prime minister in 1999 and has run the country, either as president or prime minister, ever since. Mr. Tillerson's success, including on the Sakhalin deal, helped him catapult past other executives to lead Exxon. As the project was progressing in the early 2000s, Mr. Putin's Kremlin was becoming more assertive in its dealings with Western oil companies, which some felt had received too-favorable deals in the 1990s. Mr. Tillerson navigated that situation in part by keeping state-controlled PAO Rosneft as a partner in the project. Rosneft has since grown to become one of the world's largest publicly traded oil producers. Mr. Tillerson teamed up again with Rosneft in 2011 as global majors were jostling for a piece of potentially huge resources in the Russian Arctic. BP PLC Chief Executive Robert Dudley was trying to secure plum Arctic fields for the U.K.-based oil company, but his partners in another Russian venture, TNK-BP, managed to block the deal. Mr. Tillerson swooped in. At a June 2012 meeting with Mr. Putin, Mr. Tillerson said Exxon's Arctic deal enhanced U.S.-Russian ties. "I agree, as you point out, that nothing strengthens relationships between countries better than business enterprise," a Kremlin transcript quoted him saying. The next year, Mr. Putin awarded Mr. Tillerson Russia's Order of Friendship for his work. Exxon suffered a setback in its efforts to profit from its Russia dealings after the Kremlin annexed Crimea, at the time part of Ukraine, and ties deteriorated between the U.S. and Russia. After Moscow's military intervened in eastern Ukraine, the Obama administration added more sanctions, including on Russian energy companies such as Rosneft, forcing a halt to drilling in the Arctic. William W. George, an Exxon board member until last year, said Mr. Tillerson opposed the U.S. sanctions. Yet "Rex didn't fight it," he said. "He didn't go to court." Mr. George, a former chief executive of Medtronic Inc. who now teaches leadership as a senior fellow at Harvard Business School, said Mr. Tillerson's extensive dealings with foreign leaders like Mr. Putin should help him as secretary of state. "He would never put Putin's interests ahead of Exxon's when I was there," said Mr. George. Mr. Tillerson's Russian oil diplomacy was on display during a visit to Moscow in June, when he was asked about the economic sanctions that have blocked Exxon from reaping the benefits of the Arctic-drilling agreement and partnership that he helped broker in 2011. Referring to Igor Sechin, the head of Rosneft and a close ally of Mr. Putin, Mr. Tillerson said: "As to the sanctions questions, I'll use the same approach that my friend Mr. Sechin took. That's a question for the government. So if there's a U.S. government official here who'd like to respond, I'm happy to toss it to them." Mr. Sechin burst into laughter and gave Mr. Tillerson a thumbs-up. --- Russell Gold, Joann S. Lublin, Brian Spegele and Joe Parkinson contributed to this article. --- From Top Corporate Jobs to the Cabinet and White House ROBERT MCNAMARA Defense Secretary President of Ford Motor Co. Mr. McNamara got the call to be President John F. Kennedy's defense chief in 1960 weeks after becoming president of Ford Motor Co., where he had helped rebuild the American auto maker after World War II. After difficulties in the confirmation process, he eventually pledged in writing to sell all holdings in any company doing business with the Pentagon. Mr. McNamara remained in the job until 1968 under President Lyndon Johnson, making Mr. McNamara the longest-serving defense secretary. DICK CHENEY Vice President CEO of Halliburton Co. Before serving as vice president under George W. Bush, Mr. Cheney spent five years as chairman and chief executive of oil-services and infrastructure company Halliburton Co. He had been defense secretary to George H.W. Bush, a House member from Wyoming and White House chief of staff for President Gerald Ford. Halliburton's business with the Pentagon grew while he was vice president, but the Bush administration denied giving the company special treatment. GEORGE SHULTZ Secretary of State President of Bechtel Corp. Mr. Shultz was secretary of state in the Reagan administration from 1982 to 1989. He had been president at construction and engineering company Bechtel, then one of the largest nuclear-plant builders. Bechtel's ties to the Arab world raised concerns among some groups that Mr. Shultz would tilt Middle East policy away from Israel. He was labor secretary from 1969 to 1970, Office of Management and Budget director from 1970 to 1972 and Treasury secretary from 1972 to 1974. Credit: Justin Scheck, James Marson, Damian Paletta
Subject: Political appointments; Cabinet
Location: Russia
People: Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2016
Publication date: Dec 14, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: Feature
ProQuest document ID: 1848468854
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848468854?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Will The Media Forgive Trump for Winning? Plus, Exxon's CEO could go wobbly on fossil fuels.
Author: Freeman, James
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
Why should it shock or outrage anyone that Mr. Trump is appointing cabinet members who support the use of fossil fuels ?" The Journal's editorial board is concerned that, ironically, former Exxon CEO Rex Tillerson might not support fossil fuels enough as Secretary of State.
Full text: "The press still isn't over the fact that a nonpolitician won the White House," writes our columnist Jason Riley . "The current hubbub over Mr. Trump's financial conflicts of interest resembles the debate over his tax returns during the campaign. The media was obsessed with getting Mr. Trump to make his returns public, but voters didn't care." Mr. Riley also notes that "Hillary Clinton promised to put the coal industry out of business and lost. Why should it shock or outrage anyone that Mr. Trump is appointing cabinet members who support the use of fossil fuels ?" The Journal's editorial board is concerned that, ironically, former Exxon CEO Rex Tillerson might not support fossil fuels enough as Secretary of State. "Democrats will attempt to stigmatize him" for his experience at the center of the carbon economy, "and our worry is the CEO will spend his State tenure trying to mollify those critics ." Our columnist Holman W. Jenkins, Jr. sees in Mr. Tillerson a person who can talk to Russian strongman Vladimir Putin, having negotiated with him over oil. But Mr. Jenkins believes that Russia won't be President Trump's biggest foreign-policy headache. "An unraveling of the European Union, or at least the euro currency, may be the real threat to all the good things Mr. Trump wants to do for the U.S. economy, by which his presidency will be judged by those who put him there ." Speaking of economic policy, the editorial board notes that "nobody seems to know what Mr. Trump's economic team thinks about economics." Gary Cohn, who is the President-elect's latest hire from Goldman Sachs, appears to be a blank slate on policy . Venezuelans are no doubt thinking a lot about what happens when a nation pursues destructive economic policies. With inflation running around 470%, the socialist government has decided to ring in the Christmas season by seizing millions of toys before they reach Venezuelan shoppers. Back in the U.S., where politicians are fortunately more accountable to voters, NYU Professor Paul Light says the people who decide elections don't want the end of government, but just want it to work better. Our columnist William Galston wonders how well the confirmation process will work for Trump cabinet appointees, given fierce liberal opposition. Also today, anyone despairing over political and racial polarization will find solace in Dorothy Gaiter's beautiful history of a black family in the Jersey Shore town of Toms River. Credit: By James Freeman
Subject: Political campaigns; Journalists; Fossil fuels
Location: United States--US
People: Cohn, Gary Tillerson, Rex W Putin, Vladimir Clinton, Hillary
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: European Union; NAICS: 926110, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848472666
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848472666?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Iraq Is Raising, Not Cutting, Oil Exports, Shipping Document Shows; National oil company has plans to increase deliveries of its Basra oil grades by about 7%
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
In Russia, a non-OPEC producer that joined the cartel's efforts to pull back output, Energy Minister Alexander Novak said on Wednesday that 12 companies that produce about 90% of the country's oil have pledged to uphold a production cut, according to Interfax news agency.\n
Full text: Iraq plans to increase crude-oil exports in January, government records show, immediately raising questions about its commitment to slashing production in line with OPEC's landmark production agreement last month. Iraq's national oil company, the State Organization for Marketing of Oil, or SOMO, has plans to increase deliveries of its Basra oil grades by about 7% to 3.53 million barrels a day compared with October levels, according to a detailed oil-shipment program viewed by The Wall Street Journal. Those oil shipments represent about 85% of Iraq's exports. The oil shipment plan was dated Dec. 8, nine days after Iraq agreed to cut its output by more than 4% along with other members of the oil cartel, the Organization of the Petroleum Exporting Countries. OPEC, which controls over a third of global crude-oil production , said Nov. 30 that its collective output would fall by 1.2 million barrels a day beginning Jan. 1, with specific agreements from member countries. The list of planned tanker loadings has been circulated among potential buyers so they can gauge its availability. SOMO chief Falah al-Amri declined to comment about the company's January export levels. On Saturday, Iraq's oil minister Jabbar Ali al-Luaibi said Iraq would "abide to the agreement" and said that he would instruct SOMO to act on it. OPEC has a spotty record of complying with its production-cut agreements . A Goldman Sachs report said that, over 17 production cuts since 1982, the cartel's members reduced output by an average of 60% of the amount committed to. Iraq agreed to cut its output by 210,000 barrels a day from October levels of 4.561 million barrels a day. The country's oil officials were among the most reluctant to go along, disputing OPEC's statistics and threatening to pull out of the agreement until the last minute because it needs the oil revenue to fight its war against Islamic State. Iraq says it has increased its output to 4.8 million barrels a day in 2016, from less than 3 million barrels a day a few years ago, using Western and Chinese oil companies to tap into its deep crude reserves. A country's oil exports and its crude-production levels don't always rise and fall together because some oil production is consumed locally and other output is stored in tanks. In Iraq's case, though, the country consumes only about 15% of its oil production, an amount that doesn't vary much month to month. Its maximum storage capacity is just over 10 million barrels, which isn't enough to account for the increase in Basra exports. Those numbers suggest that Iraq couldn't cut its production if it wants to meet its stated goals for export shipments in January. The planned deliveries to mostly Indian and Chinese refiners also represent a rise of 390,000 barrels a day compared with December shipments, according the records viewed by the Journal. Iraq's plan to increase exports comes as other OPEC members are informing their buyers that less oil--not more--is coming. Speaking to reporters this weekend, Saudi Arabian energy minister Falih al-Khalid said state-run Saudi Aramco had notified customers that it will reduce deliveries despite high demand for its oil in January. OPEC members Qatar, Angola and Algeria have also told crude-oil buyers like refineries that they will be reducing deliveries. In Russia, a non-OPEC producer that joined the cartel's efforts to pull back output, Energy Minister Alexander Novak said on Wednesday that 12 companies that produce about 90% of the country's oil have pledged to uphold a production cut, according to Interfax news agency. Russia is among 11 non-OPEC producers that agreed to cuts along with OPEC. "They will lower [output] proportionally to production volume," he said. OPEC has set up a five-member committee to monitor countries' compliance with their pledges to cut. The committee will include OPEC members Kuwait, Algeria and Venezuela and Russia and Oman from outside the cartel representing the 11 non-OPEC producers that also promised output cuts. --Laura Mills in Moscow and Sarah Kent in London contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Cartels; Agreements; Exports; Petroleum production
Location: Iraq
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848524450
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848524450?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil Inventories Decline Sharply; Crude oil stockpiles fall by 2.6 million barrels to 483.2 million barrels
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
U.S. crude oil stockpiles fell more than expected for the week ended Dec. 9, while gasoline supplies rose modestly, according to data released Wednesday by the Energy Information Administration.
Full text: U.S. crude oil stockpiles fell more than expected for the week ended Dec. 9, while gasoline supplies rose modestly, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles slid by 2.6 million barrels to 483.2 million barrels, but are near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would fall by 1.7 million barrels on the week. Oil stored at the Cushing, Okla., delivery point for U.S. stocks, increased by 1.2 million barrels to 66.5 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by 497,000 barrels to 230 million barrels. Analysts were expecting gasoline inventories to rise by 1.8 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 762,000 barrels to 155.9 million barrels, but are above the upper limit of the average range, the EIA said. Analysts were forecasting supplies to increase by one million barrels from a week earlier. Refining capacity utilization rose by 0.1 percentage point from the previous week to 90.5%. Analysts were expecting utilization levels to rise by 0.4 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848533060
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848533060?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Faces Dilemma on Rex Tillerson's Pay; Now that the CEO is Donald Trump's pick for secretary of state, granting a $175 million stock award could open the company to criticism
Author: Olson, Bradley; Hoffman, Liz
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
According to Exxon's compensation rules, the board can decide whether to let executives such as Mr. Tillerson keep the unvested shares if they depart before turning 65.
Full text: Exxon Mobil Corp.'s board faces a difficult decision over how to make a financial break with Chief Executive Rex Tillerson, who will step down at year's end now that Donald Trump has chosen him as secretary of state . The oil giant, which announced Mr. Tillerson's departure Wednesday, is considering whether to grant him more than $175 million in stock compensation that he is currently eligible for only upon hitting the retirement age of 65 in March. The board also has to decide whether to grant the shares immediately, instead of over years. Allowing Mr. Tillerson to retire early and cash out would be a break from company policy under which vesting occurs after a decade. It could also open Exxon to criticism it is giving Mr. Tillerson a gift as he heads to a government post in which he could have vast influence over Exxon's fortunes. However, if the cabinet nominee is able to fully divest his Exxon holdings , that would alleviate concerns over how he could personally benefit from State Department actions that help Exxon. The board is weighing the matter now, according to people familiar with the matter. Whatever the company decides, the issue is certain to become a flashpoint in what is already expected to be an explosive Senate confirmation process. Exxon directors announced they will quicken the company's planned succession to elevate Darren Woods , 51, to the position of chief executive. Mr. Woods, who had been anointed as Mr. Tillerson's heir apparent, will officially take the post Jan. 1. In its statement, Exxon didn't address the matter of Tillerson's compensation. While the company could try to dodge the issue by not giving Mr. Tillerson the added compensation he was set to receive in a few months, it would mean shortchanging a 41-year employee of his anticipated retirement windfall. The decision is one example of the corporate tumult created by Mr. Trump's decision to tap so many sitting executives for his cabinet. In addition to Mr. Tillerson, others include Gary Cohn, the second-in-command at Goldman Sachs Group Inc. , and Andy Puzder, chief executive of Hardee's parent CKE Restaurants . Cashing out Mr. Tillerson may be the best of several bad options for Exxon, which is trying to avoid the conflict-of-interest scrutiny that followed Halliburton Co. when Dick Cheney, who had been the company's chief executive, was elected vice president as part of George W. Bush's administration in 2000. Halliburton's board voted to grant Mr. Cheney early retirement, a step that allowed him to receive a departure package worth about $20 million. He sold shares of the oil-field-services company worth more than $30 million during the campaign, but he retained hundreds of thousands of stock options and sold them gradually during his time in office, donating any profits to charity. The Tillerson conundrum will surely put the company's board in a tough spot, said Robert Jackson, a corporate-governance expert at Columbia University. Exxon's directors have to ask themselves "whether a public servant should be receiving a $175 million gift from a private corporation," Mr. Jackson said. "This is a classic Catch-22," said Charles Elson, a professor of governance at the University of Delaware. "You're damned if you do and you're damned if you don't. They're in a tough position. There is no easy answer to this one." The company's compensation structure was clearly designed to prevent someone from reaping a windfall if they were to leave early to join a competitor or under circumstances that the board disapproves of, but Mr. Tillerson is going into public service, Mr. Elson said. Mr. Tillerson had 2 million unvested shares as of this month, which were worth $184 million at Tuesday's closing price, according to securities filings. He also owns shares worth at least $55 million that have already vested and a pension valued at about $69 million as of year-end 2015. Exxon shares have risen 16% this year and 6% in the postelection stock market rally. According to Exxon's compensation rules, the board can decide whether to let executives such as Mr. Tillerson keep the unvested shares if they depart before turning 65. The board also can accelerate the receipt of unvested shares, something the company usually doesn't do except in the case of a death before the vesting period is up, according to securities filings. Such compensation policies apply to more than 1,000 executives at the oil company, where officials take pains to emphasize that the same rules apply to the CEO as everyone else. Exxon designed the pay packages to push its senior leaders to think about long-term returns. Accelerating stock grants for executives entering public service isn't unprecedented. In 2001, rail operator CSX Corp. amended its contract with CEO John Snow to allow him to receive his salary and bonus upfront in the even he left for government service. In 2003, he became President George W. Bush's Treasury secretary. In 2006, Goldman Sachs accelerated about $26 million worth of unvested stock held by Hank Paulson, who replaced Mr. Snow. It also paid him a $18.7 million cash bonus for the half-year of work he did as CEO and chairman of the bank. Theo Francis contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com and Liz Hoffman at liz.hoffman@wsj.com Related * Trump's Nominees Stand to Reap Tens of Millions of Dollars in Potential Tax Deferrals * Moscow Sees Rex Tillerson as Chance to End Sanctions, Reboot U.S. Ties * How Rex Tillerson, a Late Entry to Be Secretary of State, Got Donald Trump's Nod * Confirmation Battle Looms for Rex Tillerson as Secretary of State Credit: By Bradley Olson and Liz Hoffman
Subject: Chief executive officers; Retirement; Political campaigns; Compensation
People: Cohn, Gary Woods, Darren Bush, George W Trump, Donald J Cheney, Richard B
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: CKE Restaurants Inc; NAICS: 722513; Name: Hardees Food Systems Inc; NAICS: 722513; Name: Halliburton Co; NAICS: 213112, 237990; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848544860
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848544860?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Mobil Taps Darren Woods to Replace Rex Tillerson as CEO; Move comes after President-elect Donald Trump picked Mr. Tillerson as next Secretary of State
Author: Steele, Anne
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
Exxon Mobil Corp. said Darren Woods will succeed Rex Tillerson as chairman and chief executive of the company, after Mr. Tillerson was tapped by President-elect Donald Trump to serve as the next U.S. Secretary of State.
Full text: Exxon Mobil Corp. said Darren Woods will succeed Rex Tillerson as chairman and chief executive of the company, after Mr. Tillerson was tapped by President-elect Donald Trump to serve as the next U.S. Secretary of State. Mr. Woods, currently the company president, will replace Mr. Tillerson, who has been with the oil giant for more than 41 years, on Jan. 1. Mr. Tillerson was scheduled for mandatory retirement in March when he turned 65 years old, but after consideration, "Tillerson concluded, and the board agreed, that given the significant requirements associated with the confirmation process, it was appropriate to move the retirement date." Exxon Mobil now faces a speedy transition to a new leader while managing the intense scrutiny Mr. Tillerson's new public role could bring to the oil and gas behemoth. Still, experts have said Exxon Mobil, which has been meticulous and rigorous in its succession planning, won't be fazed by the transition. Mr. Tillerson began at Exxon Company USA in 1975 as a production engineer and, over the next four decades, held various senior roles including executive vice president of ExxonMobil Development Company. He was named senior vice president in 2001 and then to the board three years later. He has been chairman and CEO since January 2006. Mr. Woods, 51 years old, joined Exxon Company International in 1992. He rose up the ranks in the oil giant's vast refining and chemical business--Mr. Tillerson had moved up through the company's exploration and oil-pumping side--and emerged as Mr. Tillerson's heir apparent last December when he was appointed president of the company and took a seat on the board. Exxon shares were trading down 2.1% Wednesday afternoon to $90.61. While the U.S. hasn't seen a CEO as powerful as Mr. Tillerson go straight from the boardroom to a presidential cabinet in decades, the election in 2000 of former Vice President Dick Cheney, a former Halliburton Co. CEO, provides a recent parallel. Halliburton became a political lightning rod after the U.S.-led invasion of Iraq in 2003, when the company won billions in contracts to work Iraq oil fields and support the U.S. military. Exxon could face similar tests as Mr. Tillerson leads a Trump diplomatic team that will make decisions on such foreign policy issues as sanctions on Russia, human-rights abuses in resource-rich countries and climate change, experts have said. Bradley Olson and Lynn Cook contributed to this article Write to Anne Steele at Anne.Steele@wsj.com More * Exxon Faces Dilemma on Rex Tillerson's Pay * With Tillerson Tapped for Cabinet, Darren Woods Likely to Lead Exxon * Trump Picks Exxon Chief for State Department * Deals With Putin Helped Fuel Tillerson's Rise at Exxon Credit: By Anne Steele
Subject: Appointments & personnel changes; Succession planning
Location: United States--US
People: Woods, Darren Cheney, Richard B Trump, Donald J
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848673992
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848673992?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, I nc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Libya Restarts Operations at Key Western Oil Fields; The resumption marks potential return to the market of hundreds of thousands of barrels of Libyan crude
Author: Faucon, Benoit; Morajea, Hassan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
The potential return to the market of hundreds of thousands of barrels of Libyan crude comes just as oil prices have rallied on the promise of production cuts by members of the Organization of the Petroleum Exporting Countries and other major producers.
Full text: Operations have restarted at two key oil fields and a connected pipeline in Western Libya that have been shut down for over two years, Libyan officials said, following an agreement with local tribes. A pipeline that can transport over 400,000 barrels a day of oil from two connected fields has partly reopened, the officials said. If successful, the pipeline's reopening could bring back more than 200,000 barrels a day of oil within days, one of the officials said. The potential return to the market of hundreds of thousands of barrels of Libyan crude comes just as oil prices have rallied on the promise of production cuts by members of the Organization of the Petroleum Exporting Countries and other major producers. An increase in Libyan output of 400,000 barrels a day would almost completely make up for the barrels that Saudi Arabia agreed to cut as part of OPEC's historic Nov. 30 deal aimed at countering a supply glut that has depressed prices. Libya, which has been seeking to restore production levels, was exempt from that agreement and is allowed to ramp up its production while other OPEC members have agreed to cut. But previous attempts to restart oil operations have frequently aborted in Libya's restive provinces, casting some doubt on whether this latest deal will result in a significant rise in output. An agreement was reached between the internationally-recognized authorities in Tripoli and local tribes who have been seeking more jobs from the government related to the oil industry. The pipeline's shutdown as a result of the dispute contributed to Libya's ongoing struggle to get its oil industry back on its feet. One of the fields has restarted pumping, the officials said, and one official said the producing field was el-Feel, which is partly owned by Italy's Eni SpA. A spokesman for ENI declined to comment. Production is being closely watched around the world after the Organization of the Petroleum Exporting Countries agreed Nov. 30 to output cuts. Write to Benoit Faucon at benoit.faucon@wsj.com Related * OPEC Says Cartel Needs Help to Clear Oil Glut * Oil Prices Extend Losses After Federal Reserve Raises Rates * Iraq Is Raising, Not Cutting, Oil Exports, Shipping Document Shows Credit: By Benoit Faucon and Hassan Morajea
Subject: Pipelines; Agreements; Shutdowns; Petroleum industry; Crude oil prices
Location: Saudi Arabia
Company / organization: Name: Eni SpA; NAICS: 324110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848688889
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848688889?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Statoil Exits Production in Canadian Oil Sands; Norway's state-owned oil giant to take write-off of at least $500 million
Author: Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.
Abstract:
The move ends Statoil's nearly decadelong foray into oil sands production and comes two years after the company canceled plans to develop a major oil sands project, citing concerns about profitability.
Full text: CALGARY, Alberta--Norway's state-owned oil giant. Statoil ASA. said Wednesday it is exiting its business in the Canadian oil sands, selling off its assets to Athabasca Oil Corp. and taking a loss of at least $500 million. The move ends Statoil's nearly decadelong foray into oil sands production and comes two years after the company canceled plans to develop a major oil sands project, citing concerns about profitability. It signals the challenges faced by Canada's oil sands, which are some of the world's highest-cost and most greenhouse gas intensive sources of crude oil. "This transaction corresponds with Statoil's strategy of portfolio optimization to enhance financial flexibility and focus capital on core activities globally," Lars Christian Bacher, the company's executive vice president for international development & production, said in a statement. The deal includes Statoil's 100% ownership of two key oil sands leases, a 24,000 barrel a day test project called Leismer and an undeveloped project known as Corner. Statoil indefinitely postponed plans in September of 2014 to develop Corner, which was expected to produce 40,000 barrels of oil a day. The 832 million Canadian dollars ($626 million) deal is structured to give Statoil a nearly 20% stake in Athabasca. That Calgary-based company said the Leismer project can break-even on an operating income basis with West Texas Intermediate crude prices as low as $44 a barrel. "Athabasca has the financial strength to drive oil-weighted growth at competitive metrics in the current environment," CEO Robert Broen said in a statement. Statoil entered the oil sands in 2007 when it bought North American Oil Sands Corp. in a deal then valued at $C2.2 billion. It then sold a 40% stake to Thailand's state-run PTT Exploration and Production Public Co., or PTTEP, which spun off those assets into a separate entity in 2014. The sale of its remaining operations to Athabasca will trigger a balance sheet impairment of $500 million to $550 million, Statoil said. The Norwegian oil giant said its offshore operations in Canada wouldn't be affected by the sale of its oil sands assets. Statoil has minority stakes in two producing assets off the coast of Newfoundland and two developmental projects. Write to Chester Dawson at chester.dawson@wsj.com Credit: By Chester Dawson
Subject: Oil sands; Crude oil
Location: Canada Norway
Company / organization: Name: North American Oil Sands; NAICS: 212111, 212112; Name: Athabasca Oil Corp; NAICS: 211111; Name: Statoil ASA; NAICS: 324110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 14, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848695866
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848695866?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Having Addressed Supply, Oil Market Faces New Threat: Low Demand; Demand for oil next year could increase at its slowest pace since 2014
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Dec 2016: n/a.
Abstract:
Demand for crude in emerging markets, a growth driver for global consumption, tends to fall when U.S. rates rise, according to an analysis by Bank of America Merrill Lynch.
Full text: Even as oil has rallied in response to OPEC's agreement to cut supply, slowing demand could bring the price back down again. After years of healthy growth fueled by low prices and Asia's expanding appetite, demand for oil next year could increase at its slowest pace since 2014, some analysts say. That could douse a major oil rally sparked by the Organization of the Petroleum Exporting Countries' agreement, along with other major suppliers, to cut around 2% from global production. Emerging economies such as China aren't increasing demand for oil at the speed they once were. Analysts also expect higher U.S. interest rates to hit emerging-market demand. Higher U.S. rates have historically weighed on crude consumption there. The recent run-up in oil prices may also be self-defeating, as the extra expense curbs consumption. "In this new oil era, the first key data point that we are watching is global oil demand and its reaction to higher prices," said Rob Thummel, portfolio manager at Tortoise Capital Advisors, which manages $15 billion in energy assets. Some analysts think that if OPEC members stick to their agreement, it could boost prices to around $60 a barrel next year, a level crude hasn't traded at since July 2015. Brent, the global benchmark, settled down 3.3%, at $53.90 a barrel, on Wednesday. Consumers, who have become accustomed to more than two years of cheap fuel, may begin feeling the higher prices at the gasoline pump. In the U.S., average gas prices could rise by 20 cents to 30 cents next year, from just over $2 a gallon now. Several states could expect $3 a gallon by the summer, said Patrick DeHaan, senior petroleum analyst at GasBuddy, which provides information on gas prices. "Motorists should not expect to see a repeat of the bargain-basement prices seen during the first quarter of the year," he said. Even before the recent oil rally, analysts' expectations for demand growth weren't optimistic. The International Energy Agency, a top energy watchdog, said Tuesday that global oil demand next year would rise by 1.3 million barrels a day, down from 1.4 million this year and 1.9 million in 2015. Even that is too rosy a prediction for some institutions. OPEC itself forecasts oil demand will increase by 1.15 million barrels a day next year. Citigroup Inc. pegs demand growth at 1.1 million barrels a day. The biggest influence is likely to be China. The country has been expanding its national oil stockpiles over the past two years to take advantage of cheap crude prices. But with prices rising and the Chinese Strategic Petroleum Reserve topped up, those purchases might slow down. Michal Meidan, Asia analyst at consulting firm Energy Aspects, estimates that China deposited about 120 million barrels in the reserve this year, a number that he thinks could fall to 80 million barrels in 2017. "That would take away the most important support [for oil demand] that we have had in the last two years," said Abhishek Deshpande, an oil analyst at French bank Natixis. The Federal Reserve presents another risk to oil demand. It raised its benchmark rate by a quarter of a percentage point on Wednesday and expects to lift it faster than previously projected in the coming year. That is usually bad news for oil. Demand for crude in emerging markets, a growth driver for global consumption, tends to fall when U.S. rates rise, according to an analysis by Bank of America Merrill Lynch. Emerging economies are vulnerable to higher U.S. rates because their debts become costlier to finance and the stronger dollar makes many imports more expensive. That includes oil, which is priced in dollars and becomes more expensive for holders of other currencies as the greenback rises. "The most understated risk to oil prices would be a toxic combination of faster-than-expected U.S. interest-rate hikes next year, a much stronger dollar, and a potential trade war with China," the bank said in a report last week. "Oil prices could slip back below $40 a barrel under that scenario." All of this would be a challenge for OPEC and the oil rally, which already faces the risk of higher prices encouraging more U.S. shale drilling, and so greater supply. "If supply, consumption, or inventories respond too quickly to the new landscape, OPEC's short-term gain could lead to long-term pain," the Bank of America Merrill Lynch analysis said. Write to Georgi Kantchev at georgi.kantchev@wsj.com Related * OPEC Says It Needs Help to Clear Glut * Oil Retreats on Concerns of U.S. Stock Levels * OPEC Pumped at Record High as Cartel Agreed Output Cut, Says IEA (Dec. 13) * OPEC Has a Deal, But Will Its Members Cheat? (Dec. 11) * Oil-Producing Countries Agree to Cut Output Along With OPEC (Dec. 10) Credit: By Georgi Kantchev
Subject: Supply & demand; Interest rates; Agreements; Prices; Consumption; Emerging markets; Strategic petroleum reserve
Location: China Asia United States--US
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848708163
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848708163?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Iraq Is Raising, Not Cutting, Oil Exports, Shipping Document Shows; National oil company has plans to increase deliveries of its Basra oil grades by about 7%
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Dec 2016: n/a.
Abstract:
On Wednesday, several hours after a Wall Street Journal article on Iraq's oil-export plans, OPEC Secretary General Mohammad Barkindo said he planned to ask members in writing on Thursday to announce their future oil-export programs.
Full text: Iraq plans to increase crude-oil exports in January, government records show, immediately raising questions about its commitment to slashing production in line with OPEC's landmark production agreement last month. Iraq's national oil company, the State Organization for Marketing of Oil, or SOMO, has plans to increase deliveries of its Basra oil grades by about 7% to 3.53 million barrels a day compared with October levels, according to a detailed oil-shipment program viewed by The Wall Street Journal. Those oil shipments represent about 85% of Iraq's exports. The oil shipment plan was dated Dec. 8, nine days after Iraq agreed to cut its output by more than 4% along with other members of the oil cartel, the Organization of the Petroleum Exporting Countries. OPEC, which controls over a third of global crude-oil production , said Nov. 30 that its collective output would fall by 1.2 million barrels a day beginning Jan. 1, with specific agreements from member countries. The list of planned tanker loadings has been circulated among potential buyers so they can gauge its availability. SOMO chief Falah al-Amri declined to comment about the company's January export levels. Iraq's oil minister, Jabbar Ali al-Luaibi, has said he would instruct SOMO to act on the OPEC output-cut agreement. On Wednesday, several hours after a Wall Street Journal article on Iraq's oil-export plans, OPEC Secretary General Mohammad Barkindo said he planned to ask members in writing on Thursday to announce their future oil-export programs. While OPEC asks members to disclose their production, it would be unprecedented for the cartel to ask countries to announce the levels they export. "I just thought I should write the ministers to avoid complacency," Mr. Barkindo said in an interview. OPEC has a spotty record of complying with its production-cut agreements . A Goldman Sachs report said that, over 17 production cuts since 1982, the cartel's members reduced output by an average of 60% of the amount committed to. Iraq agreed to cut its output by 210,000 barrels a day from October levels of 4.561 million barrels a day. The country's oil officials were among the most reluctant to go along, disputing OPEC's statistics and threatening to pull out of the agreement until the last minute because it needs the oil revenue to fight its war against Islamic State. Iraq says it has increased its output to 4.8 million barrels a day in 2016, from less than 3 million barrels a day a few years ago, using Western and Chinese oil companies to tap into its deep crude reserves. A country's oil exports and its crude-production levels don't always rise and fall together because some oil production is consumed locally and other output is stored in tanks. In Iraq's case, though, the country consumes only about 15% of its oil production, an amount that doesn't vary much month to month. Its maximum storage capacity is just over 10 million barrels, which isn't enough to account for the increase in Basra exports. Those numbers suggest that Iraq couldn't cut its production if it wants to meet its stated goals for export shipments in January. The planned deliveries to mostly Indian and Chinese refiners also represent a rise of 390,000 barrels a day compared with December shipments, according the records viewed by the Journal. Iraq's plan to increase exports comes as other OPEC members are informing their buyers that less oil--not more--is coming. Speaking to reporters this weekend, Saudi Arabian energy minister Falih al-Khalid said state-run Saudi Aramco had notified customers that it will reduce deliveries despite high demand for its oil in January. OPEC members Qatar, Angola and Algeria have also told crude-oil buyers like refineries that they will be reducing deliveries. In Russia, a non-OPEC producer that joined the cartel's efforts to pull back output, Energy Minister Alexander Novak said on Wednesday that 12 companies that produce about 90% of the country's oil have pledged to uphold a production cut, according to Interfax news agency. Russia is among 11 non-OPEC producers that agreed to cuts along with OPEC. "They will lower [output] proportionally to production volume," he said. OPEC has set up a five-member committee to monitor countries' compliance with their pledges to cut. The committee will include OPEC members Kuwait, Algeria and Venezuela and Russia and Oman from outside the cartel representing the 11 non-OPEC producers that also promised output cuts. --Laura Mills in Moscow and Sarah Kent in London contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Agreements; Exports; Cartels; Petroleum production
Location: Iraq
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848708250
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848708250?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Statoil Exits Production in Canadian Oil Sands; Norway's state-owned oil giant to take write-off of at least $500 million
Author: Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Dec 2016: n/a.
Abstract:
The process, called steam-assisted gravity drainage, or SAGD, has exposed the oil sands industry to higher carbon taxes and an absolute cap on greenhouse gas emissions introduced by Alberta's new left-leaning government.\n
Full text: CALGARY, Alberta--Norway's state-owned oil giant. Statoil ASA. said Wednesday it is exiting its business in the Canadian oil sands, selling off its assets to Athabasca Oil Corp. and taking a loss of at least $500 million. The move ends Statoil's nearly decadelong foray into oil sands production and comes two years after the company canceled plans to develop a major oil sands project, citing concerns about profitability. It signals the challenges faced by Canada's oil sands, which are some of the world's highest-cost and most greenhouse gas intensive sources of crude oil. "This transaction corresponds with Statoil's strategy of portfolio optimization to enhance financial flexibility and focus capital on core activities globally," Lars Christian Bacher, the company's executive vice president for international development and production, said in a statement. Even with a recent uptick in crude-oil prices to above $50 a barrel, oil sands producers in Canada have been squeezed by high upfront investment costs, tough new regulations on carbon emissions and limited pipeline access to markets. Last year, Royal Dutch Shell canceled a major oil sands project and took a $2 billion write-down. In October, Exxon Mobil said it may remove billions of barrels of oil sands crude from its books, citing low oil prices. The deal includes Statoil's 100% ownership of two key oil sands leases, a 24,000 barrel a day test project called Leismer and an undeveloped project known as Corner. Statoil indefinitely postponed plans in September of 2014 to develop Corner, which was expected to produce 40,000 barrels of oil a day. The 832 million Canadian dollars ($626 million) deal is structured to give Statoil a nearly 20% stake in Athabasca. That Calgary-based company said the Leismer project can break-even on an operating income basis with West Texas Intermediate crude prices as low as $44 a barrel. "Athabasca has the financial strength to drive oil-weighted growth at competitive metrics in the current environment," CEO Robert Broen said in a statement. The government of Alberta, where Canada's oil sands are concentrated, said it welcomed Athabasca's acquisition of Statoil's assets. "We are pleased to see that a strong Alberta-based company has taken over these assets and we look forward to the continued development of our oil sands," said Brad Hartle, a spokesman for the province's energy minister. Statoil entered the oil sands in 2007 when it bought North American Oil Sands Corp. in a deal then valued at $C2.2 billion. It then sold a 40% stake to Thailand's state-run PTT Exploration and Production Public Co., or PTTEP, which spun off those assets into a separate entity in 2014. The sale of its remaining operations to Athabasca will trigger a balance sheet impairment of $500 million to $550 million, Statoil said. Environmental critics that have long pressured Statoil to divest its oil sands holdings hailed the decision. "This is a victory for common sense," said Keith Stewart, the head of Greenpeace Canada's climate and energy campaign. "Any serious attempt to meet the Paris climate commitments will turn this kind of high carbon oil into a stranded asset," he said. Oil sands wells like those at Leismer are more costly and energy-intensive than shale or conventional oil wells. They require steam injections to leach out underground deposits of oil embedded in sand. Natural gas is burned to generate steam at a rate of about 1000 cubic feet per barrel of crude. The process, called steam-assisted gravity drainage, or SAGD, has exposed the oil sands industry to higher carbon taxes and an absolute cap on greenhouse gas emissions introduced by Alberta's new left-leaning government. The Norwegian oil giant said its offshore operations in Canada wouldn't be affected by the sale of its oil sands assets. Statoil has minority stakes in two producing assets off the coast of Newfoundland and two developmental projects. Statoil's business in North American also includes shale oil production in the Eagle Ford formation of Texas and North Dakota's Bakken Shale, as well as Marcellus basin shale gas on the U.S. east coast and Gulf of Mexico operations. Write to Chester Dawson at chester.dawson@wsj.com Credit: By Chester Dawson
Subject: Oil sands; Carbon; Emission standards; Energy economics; Natural gas; Greenhouse gases; Emissions; Crude oil prices
Location: Norway Canada
Company / organization: Name: North American Oil Sands; NAICS: 212111, 212112; Name: Exxon Mobil Corp; NAICS: 447 110, 211111; Name: Statoil ASA; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 15, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848713602
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848713602?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Down on Higher U.S. Interest Rates, OPEC Output Rise; February Brent crude on London's ICE Futures exchange fell $0.08 to $53.82 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Dec 2016: n/a.
Abstract:
Crude prices eased on Thursday morning after the U.S. Federal Reserve raised interest rates and as higher-than-expected output from Organization of the Petroleum Exporting Countries also prompted selloffs.
Full text: Crude prices eased on Thursday morning after the U.S. Federal Reserve raised interest rates and as higher-than-expected output from Organization of the Petroleum Exporting Countries also prompted selloffs. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $50.87 a barrel at 0259 GMT, down $0.17 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.08 to $53.82 a barrel. Overnight, the U.S. Federal Reserve raised interest rates for the first time in a year, putting pressure on commodities markets. A rise in U.S. interest rates strengthens the greenback, the main currency used in oil trading, making oil more expensive for traders using other currencies. The dollar was last up 27 cents or 0.3% at $92.64, according to the WSJ Dollar Index which tracks the dollar against 16 currencies. "The move by the Fed to hike rates is likely to keep downward pressure on prices during today's session," said ANZ Research. OPEC's latest monthly report added more pressure, showing that the group increased its output by about 150,000 barrels a day in November to 33.87 million barrels a day. In order to reach the goal agreed Nov. 30 to cap the group's production at 32.5 million barrels a day, the group will have to cut 1.37 million barrels, more than the 1.2 million barrels originally envisioned, making it harder for the group to make good on its promises, said Capital Economics in a note. The firm also pointed out downside risk from the possibility of increased output from Nigeria and Libya, who were exempt from this round of cuts as their production has been blunted by civil strife. If their production rises, the rest of the group would need to cut more, it said. The cartel forecasts demand for OPEC crude in 2017 would hit 32.6 million barrels a day. It also predicts an acceleration in the reduction of global inventories, if non-OPEC nations live up to their pledges of cutting production by 558,000 barrels a day. For 2017, non-OPEC oil production is expected to grow by 300,000 barrels a day, pushed up by Brazil, Kazakhstan, and Canada, while production from strong producers like Mexico, China, and the U.S. is likely to slip, the cartel reported. One data point that is offsetting the negative news is the surprise 2.6 million barrel decrease in U.S. crude stockpiles for the week ended Dec. 9, more than the average forecast of 1.7 million barrels from analysts and traders surveyed by The Wall Street Journal. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--rose 57 points to $1.5388 a gallon, while January diesel traded at $1.6452, 17 points higher. ICE gas oil for January changed hands at $480.00 a metric ton, down $8.25 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Interest rates; Supply & demand; Crude oil prices; Petroleum production
Location: United States--US
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848719107
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848719107?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon Faces Pay Quandary
Author: Olson, Bradley; Hoffman, Liz
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]15 Dec 2016: B.1.
Abstract:
According to Exxon's compensation rules, the board can decide whether to let executives such as Mr. Tillerson keep the unvested shares if they depart before turning 65.
Full text: Exxon Mobil Corp.'s board faces a difficult decision over how to make a financial break with Chief Executive Rex Tillerson, who will step down at year's end now that Donald Trump has chosen him as secretary of state. The oil giant, which announced Mr. Tillerson's departure Wednesday, is considering whether to grant him more than $175 million in stock compensation that he is currently eligible for only upon hitting the retirement age of 65 in March. The board also has to decide whether to grant the shares immediately, instead of over years. Allowing Mr. Tillerson to retire early and cash out would be a break from company policy under which vesting occurs after a decade. It could also open Exxon to criticism it is giving Mr. Tillerson a gift as he heads to a government post in which he could have vast influence over Exxon's fortunes. However, if the cabinet nominee is able to fully divest his Exxon holdings, that would alleviate concerns over how he could personally benefit from State Department actions that help Exxon. The board is weighing the matter now, according to people familiar with the matter. Whatever the company decides, the issue is certain to become a flashpoint in what is already expected to be an explosive Senate confirmation process. Exxon directors announced they will quicken the company's planned succession to elevate Darren Woods, 51, to the position of chief executive. Mr. Woods, who had been anointed as Mr. Tillerson's heir apparent, will officially take the post Jan. 1. In its statement, Exxon didn't address the matter of Mr. Tillerson's compensation. While the company could try to dodge the issue by not giving Mr. Tillerson the added compensation he was set to receive in a few months, it would mean shortchanging a 41-year employee of his anticipated retirement windfall. The decision is one example of the corporate tumult created by Mr. Trump's decision to tap so many sitting executives for his cabinet. In addition to Mr. Tillerson, it includes Gary Cohn, the second-in-command at Goldman Sachs Group Inc.; and Andy Puzder, chief executive of Hardee's parent CKE Restaurants. Cashing out Mr. Tillerson may be the best of several bad options for Exxon, which is trying to avoid the conflict-of-interest scrutiny that followed Halliburton Co. when Dick Cheney, who had been the company's chief executive, was elected vice president as part of George W. Bush's administration in 2000. Halliburton's board voted to grant Mr. Cheney early retirement, a step that allowed him to receive a departure package worth about $20 million. He sold shares of the oil-field-services company worth more than $30 million during the campaign, but he retained hundreds of thousands of stock options and sold them gradually during his time in office, donating any profits to charity. The Tillerson conundrum will surely put the company's board in a tough spot, said Robert Jackson, a corporate-governance expert at Columbia University. Exxon's directors have to ask themselves "whether a public servantshould be receiving a $175 million gift from a private corporation," Mr. Jackson said. "This is a classic Catch-22," said Charles Elson, a professor of governance at the University of Delaware. "You're damned if you do and you're damned if you don't. They're in a tough position. There is no easy answer to this one." The company's compensation structure was clearly designed to prevent someone from reaping a windfall if they were to leave early to join a competitor or under circumstances that the board disapproves of, but Mr. Tillerson is going into public service, Mr. Elson said. Mr. Tillerson had 2 million unvested shares as of this month, which were worth $184 million at Tuesday's closing price, according to securities filings. He also owns shares worth at least $55 million that have already vested and a pension valued at about $69 million as of year-end 2015. Exxon shares have risen 16% this year and 6% in the postelection stock-market rally. According to Exxon's compensation rules, the board can decide whether to let executives such as Mr. Tillerson keep the unvested shares if they depart before turning 65. The board also can accelerate the receipt of unvested shares, something the company usually doesn't do except in the case of a death before the vesting period is up, according to securities filings. Accelerating stock grants for executives entering public service isn't unprecedented. In 2001, rail operator CSX Corp. amended its contract with CEO John Snow to allow him to receive his salary and bonus upfront in the even he left for government service. In 2003, he became President George W. Bush's Treasury secretary. In 2006, Goldman Sachs accelerated about $26 million worth of unvested stock held by Hank Paulson, who replaced Mr. Snow. It also paid him a $18.7 million cash bonus for the half-year of work he did as CEO and chairman of the bank. --- Theo Francis contributed to this article. Credit: By Bradley Olson and Liz Hoffman
Subject: Retirement; Executive compensation
People: Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2016
Publication date: Dec 15, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848779665
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848779665?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
In Oil Face-Off, Saudis, Shale Both Claim Victory; Both sides look to take advantage of higher prices
Author: Faucon, Benoit; Sider, Alison; Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Dec 2016: n/a.
Abstract:
"Definitely, the U.S. is going to win the next two years because OPEC is cutting and U.S. shale is taking off," said Scott Sheffield, chief executive of Pioneer Natural Resources Co., a U.S. producer that is already ramping up drilling in West Texas' Permian Basin. [...]Riyadh is betting that a period of rising prices following the production cut could boost a vast initial public offering of the state-owned Saudi Arabian Oil Co. An IPO of just 5%, as planned for 2018, could fetch over $100 billion and help fund an expansion of the Saudi economy into other sectors such as technology and mining, Saudi officials said.
Full text: A two-year battle for global oil supremacy that pit Saudi Arabia, the de facto leader of OPEC, against upstart U.S. shale producers left them both badly wounded but with each side claiming victory. The Organization of the Petroleum Exporting Countries deal last month to cut oil production has sparked a powerful rally after crude prices had fallen by half over the past two years. That slide followed OPEC's decision in late 2014 to maintain production levels, despite a global glut. For U.S. shale companies, it was two years of shrinking profits and mass layoffs as dozens of producers scaled back output or sought bankruptcy protection. But the survivors became much more efficient and are now eager to grab market share at their foreign competitors' expense. "Definitely, the U.S. is going to win the next two years because OPEC is cutting and U.S. shale is taking off," said Scott Sheffield, chief executive of Pioneer Natural Resources Co., a U.S. producer that is already ramping up drilling in West Texas' Permian Basin. In Saudi Arabia, two years of lower oil prices have greatly slowed economic growth, widened a budget gap and led the government to cut fuel and other popular subsidies in moves that risked stirring public discontent. Yet the collapse in crude prices didn't stop OPEC from gaining global market share as shale retreated. It also helped jump-start Saudi Arabia's plans to move away from a decadeslong dependency on oil. The kingdom raised a record $17.5 billion with its first global bond deal in October. Now, Riyadh is betting that a period of rising prices following the production cut could boost a vast initial public offering of the state-owned Saudi Arabian Oil Co. An IPO of just 5%, as planned for 2018, could fetch over $100 billion and help fund an expansion of the Saudi economy into other sectors such as technology and mining, Saudi officials said. Shale producers may also have a small window to take advantage of higher prices. OPEC and other major producers have pledged to cut output only for six months, and the group has a history of exceeding production quotas. Saudi Arabia two years ago elected to counter a rise in U.S. output with a flood of its own. Ali al-Naimi, Saudi oil minister at the time, denied he was targeting shale but often said he wanted to force out of the market the "high-cost producers," a phrase often interpreted to mean U.S. shale. Back then, many shale producers couldn't break even unless crude prices were about $80 a barrel. Two years of low prices pounded the U.S. oil industry. More than 100,000 energy workers have lost their jobs. The services companies that help drill and pump oil have jettisoned people and equipment. While activity in the Permian Basin is booming, other once-bustling shale formations in south Texas and North Dakota haven't recovered. But U.S. oil and gas producers raised more than $50 billion through secondary offerings in the stock market during the past two years, a financial lifeline that kept many afloat despite their debt. Many were able to raise this money by persuading investors that they could adapt faster than OPEC realized. These producers made strides in technology and drilling techniques, driving costs down to where they can get by at oil prices of just over $50 a barrel, said U.S. Energy Secretary Ernest Moniz in an interview last week. "The cost of production next year is going to be a lot less than the cost of production last year," Mr. Moniz said. As long as OPEC holds to its promise to cut back output, "you'll see some of that shale oil coming back," he said. Saudi Arabia officials said losses in the U.S. oil industry vindicated their approach. Although the kingdom has pledged to cut output by 486,000 barrels a day, that is far less than what U.S. producers were forced to cut by low prices. "The U.S. has cut more than anybody else," a senior Persian Gulf official said. Had oil prices remained between $70 and $80 a barrel, U.S. production could have increased to as much as 11 million barrels a day in the past two years, said Doug King, chief investment officer at RCMA Asset Management. Instead, U.S. output has fallen from a peak of 9.6 million barrels a day in 2015 to 8.6 million barrels a day in September. OPEC production has risen: Its market share is now almost 42% of global supply, after it fell below 40% in 2014, according to the International Energy Agency. "The OPEC strategy--they've won. They wanted market share, and they took it," said Dan Pickering, head of the asset-management arm of Tudor, Pickering, Holt & Co. Ahmed Al Omran and Ryan Dezember contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com , Alison Sider at alison.sider@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Benoit Faucon, Alison Sider and Georgi Kantchev
Subject: Crude oil prices; Petroleum industry; Market shares; Petroleum production; Initial public offerings
Location: United States--US Permian Basin Saudi Arabia West Texas
People: Naimi, Ali I
Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111
Publicationtitle: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 15, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1848817258
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Cuba and Venezuela's Ties of Solidarity Fray; The oil from Caracas that once paid for doctors from Havana is running low, imperiling an ideological union
Author: Kurmanaev, Anatoly
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Dec 2016: n/a.
Abstract: None available.
Full text: Corrections & Amplifications: In 2015, Venezuela shipped 91,000 barrels of oil a day to Cuba. An earlier version of this story included a graphic that incorrectly labeled the year 2015 as 2005. (Dec. 18) CIENFUEGOS, Cuba--Fidel Castro and Hugo Chávez proclaimed a decade ago that they presided over a single country, combining Cuba's educated workforce with Venezuela's oil wealth to challenge U.S. power across Latin America. Now Mr. Castro is gone , three years after Mr. Chávez's death, and the union between the two countries, while still strong on paper, is withering away fast. Daily shipments of more than 100,000 barrels of subsidized Venezuelan oil, the lifeblood of Cuba's economy, have dropped by more than half since 2013, according to oil traders and Cuban refinery workers. In November, Cuba had to buy oil on the open market for the first time in 12 years as Venezuela's output plummets. Meanwhile, thousands of Cuban doctors who toiled in Venezuelan shantytowns to pay off the oil deliveries are quietly returning home, scaling back an important vestige of the popular social programs Mr. Chávez left to his now embattled successor, Nicolás Maduro. The air bridge between the two Caribbean countries is also dissolving: Cuba's flagship airline, Cubana de Aviación, stopped regular flights to Caracas earlier this year. Charters from Caracas to Havana have scaled back too as demand slumped. On the surface, leaders in both countries swear to an ironclad coupling that detractors mockingly call Cubazuela. After Mr. Castro died last month, Venezuela's government declared three days of mourning; Mr. Maduro and a large delegation of high officials then spent several days in Cuba to pay respects. He sat to the right of Raúl Castro, Cuba's president and the elder Mr. Castro's successor, at the memorial ceremony in Havana, fighting back tears before his turn came to speak to the crowds. "Raúl, count on Venezuela," said Mr. Maduro, who as a young man underwent political training in Cuba. "We will carry on the path of victory, the path of Fidel." In the good times under Mr. Chávez, who cast himself as Fidel Castro's spiritual son, Venezuela restarted and expanded the oil refinery here in Cienfuegos, making it the city's largest employer. Venezuela built new houses and brought in new city buses. The largess helped this city partially recover from the collapse of the surrounding sugar mills and become a symbol of the economic union between the two countries. "Deep down, we are one single government, one single country," Mr. Chávez said during a 2007 visit to a nearby town. Reselling subsidized oil from Venezuela on the open market earned Cuba billions of dollars, allowing the country to get back on its feet after the demise of its Cold War-era benefactor, the Soviet Union. But all that has changed now in this port city, with its wide colonial boulevards and leafy coastal promenade. The posters and murals of Mr. Chávez hugging Mr. Castro or picturing the pair walking together through sunflower fields are now fading. Residents say their future now lies with American tourists and investors, not with Mr. Maduro. "We are very grateful to Chávez, but we have to fend for ourselves now," said Antonio Alborniz, a former refinery truck driver who now drives recently switched to driving a tourist taxi. "The oil is gone." Now the refinery sits idle. The last Venezuelan oil tanker docked here in August, according to oil traders. The shutdown has already sharply raised the cost of living for many residents, who had relied on cheap gasoline smuggled out of the refinery to alleviate hardship. Overall, Venezuelan exports of crude oil and refined products to Cuba, which generate most of the island's electricity, fell to about 55,000 barrels a day this year through October from the peak of 115,000 in 2008, according to data from Petro-Logistics SA, a consulting firm that tracks tanker movements. Traders say deliveries have fallen further since, though it is unclear by how much. Venezuela's crude production has fallen so much that state oil company Petróleos de Venezuela SA, known as PDVSA, had to resort to buying oil abroad to meet its minimum obligations to Cuba for December and January, according to oil traders involved in the deals. After that, the Cuban government may have to source most of its crude itself. Cuba's foreign ministry and PDVSA didn't reply to requests for comment. Venezuelan officials say the Cuban government has gone through many hardships since the fall of the Soviet Union and won't let Venezuela's economic crisis affect the alliance. "The Cuban government understands that Venezuela can no longer provide them all the things that it used to," said "Fidel was very well aware of Venezuela's current problems," Ali Rodríguez, Venezuela's ambassador to Havana and a former Castro, said in an interview-inspired guerrilla. "The Cuban government understands that Venezuela can no longer provide them all the things that it used to." As Venezuelan oil dwindles, Cuba is being forced to reduce its side of the bargain, summoning home the medical personnel who helped make Mr. Chávez popular. There were 38,300 Cuban doctors and nurses working in Venezuela at the end of May, 4,000 fewer than three years ago, according to John Kirk, a professor at Dalhousie University in Halifax, Canada, who closely tracks Cuban medical missions. At its peak, 65,000 Cuban medical staff worked in Venezuela, according to Mr. Rodríguez, who declined to discuss the current levels. Many of the returning doctors aren't being replaced, and Cuban medical personnel are increasingly turning down Venezuelan postings because of spiraling violence in that country, according to interviews with half a dozen Cuban doctors who served in Venezuela. Hundreds posted in Venezuela also defected, hoping to reach the U.S. Cuba's exports of services, mostly medical missions, fell 15% to $470 million last year from 2013, according to government statistics. The loss of money from reselling Venezuelan oil coupled with the shrinking medical exports are putting pressure on Cuban foreign exchange earnings at the time when some here worry that U.S. President-elect Donald Trump will scale back remittances to the island from Cuban Americans, the annual value of which is greater than what Cuba earns in exports. Juan Forero in Havana and Mayela Armas in Caracas contributed to this article. Write to Anatoly Kurmanaev at Anatoly.kurmanaev@wsj.com Credit: By Anatoly Kurmanaev
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 15, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849984106
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Gain After Kuwait Supply-Cut Reports; Pressure From Strong Dollar Persists; February Brent crude on London's ICE Futures exchange rose $0.28 to $54.30 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Dec 2016: n/a.
Abstract:
Demand for crude in emerging markets, a growth driver for global consumption, tends to fall when U.S. rates rise, according to an analysis by Bank of America Merrill Lynch.
Full text: Oil prices rose in Asia trade Friday morning on bargain-hunting and reports that Kuwait is reducing more of its supply than it previously pledged. On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $51.20 a barrel at 0233 GMT, up $0.30 in the Globex electronic session. February Brent crude on London's ICE Futures exchange rose $0.28 to $54.30 a barrel. Shares of regional energy companies have also risen in tandem with higher oil prices. China's Cnooc was up 1.2%, PetroChina rose 0.3%, while Japan's Inpex was 0.8% higher. Oil prices rose after several media outlets reported that Kuwait Petroleum Corp. had notified its customers in the U.S. and Europe that it would scale back supply for January, said ANZ Research. The scope of the cut is said to be bigger than expected. The fifth-largest producer in the Organization of the Petroleum Exporting Countries, Kuwait produced 2.78 million barrels a day in November, down 1.8%, or 51,300 barrels daily, from the previous month, according to an OPEC report based on secondary sources. OPEC nations in late November agreed to cut production by 1.2 million barrels a day starting next month, as a two-year long overhang has depressed prices. The pact was followed by an agreement from 11 non-OPEC producers to cut their supplies by 558,000 barrels a day. The total sum is roughly 2% of the global supply. If the producers adhere to the new production limits, the global oil market will shift to a deficit by the second half of next year, the cartel forecasts. Analysts said the expected drainage of excess of oil would push prices to the $60-$70-a-barrel band next year, and possibly to $80 by 2018. "Next year's production cuts are likely to see the market supported with bargain hunters active in quality energy stocks on minor dips," said Ric Spooner, chief market analyst at CMC Markets. However, in the short term, the upward momentum is weighed on by the stronger dollar, which has rallied around 2% since the U.S. Federal Reserve raised interest rates Wednesday. A stronger dollar makes oil more expensive for traders using other currencies. U.S. rate increase are usually bad news for oil. Demand for crude in emerging markets, a growth driver for global consumption, tends to fall when U.S. rates rise, according to an analysis by Bank of America Merrill Lynch. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--rose 20 points to $1.5441 a gallon, while January diesel traded at $1.6512, 92 points higher. ICE gas oil for January changed hands at $481.75 a metric ton, up $7.00 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Supply & demand; Interest rates
Location: Japan Kuwait China United States--US Asia Europe
Company / organization: Name: CNOOC Ltd; NAICS: 211111; Name: Kuwait Petroleum Corp; NAICS: 211111; Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: Bank of Ameri ca Merrill Lynch; NAICS: 522110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849028026
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849028026?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
In Saudi-Shale Fight, Both Claim Victory --- Each side is now trying to take advantage of rebound in crude-oil prices
Author: Faucon, Benoit; Sider, Alison; Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]16 Dec 2016: B.11.
Abstract:
[...]Riyadh is betting that a period of rising prices following the production cut could boost a vast initial public offering of the state-owned Saudi Arabian Oil Co. An IPO of just 5%, as planned for 2018, could fetch over $100 billion and help fund an expansion of the Saudi economy into other sectors such as technology and mining, Saudi officials said.
Full text: A two-year battle for global oil supremacy that pit Saudi Arabia, the de facto leader of OPEC, against upstart U.S. shale producers left them both badly wounded but with each side claiming victory. The Organization of the Petroleum Exporting Countries' deal last month to cut oil production has sparked a powerful rally after crude prices had fallen by half over the past two years. That slide followed OPEC's decision in late 2014 to maintain production levels, despite a global glut. For U.S. shale companies, it was two years of shrinking profits and mass layoffs as dozens of producers scaled back output or sought bankruptcy protection. But the survivors became much more efficient and are now eager to grab market share at their foreign competitors' expense. "Definitely, the U.S. is going to win the next two years because OPEC is cutting and U.S. shale is taking off," said Scott Sheffield, chief executive of Pioneer Natural Resources Co., a U.S. producer that already is ramping up drilling in West Texas' Permian Basin. In Saudi Arabia, two years of lower oil prices have greatly slowed economic growth, widened a budget gap and led the government to cut fuel and other popular subsidies in moves that risked stirring public discontent. Yet the collapse in crude prices didn't stop OPEC from gaining global market share as shale retreated. It also helped jump-start Saudi Arabia's plans to move away from a decadeslong dependency on oil. The kingdom raised a record $17.5 billion with its first global bond deal in October. Now, Riyadh is betting that a period of rising prices following the production cut could boost a vast initial public offering of the state-owned Saudi Arabian Oil Co. An IPO of just 5%, as planned for 2018, could fetch over $100 billion and help fund an expansion of the Saudi economy into other sectors such as technology and mining, Saudi officials said. Shale producers also may have a small window to take advantage of higher prices. OPEC and other major producers have pledged to cut output only for six months, and the group has a history of exceeding production quotas. Saudi Arabia two years ago elected to counter a rise in U.S. output with a flood of its own. Ali al-Naimi, Saudi oil minister at the time, denied he was targeting shale but often said he wanted to force out of the market the "high-cost producers," a phrase often interpreted to mean U.S. shale. Back then, many shale producers couldn't break even unless crude prices were about $80 a barrel. Two years of low prices pounded the U.S. oil industry. More than 100,000 energy workers have lost their jobs. The services companies that help drill and pump oil have jettisoned people and equipment. While activity in the Permian Basin is booming, other once-bustling shale formations in south Texas and North Dakota haven't recovered. But U.S. oil and gas producers raised more than $50 billion through secondary offerings in the stock market during the past two years, a financial lifeline that kept many afloat despite their debt. Many were able to raise this money by persuading investors that they could adapt faster than OPEC realized. These producers made strides in technology and drilling techniques, driving costs down to where they can get by at oil prices of just over $50 a barrel, U.S. Energy Secretary Ernest Moniz said in an interview last week. Saudi Arabia officials said losses in the U.S. oil industry vindicated their approach. Although the kingdom has pledged to cut output by 486,000 barrels a day, that is far less than what U.S. producers were forced to cut by low prices. Had oil prices remained between $70 and $80 a barrel, U.S. production could have increased to as much as 11 million barrels a day in the past two years, said Doug King, chief investment officer at RCMA Asset Management. Instead, U.S. output has fallen from a peak of 9.6 million barrels a day in 2015 to 8.6 million barrels a day in September. OPEC production has risen: Its market share is now almost 42% of global supply, after it fell below 40% in 2014, according to the International Energy Agency. --- Ahmed Al Omran and Ryan Dezember contributed to this article. Credit: By Benoit Faucon, Alison Sider and Georgi Kantchev
Subject: Market shares; Crude oil prices; Petroleum production; Oil shale
Location: West Texas Saudi Arabia
Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2016
Publication date: Dec 16, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849123242
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849123242?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Eases Off Highs on Libyan Production; Libyan officials said the restarting of the oil fields could bring back more than 200,000 barrels a day of oil
Author: McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Dec 2016: n/a.
Abstract:
Demand for crude in emerging markets, a growth driver for global consumption, tends to fall when U.S. rates rise, according to an analysis by Bank of America Merrill Lynch.
Full text: Oil prices were steady Friday, under pressure from potential production increases in Libya where operations have restarted at two key oil fields. Brent crude, the global oil benchmark, edged down 0.2% to $53.91 a barrel on London's ICE Futures exchange, having hit their highest level since July 2015 earlier this week. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.3% at $50.73 a barrel. Libya's oil production has dropped steeply in the past five years after the ousting of Moammar Gadhafi in 2011, but in recent months it has been ramping back up. Earlier this week Libyan officials said the restarting of the oil fields and a connected pipeline could bring back more than 200,000 barrels a day of oil within days. This would diminish the impact of the recent production cuts agreed by the Organization of the Petroleum Exporting Countries, as well as nonmembers, totaling around 1.8 million barrels a day, or roughly 2% of the global supply. Libya was exempt from the cut. "Now that the blockade of a key pipeline has been lifted, two oil fields there are set to go back into operation after production was suspended for a period of two years," said Commerzbank in a note. "The other countries will thus need to reduce their output even more." The agreed cuts by oil producers are expected to be implemented from January. "There will be little evidence of production cuts until mid to late January which we believe will be the next catalyst for the next large move in prices," Goldman Sachs said in a note. The bank raised its Brent price forecast for the second half of 2017 to $58 a barrel, from its previous forecast of $51.50. In the short term, the stronger dollar is also weighing on the market, which has rallied around 2% since the U.S. Federal Reserve raised interest rates Wednesday. A stronger dollar makes oil more expensive for traders using other currencies. U.S. rate increases are usually bad news for oil. Demand for crude in emerging markets, a growth driver for global consumption, tends to fall when U.S. rates rise, according to an analysis by Bank of America Merrill Lynch. Nymex reformulated gasoline blendstock--the benchmark gasoline contract--fell 0.5% to $1.53 a gallon. ICE gas oil changed hands at $479.00 a metric ton, up $4.25. from the previous settlement. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Sarah McFarlane and Jenny W. Hsu
Subject: Supply & demand; Oil fields; Interest rates; Petroleum production; Pipelines; Production increases
Location: Libya
People: Qaddafi, Muammar El
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: Bank of America Merrill Lynch; NAICS: 522110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849157798
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849157798?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Petróleo Brasileiro Signs Financing Deal with China Development Bank; The arrangement coincides with the signing of a commercial contract whereby the energy company will supply 100,000 barrels of oil a day to three Chinese firms
Author: Kiernan, Paul; Parkin, Benjamin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Dec 2016: n/a.
Abstract: None available.
Full text: RIO DE JANEIRO--Brazil's state-controlled oil company Petróleo Brasileiro SA said Friday it signed a $5 billion financing deal with the China Development Bank, the latest example of a troubled Latin American issuer reaching to deep-pocketed Chinese institutions for help. The 10-year financing arrangement coincided with the signing of a commercial contract whereby Petrobras, as the energy company is known, will supply 100,000 barrels of oil a day to three Chinese firms. The firms are China National United Oil Corporation, China Zhenhua Oil Co. Ltd. e Chemchina Petrochemical Co. Ltd. This comes as Petrobras, the most indebted oil major in the world with $123 billion of gross debt, looks increasingly unlikely to meet its target of selling $15.1 billion of assets by the end of the year following a number of legal challenges. Brazil's federal auditing court last week suspended all but five Petrobras asset sales currently under way, while a few days prior a judge suspended the sale of its stake in its fuel distribution subsidiary, BR Distribuidora. The China Development Bank loan could help Petrobras, which was exposed as the center of a mammoth corruption scandal, recover after the weak Brazilian real and gas and diesel-price cuts put renewed pressure on its balance sheet, said Adriano Pires, an oil-industry consultant in Rio. "This is very important for the company's cash flow," said Mr. Pires. In Latin American countries like Brazil, Venezuela and Argentina, "the Chinese substituted the Americans as the large financiers and buyers of companies linked to the energy sector." Petrobras would need to sell around $4 billion in assets by the end of this month in order to meet its $15.1 billion goal. The company plans to sell a further $19.5 billion worth of assets in 2017 and 2018. China's hunger for South America's natural resources has made it a familiar source of financial relief on the continent in recent years. Its massive state banks have been lenders of last resort to distressed companies and governments around the region that have been cut out of private debt markets. China made billions in loans to Venezuela in recent years in exchange for oil from state-run Petróleos de Venezuela SA, or PDVSA. Struggling with the world's deepest recession and highest inflation, Venezuela now faces the possibility of defaulting on its debt. Write to Paul Kiernan at paul.kiernan@wsj.com Credit: By Paul Kiernan and Benjamin Parkin
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 16, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849287990
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849287990?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Russia's Soaring Markets Defy Messy Geopolitics; Economic policy and oil have underpinned gains for investors.
Author: Barley, Richard
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Dec 2016: n/a.
Abstract:
Whether it is Ukraine, Syria or allegations of hacking the U.S. presidential elections , Russia has been making waves geopolitically.
Full text: Whether it is Ukraine, Syria or allegations of hacking the U.S. presidential elections , Russia has been making waves geopolitically. But economically, it has been following the textbook. That mix has paid off for investors. Russia's economy was hit by a double shock of sanctions over Ukraine and the collapse in oil prices. It has been the recovery in oil--still the biggest swing factor for the economy--that has been key in getting Russia out of an economic hole. Russian policy makers also deserve some credit. Fitch Ratings, which in October lifted Russia's outlook to stable from negative, noted a "coherent and credible policy response" that "stands out relative to those of other oil producers similarly affected by the oil price shock." One key player has been the Central Bank of Russia, which Friday held interest rates at 10%. In December 2014, faced with a collapse in the ruble and rising inflation, it took rates to 17%, following a classic central-bank template. Even with inflation falling back, it has remained cautious: Friday it said it would consider a rate cut in 2017, but that is clearly contingent on inflation heading toward the 4% target. True, Russia's economic outlook is still weak. Growth is forecast at around 1% next year, though the latest data suggest gathering momentum. The Russian manufacturing purchasing managers index rose to its highest in more than five years in November. Investors have already been rewarded. The ruble is up 18% against the dollar this year, and remarkably has rallied even since the U.S. elections. Russia's Micex stock index is up nearly 27%. Russian dollar-denominated bonds have returned 11% this year, according to a Bloomberg Barclays index. Politics will matter in 2017, with the election of Donald Trump potentially changing the U.S. relationship with President Vladimir Putin. A reset in U.S.-Russian relations could propel Russian asset prices higher, but it is Russian economic policy has given investors a base to build on. Write to Richard Barley at richard.barley@wsj.com Credit: By Richard Barley
Subject: Presidential elections; Bond issues; American dollar; Investments; Purchasing managers index
Location: Syria Russia Ukraine United States--US
People: Putin, Vladimir Trump, Donald J
Company / organization: Name: Central Bank of Russia; NAICS: 521110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 16, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849288103
Document URL: https://login.ezproxy.ut a.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849288103?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Up by 12 in Week to 510, Baker Hughes Says; This week's pickup breaks from the typically more moderate increase in recent months
Author: Steele, Anne
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Dec 2016: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by 12 in the past week to a total of 510, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the oil sector.
Full text: The number of rigs drilling for oil in the U.S. rose by 12 in the past week to a total of 510, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the oil sector. After peaking at 1,609 in October 2014, low oil prices had put downward pressure on production and the rig count receded. The count has generally been rising since this past summer, however this week's pickup breaks from the typically more moderate increase. The nation's gas-rig count rose by one to 126 in the past week, according to Baker Hughes. And the U.S. offshore-rig count is unchanged from a week ago at 22, which is two fewer than a year ago. On Friday, oil prices rose amid signals that major oil producers will stick to their agreement to cut production next year. Oil prices were 1.4% higher at $51.61 a barrel in recent trading on Friday. Write to Anne Steele at Anne.Steele@wsj.com Credit: By Anne Steele
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 16, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849428840
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849428840?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Trump Win Muddles Saudi Aramco Deal --- Oil company's planned arrangement with Shell could put it in White House cross hairs
Author: Gold, Russell
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 Dec 2016: A.6.
Abstract:
The election of Donald Trump threatens to complicate efforts by Saudi Arabia's national oil company to purchase refineries and expand its petrochemical footprint in the U.S. Earlier this month, Harold Hamm, chief executive and founder of oil producer Continental Resources Inc. and a top energy adviser to President-elect Trump, said the government should use its power to examine and potentially block foreign ownership of oil refineries.
Full text: The election of Donald Trump threatens to complicate efforts by Saudi Arabia's national oil company to purchase refineries and expand its petrochemical footprint in the U.S. Earlier this month, Harold Hamm, chief executive and founder of oil producer Continental Resources Inc. and a top energy adviser to President-elect Trump, said the government should use its power to examine and potentially block foreign ownership of oil refineries. Discussing Saudi Arabian Oil Co., known as Saudi Aramco, and Citgo, a U.S. subsidiary of Petroleos de Venezuela SA, he said that foreign owners "buy a refinery, and they move in just their oil, nobody else. They don't buy oil from me. They don't buy oil from anybody else . . . I'm sorry. We're on to that. It shouldn't be permitted." While Mr. Trump hasn't spoken directly on the issue of foreign ownership of U.S. refineries, he has expressed unhappiness with U.S. reliance on foreign control of fuel manufacturing. That stance could complicate a continuing deal: Saudi Aramco and Royal Dutch Shell PLC are in talks to end a joint venture called Motiva Enterprises. The Saudi company, which is state owned and state controlled, has said it expects after negotiations are concluded to own the 603,000-barrel-a-day refinery in Port Arthur, Texas. Shell is expected to get two smaller refineries in Louisiana. A Saudi Aramco spokesman didn't respond to requests for comment. A Shell spokesman said, "The joint-venture partners will handle any regulatory filings associated with the transaction." Motiva referred any comments to Shell. Credit: By Russell Gold
Subject: Petroleum refineries; Petrochemicals industry; Foreign investments in the US
Location: United States--US Saudi Arabia
People: Trump, Donald J
Company: Saudi Arabian Oil Co
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.6
Publication year: 2016
Publication date: Dec 17, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849631394
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849631394?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
BP Strikes $2.2 Billion Deal for 10% Stake in UAE Oil Fields; The all share deal ends the drawn out negotiation process between the oil company and Abu Dhabi
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Dec 2016: n/a.
Abstract: None available.
Full text: Corrections & Amplifications: BP Strikes $2.2 Billion Deal for 10% Stake in UAE Oil Fields. An earlier version of this headline incorrectly stated the deal was worth $1.8 billion. LONDON--BP has traded a 2% stake in the company for a 10% interest in one of the last big oil concessions available in the Middle East, the company said Saturday, ending a yearslong standoff over the terms to gain access to the license in the United Arab Emirates. The all share deal, worth roughly £1.8 billion ($2.2 billion), gives BP access to onshore oil fields containing 20-30 billion barrels of oil equivalent over the 40-year term of the contract. It will provide BP with 165,000 barrels of oil equivalent a day as well as longer-term and low-cost growth prospects. The deal comes as oil prices begin to show signs of recovering after a two-year slump, boosted by an agreement between major producers--including the U. A. E.--to cut back output. The agreement between the U.A.E. and BP is the latest success for Abu Dhabi in a drawn-out negotiation process between the Emirate and international oil companies for concession rights. Talks have intermittently stalled for years over the terms demanded by the Gulf state. Total SA set the benchmark for a deal last year, after the French oil major agreed to a $2.2 billion sign-on fee in return for a 10% in the concession and $2.85 for every barrel of oil sold. At the time, voices from within the industry didn't see the deal as being favorable, particularly as low prices intensified companies' scrutiny of deal values. BP and Royal Dutch Shell PLC hesitated to complete similar deals. Since then, Japan's INPEX Corp. and GS Energy of South Korea have also taken smaller stakes in the concession. BP is likely to have received a similar per barrel fee to Total for its interest in the oil field, though the company did not disclose details. It will become a 10% shareholder in the Abu Dhabi Company for Onshore Petroleum Operations Limited, or Adco, which operates the concession. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 17, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849666216
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849666216?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Libya Halts Relaunch of Oil Production at Western Fields; Opposition from local militia led to risk of a blockade, oil official says
Author: Faucon, Benoit; Morajea, Hassan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Dec 2016: n/a.
Abstract:
Because of the risk of blockade, "it was not safe" to continue trying to restart production at those fields, a Libyan oil official said.
Full text: Libya's National Oil Co. has for now stopped the relaunch of production at oil fields in the country's west, Libyan officials said Sunday, after a militia threatened to block the petroleum from reaching the market. The aborted restart is a blow for Libya's oil industry, which has been counting on the country's big western fields to kick-start its comeback. A pipeline that can transport over 400,000 barrels a day from two western fields had partly reopened on Wednesday , but efforts to send that oil to coastal ports are now off, oil officials said. Oil traders are closely watching Libyan output. The country is a member of the Organization of the Petroleum Exporting Countries, but it was exempted from the cartel's recent deal to cut production because its output has been disrupted in recent years, falling to less than 300,000 barrels a day at times this year, compared with its height of over 1.6 million barrels a day during dictator Moammar Gadhafi's reign. Production has increased to over 500,000 barrels a day in recent months. The restart of the Western fields could add as much as 400,000 barrels a day to the market--nearly as much as Saudi Arabia pledged to cut as part of the OPEC deal. The abrupt decision to halt the fields' resumption illustrates the difficult task facing Libya's National Oil Co. as it tries to ramp up oil production after years of depressed output since Gadhafi's 2011 death. The country has splintered between rival governments in the west and east and among a host of militias with shifting allegiances. The deal to restart production involved talks with two separate militias that control different aspects of the western fields. But a faction of the Petroleum Facilities Guard dominated by the Toubou ethnic group has now protested that it had been left out of negotiations and wants one of the other militias to leave the fields. "If they don't, we will attack," Eli Egray, head of the Toubou-led faction, told The Wall Street Journal. The militias are all seeking more employment and the payments of back wages for guarding the facilities. "My men are not even being paid salaries...It's not right and it must stop," Mr. Egray said. Because of the risk of blockade, "it was not safe" to continue trying to restart production at those fields, a Libyan oil official said. Mr. Egray, whose group controls the entrance to the fields, confirmed his group was protesting with the government for not being included in the deal. Libyan oil officials said they still hope to restart production in the coming days. A National Oil Co. spokesman declined to comment. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon and Hassan Morajea
Subject: Petroleum production; Militia groups
Location: Libya
People: Qaddafi, Muammar El
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 18, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1849925808
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1849925808?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Nymex Oil Futures Higher With Focus Back on Production Cuts; February Brent crude on London's ICE Futures exchange rose 42 cents, or 0.8%, to $55.64 a barrel
Author: Craymer, Lucy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Dec 2016: n/a.
Abstract:
Oil futures were slightly higher in Asia trading Friday, as focus shifts back to the recently announced production cuts in crude oil.
Full text: Oil futures were slightly higher in Asia trading Friday, as focus shifts back to the recently announced production cuts in crude oil. Light, sweet crude futures for January delivery rose 47 cents, or 0.9%, to $52.37 a barrel in the Globex electronic session of the New York Mercantile Exchange. February Brent crude on London's ICE Futures exchange rose 42 cents, or 0.8%, to $55.64 a barrel. The rise extends moves seen in the previous session that came amid signals that major oil producers will stick to their agreement to cut production next year, and as the dollar's rally slowed. "With investors now expecting a relatively high level of compliance with the production cut agreements, prices should be well supported in the new year," said Australia & New Zealand Banking Group in a research note. The Organization of the Petroleum Exporting Countries at the end of November agreed to cut production by 1.2 million barrels a day starting next month, as a two-year-long overhang has depressed prices. The pact was followed by an agreement from 11 non-OPEC producers to cut their supplies by 558,000 barrels a day. However, some people remain skeptical that the planned cuts will be as substantial as the market currently expects. "We doubt that the OPEC-led cuts will reduce oil supply by as much as some are hoping," said Capital Economics, citing three reasons for skepticism. It noted that it believes it is unlikely the cartel will implement the cuts in full, while it expects that non-OPEC production will likely increase. Furthermore, it added that Chinese imports could fall back if prices remain high as much of the surge in oil imports has been driven by a desire to fill the country's strategic reserves. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--rose 115 points to $1.5686 a gallon, while January diesel traded at $1.6862, 139 points higher. ICE gas oil for January changed hands at $493.25 a metric ton, up $3.00 from Friday's settlement. Write to Lucy Craymer at Lucy.Craymer@wsj.com Credit: By Lucy Craymer
Subject: Cartels; Crude oil; Futures
Location: Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 19, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850002557
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850002557?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
BP Eyes Growth with String of Oil, Gas Deals; Agreement with Kosmos Energy shows continued determination to pump more despite oil and gas price crashes
Author: Kent, Sarah; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Dec 2016: n/a.
Abstract:
The huge gas assets play into BP's strategy to invest more heavily in the lower-carbon fossil fuel at a time when investors and regulators are increasing their scrutiny of carbon emissions.
Full text: LONDON--BP PLC has pulled off a string of deals in recent weeks that signal the British oil giant is looking to grow again after six years of retrenchment following the deadly Deepwater Horizon disaster. The latest evidence: A near $1 billion investment in a vast natural gas field off the coast of Africa announced Monday. The deal with Dallas-based Kosmos Energy Ltd. followed a $2.2 billion all-share deal Saturday to take a 10% stake in a parcel of United Arab Emirates oil fields. Over the past month, BP also has bought a stake in the supergiant Zohr gas field offshore Egypt and expanded its interest in Indonesia's Tangguh natural-gas project. It has bought in to two exploration blocks in the North Sea and approved a $9 billion oil project in the Gulf of Mexico. BP's executives highlighted the company's growth prospects this year now that they have a handle on the financial toll of the 2010 Gulf of Mexico well blowout that killed 11 people, caused an environmental disaster and forced the company to shrink dramatically. The company sold off around $50 billion in assets to help pay for the cleanup and legal costs that ultimately totaled more than $60 billion, only to be hit by a dramatic slump in oil prices that took hold two years ago and compounded its financial woes. Its daily production shrank to 3.3 million barrels of oil equivalent a day in 2015, down from 4 million a day in 2009. BP has moved ahead with the recent spate of deals now that the Gulf spill costs are largely contained and the oil market is buoyed by a production-cut deal struck last month by the Organization of the Petroleum Exporting Countries. "They are on the other side of the mountain now," said Fadel Gheit, a managing director at Oppenheimer & Co. "They were in a steep climb to survive. That is now behind them." BP Chief Executive Bob Dudley said in July that the company was prepared for "a new phase of growth" now that it had "drawn a line under our Deepwater Horizon liabilities." A BP spokesman said the deals were examples of its long-term strategy "coming to fruition." "It's all part of the strategy: getting bigger on gas, doing low cost oil, deepening relationships and partnerships," the spokesman said. For the most part, BP's recent deals are relatively small bolt-on acquisitions, but they show that companies are gradually beginning to invest again after years of cutbacks and layoffs as higher oil prices help return some confidence to the sector. "Companies are now on a firmer financial footing after two years of savage cuts, and they're able to look beyond survival and look to how they start growing again," said Tom Ellacott, a senior analyst at Edinburgh-based consultancy Wood Mackenzie. "The BP deals are very good examples of this." The agreement Monday with exploration company Kosmos Energy calls for BP to pay more than $900 million in the coming years to help test the viability of the Tortue prospect in waters off Mauritania and Senegal. By some estimates, the field could hold as much as 50 trillion cubic feet of natural gas. That is enough to meet demand in the United Kingdom for about 20 years, according to the U.S. Energy Information Administration. The huge gas assets play into BP's strategy to invest more heavily in the lower-carbon fossil fuel at a time when investors and regulators are increasing their scrutiny of carbon emissions. BP has said it expects around 60% of its production to be natural gas by the end of the decade. The deal also makes BP the operator of the project, giving the British oil giant another potential growth opportunity in its portfolio as two years of low energy prices and cost-cutting have reduced the number of new drilling frontiers. Funding from BP will be used for further drilling, as well as feasibility studies and development costs that should put BP and Kosmos in a position to make a final investment decision on the project by 2018, according to Kosmos. "The industry has taken a timeout over the last two years, exploration has fallen off and many don't have the depth of portfolio that they used to," Andrew Inglis, the chairman and chief executive of Kosmos, said in an interview. "The big companies are starting to address that issue." In the U.A.E., BP has bought access to one of the last big oil concessions available in the Middle East. The 40-year deal will give BP access to 165,000 barrels of oil a day--a rich prize in today's world, where many oil-rich countries in the Gulf are off limits to big international oil companies. It ends a yearslong standoff over terms that many within the industry criticized as unattractive despite the volumes at stake. Write to Sarah Kent at sarah.kent@wsj.com and Bradley Olson at Bradley.Olson@wsj.com Credit: By Sarah Kent and Bradley Olson
Subject: Natural gas; Feasibility studies; Cost reduction
Location: Africa United Arab Emirates
People: Dudley, Bob
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 19, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850024592
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850024592?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproductio n or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Lifted by Hopes Inventories Will Fall; Agreed cuts from major oil producing nations could have a significant impact
Author: Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Dec 2016: n/a.
Abstract:
[...]The Wall Street Journal reported Sunday that Libya's National Oil Co. has called a halt to the planned relaunch of production at oil fields in the country's western regions after a militia threatened to block the petroleum from reaching the market.
Full text: Oil prices gained on Monday amid renewed hope that previously agreed cuts from major oil producing nations would have a significant impact on global inventories. The February contract for global benchmark Brent was up 0.54% at $55.50 a barrel while its U.S. counterpart, West Texas Intermediate, increased 0.5% to $52.16 for January deliveries. The Organization of the Petroleum Exporting Countries has pledged to cut output to 32.5 million barrels a day, but many observers have expressed doubt that the target could be met, especially if members of the cartel exempt from cuts start to ramp up output. However, The Wall Street Journal reported Sunday that Libya's National Oil Co. has called a halt to the planned relaunch of production at oil fields in the country's western regions after a militia threatened to block the petroleum from reaching the market. New York-based Morgan Stanley said the best case scenario was if Saudi Arabia cut to 9.5 million barrels a day while at the same time Libya and Nigeria failed to push production any higher than current levels. Analysts at the bank said that OPEC production in January would be about 33 million barrels a day, enough to be viewed as positive by the market. Germany's Commerzbank cited speculative financial investors as the major contributors to the current price rally. Net long positions in WTI, a market term to describe a contract where the buyer expects prices to rise, rose by 32,200 in the week to Dec. 13 to hit 274,800. This confidence also meant the bank advised some caution. "In view of the high optimism shown by financial investors--net long positions currently find themselves at their highest level since July 2014--we see considerable correction potential if the promised production cuts are not implemented or are only partially implemented by the oil producers," Commerzbank said. Meanwhile, the approaching Christmas holiday means that trading volumes are expected to be lower this week, thereby increasing the prospect of volatility, especially around the weekly U.S. inventory reports on Tuesday and Wednesday. Nymex reformulated gasoline blendstock futures--the benchmark gasoline contract--gained 0.27% to $1.56 a gallon, while diesel futures traded up 0.17% at $1.68. ICE gasoil futures changed hands at $490.50, up 0.05%. Benoit Faucon and Hassan Morajea contributed to this article. Write to Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Kevin Baxter
Subject: Futures; Crude oil
Location: Libya United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 19, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850068155
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850068155?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
As the Oil-Sands Industry Declines, Its Biggest Champion Bolts; N. Murray Edwards, who has acted as a sector standard-bearer in Canada for more than a decade, has decamped to London and lowered his profile
Author: Dawson, Chester
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Dec 2016: n/a.
Abstract:
Alberta, which lured tens of billions of dollars in investments from the world's biggest oil producers during a decade of heady growth from about 2003 to 2013, is now viewed as one of the places least likely to recover from the price rout because of high investment costs, long development time and looming limits on carbon emissions.
Full text: CALGARY--Billionaire Canadian oil man N. Murray Edwards made a prediction two years ago that shocked many industry players: He forecast that oil prices would fall to $30 a barrel, spelling the end of rapid growth for Alberta's oil sands. He was right. Even with oil prices on the rebound after the Organization of the Petroleum Exporting Countries' recent meeting, Canada's sands are losing out to cheaper U.S. shale oil as the energy industry's supplier of choice for higher cost barrels of oil. That is bedeviling energy executives who bet big on oil sands, and none more so than Mr. Edwards, chairman of Canadian Natural Resources Ltd., whose move to London this year has left a vacuum in the country's industry and policy circles. Long viewed as Canada's most influential oil man, the 57-year-old businessman continues to oversee one of the nation's largest energy companies, phoning in to weekly meetings, according to the company, which has no chief executive officer. But his absence was conspicuous last month at an annual conference of business leaders he had co-chaired for 15 years. "I think his voice is missed. There are very few senior executives who are prepared to wade into policy issues," said Alan Ross, managing partner in the Calgary law firm Borden Ladner Gervais LLP. Mr. Edwards--who declined to comment for this article, as did Canadian Natural, about the reason for his move--cited personal circumstances for his London relocation during a newspaper interview in May. Among other things, he said he wanted to "step back" from his day-to-day role in Calgary. CNRL officials recently said his role at the company is unchanged. Canadian Natural has lost money in all but one of the past seven quarters, including its most recent. It posted a loss of 326 million Canadian dollars ($248 million) in the third quarter, compared with a loss of C$111 million a year earlier. The company isn't alone. Canada's oil-sands industry is on track to post a loss of 10 billion Canadian dollars ($7.6 billion) in 2016, marking the first time it has lost money for two consecutive years, according to the Conference Board of Canada, a think tank that analyzes economic trends. While crude prices are rallying above $50 a barrel following OPEC's recent decision to cut production, oil prices fell from more than $100 a barrel in 2014 to below $30 a barrel earlier this year. Alberta, which lured tens of billions of dollars in investments from the world's biggest oil producers during a decade of heady growth from about 2003 to 2013, is now viewed as one of the places least likely to recover from the price rout because of high investment costs, long development time and looming limits on carbon emissions. Canada's National Energy Board estimated in October that oil production--mostly from oil sands--would rise along with prices to 5.7 billion barrels a day by 2040, nearly 400,000 barrels a day less than it had forecast in January. If prices stay relatively low, however, output could grow to 4.7 million barrels a day by then, barely up from 4.3 million barrels a day in 2015. Pressures on the oil sands prompted Statoil ASA to exit its Canadian oil-sands operations last week and take a $500 million write-down. Royal Dutch Shell PLC took a $2 billion write-down last year after abandoning a major oil-sands project, and Exxon Mobil Corp. said earlier this year it may be forced to remove billions of barrels of oil-sands reserves from its books. "They're seeing headwinds and essentially putting the brakes on," said Mike Dunn, an analyst at Calgary-based investment bank GMP FirstEnergy Capital Corp. Canadian Natural, whose Canadian operations account for nearly all of its crude-oil reserves, has improvised. "We're going to really have to find ways to redo our business," Mr. Edwards told reporters in 2014. Many were irked by one of those changes: embracing a new, left-leaning provincial government's environmental agenda, which includes higher carbon taxes and a controversial cap on greenhouse-gas emissions tied to oil-sands production. "They cut a deal with the government and left a lot of people out in the cold," says former TransCanada Corp. CEO Hal Kvisle. During the past two years, Canadian Natural has shelved much of its growth portfolio and cut spending to conserve cash. It continues to groan under the debt load it took on to finance a new C$22 billion oil-sands mine in Alberta, and low oil prices are squeezing its profit margins. Moody's Investors Service cut Canadian Natural's credit rating this year to one level above junk status. Analysts expect Canadian Natural to weather the storm, and its stock has recovered from seven-year lows it hit in January. For the year so far, shares are up more than 50%, and the company currently has a market value of C$48.9 billion. Canadian Natural has moved to reboot plans for a new small-scale project, and is ramping up production to bring the final phase of its massive new oil-sands mine online next year. The company has little choice but to double down on its core business. "They have less flexibility than global oil majors who can shift or tilt in a way that players with mostly local assets can't," said Kevin Birn, oil-sands analyst at research firm IHS Markit Ltd. Credit: By Chester Dawson
Subject: Oil sands; Acquisitions & mergers; Emissions; Crude oil prices; Petroleum production; Energy industry
Location: Canada
Company / organization: Name: Borden Ladner Gervais LLP; NAICS: 541110; Name: Conference Board of Canada; NAICS: 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 19, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850068356
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850068356?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Likely to Remain Underpinned by Forecast Production Cuts; Brent is up 0.1% or 3 cents at $54.95 a barrel
Author: Craymer, Lucy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Dec 2016: n/a.
Abstract: None available.
Full text: 0219 GMT [Dow Jones] Crude oil prices are likely to remain underpinned by forecast production cuts going into 2017, says Stuart Ive, client advisor at OM Financial. He adds that if crude prices continue to hover around $55/bbl there may be further moves by OPEC nations to reduce production as it is likely they'd like to see oil prices above $60/bbl. Nymex is down 0.2% or 12 cents at $52.00 a barrel, Brent is up 0.1% or 3 cents at $54.95 a barrel. Write to Lucy Craymer at Lucy.Craymer@wsj.com Credit: By Lucy Craymer
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 20, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850224311
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850224311?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Edge Higher in Thin Holiday Trade; Stalling output from OPEC and Libya lifting market
Author: Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Dec 2016: n/a.
Abstract:
With the Organization of the Petroleum Exporting Countries not initiating production cuts until January, the headline-driven trading of the last three months has abated, leading most observers to state that prices will likely stay in the $50-$55 a barrel range until the new year.
Full text: Oil prices edged higher Tuesday as coming cutbacks from some of the world's biggest producers keep supporting the market when trading is light because of the holidays. U.S. crude for January delivery recently gained 45 cents, or 0.9%, to $52.57 a barrel on the New York Mercantile Exchange. The January contract expires at settlement. The more actively traded February contract recently gained 52 cents, or 1%, to $53.58 a barrel. Brent, the global benchmark, gained 80 cents, or 1.5%, to $55.72 a barrel on ICE Futures Europe. The Organization of the Petroleum Exporting Countries agreed last month to cut output by 1.2 million barrels a day, equivalent to around 1% of global supply. A group of big oil producers outside the cartel, including Russia, agreed to join them and scale back their output by another 558,000 barrels a day. Now output increases expected from Libya--which had been exempted from the OPEC deal--are at risk. Country officials said Sunday that the National Oil Co. has stopped the relaunch of production at oil fields in the country's west after a militia threatened to block the petroleum from reaching the market. That makes oil's next $4 move more likely to be up than down, Jim Ritterbusch, president of energy-advisory firm Ritterbusch Associates, said in a note. He forecast U.S. crude above $56 and Brent at $59 by early January, though a lull in trading from the holidays will likely keep it between $51 and $53 this week, he added. "The entire complex will remain much more responsive to minor bullish headlines than to occasional bearish items," he said. Mike Wittner at Société Générale SA said Tuesday that prices are likely to stay just above $50 a barrel through the first three months of next year. But after that, they are likely to move toward $60 by the end of 2017. "Before the OPEC agreement, the supply and demand outlook had gone from bullish to neutral," he wrote. "With the OPEC agreement, the global rebalancing has been brought forward again," to the second half of 2017. Many expect the holiday season to keep news sparse and trading light in the days to come, and other trends could keep prices calm for weeks. OPEC doesn't plan to initiate production cuts until next month, and traders are likely to wait to see how well they follow through. That leaves oil prices likely stuck around $50 until early next year, and then likely higher once traders see inventory levels fall, according to many analysts. Bjarne Schieldrop from the Stockholm-based SEB bank said in a note that higher prices were inevitable, but that the reaction would be a strong inflow of new U.S. shale oil rigs in the first half of 2017. Mr. Schieldrop added that global oil inventories would continue to be elevated in the first half of next year. He said that a period of backwardation, a term that describes the situation when the future price of a commodity is cheaper than the current price, would force around 300 million barrels of oil onto the market. Meanwhile, European oil demand was up by 190,000 barrels a day year-over-year in October with peripheral Europe up by 300,000 barrels a day, which canceled out some declines from within the European Union, according to a note published by the London-based Energy Aspects. The think tank also said that an uptick of gas production in Saudi Arabia is also driving down Middle East oil demand, which fell by 190,000 to 6.35 million barrels a day year-over-year in October. Saudi Arabia was responsible for almost all of that, falling by a hefty 170,000 barrels a day. The American Petroleum Institute will release its U.S. crude stock inventory figures for last week later Tuesday. This will be followed by the official data from the Energy Information Administration on Wednesday. Gasoline futures recently gained 2% to $1.5946 a gallon and diesel futures gained 0.4% to $1.6762 a gallon. Write to Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Kevin Baxter
Subject: Prices; Crude oil; Oil consumption
Location: United States--US Saudi Arabia
Company / organization: Name: American Petroleum Institute; NAICS: 813910, 541820; Name: European Union; NAICS: 926110, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 20, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850342335
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850342335?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Government Bond Prices Decrease; Higher stocks and crude oil prices bolster risk appetites
Author: Zeng, Min
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Dec 2016: n/a.
Abstract:
"Given that there were no additional attacks overnight and things remain quiet, the safe haven bid has come out of the bond market,'' said Larry Milstein, managing director for government and agency trading at R.W. Pressprich & Co. In recent trading, the yield on the benchmark 10-year Treasury note was 2.581%, near a two-year high set last week, according to Tradeweb, compared with 2.544% Monday.
Full text: Prices of U.S. government bonds pulled back Tuesday as higher stocks and crude oil prices bolstered risk appetites and sapped demand for haven assets. The bond market had strengthened a day earlier, driven by the shooting of a Russian diplomat and attacks in Berlin and Zurich. "Given that there were no additional attacks overnight and things remain quiet, the safe haven bid has come out of the bond market,'' said Larry Milstein, managing director for government and agency trading at R.W. Pressprich & Co. In recent trading, the yield on the benchmark 10-year Treasury note was 2.581%, near a two-year high set last week, according to Tradeweb, compared with 2.544% Monday. Yields rise as bond prices fall. The Dow Jones Industrial Average rose and approached 20,000, a level it has never reached. The Bank of Japan held its monetary stimulus steady as expected by investors earlier Tuesday, but officials had a brighter assessment over the growth outlook with exports getting a lift from a weakening yen amid broad U.S. dollar strength. A softer currency makes exports more competitive in global trade. Exports play a big role in Japan's economy, the world's third largest by size. Traders said the update in the growth outlook drove some investors to cut holdings of haven debt. The BOJ reiterated its commitment to anchoring the 10-year government bond yield in Japan around zero. At a time when Treasury yields are marching higher, the yield spread is moving in favor of the U.S. and boosting the appeal of the U.S. dollar. The yield premium investors demand to hold the 10-year Treasury note relative to the 10-year Japanese government bond reached the highest since 2010 last week. A higher premium makes Treasury debt appealing on a relative basis, yet a stronger dollar has raised the cost of hedging for yen-based investors to buy Treasury debt. The 10-year Treasury yield closed at 2.6% Friday, the highest since September 2014. It has risen by more than one percentage point from its record low set in early July. The yield swing this year reflects a sentiment shift among global investors. Earlier this year, expectations over a prolonged era of sluggish growth, low inflation and large monetary stimulus from major central banks in Japan and Europe had sent investors piling into government bonds, especially long-term debt. The tide has been turning over the past few months as data pointed to improvement in global manufacturing and upticks in inflation. The prospect of large fiscal spending, lower taxes and lighter regulation accentuated the narrative toward stronger growth, higher inflation and less generous monetary policy. Investors and analysts say higher bond yields are a healthy sign for the economy. One popular trade after the election has been selling Treasurys to buy stocks, sending U.S. benchmark equity indices to record highs this month. The 10-year Treasury yield was up modestly from 2.273% at the end of 2015. Some expect the yield to rise to 3% in the coming months, a level traded in early 2014. Some analysts say the selloff in Treasurys reflected optimism over the economy and fiscal stimulus. Should policy details and implementation fail to meet expectations, Treasury bonds may strengthen as investors betting on higher yields may pare their wagers. In doing so, they return to the bond market to buy. "I think we will see some stock weakness and bond strength into the end of the year,'' said Brian Edmonds, head of interest rates at Cantor Fitzgerald. "It has been such a big move and dramatic change in sentiment'' in the bond market, he said. Write to Min Zeng at min.zeng@wsj.com Credit: By Min Zeng
Subject: Bond markets; American dollar; Bond issues; Bond strength; Exports; Crude oil prices; Dow Jones averages; Treasuries
Location: United States--US Japan
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 20, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850383200
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850383200?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Libya National Oil Co. Says Pipelines Reopened in the Country's West; Says pipelines could supply 270,000 barrels a day in the next three months
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Dec 2016: n/a.
Abstract:
Pumped-up Libyan output would also complicate efforts to raise oil prices by the Organization of the Petroleum Exporting Countries, the 13-nation cartel that counts Libya as a member.
Full text: Libya's National Oil Company said Tuesday long shuttered pipelines had reopened in the country's west that could supply 270,000 barrels a day of crude oil in the next three months--almost half its current output. The new production, if sustained, would be a boost for Libya as it tries to reboot its oil industry following years of strife in the wake of the 2011 ouster and death of dictator Moammar Gadhafi. Its production fell from a peak of over 1.6 million barrels a day to less than 300,000 barrels a day at points this year. Pumped-up Libyan output would also complicate efforts to raise oil prices by the Organization of the Petroleum Exporting Countries, the 13-nation cartel that counts Libya as a member. The group pledged to trim its output by 1.2 million barrels a day, but exempted Libya and Nigeria from any obligations because their production had been disrupted by violence. Oil traders are watching Libya's production carefully. Adding 270,000 barrels a day of oil production would cancel out almost a quarter of OPEC's promised cuts. It would also nearly completely cancel out pledged cuts by Russia, a non-OPEC producer that joined the agreement. Oil prices fell after the National Oil Co.'s announcement. Brent, the international benchmark, dropped over 1% in London trading Tuesday afternoon, though remained up 0.69% on the day at $55.30. It remains to be seen whether Libya will actually get the oil to market. Libya's National Oil Co. said it had struck a deal that would allow oil to flow from two giant oil fields in the country's west to oil ports on its Mediterranean coast. Those fields and the pipeline had been shutdown for over two years over disputes with multiple militias who control the area. The fields have the potential to add 175,000 barrels a day to Libya's output within a month, the National Oil Co. said, and up to 270,000 barrels a day early next year. Libya produced almost 575,000 barrels a day in November, according to OPEC. However, Libya had said last week that National Oil Co. had restarted operations in the west. The relaunch was then aborted over the weekend when a militia threatened a blockade over payment issues. Mustafa Sanallah, the National Oil Co.'s chairman, said in a news release that the deal was struck with "no payoffs and no backroom deals." In the past, payments made to militias to restart oil operations frequently led to disruptions as gunmen shut them down to get fresh cash. "For the first time in nearly three years all our oil can flow freely," said Mr. Sanallah. "I hope this marks the end of the use of blockade tactics in our country." Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Oil fields; Crude oil prices; Petroleum production; Militia groups
Location: Libya
People: Qaddafi, Muammar El
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 20, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850423847
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850423847?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Decreasing in DOE Data
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Dec 2016: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 4.1-million-barrel decrease in crude supplies, a 2.0-million-barrel fall in gasoline stocks and a 1.5-million-barrel decline in distillate inventories, according to a market participant.
Full text: U.S. crude-oil stocks are expected to show a decrease in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 13 analysts and traders surveyed showed that U.S. oil inventories are projected to have decreased by 2.3 million barrels, on average, in the week ended Dec. 16. All 13 analysts expect stockpiles to decline. Forecasts range from a decrease of 3.4 million barrels to a decrease of 1 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show an increase of 1.1 million barrels on average, according to analysts. Eleven analysts expect them to rise, and two analysts expect them to fall. Estimates range from a fall of two million barrels to an increase of 3.1 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 900,000 barrels. Three analysts expect an increase and 10 expect a decrease. Forecasts range from a decline of 2.2 million barrels to an increase of 1.1 million barrels. Refinery use is seen gaining 0.4 percentage point to 90.9% of capacity, based on EIA data. Eight analysts expect an increase, three expect no change and two didn't report expectations. Forecasts range from no change to an increase of 1 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 4.1-million-barrel decrease in crude supplies, a 2.0-million-barrel fall in gasoline stocks and a 1.5-million-barrel decline in distillate inventories, according to a market participant. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Inventory; Price increases
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 20, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850494279
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850494279?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rise on U.S. Stockpile Drawdown; February Brent crude on London's ICE Futures exchange rose $0.20 to $55.55 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Dec 2016: n/a.
Abstract:
Last week, the number of active oil rigs in the U.S. rose by 12 to 510. Since its trough in late May, U.S. producers have added 194 oil rigs, a jump of 61%, according to Goldman Sachs.
Full text: Crude prices made further strides in early Asia trade Wednesday on bullish data that showed a bigger-than-expected drop in U.S. crude stockpiles, reinforcing views that the global oil market is tightening. Trading remained muted, however, as investors took a break ahead of the year-end holidays. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.55 a barrel at 0301 GMT, up $0.25 in the Globex electronic session. February Brent crude on London's ICE Futures exchange rose $0.20 to $55.55 a barrel. Prices rose after industry group American Petroleum Institute reported that U.S. crude inventories showed a drawdown of 4.1 million barrels in the week ended Dec. 16, while gasoline stocks fell by 2 million barrels and distillates dropped by 1.5 million barrels. According to a Wall Street Journal survey of 13 analysts and traders, U.S. crude stockpiles likely fell by 2.3 million barrels. They estimated gasoline stockpiles to have grown by 1.1 million barrels and stockpiles of distillates, which include heating oil and diesel, to have fallen by 900,000 barrels. Official data from the U.S. Energy Information Administration is due later Wednesday. Investors will also be looking at the production data to determine if the recent price rally has prompted more U.S. shale-oil producers to ramp up output--a move that would undermine the latest effort by the Organization of the Petroleum Exporting Countries and 11 non-OPEC producers to buoy price by cutting production. Last week, the number of active oil rigs in the U.S. rose by 12 to 510. Since its trough in late May, U.S. producers have added 194 oil rigs, a jump of 61%, according to Goldman Sachs. With prices holding steady above $50 a barrel, analysts say U.S. shalers will be more eager to open the spigots wider. "The Department of Energy currently forecasts a further recovery of 9 million barrels by December 2017, but we see room for upward revision to that estimate as the rig count trends higher," said Tim Evans, a Citi Futures analyst. Another data set oil investors will be watching in the near term is China's final November oil data. The report was scheduled to be released Wednesday but the government said in an email it had postponed the publication, without elaborating. In its preliminary report, China said crude imports last month rose 18% from the previous year to 32.35 million metric tons, or roughly 7.9 million barrels a day. Supported by a batch of new independent refineries, known as teapots because their small size, China's appetite for crude is expected to remain elevated next year. Earlier this month, China said the collective import quota for private refiners will remain at 1.76 million barrels a day in 2017. "The move will likely enhance competition among independent refiners on the domestic market," said JBC Energy, adding that it expects China's crude import to average 7.8 million a day in 2017, up by around 300,000 barrels a day. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--rose 44 points to $1.5980 a gallon. ICE gas oil for January changed hands at $489.75 a ton, down $1.75 from Tuesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Gasoline; Futures; Crude oil prices; Cartels; Price increases
Location: China United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 21, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850540039
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850540039?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Equities -- Commodities: Oil Prices Step Up In Thin Trading
Author: Puko, Timothy; Baxter, Kevin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Dec 2016: B.13.
Abstract:
The Organization of the Petroleum Exporting Countries agreed in November to cut output by 1.2 million barrels a day, equivalent to about 1% of global supply.
Full text: Oil prices edged higher Tuesday as coming cutbacks from some of the world's biggest producers keep supporting the market when trading is light because of the holidays. Light, sweet crude for January delivery settled up 11 cents, or 0.2%, at $52.23 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained 43 cents, or 0.8%, to $55.35 a barrel on ICE Futures Europe. Both benchmarks have finished up in seven of the past nine sessions. The Organization of the Petroleum Exporting Countries agreed in November to cut output by 1.2 million barrels a day, equivalent to about 1% of global supply. A group of big oil producers outside the group, including Russia, agreed to join them and scale back output by another 558,000 barrels a day. Oil's next $4 move is more likely to be up than down, Jim Ritterbusch, president of energy-advisory firm Ritterbusch Associates, said in a note. He forecast U.S. crude above $56 and Brent at $59 by early January, though a lull in trading from the holidays will likely keep it between $51 and $53 this week, he said. "The entire complex will remain much more responsive to minor bullish headlines than to occasional bearish items," he said. Mike Wittner at Societe Generale SA said prices are likely to stay just above $50 a barrel through the first three months of next year, but after that they are likely to move toward $60 by the end of 2017. "Before the OPEC agreement, the supply and demand outlook had gone from bullish to neutral," he wrote Tuesday. "With the OPEC agreement, the global rebalancing has been brought forward again" to the second half of 2017. Meanwhile, European oil demand was up by 190,000 barrels a day year over year in October, according to a note published by the London-based Energy Aspects. The American Petroleum Institute, an industry group, said late Tuesday that its data for the week showed a 4.1 million-barrel decrease in crude supplies, according to a market participant. Credit: By Timothy Puko and Kevin Baxter
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.13
Publication year: 2016
Publication date: Dec 21, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850680536
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850680536?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Falls on Unexpected Stockpile Addition; The U.S. Energy Information Administration said crude stockpiles grew by 2.3 million barrels last week
Author: Puko, Timothy; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Dec 2016: n/a.
Abstract:
Oil prices have been on the rise lately because of output cuts agreed to by the Organization of the Petroleum Exporting Countries and rival producers around the world.
Full text: Oil prices flipped to losses after new data showed increasing imports caused an unexpected addition to stockpiles. The U.S. Energy Information Administration said Wednesday that crude stockpiles grew by 2.3 million barrels last week. Analysts surveyed by The Wall Street Journal had expected a decline of 2.3 million barrels, and The American Petroleum Institute, an industry group, said late Tuesday its data for the week showed a 4.1 million-barrel decrease. That had sent oil inching higher Wednesday before retreating when EIA released its data. U.S. crude for February delivery lost 81 cents, or 1.5%, to $52.49 a barrel on the New York Mercantile Exchange, snapping a three-session winning streak. Brent, the global benchmark, lost 89 cents, or 1.6%, to $54.46 a barrel on ICE Futures Europe. Analysts said a big increase of imports was likely behind the unexpected addition. Net imports grew by 1 million barrels to 7.9 million in total. Fog in recent weeks kept offshore tankers in the Gulf of Mexico from unloading crude, but weather has been clearing up and oil was going into onshore storage last week, said Matt Smith, director of commodity research at ClipperData. A monthlong rally probably also convinced some traders to finally dump oil they had been holding in storage tankers, said Sam Margolin, an analyst at Cowen & Co. "Now maybe is a good time to sell it on shore," he added. Mr. Margolin was one of few analysts to expect a storage addition, citing the increase in Gulf Coast imports. All 13 analysts surveyed by The Wall Street Journal ahead of the report had forecast stockpiles to decline. Oil prices have been on the rise lately because of output cuts agreed to by the Organization of the Petroleum Exporting Countries and rival producers around the world. They agreed over the last month to cut output by nearly 1.8 million barrels a day in total, more than 1% of global supply. Many investors also have been skeptical of OPEC. Its spotty record for adhering to production quotas casts doubt over whether the cuts will fully materialize. "That skepticism, it's making buyers a little hesitant as we approach $55," said Gene McGillian, research manager at Tradition Energy. Georgi Slavov, the global head of energy research at Marex Spectron, said the market "overreacted" to the OPEC deal and sees tough times ahead as the cartel may find it difficult to enforce the quotas when the deal goes into effect on Jan. 1. Russia is among 11 non-OPEC producers that agreed to cuts along with the cartel and yet Moscow aggressively increased its output in November, calling into question the country's commitment to the deal. Russia is the world's top crude producer and has pledged to cut 300,000 barrels a day. While Russia is expected to substantially raise its mineral extraction tax for next year, the crude export duty is set to decrease, "making crude exports in January more attractive vs. this month," said JBC Energy in a research note. Wednesday's losses could have been worse, but other data from the EIA were less bearish, analysts said. U.S. production didn't grow, and stockpiles of both gasoline and distillates, which include heating oil and diesel, fell much further than expected. Gasoline stockpiles fell by 1.3 million barrels compared with analyst expectations for a 1.1 million-barrel addition. Distillate stocks fell by 2.4 million barrels, compared with expectations of just 900,000. Gasoline moved higher after the report, though diesel prices followed crude lower. Gasoline futures rose 1.19 cents, or 0.7%, to $1.6055 a gallon, its fifth-straight winning session and longest winning streak since August. Diesel futures lost 2.87 cent, or 1.7%, to $1.6401 a gallon. Write to Timothy Puko at tim.puko@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Timothy Puko and Neanda Salvaterra
Subject: Crude oil prices; Supply & demand; Price increases
Location: United States--US
Company / organization: Name: Marex Spectron; NAICS: 523140; Name: Cowen & Co LLC; NAICS: 523110; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Onl ine); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 21, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850717612
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850717612?accountid=7117
Copyright: (c) 201 6 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Copper Ends Down as Oil Slumps; Metal erases earlier gains
Author: Ballard, Ed; Iosebashvili, Ira
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Dec 2016: n/a.
Abstract: None available.
Full text: Copper prices reversed gains to end down Wednesday, weighed upon by a drop in crude oil. Copper for March delivery closed down 0.2% at $2.4970 a pound on the Comex division of the New York Mercantile Exchange. On the London Metal Exchange, copper for delivery in three months was up 0.2% at $5,515 a metric ton. U.S. oil prices recently traded down 1.5% at $52.51 a barrel. Swings in oil tend to sway copper prices, as many investors trade the commodities in a single basket, with a larger share devoted to oil. Copper has slipped around 8% from 18-month highs above $6,000 a ton in late November. Robin Bhar, an analyst at Société Générale, said the pullback stems from traders "profit-taking and book-squaring toward year-end" and has left copper looking temptingly priced to some. "The dips are attracting buyers but a deeper retracement should not be ruled out given weaker chart patterns and still relatively high fund length," he wrote in a note to clients. The slump in prices has motivated speculators to top-up the sizable bullish position they have amassed in copper futures in recent months. Brokerage firm Marex Spectron estimated that speculators' long position on the LME rose by 4,300 lots in the week to Dec. 15. They now own 79,000 lots, or just under two million tons of the metal, accounting for 34% of the open interest, according to Marex. Copper exports by the world's second-largest economy fell 15% year-over-year in November, Chinese customs data showed Wednesday. Meanwhile, the International Copper Study Group said Chinese demand rose 7% year-over-year in the first nine months of 2016, but noted that imports of refined copper have been waning in recent months. Monthly demand in the third quarter was down 5% from the level seen in the first half of 2016. Write to Ed Ballard at ed.ballard@wsj.com and Ira Iosebashvili at ira.iosebashvili@wsj.com Credit: By Ed Ballard and Ira Iosebashvili
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 21, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850795902
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850795902?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil Inventories Unexpectedly Rise
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Dec 2016: n/a.
Abstract:
U.S. crude oil stockpiles unexpectedly increased for the week ended Dec. 16 while gasoline supplies fell, according to data released Wednesday by the Energy Information Administration.
Full text: U.S. crude oil stockpiles unexpectedly increased for the week ended Dec. 16 while gasoline supplies fell, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles climbed by 2.3 million barrels to 485.4 million barrels, and are now at the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would fall by 2.3 million barrels on the week. Oil stored at the Cushing, Okla., delivery point for U.S. stocks, decreased by 245,000 barrels to 66.3 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 1.3 million barrels to 228.7 million barrels. Analysts were expecting gasoline inventories to rise by 1.1 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 2.4 million barrels to 153.5 million barrels, but are still above the upper limit of the average range, the EIA said. Analysts were forecasting supplies to decrease by 900,000 barrels from a week earlier. Refining capacity utilization rose by a full percentage point from the previous week to 91.5%. Analysts were expecting utilization levels to rise by a more modest 0.4 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 21, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850796196
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850796196?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Brazil's Petrobras Expects $1.6 Billion From Total Deal in Next Two Months; Alliance between two companies expected to generate $2.2 billion for Brazil's state-run oil firm as it aims to shed assets to cut debt
Author: Parkin, Benjamin; Lewis, Jeffrey T
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Dec 2016: n/a.
Abstract: None available.
Full text: RIO DE JANEIRO--Brazilian state-run oil company Petróleo Brasileiro SA said Wednesday its strategic alliance with France's Total SA would bring $1.6 billion in cash in the next two months, a much-needed boost as it struggles to unload assets and reduce its debt burden. Petrobras said it would sell stakes in two of Brazil's deep water "pre-salt" oil concessions to Total and that the companies would go into partnership on a pair of power plants and re-gasification terminal The deal with Total is estimated to generate about $2.2 billion for Petrobras, the companies said. Petrobras said it expects to receive an immediate $1.6 billion in cash when the agreement is completed in the next 60 days. "This alliance will offer a bright future for both companies," Total Chief Executive Patrick Pouyanné said at a press conference in Rio, citing Petrobras's experience in deep water projects. The most highly leveraged oil major in the world with $123 billion in gross debt, Petrobras has so far faltered in its goal to sell $15.1 billion of assets by the end of the year. It was dealt a setback this month when Brazil's federal auditing court, known as the TCU, suspended all but five of its pending sales . Even after accounting for the partnership, Petrobras would fall short of that goal by around $2 billion. CEO Pedro Parente said the difference could be added to Petrobras' $19.5 billion asset-sale goal for 2017 and 2018, and expressed confidence that the company would reach its target. "We're absolutely certain that our goals have not been compromised," he said. "We will be ready the moment the TCU is ready." Total will assume an operating stake one of Petrobras's pre-salt oil blocks and take a minority stake in another. Petrobras will also have the option of buying 20% of a block in the Mexican portion of the Perdido Foldbelt area of the Gulf of Mexico, which Total acquired in partnership with Exxon earlier this year. Brazil's Congress approved a bill in October easing restrictions on private investment in the fields by removing a requirement that Petrobras be the lead operator on any pre-salt concessions. The firms announced the alliance shortly after. Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com Related * Petrobras Reaffirms Plans to Sell Assets by Year's End (Dec. 8, 2016) * Brazil's Petrobras to Sell Liquigas Unit to Ultrapar (Nov. 17, 2016) * Petrobras, Total SA Create Alliance to Explore Energy Projects (Oct. 24, 2016) * Petrobras Cuts Five-Year Investment Plan (Sept. 20, 2016) * Brazil's Petrobras Accelerates Asset Sales to Cut Debt (July 29, 2016) Credit: By Benjamin Parkin and Jeffrey T. Lewis
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 21, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850969613
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1850969613?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Buoyed by Weaker U.S. Dollar; February Brent crude rose $0.16 to $54.62 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Dec 2016: n/a.
Abstract:
Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 64 points to $1.5991 a gallon, while January diesel traded at $1.6421, 20 points higher.
Full text: Crude futures edged higher in quiet Asia trading Thursday, buoyed by a weaker U.S. dollar, but gains were capped by the surprise buildup in U.S. crude stockpiles last week. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $52.62 a barrel at 0256 GMT, up $0.13 in the Globex electronic session. February Brent crude on London's ICE Futures exchange rose $0.16 to $54.62 a barrel. The dollar was last down 0.5% at 93.19, according to the Wall Street Journal Dollar Index, which measures the U.S currency against more than a dozen rivals. As oil business is conducted in dollars, a weaker U.S. currency means cheaper oil for foreign traders. The market is slightly bearish, however, after the Energy Information Administration reported U.S. crude stocks rose by 2.3 million barrels in the week ended Dec. 16, upending market expectations for a decrease. "At 485.4 million barrels, U.S. crude-oil inventories are at the upper limit of the average range for this time of year," the EIA said. Analysts said higher imports were likely behind the unexpected increase. Net imports grew by 1 million barrels to 7.9 million barrels in the period. In the same week, refineries operated at 91.5% of capacity, resulting in higher gasoline production at about 10.2 million barrels a day, while distillate fuel production rose to more than 5.1 million barrels a day. Oil prices also came under pressure after Libya's National Oil Co. said long-closed pipelines had reopened in the country's west. The new production, if sustained, could supply 270,000 barrels a day of crude in the next three months. Libya's announcement comes as the world remains awash with surplus oil. Last month, members of the Organization of the Petroleum Exporting Organization and other major producers agreed to trim output by around 2 million barrels a day, or nearly 2% of global production. Traders will be watching to see whether producers will underreport production, a behavior that surfaced in past attempts to rein in global output. "We see risk that at least some of the market's bullish sentiment will dissipate over time in the absence of confirmation that compliance is strong and the market has actually shifted to a deficit," said Tim Evans, a Citi Futures analyst. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 64 points to $1.5991 a gallon, while January diesel traded at $1.6421, 20 points higher. ICE gasoil for January changed hands at $481.75 a metric ton, down $4.50 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: American dollar; Futures; Price increases
Location: Libya United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 22, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1850999710
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Gains from Bullish U.S. Traders; Momentum traders and OPEC-related hopes boost market
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Dec 2016: n/a.
Abstract:
Because the market is holding so firmly above $50, that will keep the momentum going, Mr. Baruch and other brokers said.
Full text: Crude prices rose Thursday from the start of traditional trading hours in the U.S., where traders are still feeling bullish about recent changes in the oil market. Prices have been on the way up, gradually, since the Organization of the Petroleum Exporting Countries and other global exporters agreed last month to cut output. And even losses Wednesday--one of only three losing sessions in two weeks--couldn't drag the market under recent lows, which momentum-based traders see as a positive sign for prices, brokers said. Light, sweet crude for February delivery settled up 46 cents, or 0.9%, at $52.95 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained 59 cents, or 1.1%, to $55.05 a barrel on ICE Futures Europe. Both benchmarks had their eighth winning session of the last 11. OPEC had agreed last month to cut output by 1.2 million barrels a day, equivalent to around 1% of global supply. A group of big oil producers outside the cartel, including Russia, agreed to join them and scale back their output by another 558,000 barrels a day. That has kept oil above $50 a barrel for more days this month than any other since July 2015, but many investors also have been skeptical of OPEC. Its spotty record for adhering to production quotas is casting doubt over whether the cuts will fully materialize after they are supposed to start in January. "There's a lot of skepticism about OPEC, but I still look at it as innocent until proven guilty. This is a solid support level," said Bill Baruch, senior strategist at Chicago brokerage iTrader. Because the market is holding so firmly above $50, that will keep the momentum going, Mr. Baruch and other brokers said. When prices fall as they did in the prior session, but don't break below recent lows, traders who buy and sell based on price patterns will see that as a positive sign that bullish momentum is still strong and likely to move prices higher. Many are also broadly expecting prices to rise in the new year once OPEC cuts become apparent. It could take weeks or months for definitive proof that OPEC is following through, and then for their cutbacks to show up in declining inventories around the world, but many do expect that to happen eventually and for prices to rise when it does. That could keep speculators buying now and prices gradually rising in the meantime, brokers said. Scott Shelton, broker at ICAP PLC, predicts prices will be at $57 a barrel in the weeks to come. "People will want to buy the market in the new year, and they're not going to get it at a cheap price. The market is smart enough to know that," he said. Others, however, point out threats that could undermine that momentum. Traders will be watching to see whether producers will underreport production, a behavior that surfaced in past attempts to rein in global output. Another risk is that U.S. producers could offset some of the cuts, if they ramp up production to take advantage of the higher prices triggered by the agreements. "At this stage the forecast for a pickup in U.S. shale production is relatively subdued, but there's an underlying sense that they could surprise," said Ole Hansen, head of commodity strategy at Saxo Bank. When oil prices rallied after the production-cut agreements, there was a surge of hedging by U.S. shale producers, meaning they locked in their oil sales price for next year above $50 a barrel. In addition, the number of rigs for U.S. production has been rising steadily since the summer, although the lag between the time it takes to drill a well to seeing full production means that this additional volume has yet to reach the market. Gasoline futures lost 0.15 cent, or 0.1%, to $1.6040, snapping a five-session winning streak. Diesel futures rose 2.07 cents, or 1.3%, to $1.6608, snapping a three-session losing streak. Sarah McFarlane and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Crude oil; Brokers; Crude oil prices
Location: United States--US
Company / organization: Name: ICAP PLC; NAICS: 523140; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 22, 2016
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851067213
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1851067213?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
GOP Tax Plan Could Boost Prices at the Pump; A jump in options volume indicates some traders are wagering for U.S. oil prices to come in line with global crude
Author: Sider, Alison; Banerji, Gunjan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Dec 2016: n/a.
Abstract:
U.S. companies currently pay corporate income tax on profits from all sales, but only domestic sales would be subject to tax under the GOP plan.
Full text: A proposal aimed at encouraging production of U.S.-made goods could push domestic oil prices higher and leave consumers paying more at the pump, some energy economists say. "Border adjustment," as the provision is known , would for the first time levy corporate taxes on imports to the U.S. while exempting exports from U.S. tax. It employs a concept commonly used in other countries' value-added taxes. Some traders on Wall Street are looking for ways to profit from the potential change in the tax regime, which some analysts say could cause U.S. oil prices to come more into line with international prices. Volume in a thinly traded options contract used to bet on the difference between U.S. and global oil prices flared to a record last week, with traders wagering that U.S. oil prices will reach parity with global crude in two years. The crude glut that resulted from the boom in U.S. shale-oil output pushed U.S. oil prices below international prices . But the gap has narrowed in recent years as the oversupply has eased and after crude-oil exports were allowed . Oil analysts and traders speculated the tax proposal could be behind the jump in options volume, although it is unclear who was behind the trade. "Most of the market chatter [last] week has been about that provision," said Andy Lebow, senior partner at the consulting firm Commodity Research Group. The provision is a key feature of House Republicans' tax plan that would be expected to generate part of the revenue that would pay for lowering the corporate tax rate from 35% to 20%. It would have far-reaching effects beyond the oil-and-gas industry, but energy analysts have becoming increasingly vocal on the subject in recent weeks, and some companies like Koch Industries Inc. have criticized it . Among those set to benefit from such a policy are U.S. oil producers that would be able to avoid taxation by selling into foreign markets. U.S. companies currently pay corporate income tax on profits from all sales, but only domestic sales would be subject to tax under the GOP plan. Refiners that make fuels like gasoline and diesel could end up paying higher prices for domestic crude, some analysts said. The tax change could encourage refiners to try to buy more domestic oil, while producers would have more incentive to export, analysts at PIRA Energy Group wrote in a research report. The combination of those two factors could push U.S. prices higher, the analysts wrote. Even though output from U.S. oil fields has surged in recent years, about half the crude processed into fuel here comes from abroad. "The proposed border-adjustment tax would create a windfall for domestic oil producers," said Philip Verleger, who co-wrote a study on the tax with the Brattle Group, a consulting firm. The study, which was funded by Koch, concludes that retail gasoline taxes could rise by as much as 36 cents a gallon if the tax is imposed. Fighting the tax change is becoming a priority for refiners, who say it could make it harder for them to compete with fuel makers globally and could raise prices for consumers. "The refining industry in particular has initial concerns with the border adjustment provision given the amount of crude oil the U.S. imports and the potential impacts the provision could have on consumers," said Chet Thompson, president of the American Fuel and Petrochemical Manufacturers, in a statement. A trade group representing oil producers said it is reviewing the border adjustment concept. "Our industry remains focused on a pro-growth tax code to encourage economic development and keep energy costs affordable for American consumers and businesses," the American Petroleum Institute said. Economists and supporters of border adjustment say refiners' fears are overstated. They say the dollar will rise to offset any tax effects--due to the combination of weaker import demand and stronger exports--and preserve the existing trade balance. It is unclear how complete or uniform that shift would be. House Ways and Means Committee Chairman Kevin Brady (R., Texas) said in a statement Friday that lawmakers are talking to refiners and other importers about their concerns. Mr. Brady, who is spearheading the tax plan, represents a district outside of Houston that is home to energy companies and a major Exxon Mobil Corp. campus. Congressional Republicans haven't released a bill. Once they do, it will take months to go through the legislative process. It is also not yet clear when the border adjustment provision could take effect. President-elect Donald Trump hasn't commented on the plan. Richard Rubin contributed to this article Write to Alison Sider at alison.sider@wsj.com and Gunjan Banerji at Gunjan.Banerji@wsj.com Credit: By Alison Sider and Gunjan Banerji
Subject: Taxes; Tax rates; International trade; Consulting firms
Location: United States--US
Company / organization: Name: Koch Industries Inc; NAICS: 424690, 424720, 486110, 324110, 211111, 333249; Name: Republican Party; NAICS: 813940; Name: PIRA Energy Group; NAICS: 541618
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 22, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851080552
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1851080552?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
An Obscure Oil Bet Takes Off; There has been a flurry of activity in options wagers on the price gap between U.S. and global oil prices
Author: Banerji, Gunjan; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Dec 2016: n/a.
Abstract:
[...]a tax regime would encourage oil producers to favor foreign markets and refiners to buy domestic crude, experts say, and the increased demand could push up the price of U.S. crude relative to global oil prices.
Full text: Traders often turn to plain-vanilla options on oil futures to wager on crude prices, which recently have been whipsawed by oil producers' efforts to curtail global output. But a less-popular approach is attracting attention. These options allow traders to bet on the price gap itself. On Wednesday, that gap was $1.97. The benchmark U.S. oil contract closed at $52.49 a barrel, while Brent crude, the global benchmark, finished at $54.46. The options experienced a flurry of activity that some traders attribute to a Republican tax proposal that would levy corporate taxes on imports to the U.S. while exempting exports from U.S. tax. Such a tax regime would encourage oil producers to favor foreign markets and refiners to buy domestic crude, experts say, and the increased demand could push up the price of U.S. crude relative to global oil prices. That could cause the spread between West Texas Intermediate, the U.S. benchmark, and Brent to narrow, analysts say. Or even reverse. On Dec. 13, trading surged to a record on options that bet on the spread between WTI and Brent, according to a spokesman for CME Group Inc., the world's biggest operator of derivatives exchanges. Contracts that bet on parity, or no difference in price between the two benchmarks, were the most popular bullish contracts across all spread options, said the CME spokesman. Contracts with June 2018 and December 2018 expirations saw the greatest surge in the number of options contracts outstanding last week. "It is unusual to see trades beyond a year in maturity, much less with this kind of volume," said Michael Hiley, a trader at LPS Futures LLC. After three days of no trading on the options spread, contracts exchanged hands in a flurry on Dec. 12 before more than doubling to a record 39,700 contracts on Dec. 13, CME data show. The average daily volume for the product so far in 2016 is about 1,000 contracts. "These are not very liquid instruments at all," said John Farley, a portfolio manager at commodity-trading adviser Emil Van Essen LLC, which participated in the trades last week by selling options contracts. The firm makes markets in energy options and specializes in spread options. Volume climbed even as the trades grew more costly, according to some market players. The premium, or amount paid to the seller of the option contract, grew progressively more expensive from Monday through Tuesday, said Mr. Farley. Write to Gunjan Banerji at Gunjan.Banerji@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Gunjan Banerji and Alison Sider
Subject: Spread; Price increases; Crude oil
Location: United States--US
Company / organization: Name: CME Group; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 22, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851080729
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1851080729?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Notable & Quotable: Jamie Dimon; 'I think it's a mistake for the American public to constantly be told that if you work for an oil company or you work for a bank, that automatically makes you bad.'
Author: Anonymous
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Dec 2016: n/a.
Abstract:
Jamie Dimon, CEO of JPMorganChase, as quoted in a Dec. 22 interview with BloombergBusinessweek: The Republicans are in charge, and they have not been anti-business the way you've seen the Democrats largely be anti-business for years.
Full text: Jamie Dimon, CEO of JPMorganChase, as quoted in a Dec. 22 interview with BloombergBusinessweek: The Republicans are in charge, and they have not been anti-business the way you've seen the Democrats largely be anti-business for years. I think if you are going to be president, you should have the best people sitting around a table. I think it's a mistake for the American public to constantly be told that if you work for an oil company or you work for a bank, that automatically makes you bad. I think a lot of these people are very qualified people who are patriots. They're going to want to help the country. They're not going to try to help their former company. These are people with deep knowledge that will hopefully do a great job. I think it's a reset moment for how businesses are going to be treated: 145 million people work in America; 125 million of them work for private enterprise; 20 million work for government--firemen, sanitation, police, teachers. We hold them in very high regard. But you know, if you didn't have the 125 you couldn't pay for the other 20. Business is a huge positive element in society. But for years it's been beaten down as if we're terrible people. So I think it's a good reset.
People: Dimon, Jamie
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 22, 2016
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851320150
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1851320150?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Down on Profit-Taking Amid Thin Trading; February Brent crude fell $0.31 to $54.74 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Dec 2016: n/a.
Abstract:
According to the International Energy Agency, global oil demand growth will rise by 1.4 million barrels a day, mainly due to stronger-than-expected Chinese demand.
Full text: Crude prices were lower in Asian trade on Friday as investors cashed in profits ahead of the holiday break. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $52.62 a barrel at 0325 GMT, down $0.33 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.31 to $54.74 a barrel. Oil trading has been tepid ahead of the holidays but overall sentiment remains positive as traders and analysts still expect global oil supply to shrink after major producers, both in and outside of the Organization of the Petroleum Exporting Countries agreed to slash output by almost 2% last month. That has kept oil above $50 a barrel for more days this month than any other since July 2015, but many investors are still skeptical of the OPEC. Its spotty record for adhering to production quotas is casting doubts over whether the cuts will fully materialize after they begin in January. "We believe the oil rebalancing story is happening and prices will go up above $60 a barrel in 2017," said Barnabas Gan, an economist at Singapore-based OCBC. According to the International Energy Agency, global oil demand growth will rise by 1.4 million barrels a day, mainly due to stronger-than-expected Chinese demand. In November, China's crude imports rose 18% year-over-year to 32.35 million tons or around 7.9 million barrels a day. So far this year, China's crude import has risen 14% compared with the previous year. Analysts say the surge is due to Beijing's new policy started in mid-2015 which allows independent refiners, known as teapots, to import crude and export products. However, recent media reports say the government is contemplating to suspend these refiners' rights to export products such as gasoline and diesel starting next year. The move, if confirmed by the government, will likely only affect the domestic oil industry, but will not impact the country's overall import and export volume, said Mr. Gan. Even if teapot refiners can't exports their products, they can still sell their products to the state-owned oil companies who in turn can then export, he said. "If the government really suspends the refiners' right to export, it might be because domestic demand for oil products is rising," said Gao Jian, a commodities analyst at SCI International. He said many refiners decreased production of diesel in late 2015 and 2016 when demand for diesel--mainly used in heavy industries--was down. However, as the government allowed more coal mines to stay open and commissioned more public infrastructure projects, demand for diesel pivoted up. In 2016, China's diesel demand fell 1.5% on-year to 3.29 million barrels a day, but is expected to rise by 0.7% next year to 3.32 million barrels a day, according to the IEA. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 84 points to $1.5956 a gallon, while January diesel traded at $1.6567, 41 points lower. ICE gasoil for January changed hands at $485.00 a metric ton, down $2.25 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Supply & demand; Crude oil prices; Crude oil; Price increases
Location: China
Company / organization: Name: ICE Futures; NAICS: 523210; Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 23, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Placeof publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851371649
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Options Traders Mind Energy-Price Gap --- Proposed U.S. 'border adjustment' levy may boost domestic crude, leading to oil parity
Author: Sider, Alison; Banerji, Gunjan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]23 Dec 2016: B.12.
Abstract:
U.S. companies currently pay corporate income tax on profits from all sales, but only domestic sales would be subject to tax under the GOP plan.
Full text: A proposal aimed at encouraging production of U.S.-made goods could push domestic oil prices higher and leave consumers paying more at the pump, some energy economists say. "Border adjustment," as the provision is known, would for the first time levy corporate taxes on imports to the U.S. while exempting exports from U.S. tax. It employs a concept commonly used in other countries' value-added taxes. Some traders on Wall Street are looking for ways to profit from the potential change in the tax regime, which some analysts say could cause U.S. oil prices to come more into line with international prices. Volume in a thinly traded options contract used to bet on the difference between U.S. and global oil prices flared to a record last week, with traders wagering that U.S. oil prices will reach parity with global crude in two years. The crude glut that resulted from the boom in U.S. shale-oil output pushed U.S. oil prices below international prices. But the gap has narrowed in recent years as the oversupply has eased and after crude-oil exports were allowed. Oil analysts and traders speculated the tax proposal could be behind the jump in options volume, although it is unclear who was behind the trade. "Most of the market chatter [last] week has been about that provision," said Andy Lebow, senior partner at the consulting firm Commodity Research Group. The provision is a key feature of House Republicans' tax plan that would be expected to generate part of the revenue that would pay for lowering the corporate tax rate to 20% from 35%. It would have far-reaching effects beyond the oil-and-gas industry, but energy analysts have becoming increasingly vocal on the subject in recent weeks, and some companies like Koch Industries Inc. have criticized it. Among those set to benefit from such a policy are U.S. oil producers that would be able to avoid taxation by selling into foreign markets. U.S. companies currently pay corporate income tax on profits from all sales, but only domestic sales would be subject to tax under the GOP plan. Refiners that make fuels like gasoline and diesel could end up paying higher prices for domestic crude, some analysts said. The tax change could encourage refiners to try to buy more domestic oil, while producers would have more incentive to export, analysts at PIRA Energy Group wrote in a research report. The combination of those two factors could push U.S. prices higher, the analysts wrote. Even though output from U.S. oil fields has surged in recent years, about half of the crude processed into fuel here comes from abroad. "The proposed border-adjustment tax would create a windfall for domestic oil producers," said Philip Verleger, who co-wrote a study on the tax with the Brattle Group, a consulting firm. The study, which was funded by Koch, concludes that retail gasoline taxes could rise by as much as 36 cents a gallon if the tax is imposed. Fighting the tax change is becoming a priority for refiners, who say it could make it harder for them to compete with fuel makers globally and could raise prices for consumers. "The refining industry in particular has initial concerns with the border adjustment provision given the amount of crude oil the U.S. imports and the potential impacts the provision could have on consumers," said Chet Thompson, president of the American Fuel and Petrochemical Manufacturers. A trade group representing oil producers said it is reviewing the border adjustment concept. "Our industry remains focused on a pro-growth tax code to encourage economic development and keep energy costs affordable for American consumers and businesses," the American Petroleum Institute said. Economists and supporters of border adjustment say refiners' fears are overstated. They say the dollar will rise to offset any tax effects -- due to the combination of weaker import demand and stronger exports -- and preserve the existing trade balance. It is unclear how complete or uniform that shift would be. House Ways and Means Committee Chairman Kevin Brady (R., Texas) said in a statement last week that lawmakers are talking to refiners and other importers about their concerns. Mr. Brady, who is spearheading the tax plan, represents a district outside of Houston that is home to energy companies and a major Exxon Mobil Corp. campus. Congressional Republicans haven't released a bill. Once they do, it will take months to go through the legislative process. It is also not yet clear when the border adjustment provision could take effect. President-elect Donald Trump hasn't commented on the plan. --- Richard Rubin contributed to this article. (See related article: "A Flurry of Activity Hits a Quiet Corner" -- WSJ Dec. 23, 2016) Credit: By Alison Sider and Gunjan Banerji
Subject: Manufacturing; Commodity prices; Crude oil
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2016
Publication date: Dec 23, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851581247
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Edges Higher; Analysts say overall sentiment remains positive, particularly with production cuts ahead
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Dec 2016: n/a.
Abstract:
According to the International Energy Agency, global oil demand growth will rise by 1.4 million barrels a day in 2016, mainly because of stronger-than-expected Chinese demand.\n
Full text: Crude oil prices edged higher on Friday, as traders closed out bets on falling prices ahead of the holiday break. U.S. crude futures rose 7 cents, or 01.3%, to $53.02 a barrel on the New York Mercantile Exchange, reversing earlier losses in light trading. Brent, the global benchmark, gained 11 cents, or 0.2%, to $55.16 a barrel on London's ICE Futures Exchange. Analysts expect oil prices to continue trading in a narrow range until next year when traders will begin looking for evidence that major producers are sticking to their agreement to cut output. The agreement between members of the Organization of the Petroleum Exporting Countries and other countries has kept oil above $50 a barrel for more days this month than any other since July 2015. "The rhetoric's enough to keep it afloat or at least around this level,"" said John Kilduff, founding partner at Again Capital. "There's not a lot of conviction in this market right now." The oil market shrugged off a report by Baker Hughes Inc., an oil-field services firm, that U.S. drillers put 13 oil rigs to work in the last week. "You've got a lot of bearish factors," said Tariq Zahir, managing member of Tyche Capital Advisors, pointing to the rising number of rigs working in the U.S., and the potential for Libya to increase output. "Libya and U.S. shale--this could offset the whole non-OPEC cut," he said. Oil traders are watching Libya's production carefully. The country was exempted from the production cut deal between members of the Organization of the Petroleum Exporting Countries and other major producers and is seeking to reboot its oil industry after years of strife in the wake of the 2011 ouster and death of dictator Col. Moammar Gadhafi. Libya National Oil Corp. said this week that it reopened long shut pipelines in the country's west, and said output from one of its major oil fields reached 58,000 barrels on its first day of resumed production. Analysts expect oil prices to continue trading in a narrow range until next year when traders will begin looking for evidence that major producers are sticking to their agreement to cut output. "Some of the upside fizz is however evaporating this morning with oil prices reversing part of Thursday's advance as a bout of pre-Christmas profit-taking takes hold," said brokerage PVM. Still, some analysts said overall sentiment remains positive with global oil supply expected to shrink after major producers, both inside and outside OPEC, agreed to cut global output by almost 2% last month. That has kept oil above $50 a barrel for more days this month than any other since July 2015. Many investors are still skeptical of the OPEC deal. The cartel's spotty record for adhering to production quotas is casting doubts over whether the cuts will fully materialize after they begin in January. If the cuts are realized, the rebalancing of the oil market is expected to accelerate, with demand exceeding supply. Still, some said overall sentiment remains positive with global oil supply expected to shrink after major producers, both inside and outside OPEC, agreed to cut global output by almost 2% last month. If the cuts are realized, the rebalancing of the oil market is expected to accelerate, with demand exceeding supply. "We believe the oil rebalancing story is happening and prices will go up above $60 a barrel in 2017," said Barnabas Gan, an economist at Singapore-based OCBC. According to the International Energy Agency, global oil demand growth will rise by 1.4 million barrels a day in 2016, mainly because of stronger-than-expected Chinese demand. The IEA expects global demand growth to slow to 1.3 million barrels a day next year. Gasoline futures rose 2.22 cents, or 1.38%, to $1.6262 a gallon. Diesel futures rose 0.2 cent, or 0.12%, to $1.6628 a gallon. Jenny W. Hsu contributed to this article Write to Alison Sider at alison.sider@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Alison Sider and Sarah McFarlane
Subject: Crude oil prices; Cartels; Supply & demand; Agreements
Location: United States--US Libya
People: Qaddafi, Muammar El
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 23, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851637075
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Shell Sells 20% Vivo Energy Stake to Vitol Africa for $250M; The oil major expects to complete deal during first half of 2017, subject to regulatory approval
Author: Walker, Ian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Dec 2016: n/a.
Abstract:
Vivo Energy, a Shell licensee in 16 African markets, was established on Dec. 1, 2011 to distribute and market Shell-branded fuels and lubricants.
Full text: LONDON--Royal Dutch Shell PLC (RDSB.LN) Friday said it is selling its 20% stake in Vivo Energy to Vitol Africa B.V. for $250 million, in line with its strategy to concentrate downstream operations where it can be most competitive. The oil major said it expects to complete the deal during the first half of 2017, subject to regulatory approval. As part of the deal, a long-term brand license agreement has been renewed with Vitol to ensure the Shell brand remains visible in more than 16 countries across Africa. Vivo Energy, a Shell licensee in 16 African markets, was established on Dec. 1, 2011 to distribute and market Shell-branded fuels and lubricants. Vitol already has a 40% interest in Vivo Energy. Helios Investment Partners has the other 40% share. Write to Ian Walker at ian.walker@wsj.com Credit: By Ian Walker
Location: Africa
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Helios Investment Partners LLP; NAICS: 523910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 23, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851700854
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1851700854?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Much Ado About Not Much as OPEC Oil Deal Is Set to Kick Off; Oil-output agreement may deliver a modest cut in production compared with what it was in September
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Dec 2016: n/a.
Abstract:
After decades of waning influence, large oil exporters once again seem to be masters of their own destiny. Since the Nov. 30 meeting of the Organization of the Petroleum Exporting Countries crude prices are up nearly 17%.
Full text: After decades of waning influence, large oil exporters once again seem to be masters of their own destiny. Since the Nov. 30 meeting of the Organization of the Petroleum Exporting Countries crude prices are up nearly 17%. Much of the gain has come since the agreement of non-OPEC producers, mainly Russia, to contribute to an output cut of nearly 2% of global supply in total. The only problem is that there may be less--possibly far less--than meets the eye to the agreement. OPEC has a long history of cheating so compliance is one stumbling block. When analysts project the impact of OPEC agreements they don't take them at face value, instead forecasting percentages like 60% or 75% in the recent case. Then there is the issue of "natural decline" in oil reservoirs or seasonal variations in demand. Those can create the appearance of a cut that would have happened anyway. Despite all of that, OPEC plus Russian production rose by about half a million barrels a day from September to November, while U.S. output is up by 300,000 barrels. From the time of exporters' original framework agreement in September to January, when the agreement takes hold, global oil output may have risen by some 50% to 60% of the amount exporters just agreed to cut. If compliance is typical, then the actual cut would be a fraction of what was agreed to. Demand may be more responsible than supply for recent price gains. Rather than the overt actions of a cartel, OPEC can thank the invisible hand of the market. Write to Spencer Jakab at spencer.jakab@wsj.com Credit: By Spencer Jakab
Subject: Agreements; Supply & demand; Cartels; Exports
Location: Russia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 23, 2016
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851761869
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1851761869?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Rose by 13 in Latest Week; Number of rigs drilling for oil up to 523 while nation's gas-rig count jumped 3 to 129
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Dec 2016: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by 13 in the past week to 523, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector.
Full text: The number of rigs drilling for oil in the U.S. rose by 13 in the past week to 523, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count fell sharply. The oil-rig count has generally been rising since the beginning of summer. The nation's gas-rig count rose by three to 129 in the past week, according to Baker Hughes. The U.S. offshore-rig count is up three from last week at 25, which is one more than a year ago. Oil prices were 0.3% lower at $52.81 a barrel in afternoon trading Friday. General Electric Co. reached a deal last month to combine its oil-and-gas business with Baker Hughes, creating a publicly traded energy powerhouse that would give GE a cost-effective way to play any recovery in the industry. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Oil service industry
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 23, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851761904
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Colombia Approves Tax Plan to Replenish Coffers Hurt by Oil Slump; Government set to collect an additional $2 billion next year on increased sales tax
Author: Vyas, Kejal
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Dec 2016: n/a.
Abstract: None available.
Full text: BOGOTÁ, Colombia--Colombian lawmakers approved a tax-overhaul bill Friday, a relief for President Juan Manuel Santos as his administration seeks to recoup lost oil revenues and maintain its investment-grade sovereign credit rating. The overhaul, which goes into effect on Jan. 1, allows the government to rake in an extra 6.2 trillion pesos, or $2 billion, in 2017 by raising the value-added sales tax to 19% from 16%. That, economists say, will be enough to appease ratings firms that earlier this year warned of a downgrade unless Colombia compensated for fallen oil prices. "These are not easy decisions and at first glance can seem unpopular," Finance Minister Mauricio Cardenas said after the tax overhaul's 46-16 approval in the senate. "But behind it all is the greatest interest of the nation: to progress collectively, to reduce poverty and build infrastructure." The bill aims to simplify the tax code for businesses, which will see their burden reduced to 33% from 43% by 2019. It also applies new taxes on tobacco and fuel while toughening penalties against tax evaders, who can face four to nine years in prison. Shoring up finances is crucial for the government as it looks to end a half-century of conflict and implement a peace pact with Marxist rebels over the next six months. The accord calls for increased rural investment and development that will put additional strain on the federal budget, which saw revenue slashed by 3% of gross domestic product since 2014 due to lower oil prices. Standard & Poor's in February, followed by Fitch Ratings in July, warned of downgrading Colombia's BBB rating unless the government found a way to narrow a fiscal deficit estimated near 4% of economic output this year, the widest since 2009. While Mr. Santos's supporters have majority control of the legislature, the tax increase was seen as a tough sell for the government, which had spent much of its political capital on getting the peace deal approved. Both the peace accord and the tax overhaul faced heavy opposition from Mr. Santos's top rival, Álvaro Uribe, a former president turned senator whose conservative Democratic Center Party argues that the measures will drive investors away and ruin Colombia's economy. "While the [tax] increase is positive for revenue-raising purposes, such an unpopular move is bound to bring political costs" ahead of 2018 presidential elections, said Nicholas Watson, an analyst with the consultancy Teneo Intelligence. Write to Kejal Vyas at kejal.vyas@wsj.com Read More * Colombian Government Proposes Broad Tax Overhaul to Congress * Colombia's Epic War Is Ending. Now Comes the Hard Part * Colombia, FARC Rebel Group Announce New Peace Accord Credit: By Kejal Vyas
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 23, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1851798632
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1851798632?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Producers Turn to Wind Power; European oil companies take on offshore wind projects; a way to diversify and leverage experience drilling at sea
Author: Turner, Zeke; Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Dec 2016: n/a.
Abstract:
Even Exxon Mobil Corp., which hasn't put the same emphasis on renewables, has dabbled with the technology, with the idea of using floating wind turbines to help power its offshore oil and gas platforms.
Full text: The Netherlands wants to build the world's largest offshore wind project, and an unlikely company is helping: Royal Dutch Shell PLC. The oil-and-gas giant is facing shareholder pressure to develop its renewable business. Add in falling construction costs for such projects, and Shell has decided to join a handful of other oil companies aiming to leverage their experience drilling under punishing conditions at sea. Norway's Statoil ASA is already building its third offshore wind farm, in the Baltic Sea, and is developing the world's first floating wind farm off the east coast of Scotland. Denmark's state-owned Dong Energy AS--once a fossil-fuel champion--is now the biggest player in the offshore wind market. A Shell-led consortium won a bid this month to build and operate a portion of the Netherlands' giant Borssele wind project in the North Sea. Once complete, the Shell-built section will generate enough power for roughly a million homes at a price of [euro]54.50 ($56.95) per megawatt hour--a customer rate approaching that of cheaper power sources like coal or gas. Offshore wind's competitiveness is highly subject to local power prices and government measures, including tax credits, subsidies and rate guarantees. Nonetheless, in European markets, the wind industry had thought near parity was years away. "Right now the offshore wind project is competitive with any power source," said Dorine Bosman, Shell's manager developing its wind business. Offshore wind-power projects involve driving steel foundations into the sea floor for towers that support building-size turbines with propellers wider than the wingspan of an Airbus A380. Though historically more expensive to build than onshore wind farms, offshore projects can take advantage of less restricted space and stronger, more consistent winds. The technological arms race to build these complex projects economically is so heated that many companies, including Shell, won't disclose how much they are investing, treating their commitments like a trade secret. Fossil-fuel companies' push into wind reflects their growing sensitivity to global efforts to limit climate change and how that will affect consumer demand for their main offering: oil and gas. France's Total SA wants 20% of its portfolio to consist of low-carbon businesses within the next 20 years. Shell established a new division this year focused on investing in sources such as wind, solar and biofuels. Statoil has a $200 million fund for projects such as wind technology and batteries. Investments by big European oil companies in wind and other renewable energy sources remain small--around 2% of their overall capital-spending budgets, according to McKinsey. The industry is cautious about betting big on alternatives after getting burned in the past. It remains unclear if offshore wind can be a steady moneymaker without government support, which besides tax credits and minimum rates can include guaranteed access to power grids. "It should be the ambition of everybody to not have subsidies," Ms. Bosman of Shell said. Lower costs--brought on by technological improvements, economies of scale and low interest rates--are helping move the sector in that direction. Earlier this year the wind-power industry was targeting a price of [euro]100 per megawatt hour by 2020; subsequently three auctions of project rights this year in the Netherlands and Denmark settled on rates below that level. Shell previously pulled back from involvement in offshore wind that proved unprofitable and says it will be primarily an oil-and-gas supplier for decades to come. But the improving economics of wind power have prompted the company to dip its toe back in the water, joining others in crowding the heavily subsidized specialists that once dominated the sector. Dong Energy has sold off a large portion of its fossil-fuels business, including five Norwegian oil and gas fields, and now has 29% of the world's built offshore wind capacity, according to spokesman Tom Lehn-Christiansen. Goldman Sachs Group Inc. took an ownership stake in Dong Energy in 2014, and the company went public in June. Statoil has invested $2.1 billion since 2010, or about 20% of a single year's capital budget, in offshore wind parks. After two years of whipsawing oil prices, offshore wind's relatively stable prices are dreamlike for oil executives, said Irene Rummelhoff, Statoil's executive vice president for renewables. Even Exxon Mobil Corp., which hasn't put the same emphasis on renewables, has dabbled with the technology, with the idea of using floating wind turbines to help power its offshore oil and gas platforms. Although solar power is expected to be the fastest-growing renewable energy source over the next five years, the International Energy Agency forecasts offshore wind capacity will triple by 2021. While that will remain below 1% of global capacity, the growth prospects are particularly attractive in regions such as Northern Europe where sunlight is in short supply for half the year. Japan, China, India and Taiwan are all poised to place bets on offshore wind now that its cost is coming down, according to the industry group Global Wind Energy Council. In the U.S., President-elect Donald Trump has been skeptical of wind power, warning of its cost, unsightliness and risks to wildlife. However, Texas was a forerunner of onshore wind energy in the U.S. under the watch of former Gov. Rick Perry, Mr. Trump's pick to lead the Energy Department. Offshore wind in the U.S. got a boost this month when the country's first park went online off the coast of Block Island, R.I. Days later, Statoil won a bid for a potential project in the Atlantic Ocean south of Long Island--its first offshore wind lease in the U.S. Jeffrey Grybowski, CEO of Deepwater Wind, which developed the Block Island project, said the oil companies will face a tougher landscape in the U.S. compared with Europe because of bureaucratic hurdles and fewer incentives. "We think our competitors are going to have a lot to learn," he said. Write to Zeke Turner at Zeke.Turner@wsj.com and Sarah Kent at sarah.kent@wsj.com Credit: By Zeke Turner and Sarah Kent
Subject: Offshore; Wind farms; Subsidies; Prices; Alternative energy sources; Tax credits; Wind
Location: Netherlands Denmark
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Total SA; NAICS: 447190, 324110, 211111
Product name: Airbus A380
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 26, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1852749444
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1852749444?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Key Metric Likely Won't Reflect Oil Rally; Oil prices are up 43% this year, but producers are expected to report a lower standardized measure of reserve value in 2016 than 2015
Author: Shumsky, Tatyana; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Dec 2016: n/a.
Abstract:
Oil prices have rallied 43% this year, but oil-and-gas producers including Apache Corp., Chesapeake Energy Corp. and Pioneer Natural Resources Co. are expected to report a lower standardized measure in 2016 than 2015.
Full text: The recent run-up in crude oil prices may offer a brighter outlook for energy companies, but a key accounting metric is likely to show the sector isn't out of the woods just yet. As energy companies prepare their annual reports, they will be calculating a so-called standardized measure of reserve value. This dollar figure acts as a basis for direct comparison among companies. Oil prices have rallied 43% this year, but oil-and-gas producers including Apache Corp., Chesapeake Energy Corp. and Pioneer Natural Resources Co. are expected to report a lower standardized measure in 2016 than 2015. That is because the Securities and Exchange Commission requires companies to use historic prices in the calculation. The SEC price is the average of physical oil prices on the first day of the month of the past 12 months. That average for 2016 is down 15% from the 2015 figure. "There's going to be a mismatch there between accounting and reality," said Robert Thummel, managing director and portfolio manager at Tortoise Capital Advisors. The disconnect comes at a vulnerable time for the sector. Oil prices plunged to a low of $26.21 in February after exceeding more than $100 a barrel in 2014. Depressed prices triggered asset impairments, losses and bankruptcies across the energy industry. Standardized-measure figures slumped in step with oil prices. Apache's standardized measure, for example, was $10.6 billion in 2015, compared with $31.7 billion in 2014, according to company filings. Pioneer's standardized measure was $3.2 billion in 2015, compared with $7.8 billion in 2014, according to annual company filings. Chesapeake's standardized measure was $4.7 billion in 2015, compared with $17.4 billion in 2014, company filings show. While prospects for the industry have recovered as prices climbed back above $50 a barrel in recent months, investors remain cautious. The profitability of reserves is a primary concern. "This disclosure is going to be lower than what they would like to portray if they were using more recent prices," said Alan Stevens, assurance partner at BDO's energy practice. Finance executives in the energy sector can choose between different accounting methods to value their proved developed reserves, as well as different variables when estimating confirmed, yet undeveloped reserves, which can result in vast differences. By contrast, the SEC's standardized measure provides an annual snapshot that is consistent across the industry. The metric requires companies to estimate expected oil and gas sales from their properties using historic prices, subtract expected operating and development costs and taxes, and discount those figures by 10%. "It's gospel because it's the SEC-required reporting number, but it's not a complete surprise when it comes out," said Gary Clark, vice president of investor relations at Apache. Institutional investors and analysts often seek guidance on the direction of the standardized measure throughout the year, he said. After the numbers are out, investors sift for any outliers, such as higher future development costs at a time when the company had said those costs were falling, he said. "They will look at what you produced and what you sold, and if at the end of the year you're left with not as much as was there, they will start to ask questions." Cost is the one input that varies from company to company when calculating the standardized measure. Development costs and the success of exploration efforts differ substantially by region and type of operation. Chesapeake has seen its completion cost for wells in South Texas cut nearly in half during the past year or so. In the third quarter, it cost the company $246 per lateral foot to complete a well, compared with $478 in the second quarter of 2015. The company is also doing more work with fewer drilling rigs. "Today 10 rigs at Chesapeake drill as much lateral footage as 35 rigs did in 2013," Jason Pigott, Chesapeake's executive vice president of operations and technical services, said at the company's analyst day in October. Drilling and completion costs for wells fell by 35% since the end of 2014 for Pioneer in some areas of the Permian Shale in West Texas. Such improvements have helped break-even costs decrease in shale basins across the U.S. by as much as $22 a barrel, according to research from energy-consulting firm Wood Mackenzie. Companies that have been able to bring down their costs substantially also could surprise investors with a less pronounced drop in their standardized-measure figures, said Mr. Thummel. "That is the offset that could be interesting." Write to Tatyana Shumsky at tatyana.shumsky@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Tatyana Shumsky and Erin Ailworth
Subject: Accounting; Costs; Annual reports; Crude oil prices; Energy industry; Institutional investments
Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111; Name: Chesapeake Energy Corp; NAICS: 211111; Name: Apache Corp; NAICS: 324110, 211111, 213112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 26, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1852852610
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1852852610?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rise Higher Ahead of Production Cut; February Brent crude rose $0.04 to $55.20 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Dec 2016: n/a.
Abstract:
According to the pact, the agreed parties are obligated to cut production, but exports remained untouched.
Full text: Crude futures ticked marginally higher in muted trading in Asia on Tuesday morning as the market remains optimistic ahead of a landmark effort by oil producers to reduce global supply. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.17 a barrel at 0213 GMT, up $0.15 in the Globex electronic session. February Brent crude on London's ICE Futures exchange rose $0.04 to $55.20 a barrel. Oil markets were closed on Monday for the Christmas holiday. Starting January, most members of the Organization of the Petroleum Exporting Countries and 11 other non-cartel producers will start scaling back their production as part of a deal they made in the end of November. The reduction goal of roughly 1.8 million barrels will be carried out in phases. Oil prices have enjoyed a steady rise throughout December and analysts believe prices will breach the $60-a-barrel threshold in the first half of 2017. "At this point, most market watchers are optimistic that participating nations will comply [with] the production quotas in the first few months," said Gao Jian, a commodities analyst at SCI International. However, it remains to be seen if the compliance will hold up once prices edge higher, he added, saying an important indicator would be inventory levels of these countries. According to the pact, the agreed parties are obligated to cut production, but exports remained untouched. This means these producers will have to rely on their existing inventories to sell their barrels. A key development would be production growth by Libya, an OPEC nation that was exempt from the round of cuts as its output has been stunted by yearslong militant attacks. A Reuters report says the African nation's production last stood at 622,000 barrels a day, more than double the 300,000-barrel level seen at some points this year. During its peak, Libya's production registered more than 1.6 million barrels a day. Last week, Libya said that recently revived pipelines could add 270,000 barrels a day to production. If confirmed, the additional production would cancel out almost a quarter of OPEC's promised cut. Another factor that could thwart OPEC's goal to tamp down global supply would be steady growth from the U.S. The number of U.S. rigs drilling for oil climbed by 13 to 523 in the week ended Dec 23, marking the eighth straight week of growth and the most since December 2015. "Given the uptrend in the rig count, supported by higher prices than a year ago, we wouldn't rule out a further upward revision in the Department of Energy forecast for December 2017 from this month's 9.0 million barrels a day rate," said Tim Evans, a Citi Futures analyst, in a note last week. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 30 points to $1.6232 a gallon, while January diesel traded at $1.6632, 4 points higher. ICE gasoil for January changed hands at $488.25 a metric ton, up $4.00 from Monday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Futures; Price increases; Crude oil
Location: Libya Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 27, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1852870045
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1852870045?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Key Metric Likely Won't Reflect Oil Rally; Oil prices are up 43% this year, but producers are expected to report a lower standardized measure of reserve value in 2016 than 2015
Author: Shumsky, Tatyana; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Dec 2016: n/a.
Abstract:
Oil prices have rallied 43% this year, but oil-and-gas producers including Apache Corp., Chesapeake Energy Corp. and Pioneer Natural Resources Co. are expected to report a lower standardized measure in 2016 than 2015.
Full text: The recent run-up in crude oil prices may offer a brighter outlook for energy companies, but a key accounting metric is likely to show the sector isn't out of the woods just yet. As energy companies prepare their annual reports, they will be calculating a so-called standardized measure of reserve value. This dollar figure acts as a basis for direct comparison among companies. Oil prices have rallied 43% this year, but oil-and-gas producers including Apache Corp., Chesapeake Energy Corp. and Pioneer Natural Resources Co. are expected to report a lower standardized measure in 2016 than 2015. That is because the Securities and Exchange Commission requires companies to use historic prices in the calculation. The SEC price is the average of physical oil prices on the first day of the month of the past 12 months. That average for 2016 is down 15% from the 2015 figure. "There's going to be a mismatch there between accounting and reality," said Robert Thummel, managing director and portfolio manager at Tortoise Capital Advisors. The disconnect comes at a vulnerable time for the sector. Oil prices plunged to a low of $26.21 in February after exceeding more than $100 a barrel in 2014. Depressed prices triggered asset impairments, losses and bankruptcies across the energy industry. Standardized-measure figures slumped in step with oil prices. Apache's standardized measure, for example, was $10.6 billion in 2015, compared with $31.7 billion in 2014, according to company filings. Pioneer's standardized measure was $3.2 billion in 2015, compared with $7.8 billion in 2014, according to annual company filings. Chesapeake's standardized measure was $4.7 billion in 2015, compared with $17.4 billion in 2014, company filings show. While prospects for the industry have recovered as prices climbed back above $50 a barrel in recent months, investors remain cautious. The profitability of reserves is a primary concern. "This disclosure is going to be lower than what they would like to portray if they were using more recent prices," said Alan Stevens, assurance partner at BDO's energy practice. Finance executives in the energy sector can choose between different accounting methods to value their proved developed reserves, as well as different variables when estimating confirmed, yet undeveloped reserves, which can result in vast differences. By contrast, the SEC's standardized measure provides an annual snapshot that is consistent across the industry. The metric requires companies to estimate expected oil and gas sales from their properties using historic prices, subtract expected operating and development costs and taxes, and discount those figures by 10%. "It's gospel because it's the SEC-required reporting number, but it's not a complete surprise when it comes out," said Gary Clark, vice president of investor relations at Apache. Institutional investors and analysts often seek guidance on the direction of the standardized measure throughout the year, he said. After the numbers are out, investors sift for any outliers, such as higher future development costs at a time when the company had said those costs were falling, he said. "They will look at what you produced and what you sold, and if at the end of the year you're left with not as much as was there, they will start to ask questions." Cost is the one input that varies from company to company when calculating the standardized measure. Development costs and the success of exploration efforts differ substantially by region and type of operation. Chesapeake has seen its completion cost for wells in South Texas cut nearly in half during the past year or so. In the third quarter, it cost the company $246 per lateral foot to complete a well, compared with $478 in the second quarter of 2015. The company is also doing more work with fewer drilling rigs. "Today 10 rigs at Chesapeake drill as much lateral footage as 35 rigs did in 2013," Jason Pigott, Chesapeake's executive vice president of operations and technical services, said at the company's analyst day in October. Drilling and completion costs for wells fell by 35% since the end of 2014 for Pioneer in some areas of the Permian Shale in West Texas. Such improvements have helped break-even costs decrease in shale basins across the U.S. by as much as $22 a barrel, according to research from energy-consulting firm Wood Mackenzie. Companies that have been able to bring down their costs substantially also could surprise investors with a less pronounced drop in their standardized-measure figures, said Mr. Thummel. "That is the offset that could be interesting." Write to Tatyana Shumsky at tatyana.shumsky@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Tatyana Shumsky and Erin Ailworth
Subject: Accounting; Costs; Annual reports; Crude oil prices; Energy industry; Institutional investments
Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111; Name: Chesapeake Energy Corp; NAICS: 211111; Name: Apache Corp; NAICS: 324110, 211111, 213112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 27, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1852884331
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1852884331?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Oil Producers Turn to Wind --- European energy firms take on offshore projects; a way to diversify experience
Author: Turner, Zeke; Kent, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 Dec 2016: B.3.
Abstract:
Offshore wind's competitiveness is highly subject to local power prices and government measures, including tax credits, subsidies and rate guarantees.
Full text: The Netherlands wants to build the world's largest offshore wind project, and an unlikely company is helping: Royal Dutch Shell PLC. The oil-and-gas giant is facing shareholder pressure to develop its renewable business. Add in falling construction costs for such projects, and Shell has decided to join a handful of other oil companies aiming to leverage their experience drilling under punishing conditions at sea. Norway's Statoil ASA is already building its third offshore wind farm, in the Baltic Sea, and is developing the world's first floating wind farm off the east coast of Scotland. Denmark's state-owned Dong Energy AS -- once a fossil-fuel champion -- is now the biggest player in the offshore wind market. A Shell-led consortium won a bid this month to build and operate a portion of the Netherlands' giant Borssele wind project in the North Sea. Once complete, the Shell-built section will generate enough power for roughly a million homes at a price of 54.50 euros ($56.98) per megawatt hour -- a customer rate approaching that of cheaper power sources like coal or gas. Offshore wind's competitiveness is highly subject to local power prices and government measures, including tax credits, subsidies and rate guarantees. Nonetheless, in European markets, the wind industry had thought near parity was years away. "Right now the offshore wind project is competitive with any power source," said Dorine Bosman, Shell's manager developing its wind business. Though historically more expensive to build than onshore wind farms, offshore projects can take advantage of less restricted space and stronger, more consistent winds. The technological arms race to build these complex projects economically is so heated that many companies, including Shell, won't disclose how much they are investing, treating their commitments like a trade secret. Fossil-fuel companies' push into wind reflects their growing sensitivity to global efforts to limit climate change and how that will affect consumer demand for their main offering: oil and gas. France's Total SA wants 20% of its portfolio to consist of low-carbon businesses within the next 20 years. Shell established a new division this year focused on investing in sources such as wind, solar and biofuels. Statoil has a $200 million fund for projects such as wind technology. Investments by big European oil companies in wind and other renewable energy sources remain small -- around 2% of their overall capital-spending budgets, according to McKinsey. The industry is cautious about betting big on alternatives after getting burned in the past. It remains unclear if offshore wind can be a steady moneymaker without government support.
Credit: By Zeke Turner and Sarah Kent
Subject: Offshore; Wind farms; Alternative energy
Location: Netherlands Baltic Sea North Sea
Company / organization: Name: Statoil ASA; NAICS: 324110, 211111; Name: Total SA; NAICS: 447190, 324110, 211111; Name: DONG Energy AS; NAICS: 211111, 221122, 221210, 486110; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2016
Publication date: Dec 27, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1852917491
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1852917491?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Banking & Finance: Cheap Oil Threatens Kazakh Wealth Fund
Author: Clark, Simon; Williams, Selina
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 Dec 2016: B.8.
Abstract:
[...]since Mr. Nazarbayev created the so-called National Fund in 2000, his government has withdrawn $83 billion from it, according to a Wall Street Journal analysis of data from Kazakhstan's central bank that was corroborated by the International Monetary Fund. The government proposes spending less of it and investing more of the fund's money in higher-yielding assets such as stocks and private equity rather than bonds, according to the draft.
Full text: Kazakh President Nursultan Nazarbayev says Kazakhstan's sovereign-wealth fund has the money to help wean the Central Asian nation off its dependence on oil revenue and build an economy of entrepreneurs. The 76-year-old president, who led Kazakhstan to independence from the Soviet Union 25 years ago, this year told visitors to the new capital city he built that "Kazakhs have never lived as well as they live today" and the nation's savings help maintain living standards. But since Mr. Nazarbayev created the so-called National Fund in 2000, his government has withdrawn $83 billion from it, according to a Wall Street Journal analysis of data from Kazakhstan's central bank that was corroborated by the International Monetary Fund. The National Fund had a balance of $61 billion as of Nov. 30, down 21% from its peak in August 2014. Leaders of countries largely dependent on petroleum, from Kazakhstan to Azerbaijan, Russia and Venezuela, have spent billions of dollars from sovereign-wealth funds as the relatively low price of oil has pressured government budgets. Spending the money deposited in these funds -- rather than just the investment income they generate -- is threatening the funds' long-term viability. "It's really important for Kazakhstan and other oil-producing developing nations to convert these savings into a permanent windfall," said Angela Cummine, an Oxford University academic and author of "Citizens' Wealth," a book examining sovereign-wealth funds. "It is very unwise to draw down the fund until it is depleted because then the major windfall from oil will be gone but economic problems will remain." Kazakh Prime Minister Bakytzhan Sagintayev acknowledged the problem in December. "If we continue spending in this way, we won't have a National Fund soon," he told business leaders. The government in November published a draft decree "to prevent further reduction" of the National Fund. The government proposes spending less of it and investing more of the fund's money in higher-yielding assets such as stocks and private equity rather than bonds, according to the draft. On Dec. 22, an official at the central bank said the president had signed the decree. The scale of spending from the fund has prompted some people to express concern. That can be risky in a nation where, according to New York nonprofit Human Rights Watch, criticism of the government is regularly suppressed. "It was a wise idea to create the National Fund," Rakhim Oshakbayev, a former deputy minister for investment and development, said in an interview. "When we started spending the money in the National Fund, it was like opening Pandora's box." Information on how the fund is spent isn't readily available, Zauresh Battalova, a former Kazakh senator and democracy campaigner, said in an interview. Marek Jochec, an academic at Nazarbayev University, this year published an article in a Kazakh magazine saying that the fund risks losing significant income because of its investment strategy. Money from the fund has helped finance the construction of Astana, the new capital city, according to the government. At the center of the city's futuristic layout is Bayterek, a gold-orbed tower that stands as a monument to Mr. Nazarbayev, containing his metallic handprint on a plinth encrusted with silver and gold. Through a spokesman, Mr. Nazarbayev declined to comment for this article. Sovereign-wealth funds are state-owned investment funds usually created to save surplus revenues, often collected from natural-resource exports. Kazakhstan's National Fund transfers billions of dollars each year to the government budget and projects, according to the central bank. The governments of Russia, Azerbaijan and Venezuela have also spent billions from their sovereign-wealth funds in this manner. Venezuela's Fund for Macroeconomic Stabilization is essentially empty after the government spent almost $7 billion from the fund since its inception in 1998, according to the Venezuelan government. Russia, the world's biggest oil producer, has spent about $195 billion from its Reserve Fund since it was created in 2008, leaving $31.3 billion in it as of Dec. 1, according to the government. Russia also has savings in its National Wealth Fund. It has spent about $1 billion of this fund since 2008, leaving it with $71.3 billion as of Dec. 1, according to the government. A Russian government spokesman declined to comment. Azerbaijan has spent $89.7 billion from a sovereign-wealth fund created in 1999. The fund said it had $35.8 billion left as of Oct. 1. Money was used for "strategically important infrastructure and social projects," a spokeswoman said. The government plans to draw less money from the fund as it develops new industries, she said. Middle Eastern nations are also under pressure to tap savings. The Saudi Arabian Monetary Authority, the nation's central bank, said its reserves fell more than 25% to $543 billion in the two years through the end of October. Spokesmen for the Saudi and Venezuelan governments didn't respond to requests to comment. The size of the withdrawals threatens the existence of the funds, potentially leaving oil-producing nations more vulnerable to an extended period of low oil prices. Norway, which owns the world's largest sovereign-wealth fund, has a rule that the government shouldn't spend more than the fund earns from investments, to "lessen the risk of overspending." Norway has so far spent less than 1% of its fund. There is no such rule in Kazakhstan. --- Official Sounded Alarm on Fund In the depths of a currency crisis in November 2015, an executive within Kazakhstan's central bank laid out a plan aimed at boosting the country's sovereign-wealth fund. Kazakhstan's central bank had spent almost $40 billion of reserves from 2014 to 2015 trying to defend the declining currency, according to the bank. Plummeting oil prices led to a 47% depreciation of Kazakhstan's currency between June 2014 and April 2016. Meanwhile, the wealth fund, called the National Fund and managed by the central bank, was mostly invested in bonds -- holdings that weren't generating enough income to make up for money withdrawn by the government. Berik Otemurat led a unit of the central bank that was experimenting with investments in private equity and hedge funds. According to Mr. Otemurat, in that November 2015 meeting with Daniyar Akishev, the new central-bank chief, he proposed investing more of the National Fund's money in stocks and starting investments in private equity, hedge funds and real estate. With oil prices falling, he argued, the country couldn't afford to keep 86% of the National Fund in bonds, according to a copy of Mr. Otemurat's report, which was reviewed by The Wall Street Journal. As the meeting ended, Mr. Otemurat said, Mr. Akishev told him that he would be replaced. Mr. Otemurat said Mr. Akishev didn't address his concerns about the fund. Mr. Akishev declined to comment. In November, the Kazakh government published a draft decree, which echoes the ideas presented by Mr. Otemurat, and proposes a new investment strategy for the fund. The amount of fund money invested in bonds in the main part of the fund intended for long-term savings would fall to 60% from 80%, while 35% would be invested in stocks and 5% in alternative assets, according to the draft. On Dec. 22, an official at the central bank said that the president has signed the new decree. -- Simon Clark and Selina Williams Credit: By Simon Clark and Selina Williams
Subject: Investment policy; Crude oil prices; Budgets; Sovereign wealth funds; Government spending
Location: Azerbaijan Russia Venezuela Kazakhstan
People: Nazarbayev, Nursultan
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.8
Publication year: 2016
Publication date: Dec 27, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1852960416
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1852960416?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Edge Up as Investors Remain Positive; Investors await a landmark effort by oil producers to reduce global supply
Author: Hsu, Jenny W; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Dec 2016: n/a.
Abstract:
Crude oil futures were up slightly Tuesday amid muted holiday trading in Europe as investors remain in a wait-and-see mode ahead of a landmark effort by oil producers to reduce global supply.
Full text: Crude oil futures were up slightly Tuesday amid muted holiday trading in Europe as investors remain in a wait-and-see mode ahead of a landmark effort by oil producers to reduce global supply. The February contract for global crude benchmark Brent was up 0.03% at $55.19 a barrel while its U.S. counterpart, West Texas Intermediate, gained 0.41% to $53.25. Starting January, most members of the Organization of the Petroleum Exporting Countries and 11 other non-cartel producers will start scaling back their production as part of a deal they made in the end of November . The reduction goal of roughly 1.8 million barrels will be carried out in phases. Oil prices have risen steadily throughout December and analysts believe they will breach the $60-a-barrel threshold in the first half of 2017. "At this point, most market watchers are optimistic that participating nations will comply [with] the production quotas in the first few months," said Gao Jian, a commodities analyst at SCI International. However, it remains to be seen if the compliance will hold up once prices edge higher, he said, saying an important indicator would be inventory levels in these countries. Another factor that could thwart OPEC's goal to tamp down global supply would be steady growth from the U.S. The number of U.S. rigs drilling for oil climbed by 13 to 523 in the week ended Dec. 23, marking the eighth straight week of growth and the most since December 2015. "Given the uptrend in the rig count, supported by higher prices than a year ago, we wouldn't rule out a further upward revision in the Department of Energy forecast for December 2017 from this month's 9.0 million barrels a day rate," said Tim Evans, a Citi Futures analyst, in a note last week. Meanwhile, Saudi Arabia, the world's largest oil exporter, has released its government budget for 2017 and is planning to spend over $237 billion . The Riyadh-based Jadwa Research said in a note Sunday that this equated to an average 2017 selling price for Saudi crude of $52 a barrel and an average 2017 price of $55 for Brent. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 0.30% to $1.64 a gallon, while January diesel traded at $1.68, 0.07% higher. ICE gasoil for January changed hands at $489.50 a metric ton, up 1.08%. Write to Jenny W. Hsu at jenny.hsu@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Jenny W. Hsu and Kevin Baxter
Subject: Crude oil; Price increases
Location: United States--US Europe
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 27, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1852960631
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1852960631?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mexican Government to Bump Up Gasoline Prices in January; Price of regular gasoline will rise an average of 14% as country looks to incorporate higher oil prices and a weaker peso into the cost
Author: Montes, Juan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Dec 2016: n/a.
Abstract: None available.
Full text: MEXICO CITY--The maximum retail price of regular gasoline in Mexico will rise on average 14% as of Jan. 1, a widely expected move intended to incorporate higher oil prices and a weaker peso into the cost as Mexico moves to market-set prices for the fuel in 2017. The increase announced Tuesday is by far the largest monthly jump in gasoline prices on government records going back to 2000. During 2016, the price of regular gasoline rose just 3%, thanks to government price caps. Price controls for gasoline will be scrapped in late March in Baja California and Sonora, which border the U.S. and where motorists are accustomed to competition among service gasoline stations. Other regions will gradually follow suit during the year--including Mexico City in November. The last to make the switch will be southern areas of the country where a lack of gasoline stations could lead to price gouging. Mexico has had government-controlled, and often subsidized, gasoline prices for the last eight decades. Price caps will coexist with free prices during next year as the liberalization advances throughout the country. Analysts and gasoline trade groups expect the shift to market prices will mean further increases during the year, with some estimating the total increase during 2017 could be more than 20%. Regular gasoline will rise 14% next month to 15.99 pesos per liter, or $2.95 per gallon, while premium gasoline will jump 20% to $3.28 per gallon and diesel will rise 17% to about $3.14 per gallon. Regular gasoline accounted for nearly 80% of the 34.3 million gallons a day of gasoline that Mexico consumed in the first 11 months of 2016. The increases put gasoline prices above those of the U.S., which averaged $2.20 per gallon for regular and $2.67 for premium in the week of Dec. 19, according to the U.S. Energy Information Administration. In a radio interview, Finance Minister José Antonio Meade attributed the sharp rise in January to a 67% rise in crude oil prices from a year before. "What we can't have is a market where for different reasons we keep the price artificially high or artificially low," he said. Higher gasoline prices could undermine the confidence among Mexicans in an overhaul of energy laws in 2013 that ended state oil company Petróleos Mexicanos' monopoly on exploration and production, refining, and fuel imports. Some analysts have expressed concerns it could also cause social unrest in a country where 46% of people are considered poor. Next year promises to be a difficult one for Mexico. The price increases will pressure already rising inflation at a time when the economy is slowing. An expected renegotiation of the North American Free Trade Agreement between the administration of U.S. President-elect Donald Trump and Mexico will add more uncertainty. Capped prices will be different depending on the region and they will be first adjusted monthly, and in later stages weekly, and then daily, to ease the transition to free prices. There will be 90 different regions. Write to Juan Montes at juan.montes@wsj.com Credit: By Juan Montes
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 27, 2016
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853009295
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853009295?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Lower in Asia on Profit Taking; February Brent crude fell $0.17 to $55.92 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Dec 2016: n/a.
Abstract:
Most market participants are waiting to see if major oil producers inside and outside the Organization of the Petroleum Exporting Countries will deliver on pledges to curtail production beginning next month.
Full text: Oil prices fell in Asia trade Wednesday as investors took profit after an overnight rally, but trading remained thin. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.80 a barrel at 0229 GMT, down $0.10 in the Globex electronic session. February Brent crude on London's ICE Futures exchange fell $0.17 to $55.92 a barrel. Most market participants are waiting to see if major oil producers inside and outside the Organization of the Petroleum Exporting Countries will deliver on pledges to curtail production beginning next month. The deal, if carried out as planned, should reduce global supply by about 2%. Venezuela, an OPEC member whose economy has suffered greatly due to low oil prices, on Tuesday committed to cutting 95,000 barrels a day in line with the pact. While market participants are at present optimistic that participating nations will abide by the pact, there is still a degree of skepticism about how closely and for how long producers will comply with individual quotas. "We may see some reduction in output as production is ramped down toward the lower targets, although others could also be take the opportunity to push a few more barrels into the market at the most attractive price," said Tim Evans, a Citi Futures analyst. Aside from quota cheating, U.S. shale production could also frustrate OPEC's plan to shrink the supply overhang. Based on OPEC's own forecast, non-cartel oil supply in 2017 is expected to grow by 300,000 barrels a day--as compared with this year--to average 56.5 million barrels a day. In the short term, market participants will be monitoring U.S. weekly crude stocks data. Analysts surveyed by S&P Global Platts expect a drawdown of 1.5 million barrels a day in U.S. crude inventories for the week ended Dec. 23. "Given current levels, U.S. crude inventories will almost certainly end 2016 higher than they began the year," S&P Global Platts said, noting that the last calendar year to record a deficit was 2013. U.S. oil production has climbed in conjunction with stronger prices, averaging 8.79 million barrels a day in the week ended Dec. 16, up from the 8.43 million barrels a week in late July, based on Energy Information Administration data. "But expectations are high that the global oil balance will tighten next year given the agreement between OPEC and non-OPEC producers to slash production by nearly 1.8 million barrel a day. That reduction could mean fewer imports, but the net impact on U.S. crude oil stocks will also be determined by U.S. domestic output," the firm said. Official data on U.S. crude stocks and production will be released later today. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--rose 7 points to $1.6535 a gallon, while January diesel traded at $498.25. ICE gasoil for January changed hands at $498.25 a metric ton, down $2.75 from Tuesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Supply & demand; Stocks; Inventory; Futures; Petroleum production
Location: Venezuela United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 28, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853189664
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853189664?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rise Amid Muted Holiday Trade
Author: Hsu, Jenny W; Baxter, Kevin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Dec 2016: B.11.
Abstract:
Crude-oil futures rose Tuesday amid muted holiday trading as investors remain in a wait-and-see mode ahead of a landmark effort by oil producers to reduce global supply.
Full text: Crude-oil futures rose Tuesday amid muted holiday trading as investors remain in a wait-and-see mode ahead of a landmark effort by oil producers to reduce global supply. U.S. crude for February delivery gained 88 cents, or 1.66%, to settle at $53.90 a barrel. Brent, the global benchmark, rose 93 cents, or 1.69%, to $56.09 a barrel. Starting in January, most members of the Organization of the Petroleum Exporting Countries and 11 other noncartel producers are expected to scale back their production as part of a deal they made at the end of November. The reduction goal of roughly 1.8 million barrels is expected to be carried out in phases. "The momentum is still higher," said Ric Navy, senior vice president for energy futures at RJ O'Brien Associates. "I don't think a lot of people want to stand in front of what's going on." Oil prices have risen steadily throughout December and analysts believe they will breach the $60-a-barrel threshold in the first half of 2017. "At this point, most market watchers are optimistic that participating nations will comply [with] the production quotas in the first few months," said Gao Jian, a commodities analyst at SCI International. However, it remains to be seen if the compliance will hold up once prices edge higher, he said, adding that an important indicator would be inventory levels in these countries. Another factor that could thwart OPEC's goal to tamp down global supply would be steady growth from the U.S. The number of U.S. rigs drilling for oil climbed by 13 to 523 in the week ended Dec. 23, marking the eighth straight week of growth and the most since December 2015. "Given the uptrend in the rig count, supported by higher prices than a year ago, we wouldn't rule out a further upward revision in the Energy Department forecast for December 2017 from this month's 9.0 million barrels a day rate," said Tim Evans, a Citi Futures analyst, in a note last week. Meanwhile, Saudi Arabia, the world's largest oil exporter, has released its government budget for 2017 and is planning to spend over $237 billion. The Riyadh-based Jadwa Research said in a note Sunday that this equated to an average 2017 selling price for Saudi crude of $52 a barrel and an average 2017 price of $55 for Brent. --- Alison Sider contributed to this article. Credit: By Jenny W. Hsu and Kevin Baxter
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2016
Publication date: Dec 28, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853263408
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853263408?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Nudges Higher as Output Cuts Near; Investors are cautiously optimistic major producers will abide by the deal to reduce output
Author: Sider, Alison; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Dec 2016: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Wednesday that its own data for the week showed a 4.2-million-barrel increase in crude supplies, a 2.8-million-barrel fall in gasoline stocks and a 1.7-million-barrel decline in distillate inventories, according to a market participant.
Full text: Oil prices continued to edge higher Wednesday as investors anticipate that major producers will follow through with a planned production cut to help reduce a global supply glut next year. Traders are waiting to see if major oil producers inside and outside the Organization of the Petroleum Exporting Countries will deliver on pledges to curtail production beginning next month. The deal, if carried out as planned, should reduce global supply by about 2%. Hopes for the deal have pushed the price of U.S. crude to its highest level since July 2015. Prices have increased for four straight sessions and hit new one-year settlement highs in recent days amid light trading over the holidays. U.S. crude for February rose 16 cents, or 0.3%, to $54.06 a barrel on the New York Mercantile Exchange. Brent crude, the global oil benchmark, gained 13 cents, or 0.23%, to $56.22 a barrel on London's ICE Futures exchange. "The idea that the market's rebalance will continue into next year and there is a willingness by producers to staunch excess supply, that's where further strength is going to come from," said Gene McGillian, research manager at Tradition Energy. The prospects for reduced oil supply and growing global demand could push crude prices higher in the coming weeks, Mr. McGillian said. "Basically the bulls in the market are in charge." Amrita Sen, the chief oil analyst at Energy Aspects, foresees new money flowing into crude futures next year. "A lot of funds will allocate assets to different sectors and oil and commodities should get some funds coming the first half of next year as the fundamentals are more supportive in 2017," she said. OPEC members and other major producers have continued to insist that the cuts will materialize. Iraqi Oil Minister Jabbar al-Luaibi reaffirmed his country's commitment to cutting output Wednesday, according to Kuwait's sate-run news agency. Venezuela on Tuesday announced that it was implementing the production cut outlined in the OPEC agreement. And the first meeting of a new monitoring committee created to oversee the cuts has been proposed for Jan. 13, Reuters reported Tuesday. While market participants are cautiously optimistic that participating nations will abide by the pact, there is still a degree of skepticism about how closely and for how long producers will comply with individual quotas. And some have questioned how much higher crude can go without evidence that major producers are really cutting back. "The Saudis and the Iraqis are all saying the right things. But if the numbers don't prove it, it won't take too long to correct," said Mark Anderle, director of supply and trading at TAC Energy. Analysts are closely watching U.S. drilling activity and output. Higher prices could spur production in the U.S., which could cut the price rally short. U.S. oil production has climbed in conjunction with stronger prices , averaging 8.79 million barrels a day in the week ended Dec. 16, up from the 8.43 million barrels a week in late July, based on Energy Information Administration data. Official data on U.S. crude stocks and production will be released Thursday--a day later than usual, due to the holiday. The American Petroleum Institute, an industry group, said late Wednesday that its own data for the week showed a 4.2-million-barrel increase in crude supplies, a 2.8-million-barrel fall in gasoline stocks and a 1.7-million-barrel decline in distillate inventories, according to a market participant. Data showing that Americans have become more optimistic about the U.S. economy may have also bolstered petroleum prices, analysts said. The Conference Board said Tuesday that its index of consumer confidence rose in December to its highest reading since August 2011. That data are "conjuring up images of gasoline and diesel demand improvement," Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a research report Wednesday. Gasoline futures gained 2.18 cents, or 1.32%, to $1.6746 a gallon. Diesel futures lost 0.01 cent, or 0.01%, to $1.6993 a gallon. Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Alison Sider and Neanda Salvaterra
Subject: Supply & demand; Cartels; Petroleum production
Location: United States--US
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 28, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853316005
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853316005?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Brazil's Petrobras to Sell Noncore Assets for $587 Million; State-run oil company to sell its stake in a sugar and ethanol producer as well as certain petrochemical assets
Author: Jelmayer, Rogerio
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Dec 2016: n/a.
Abstract: None available.
Full text: SÃO PAULO--Brazilian state-run oil company Petróleo Brasileiro SA on Wednesday, said it agreed to sell certain noncore business assets for $587 million, amid its efforts to raise cash and reduce debts. Petrobras, as the company is also known, will sell its 45.97% stake in sugar and ethanol producer Guarani SA to France's Tereos Internacional, for $202 million. In a separate statement, Petrobras said it agreed to sell certain petrochemical assets to Mexican petrochemical company Alpek S.A.B. de C.V. for $385 million. The Brazilian company will sell its petrochemical units Petroquimica Suape and Citepe to Alpek. The subsidiaries operate a plastics plant in the country's northeast Pernambuco state, with capacity of 700,000 tons a year of purified terephthalic acid, or PTA, and 450,000 tons of polyethylene terephthalate, or PET. Citepe also operates a plant on the site which produces 90,000 metric tons a year of texturized polyester filament. Alpek, a unit of industrial conglomerate Alfa SAB, said the deal requires some corporate and government approvals. Monterrey, Mexico-based Alpek has annual output capacity of 5.6 million metric tons and had revenues of $5.3 billion in 2015. The acquisition will expand its presence in Brazil, where it operates an expandable polystyrene plant. Wednesday's announcements were part of Petrobras' plan to sell certain assets to reduce its debt. With those sales, Petrobras said it sold $13.6 billion in assets in the 2015-2016 period. For the 2017 and 2018 period, Petrobras said it is planning to sell $21 billion in assets. With the ambitious asset-sale plans, Petrobras said it seeks to reduce its net debt-to-earnings before interest, taxes, depreciation and amortization ratio to 2.5 times in 2018; it was 5.3 times at the end of 2015. Petrobras is the most highly leveraged oil major in the world with $123 billion in gross debt. Anthony Harrup in Mexico City contributed to this article. Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com Credit: By Rogerio Jelmayer
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 28, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853459280
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853459280?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall on Unexpected Growth in U.S. Crude Stocks; February Brent crude fell $0.19 to $56.03 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Dec 2016: n/a.
Abstract:
According to data from industry group American Petroleum Institute, U.S. crude stocks rose by 4.2 million barrels in the week ended Dec. 23.
Full text: Oil prices fell in Asia trade Thursday after an industry group data showed U.S. crude inventories likely expanded last week, upending the market's expectations for lessened growth or a contraction. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.74 a barrel at 0211 GMT, down $0.32 in the Globex electronic session. February Brent crude on London's ICE Futures Exchange fell $0.19 to $56.03 a barrel. According to data from industry group American Petroleum Institute, U.S. crude stocks rose by 4.2 million barrels in the week ended Dec. 23. The data also showed a decrease of 2.8 million barrels in gasoline stockpiles. Analysts surveyed by The Wall Street Journal were expecting a 1.4 million barrel decline in crude supplies. Those surveyed by S&P Global forecasted a drawdown of 1.5 million barrels. Official inventory data from the Energy Information Administration is due later today-- a day later than usual due to the holidays. Last week, the EIA reported growth of 2.3 million barrels in crude stocks. "Both the unexpected build in crude stocks for last week and the reported decline in distillate and gasoline inventories for last week appear to be tied to an unexpected, counter-seasonal 604,000 barrels per day drop in refinery crude runs," said Tim Evans, a Citi Futures analyst. The boom of U.S. unconventional oil production has been a major threat to the Organization of the Petroleum Exporting Countries, which supplies one-third of the global oil supply. For over two years, to counter the additional supplies coming from the U.S., the cartel members ramped up their production in a bid to protect their market shares and weed out some of their less-competitive U.S. rivals. Analysts say the tactic has largely backfired. The increase in supplies quickly outpaced demand growth. Prices sunk as low as $26 a barrel earlier this year and several OPEC producers are suffering from tighter national budgets thanks to depressed oil prices. Meanwhile, production in the U.S. abated by less than expected. Last month, OPEC abandoned that strategy and agreed to cut their productions to jumpstart prices. The production cut deal, which will commence in January, was also joined by 11 other non-OPEC players. If carried out successfully, the coordinated action could wipe out about 2% of the world's supply and send the market into a deficit as early as the first half of next year. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--rose 80 points to $1.6826 a gallon, while January diesel traded at $1.7013, 20 points higher. ICE gasoil for January changed hands at $501.00 a metric ton, up $0.50 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Supply & demand; Cartels; Inventory; Futures; Petroleum production; Price increases
Location: United States--US Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 29, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853479131
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853479131?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Climbs On Hopes of Output Cuts
Author: Sider, Alison; Salvaterra, Neanda
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Dec 2016: B.10.
Abstract:
Oil prices continued to edge higher Wednesday as investors anticipate that major producers will follow through with a planned production cut to help reduce a global supply glut next year.
Full text: Oil prices continued to edge higher Wednesday as investors anticipate that major producers will follow through with a planned production cut to help reduce a global supply glut next year. Traders are waiting to see if major oil producers inside and outside the Organization of the Petroleum Exporting Countries will deliver on pledges to curtail production beginning next month. The deal, if carried out as planned, should reduce global supply by about 2%. Hopes for the deal have pushed the price of U.S. crude to its highest level since July 2015. Prices have increased for four consecutive sessions and hit new one-year settlement highs in recent days amid light trading over the holidays. U.S. crude for February rose 16 cents, or 0.3%, to $54.06 a barrel on the New York Mercantile Exchange. Brent crude, the global oil benchmark, gained 13 cents, or 0.23%, to $56.22 a barrel on London's ICE Futures exchange. "The idea that the market's rebalance will continue into next year and there is a willingness by producers to staunch excess supply, that's where further strength is going to come from," said Gene McGillian, research manager at Tradition Energy. The prospects for reduced oil supply and growing global demand could push crude prices higher in the coming weeks, Mr. McGillian said. OPEC members and other major producers have continued to insist that the cuts will materialize. Iraqi Oil Minister Jabbar al-Luaibi reaffirmed his country's commitment to cutting output Wednesday, according to Kuwait's sate-run news agency. Venezuela on Tuesday announced that it was implementing the production cut outlined in the OPEC agreement. And the first meeting of a new monitoring committee created to oversee the cuts has been proposed for Jan. 13, Reuters reported Tuesday. Credit: By Alison Sider and Neanda Salvaterra
Subject: Commodity prices; Crude oil
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2016
Publication date: Dec 29, 2016
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853627335
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853627335?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil Remains Lower After Inventory Data; EIA's data show an unexpected increase in crude-oil stockpiles
Author: Puko, Timothy; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Dec 2016: n/a.
Abstract:
The boom of U.S. unconventional oil production has been a major threat to the Organization of the Petroleum Exporting Countries, which supplies one-third of the global oil supply.
Full text: BREAKING: *U.S. Oil Remains Lower on Unexpected Addition to Stockpiles (More to come) EARLIER: Oil prices are holding close to unchanged Thursday after data that suggested an unexpected rise in U.S. stockpiles has put a cap on a recent rally. The American Petroleum Institute, an industry group, said late Wednesday that its estimates showed crude inventories rising 4.2 million barrels in the week ended Dec. 23, a week when analysts expected stockpiles had shrunk. Prices slipped on the news and have budged little since, extending a period of relative stasis that began late in Tuesday's trading. U.S. crude for February delivery recently lost 6 cents, or 0.1%, to $54.00 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained 23 cents, or 0.4%, to $56.45 a barrel on ICE Futures Europe. Brent's front-month February contract expires at settlement. The more-actively-traded March contract recently gained 18 cents, or 0.3%, to $57.14 a barrel "The crude complex saw this week's bullish momentum grind to a halt," Robbie Fraser, commodity analyst at consultant Schneider Electric SA in Louisville, Ky., said in a note. Oil prices had been rising gradually throughout December, after the world's exporters announced plans to cut output . But many traders are still awaiting signs that cuts are happening and storage levels are retreating from record highs. The U.S. Energy Information Administration plans to release its weekly update on U.S. stockpiles at 11 a.m. EST, a day delayed because of the Christmas holiday Monday. Despite API's estimate of an increase, analysts surveyed by The Wall Street Journal forecast a 1.4 million barrel decline in crude supplies. Analysts also forecast slight additions to both gasoline and distillates, which include heating oil and diesel. But API said there was a 2.8-million-barrel fall in gasoline stocks and a 1.7-million-barrel decline in distillate inventories, according to a market participant. That is likely from a 604,000-barrels-a-day drop in refinery runs at a time of year when refineries usually run harder, said Tim Evans, a Citi Futures analyst. However, it isn't likely enough to cause a major retreat in oil prices. "We continue to see a few reports of OPEC members reiterating their commitment to reducing production for 2017," he wrote in a note to clients. "These stories help keep the market focused on the production cuts and related expectations that the market will rebalance," sending prices higher despite other factors. The boom of U.S. unconventional oil production has been a major threat to the Organization of the Petroleum Exporting Countries, which supplies one-third of the global oil supply. For over two years, the cartel ramped up their production in a bid to protect their market shares and weed out some of their less-competitive U.S. rivals. But analysts have said the tactic was largely unsuccessful. The increase in supplies quickly outpaced demand growth and earlier this year prices sunk to as low as $26 a barrel, leading to a number of OPEC producers suffering from tighter national budgets because of weaker oil revenues. Meanwhile, production in the U.S. abated by less than expected. Last month, OPEC abandoned that strategy and agreed to cut their productions to jump-start prices, causing oil to rally above $50 a barrel to more than one-year highs. But that rally could hit a limit, according to many analysts. The higher prices could simply encourage more output from other producers around the world, especially the unconventional drillers working shale fields in the U.S. "Based on an improved crude price outlook, shale gas and oil drilling will pick up again," said consultancy JBC Energy in a research note. Gasoline futures recently gained 1% to $1.6909 a gallon and diesel futures gained 0.7% to $1.7114 a gallon. Write to Timothy Puko at tim.puko@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Timothy Puko, Sarah McFarlane and Jenny W. Hsu
Subject: Crude oil prices; Inventory; Petroleum production
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 29, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853688333
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Brazil's Petrobras to Sell Noncore Assets for $587 Million; State-run oil company to sell its stake in a sugar and ethanol producer as well as certain petrochemical assets
Author: Jelmayer, Rogerio
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Dec 2016: n/a.
Abstract: None available.
Full text: SÃO PAULO--Brazilian state-run oil company Petróleo Brasileiro SA on Wednesday, said it agreed to sell certain noncore business assets for $587 million, amid its efforts to raise cash and reduce debts. Petrobras, as the company is also known, will sell its 45.97% stake in sugar and ethanol producer Guarani SA to France's Tereos Internacional, for $202 million. In a separate statement, Petrobras said it agreed to sell certain petrochemical assets to Mexican petrochemical company Alpek S.A.B. de C.V. for $385 million. The Brazilian company will sell its petrochemical units Petroquimica Suape and Citepe to Alpek. The subsidiaries operate a plastics plant in the country's northeast Pernambuco state, with capacity of 700,000 tons a year of purified terephthalic acid, or PTA, and 450,000 tons of polyethylene terephthalate, or PET. Citepe also operates a plant on the site which produces 90,000 metric tons a year of texturized polyester filament. Alpek, a unit of industrial conglomerate Alfa SAB, said the deal requires some corporate and government approvals. Monterrey, Mexico-based Alpek has annual output capacity of 5.6 million metric tons and had revenues of $5.3 billion in 2015. The acquisition will expand its presence in Brazil, where it operates an expandable polystyrene plant. Wednesday's announcements were part of Petrobras' plan to sell certain assets to reduce its debt. With those sales, Petrobras said it sold $13.6 billion in assets in the 2015-2016 period. For the 2017 and 2018 period, Petrobras said it is planning to sell $21 billion in assets. With the ambitious asset-sale plans, Petrobras said it seeks to reduce its net debt-to-earnings before interest, taxes, depreciation and amortization ratio to 2.5 times in 2018; it was 5.3 times at the end of 2015. Petrobras is the most highly leveraged oil major in the world with $123 billion in gross debt. Anthony Harrup in Mexico City contributed to this article. Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com Credit: By Rogerio Jelmayer
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 29, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853731058
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853731058?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Brazil's Petrobras Falls Short of Asset-Sales Target; Oil company missed $15.1 billion target, selling assets worth $13.6 billion this year and last
Author: Jelmayer, Rogerio
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Dec 2016: n/a.
Abstract: None available.
Full text: Corrections & Amplifications: Petrobras's preferred shares were down 0.8% midday Thursday. An earlier version of this article incorrectly stated the percentage change. SÃO PAULO--State-controlled Petróleo Brasileiro SA announced a flurry of asset sales as the year wound down, but still fell short of its $15.1 billion divestment target for the 2015-2016 period. The oil company commonly known as Petrobras faces similar challenges in the year ahead but its management has made progress in restoring investor confidence and cutting a huge debt load, analysts say. Petrobras said Thursday it has sold assets with a total value of $13.6 billion last year and this year. The company attributed the shortfall to a court order that blocked the sale of various oil fields in Brazil. In light of the missed target, Petrobras said it decided to raise its 2017-2018 divestment goal to $21 billion from $19.5 billion, as it tackles $123 billion in debt. "The question will be if Petrobras will be able to find buyers," said Pedro Galdi, an investment analyst at Upside Investor, based in São Paulo. "The scenario will remain challenging because of the uncertainty surrounding the global economy and oil prices." Petrobras's preferred shares closed up 0.6% at 14.87 reais ($4.57) Thursday. Mr. Galdi said he expects the share price to reach 20 reais at the end of 2017. The company completed $752 million in asset sales this week, including a Japanese refinery bought by Taiyo Oil Co. for $165 million, as announced Thursday. On Wednesday, Petrobras said it would sell its stake in Brazilian sugar-and-ethanol producer Guarani SA to France's Tereos Internacional for $202 million and announced the sale of some petrochemical assets to Mexico's Alpek for $385 million. Petrobras last week entered a strategic alliance with France's Total SA that includes the sale of oil concessions and other assets that the Brazilian company said will bring in $1.6 billion in the next two months. The sales, as well as recent management changes, are in response to various developments that left the company among the most-leveraged oil producers in the world. The government of former President Dilma Rousseff forced the state-controlled company to sell gasoline below cost for several years leading up to her 2014 re-election campaign as part of an effort to rein in inflation. Ms. Rousseff was ousted after an impeachment process earlier this year for violating budget laws. Her approval ratings had dropped to around 10% before leaving office, partly because of a mammoth anticorruption investigation of bid rigging and bribery at Petrobras. Prosecutors have said the scheme cost the oil company about $13 billion. Petrobras's new management team is led by Chief Executive Officer Pedro Parente , who took the helm in June. Mr. Parente is working to regain the confidence of investors and show that the company is now being managed by market-friendly professionals--and analysts say they are encouraged by what they have seen so far. "Petrobras shares are now much more linked with oil prices than to domestic political factors," said Marco Saravalle, an equity analyst at investment house at XP Investimentos, which oversees a portfolio of $15.3 billion in equities and fixed-income assets for 200,000 clients. Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com Credit: By Rogerio Jelmayer
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 29, 2016
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853766516
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853766516?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil Inventories Rise, Fuel Supplies Fall; Crude-oil stockpiles increased by 614,000 barrels to 486.1 million barrels
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Dec 2016: n/a.
Abstract:
U.S. crude oil unexpectedly rose for the week ended Dec. 23, while gasoline supplies surprisingly fell, according to data released Thursday by the Energy Information Administration.
Full text: U.S. crude oil unexpectedly rose for the week ended Dec. 23, while gasoline supplies surprisingly fell, according to data released Thursday by the Energy Information Administration. Crude-oil stockpiles increased by 614,000 barrels to 486.1 million barrels, which is near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would fall by 1.4 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 172,000 barrels to 66.4 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 1.6 million barrels to 227.1 million barrels. Analysts were expecting gasoline inventories to rise by 400,000 barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 1.9 million barrels to 151.6 million barrels, which is near the upper limit of the average range, the EIA said. Analysts were forecasting supplies to increase by 300,000 barrels from a week earlier. Refining capacity utilization unexpectedly fell by a half a percentage point from the previous week to 91.0%. Analysts were expecting utilization levels to rise by 0.3 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 29, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853766520
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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Asian Shares Down as Oil Prices, US Markets Slip; Austrialia's S&P/ASX 200 was down 0.5%
Author: Machado, Kenan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Dec 2016: n/a.
Abstract:
The U.S. Energy Information Administration said crude inventories grew 614,000 barrels compared with a forecast for a 1.4-million-barrel decline predicted by analysts surveyed by The Wall Street Journal.
Full text: 0038 GMT [Dow Jones] A decline in oil prices and tepid U.S. markets led to losses in Asian shares Friday. Austrialia's S&P/ASX 200 was down 0.5% with Woodside Petroleum losing 1.8% and Santos down 0.3%. The Nikkei Stock Average lost 0.6% with Japan Petroleum Exploration losing 1.1%, and Inpex down 1.1%. Overnight, oil prices fell in U.S. trade after U.S. crude stockpiles unexpectedly rose. The U.S. Energy Information Administration said crude inventories grew 614,000 barrels compared with a forecast for a 1.4-million-barrel decline predicted by analysts surveyed by The Wall Street Journal. In the U.S., the Dow Jones Industrial Average was down 0.1% with the S&P 500 closing at 2249.26, its lowest close since Dec. 8. Meanwhile, a break in the dollar rally sent the yen higher by 0.2% against the dollar, with the USD/JPY at 116.32. Write to Kenan Machado at kenan.machado@wsj.com Credit: By Kenan Machado
Subject: Stock exchanges; American dollar
Location: United States--US
Company / organization: Name: Woodside Petroleum Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853926748
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853926748?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rise On Weak Gain in U.S. Crude Stocks; March Brent crude rose $0.07 to $56.92 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Dec 2016: n/a.
Abstract:
"The market has more faith that the participating nations will comply with the assigned production quotas this time because everyone is eager to get the prices up," said Gao Jian, energy analyst at SCI International. Since the inking of the deal, several OPEC members have voiced their commitment to the cut.
Full text: Crude futures made minor gains in early Asia trade Friday, after data from the U.S. Energy Information Administration showed smaller-than-expected growth in U.S. crude stockpiles. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.93 a barrel at 0201 GMT, up $0.16 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.07 to $56.92 a barrel. Oil trading remained tepid ahead of the New Year holiday. Global oil markets will be closed Monday. EIA data showed that U.S. crude inventories grew 614,000 barrels in the week ended Dec. 23, a moderate rise compared with the 4.2-million barrels increase tipped by the industry group American Petroleum Institute, but still above the 1.2-million barrel contraction forecast by analysts surveyed by The Wall Street Journal. At 486.1 million barrels, U.S. crude oil inventories are near the upper limit of the average range for this time of the year, the EIA said. "The main driver behind last week's build was a slowdown in refinery activity," said S&P Global Platts, noting that the refinery utilization rate fell 0.5% to 91% of total capacity. This is the time of the year when crude stocks usually fall, as refiners increase production. Gasoline stock decreased by 1.6 million barrels, while distillates fuel inventories dropped by 1.9 million barrels in the same week. Production also fell by 20,000 barrels from a week earlier, to 8.76 million barrels, roughly 4.4% lower than same period last year. Analysts say the current downtrend in U.S. oil production could reverse as oil prices rise, frustrating the Organization of the Petroleum Exporting Countries' latest effort to lift prices by cutting the group's overall output. In November, after more than two years of low prices, the cartel and 11 non-OPEC players in a landmark pact agreed to slash production by almost 1.8 million barrels a day. If fully implemented, the move could push oil prices to the $60 a barrel range early next year, and to $70 in 2018. "The market has more faith that the participating nations will comply with the assigned production quotas this time because everyone is eager to get the prices up," said Gao Jian, energy analyst at SCI International. Since the inking of the deal, several OPEC members have voiced their commitment to the cut. However, most market watchers are waiting to see the production reports for the first few months of 2017 to gauge whether producers have really made good on their pledges. In the past, producers have been known to cheat and produce above their allotted limits. Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--fell 10 points to $1.6810 a gallon, while January diesel traded at $1.7060, 23 points higher. ICE gasoil for January changed hands at $501.50 a metric ton, down $1.25 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Cartels; Inventory; Futures; Petroleum production
Location: United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1853941582
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1853941582?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Posts Biggest Annual Gain Since Financial Crisis; OPEC's moves have fueled a gradual rally since February
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Dec 2016: n/a.
Abstract:
Saudi Arabia and its allies in the Organization of the Petroleum Exporting Countries are reclaiming their role as the world's cartel, pledging to cut output to end a glut that had shaken the market for two years.
Full text: Oil in 2016 had its biggest annual gain since the financial crisis, even in a year that also sent prices dipping to a decade low. Saudi Arabia and its allies in the Organization of the Petroleum Exporting Countries are reclaiming their role as the world's cartel, pledging to cut output to end a glut that had shaken the market for two years. Their moves have fueled a gradual rally since February, with many traders now betting oil will approach $60 a barrel within just a year of a crash that had pushed it below $30 and shook financial markets world-wide. "We had OPEC cement their relevance," said Dan Pickering, who oversees $1.9 billion in investments for the asset-management arm of Tudor, Pickering, Holt & Co. in Houston. "There's clearly a better floor under oil prices because OPEC has told you they're not happy with $40 oil prices anymore." Questions about OPEC's power and willingness to use it have been the biggest force in oil this year, and that is still the case in the waning days of 2016 as traders wait to see whether OPEC follows through on a plan to cut global supply by more than 1%. While prices have been on the rise, rallies have repeatedly stalled out around $50 a barrel with many still skeptical of OPEC's commitment, or predicting U.S. companies will drill more to fill the gap. U.S. crude finished the year up about 45%, and Brent, the global benchmark, up 52%. It was their biggest yearly gains since 2009 on the back of a strong year-end that brought four winning months in the last five. Both benchmarks have done even better from recent lows, more than doubling since last winter brought the lowest prices since 2003. On Friday, light, sweet crude for February delivery settled down 5 cents, or 0.1%, at $53.72 a barrel on the New York Mercantile Exchange. Brent lost 3 cents, or 0.1%, to $56.82 a barrel on ICE Futures Europe. Crude futures have held close to unchanged for more than two days now, with many traders out for the holidays and the few who remain unwilling to make big bets, brokers and analysts said. December's rally has stalled out in recent days, with the U.S. Energy Information Administration reporting increases in stockpiles and many traders wondering about major uncertainties going into next year. Many are still awaiting data to prove OPEC is following through on output cuts, which aren't scheduled to begin until January and could take several months before verifiably causing record-high storage levels to fall. Others are wondering whether President-elect Donald Trump's plan to slash regulations will lead to more oil flooding the market and whether U.S. shale-drillers will increase output with prices now above $50 a barrel. Any of those factors could limit the rally going forward or even send prices lower again. What U.S. producers do in 2017 will be one of the biggest questions for traders. They helped cause the oil glut by figuring out how to tap large quantities of oil from shale rock. That led Saudi Arabia and other global exporters to raise their own production to record highs and compete for customers at lower prices. With those countries now cutting back to end oversupply, U.S. producers may be the big beneficiaries. Prices around $50 have already waylaid the risk of bankruptcy that threatened those companies a year ago. Many predict those shale drillers have cut their costs enough to profit at prices above $50 and can now raise production to replace the supply cut by their global competitors. U.S. producers have been selling the rights to their 2017 and 2018 production in advance and are putting more rigs to work. The low prices earlier this year caused U.S. oil production to drop more than a 10th from its record high of 9.6 million barrels a day in June 2015. But that fall has started to reverse in recent weeks. U.S. production will reach 9 million barrels a day again by the end of the first quarter, said Jim Ritterbusch, president of Ritterbusch & Associates. "There's going to be incentive for producers to keep increasing their drilling rigs [and] that will translate into higher production," he said. "Six months ago I don't think too many people would have expected that." The number of working rigs in the U.S. is likely to rise 30% within the next six months, analysts at Morningstar Inc. said in a note late Thursday. That would contrast with a year ago, when falling prices forced dozens of U.S. producers to file for bankruptcy and caused cutbacks so steep that the U.S. rig count rapidly fell to historic lows. It will likely take several months for the continuing increase in U.S. rigs to produce any increase in output, and that timing could limit how long oil can keep rallying. OPEC's agreement to cut lasts only six months before its members have to revisit the deal to renew it, and, if it ends, they could send a surge of new oil onto the market just as U.S. producers are doing the same. That is likely to keep U.S. oil prices at $55 in 2016, Morningstar said. "The recent rally in oil prices is occurring more on faith than fact," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. Gasoline futures settled down 1.7 cents, or 1%, at $1.6651 a gallon. It finished the year up 39.8 cents, or 31%, its largest one-year, percentage gain since 2009, snapping a three-year losing streak. It gained nearly 12% in the last month alone, accounting for almost all of its gains from the last quarter. Diesel futures gained 0.06 cent, or 0.04%, to $1.7043 a gallon. It finished the year up 60.36 cents, or 55%, its largest one-year percentage gain since 2007. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Crude oil prices; Supply & demand; Petroleum production
Location: United States--US Saudi Arabia
People: Trump, Donald J
Company / organization: Name: Tudor Pickering Holt & Co LLC; NAICS: 523110; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854072485
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854072485?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Rose by Two in Latest Week; The nation's gas-rig count rose by three to 132 in the past week
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Dec 2016: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by two in the past week to 525, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector.
Full text: The number of rigs drilling for oil in the U.S. rose by two in the past week to 525, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count fell sharply. The oil-rig count has generally been rising since the beginning of summer. The nation's gas-rig count rose by three to 132 in the past week, according to Baker Hughes. The U.S. offshore-rig count is down two from last week at 23, which is two less than a year ago. Oil prices were 0.3% lower at $52.60 a barrel in afternoon trading Friday. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Oil service industry
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 30, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854134826
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854134826?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Posts Biggest Annual Gain Since Crisis
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]31 Dec 2016: B.9.
Abstract:
Saudi Arabia and its allies in the Organization of the Petroleum Exporting Countries are reclaiming their role as the world's cartel, pledging to cut output to end a glut that had shaken the market for two years.
Full text: Oil had its biggest annual gain in 2016 since the financial crisis, even in a year that also sent prices dipping to a decade low. Saudi Arabia and its allies in the Organization of the Petroleum Exporting Countries are reclaiming their role as the world's cartel, pledging to cut output to end a glut that had shaken the market for two years. Their moves have fueled a gradual rally since February, with many traders now betting oil will approach $60 a barrel within just a year of a crash that had pushed it below $30 and shook financial markets world-wide. "We had OPEC cement their relevance," said Dan Pickering, who oversees $1.9 billion in investments for the asset-management arm of Tudor, Pickering, Holt & Co. in Houston. "There's clearly a better floor under oil prices because OPEC has told you they're not happy with $40 oil prices anymore." Questions about OPEC's power and willingness to use it have been the biggest force in oil this year, and that is still the case in the waning days of 2016 as traders wait to see whether OPEC follows through on a plan to cut global supply by more than 1%. While prices have been on the rise, rallies have repeatedly stalled out around $50 a barrel with many still skeptical of OPEC's commitment, or predicting U.S. companies will drill more to fill the gap. U.S. crude finished the year up about 45%, and Brent, the global benchmark, up 52%. It was their biggest yearly gains since 2009 on the back of a strong year-end that brought four winning months in the past five. Both benchmarks have done even better from recent lows, more than doubling since last winter brought the lowest prices since 2003. On Friday, light, sweet crude for February delivery settled down 5 cents, or 0.1%, at $53.72 a barrel on the New York Mercantile Exchange. Brent lost 3 cents, or 0.1%, to $56.82 a barrel on ICE Futures Europe. Crude futures have held close to unchanged for more than two days now, with many traders out for the holidays and the few who remain unwilling to make big bets, brokers and analysts said. December's rally has stalled out in recent days, with the U.S. Energy Information Administration reporting increases in stockpiles and many traders wondering about major uncertainties going into next year. Many are still awaiting data to prove OPEC is following through on output cuts, which aren't scheduled to begin until January and could take several months before causing record-high storage levels to verifiably fall. Others are wondering whether President-elect Donald Trump's plan to slash regulations will lead to more oil flooding the market and whether U.S. shale drillers will increase output with prices now above $50 a barrel. Any of those factors could limit the rally going forward or even send prices lower again. What U.S. producers do in 2017 will be one of the biggest questions for traders. They helped cause the oil glut by figuring out how to tap large quantities of oil from shale rock. That led Saudi Arabia and other global exporters to raise their own production to record highs and compete for customers at lower prices. With those countries now cutting back to end oversupply, U.S. producers may be the big beneficiaries. Prices around $50 already have halted the risk of bankruptcy that threatened those companies a year ago. Many estimate those shale drillers have cut their costs enough to profit at prices above $50 and can now raise production to replace the supply cut by their global competitors. U.S. producers have been selling the rights to their 2017 and 2018 production in advance and are putting more rigs to work. The low prices earlier this year caused U.S. oil production to drop more than one-tenth from its record of 9.6 million barrels a day in June 2015. But that fall has started to reverse in recent weeks. U.S. production will reach 9 million barrels a day again by the end of the first quarter, said Jim Ritterbusch, president of Ritterbusch & Associates. "There's going to be incentive for producers to keep increasing their drilling rigs [and] that will translate into higher production," he said. "Six months ago I don't think too many people would have expected that." The number of working rigs in the U.S. is likely to rise 30% within the next six months, analysts at Morningstar Inc. said in a note late Thursday. That would contrast with a year ago, when falling prices forced dozens of U.S. producers to file for bankruptcy and caused cutbacks so steep that the U.S. rig count rapidly fell to historic lows. It will likely take several months for the continuing increase in U.S. rigs to produce any growth in output. "The recent rally in oil prices is occurring more on faith than fact," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. Credit: By Timothy Puko
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.9
Publication year: 2016
Publication date: Dec 31, 2016
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854260962
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854260962?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Have a Slippery Path Upward; Oil prices may finally have stabilized, but hurdles to further gains remain
Author: Kantchev, Georgi; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Dec 2016: n/a.
Abstract:
In 17 production cuts since 1982, OPEC members have reduced output by an average of just 60% of their commitments, according to Goldman Sachs. [...]you start to see volumes come out of the market I don't know that you can say this is anything beyond sentiment," said Saad Rahim, chief economist at trade house Trafigura Group Pte.
Full text: Oil prices may finally have stabilized, but hurdles to further gains remain. After more than two years of a crude glut that drove prices to decade lows, analysts and industry executives see supply and demand of oil rebalancing in 2017. A deal between the Organization of the Petroleum Exporting Countries and other heavyweight producers to cut around 2% from global production in 2017 is expected by some analysts to push prices close to or above $60 a barrel, a level not seen since the summer of 2015. Market watchers expect prices to stay volatile, however, given OPEC members and other producers often haven't followed through on similar agreements in the past. Higher prices may also encourage U.S. drillers to ramp up output, while a slowdown in global demand for crude could curb any rally, analysts say. On Friday, West Texas intermediate crude closed at $53.72 a barrel, up 45% for the year, the commodity's best performance since 2009. For now, industry insiders appear optimistic. "The mood has definitely turned more bullish, people are more confident that OPEC will do enough to rebalance the market in the first half of 2017," said Adam Ritchie, a director of consulting firm Petro-Logistics SA. That would be a welcome development for an industry that has been hit hard by lower prices. The oil-price rout has cost hundreds of thousands of jobs, strained the budgets of producers and led to delays or cancellation for dozens of multibillion-dollar projects. Mr. Ritchie says, however, that the glut in oil stockpiles, which he estimates at around 1 billion barrels world-wide, will take a long time to drain. "I don't think people have fully grasped the scale of the excess inventory that has to clear, so the imbalance between supply and demand needs to be corrected dramatically and for a very long period of time," he said. A survey of 14 investment banks by The Wall Street Journal predicts that Brent crude, the international oil-price gauge, will average $56 a barrel in 2017. Brent rose 52% during 2016, ending Friday at $56.82 a barrel. They expect West Texas Intermediate, the U.S. oil gauge, to average $54 a barrel this year. Oil prices fluctuated in 2016: Brent fell to a multiyear low of under $28 a barrel last January and struggled to breach the $50 level until the OPEC deal pushed prices higher. One of the biggest challenges for oil prices in 2017 will be whether the countries that signed up to cut production will deliver on that agreement. OPEC members and suppliers including Russia struck a deal in early December to cut around 1.8 million barrels a day of crude output starting in January. OPEC has a poor record of sticking to supply agreements. In 17 production cuts since 1982, OPEC members have reduced output by an average of just 60% of their commitments, according to Goldman Sachs. "Until you start to see volumes come out of the market I don't know that you can say this is anything beyond sentiment," said Saad Rahim, chief economist at trade house Trafigura Group Pte. Ltd. Increasingly efficient U.S. shale drillers might present another hurdle on the path to rebalancing. Some analysts have called the OPEC deal a gift to U.S. producers, which are generally seen as better able than their counterparts abroad to ramp up production in a hurry when prices rise. "The issue OPEC has is it becomes a self-defeating mechanism--if they can cut enough to raise prices, all that does is incentivize other production," Mr. Rahim said. The number of rigs drilling for crude in the U.S. has been rising since the summer and the additional supply from their wells is yet to hit the market due to the lag between drilling activity and production. Citigroup estimates that if prices rise toward $60 a barrel in 2017, U.S. production would increase to 9.2 million barrels a day by December and to more than 10 million by the end of 2018. It is currently running at around 8.8 million barrels a day. A sustained rally in prices also could curb demand for crude. Analysts already expect 2017 global oil consumption to increase at its slowest pace in three years. That is mainly because China is likely to limit its crude purchases and because the stronger dollar, which recently hit a 14-year high against a basket of other currencies, makes crude more expensive for foreign buyers. As motorists start to feel the price rises at the pump, demand could slow. Even if the market clears all its hurdles to higher prices, there are few predicting a return to $100 oil. In the summer of 2015, many of the banks in the Journal's monthly survey were predicting oil prices would rise to more than $70 a barrel this year. Now, that level doesn't seem likely until 2018. Write to Georgi Kantchev at georgi.kantchev@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Georgi Kantchev and Sarah McFarlane
Subject: Supply & demand; Crude oil prices; International markets; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2016
Publication date: Dec 31, 2016
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854300825
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854300825?accountid=7117
Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Companies That Sold Shares During Collapse Are Now Riding High; The stock offerings allowed companies to pay down debt, buying the firms time until oil prices rebounded
Author: Dezember, Ryan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Jan 2017: n/a.
Abstract:
[...]these stock offerings allowed them to pay down debt and hold on long enough for oil prices to recover and their shares to rebound into a rising stock market. Selling stock to pay down debt "breaks a lot of rules in corporate finance" because it swaps cheap capital [debt] for more-expensive funding, said Ira Green, head of capital markets at energy-focused investment bank Simmons & Co. "It was survival mode."
Full text: Corrections & Amplifications: The photo caption on an earlier version of this story misidentified the location of the pumpjack. (Jan. 2, 2017) Energy companies that took the risky step of selling shares in the last two years to survive the vicious collapse in oil prices finished on top in 2016, rewarded as U.S. oil prices closed 2016 up 45% and with many investors betting crude could rise even higher. More than 70 North American energy companies sold about $57 billion worth of shares in so-called follow-on stock offerings during the past two years. Many of these shares spent stretches trading below their offering prices , hurting investors who wagered on companies that failed to find footing as well as investors who sold out before shares rebounded. A handful of the stock sellers went bankrupt as the price of oil fell by more than half. But most survived, defying widespread predictions that the plunge in crude and high levels of debt would force many more producers out of business. Instead, these stock offerings allowed them to pay down debt and hold on long enough for oil prices to recover and their shares to rebound into a rising stock market. Collectively, shares sold over the past two years ended 2016 more than $13 billion above their offering price, according to a Wall Street Journal analysis of Dealogic data and securities filings. Oil-and-gas companies were star performers in 2016. Energy shares in the S&P 500 rose 23.7%, tops in the index of big companies. They also led the broader Russell 1000 index, up 22.4%. More than 40 U.S. oil producers gained at least 30%, including Parsley Energy Inc. and RSP Permian Inc., which reached all-time highs, and Cimarex Energy Co. and Concho Resources Inc., which came close. Shares of Resolute Energy Corp., a Denver company that drills in Utah and Texas, shot up 847%. Selling stock to pay down debt "breaks a lot of rules in corporate finance" because it swaps cheap capital [debt] for more-expensive funding, said Ira Green, head of capital markets at energy-focused investment bank Simmons & Co. "It was survival mode." Many of these oil-and-gas companies had few options. The bond market became unavailable to them as crude prices plunged. Banks, which lend to energy producers against the value of their untapped oil-and-gas reserves, also cut back credit lines as the value of this collateral fell. Private-equity investors, meanwhile, were generally hesitant to invest until they were sure commodity prices had bottomed. These firms also often insist on a level of control that many oil and gas companies were unwilling to give. Some analysts say oil is poised to rally further, which could extend the recent gains. The Organization of the Petroleum Exporting Countries in November agreed to production cuts , helping to send crude prices to their highest level this year. The election of Donald Trump , who has pledged to reduce regulation and promote more drilling, could provide another boost to the industry. Companies' fortunes could reverse if they produce too much oil and leave markets out of balance, or if OPEC fails to implement its output cut. Yet many North American producers have also spent the past two years wringing costs to help them drill profitably at current prices. U.S. crude ended the year at $53.72 a barrel, up about 45%. Even so, more than 110 U.S. and Canadian oil producers declared bankruptcy over the past two years. By contrast, only a handful companies that raised capital through the stock market filed for chapter 11. The busiest month for follow-ons was February, when oil prices bottomed at $26 a barrel. Oil and gas producers raised $7.4 billion selling stock to investors eager to buy at the bottom. All of those shares are trading higher, and those sold in four of the 14 offerings have more than doubled in value. "That low of a price was unsustainable," said Matthew Stephani, senior portfolio manager at Cavanal Hill Investment Management, which manages $7.3 billion and bought new shares sold by Encana Corp. and three companies that sell services and supplies to producers. "It's not so much what you do in booms that creates wealth, but more how you act in busts." That bust began in mid-2014, when oil prices fell from above $100 a barrel. OPEC pushed them lower that autumn when it decided to keep pumping freely, and a global crude glut dragged prices down below $30 before they recovered. The energy stock offerings started even as prices were in retreat. A January 2015 deal from Diamondback Energy Inc., which wanted to reduce debt, helped jump-start these sales. Credit Suisse Group AG bankers suggested that the Midland, Texas, company sell shares--and do so in a few hours before the stock market opened to lessen the impact volatile oil prices would have on an offering conducted in the typical manner over a few days. Diamondback sold about $100 million of shares and its stock rose 9% that day. The outcome, unusual because adding stock typically pushes down the price as earnings are spread over more shares, touched off a wave of follow-on offerings. Diamondback's move, which reduced its bank debt by about half, ensured it could continue to drill its prized prospects in West Texas and allowed investors to buy into a less-indebted company at a discount. Bankers, starved for business amid a dry spell for initial public offerings, enticed companies with favorable terms. Rob Santangelo, the Credit Suisse banker who led the Diamondback offering and dozens of subsequent deals, told executives and investors that he believed many oil producers would emerge from the bust stronger. "We found a lot of public capital willing to make that bet, and so far it's been a good bet," he said. John Goff, a Texas real-estate magnate, bought much of his roughly 10% stake in Resolute when the Denver company's shares traded below $1 and were at risk of being removed from the New York Stock Exchange. He said he sensed opportunity similar to three decades ago when he sought bargains after the 1987 stock-market crash and in the beaten-down property market. Resolute stock he bought for $7.6 million is now worth more than $63 million , and he took a similarly sized stake in another of the year's big winners, Mid-Con Energy Partners LP, which more than doubled. Mr. Goff bought another 100,000 Resolute shares two weeks ago for $38 apiece in 2016's final follow-on offering from an oil producer. Eventually, defensive stock offerings to pay down debt gave way to sales that funded acquisitions, particularly in the Permian Basin in West Texas, where stacked layers of oil-bearing rock help make drilling profitable even at low prices. Diamondback sold so many shares in six offerings that it held a special shareholder vote to double the number of shares it is allowed to issue before its latest deal, a $1.2 billion offering in December to help pay for its purchase of rival Brigham Resources LLC. Callon Petroleum Co. began the bust with a stock-market value of about $333 million. Six offerings later, the Natchez, Miss., company has roughly five times as many shares as it started out with and a market capitalization greater than $3 billion. On a call to discuss its December purchase of West Texas drilling land, paid for by a $656 million offering, Chief Executive Fred Callon said: "The capital markets were there for us again." Write to Ryan Dezember at ryan.dezember@wsj.com Related * Oil Surges on OPEC Deal to Cut Output (Nov. 30, 2016) * Oil Companies Reach Debt-Restructuring Deals (Oct. 24, 2016) * This Banker Gets the Call From Oil Firms (Jan. 3, 2016) * No End in Sight for Oil Glut (Aug. 21, 2015) * Investors Get Caught in Oil's Slippery Wake (July 15, 2015) Credit: By Ryan Dezember
Subject: Stock exchanges; Investments; Debt management; Lines of credit; Crude oil prices; Energy industry; Natural gas utilities
Location: United States--US West Texas
People: Trump, Donald J
Company / organization: Name: Resolute Energy Corp; NAICS: 211111; Name: Concho Resources Inc; NAICS: 211111, 211112; Name: RSP Permian Inc; NAICS: 211111; Name: Parsley Energy Inc; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854585496
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854585496?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Futures Edge Higher in Asia as Focus Remains on OPEC; March Brent crude rose 27 cents, or 0.5%, to $57.09 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Jan 2017: n/a.
Abstract:
Oil futures began the year with modest gains in Asia trading, as oil traders kept their focus on the Organization of the Petroleum Exporting Countries and the prospect of declining global stockpiles.
Full text: Oil futures began the year with modest gains in Asia trading, as oil traders kept their focus on the Organization of the Petroleum Exporting Countries and the prospect of declining global stockpiles. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $54.00 a barrel, up 28 cents, or 0.5%, in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose 27 cents, or 0.5%, to $57.09 a barrel. Oil prices last year posted their biggest gains since the financial crisis-era rebound in 2009, a recovery fueled by a draw-down in global stockpiles and a resurgence in OPEC's willingness to control prices. Traders and analysts are likely to keep their attention on OPEC's next moves, as well as on the actions of individual members and their willingness to follow through on the proposed cuts. The cartel agreed to cuts that amount to 1% of global production at a meeting in November. Those cuts take effect this month, and group members have a history of reneging on output agreements. "It's going to be a year in which price action is driven by OPEC and these cuts," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore. "It's going to be very much a case of the extent that these guys are complying with the production cuts set at the end of November." Another factor likely to dominate trading in 2017 will be how U.S. oil producers respond to the cuts. Already, U.S. shale producers have responded to last year's price rebound by bringing new output online, and any steep increase in prices is likely to spur more drilling. The pace of Indian and Chinese demand growth will also likely be in focus. "The global economy is on tentative hooks, so you're really going to slow down demand growth" if oil prices increase too sharply, Mr. Chauhan said. "For Riyadh, $100 oil is just as scary as $30 oil." Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 67 points to $1.6776 a gallon. ICE gasoil for January changed hands at $504.50 a metric ton, up $3.50 from Monday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil prices; Crude oil; Price increases
Location: United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854670919
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854670919?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Companies That Sold Shares During Collapse Are Now Riding High; The stock offerings allowed companies to pay down debt, buying the firms time until oil prices rebounded
Author: Dezember, Ryan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Jan 2017: n/a.
Abstract:
[...]these stock offerings allowed them to pay down debt and hold on long enough for oil prices to recover and their shares to rebound into a rising stock market. Selling stock to pay down debt "breaks a lot of rules in corporate finance" because it swaps cheap capital [debt] for more-expensive funding, said Ira Green, head of capital markets at energy-focused investment bank Simmons & Co. "It was survival mode."
Full text: Corrections & Amplifications: The photo caption on an earlier version of this story misidentified the location of the pumpjack. (Jan. 2, 2017) Energy companies that took the risky step of selling shares in the last two years to survive the vicious collapse in oil prices finished on top in 2016, rewarded as U.S. oil prices closed 2016 up 45% and with many investors betting crude could rise even higher. More than 70 North American energy companies sold about $57 billion worth of shares in so-called follow-on stock offerings during the past two years. Many of these shares spent stretches trading below their offering prices , hurting investors who wagered on companies that failed to find footing as well as investors who sold out before shares rebounded. A handful of the stock sellers went bankrupt as the price of oil fell by more than half. But most survived, defying widespread predictions that the plunge in crude and high levels of debt would force many more producers out of business. Instead, these stock offerings allowed them to pay down debt and hold on long enough for oil prices to recover and their shares to rebound into a rising stock market. Collectively, shares sold over the past two years ended 2016 more than $13 billion above their offering price, according to a Wall Street Journal analysis of Dealogic data and securities filings. Oil-and-gas companies were star performers in 2016. Energy shares in the S&P 500 rose 23.7%, tops in the index of big companies. They also led the broader Russell 1000 index, up 22.4%. More than 40 U.S. oil producers gained at least 30%, including Parsley Energy Inc. and RSP Permian Inc., which reached all-time highs, and Cimarex Energy Co. and Concho Resources Inc., which came close. Shares of Resolute Energy Corp., a Denver company that drills in Utah and Texas, shot up 847%. Selling stock to pay down debt "breaks a lot of rules in corporate finance" because it swaps cheap capital [debt] for more-expensive funding, said Ira Green, head of capital markets at energy-focused investment bank Simmons & Co. "It was survival mode." Many of these oil-and-gas companies had few options. The bond market became unavailable to them as crude prices plunged. Banks, which lend to energy producers against the value of their untapped oil-and-gas reserves, also cut back credit lines as the value of this collateral fell. Private-equity investors, meanwhile, were generally hesitant to invest until they were sure commodity prices had bottomed. These firms also often insist on a level of control that many oil and gas companies were unwilling to give. Some analysts say oil is poised to rally further, which could extend the recent gains. The Organization of the Petroleum Exporting Countries in November agreed to production cuts , helping to send crude prices to their highest level this year. The election of Donald Trump , who has pledged to reduce regulation and promote more drilling, could provide another boost to the industry. Companies' fortunes could reverse if they produce too much oil and leave markets out of balance, or if OPEC fails to implement its output cut. Yet many North American producers have also spent the past two years wringing costs to help them drill profitably at current prices. U.S. crude ended the year at $53.72 a barrel, up about 45%. Even so, more than 110 U.S. and Canadian oil producers declared bankruptcy over the past two years. By contrast, only a handful companies that raised capital through the stock market filed for chapter 11. The busiest month for follow-ons was February, when oil prices bottomed at $26 a barrel. Oil and gas producers raised $7.4 billion selling stock to investors eager to buy at the bottom. All of those shares are trading higher, and those sold in four of the 14 offerings have more than doubled in value. "That low of a price was unsustainable," said Matthew Stephani, senior portfolio manager at Cavanal Hill Investment Management, which manages $7.3 billion and bought new shares sold by Encana Corp. and three companies that sell services and supplies to producers. "It's not so much what you do in booms that creates wealth, but more how you act in busts." That bust began in mid-2014, when oil prices fell from above $100 a barrel. OPEC pushed them lower that autumn when it decided to keep pumping freely, and a global crude glut dragged prices down below $30 before they recovered. The energy stock offerings started even as prices were in retreat. A January 2015 deal from Diamondback Energy Inc., which wanted to reduce debt, helped jump-start these sales. Credit Suisse Group AG bankers suggested that the Midland, Texas, company sell shares--and do so in a few hours before the stock market opened to lessen the impact volatile oil prices would have on an offering conducted in the typical manner over a few days. Diamondback sold about $100 million of shares and its stock rose 9% that day. The outcome, unusual because adding stock typically pushes down the price as earnings are spread over more shares, touched off a wave of follow-on offerings. Diamondback's move, which reduced its bank debt by about half, ensured it could continue to drill its prized prospects in West Texas and allowed investors to buy into a less-indebted company at a discount. Bankers, starved for business amid a dry spell for initial public offerings, enticed companies with favorable terms. Rob Santangelo, the Credit Suisse banker who led the Diamondback offering and dozens of subsequent deals, told executives and investors that he believed many oil producers would emerge from the bust stronger. "We found a lot of public capital willing to make that bet, and so far it's been a good bet," he said. John Goff, a Texas real-estate magnate, bought much of his roughly 10% stake in Resolute when the Denver company's shares traded below $1 and were at risk of being removed from the New York Stock Exchange. He said he sensed opportunity similar to three decades ago when he sought bargains after the 1987 stock-market crash and in the beaten-down property market. Resolute stock he bought for $7.6 million is now worth more than $63 million , and he took a similarly sized stake in another of the year's big winners, Mid-Con Energy Partners LP, which more than doubled. Mr. Goff bought another 100,000 Resolute shares two weeks ago for $38 apiece in 2016's final follow-on offering from an oil producer. Eventually, defensive stock offerings to pay down debt gave way to sales that funded acquisitions, particularly in the Permian Basin in West Texas, where stacked layers of oil-bearing rock help make drilling profitable even at low prices. Diamondback sold so many shares in six offerings that it held a special shareholder vote to double the number of shares it is allowed to issue before its latest deal, a $1.2 billion offering in December to help pay for its purchase of rival Brigham Resources LLC. Callon Petroleum Co. began the bust with a stock-market value of about $333 million. Six offerings later, the Natchez, Miss., company has roughly five times as many shares as it started out with and a market capitalization greater than $3 billion. On a call to discuss its December purchase of West Texas drilling land, paid for by a $656 million offering, Chief Executive Fred Callon said: "The capital markets were there for us again." Write to Ryan Dezember at ryan.dezember@wsj.com Related * Oil Surges on OPEC Deal to Cut Output (Nov. 30, 2016) * Oil Companies Reach Debt-Restructuring Deals (Oct. 24, 2016) * This Banker Gets the Call From Oil Firms (Jan. 3, 2016) * No End in Sight for Oil Glut (Aug. 21, 2015) * Investors Get Caught in Oil's Slippery Wake (July 15, 2015) Credit: By Ryan Dezember
Subject: Stock exchanges; Investments; Debt management; Lines of credit; Crude oil prices; Energy industry; Natural gas utilities
Location: United States--US West Texas
Company / organization: Name: Resolute Energy Corp; NAICS: 211111; Name: Concho Resources Inc; NAICS: 211111, 211112; Name: RSP Permian Inc; NAICS: 211111; Name: Parsley Energy Inc; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854681980
Document URL: https://login.ezproxy.uta.edu/logi n?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854681980?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Year-End Review & Outlook (A Special Report): Markets And Finance --- Oil's Slippery Path Higher --- Analysts expect crude to be volatile after its big 2016 rebound as producers make cuts
Author: Kantchev, Georgi; McFarlane, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Jan 2017: R.3.
Abstract:
In 17 production cuts since 1982, OPEC members have reduced output by an average of 60% of their commitments, according to Goldman Sachs. [...]you start to see volumes come outof the market I don't know that you can say this is anything beyondsentiment," said Saad Rahim, chief economist at trade house Trafigura Group Pte.
Full text: Oil prices may finally have stabilized, but hurdles to further gains remain. After more than two years of a crude glut that drove prices to decade lows, analysts and industry executives see supply and demand of oil rebalancing in 2017. A deal betweenthe Organization of the Petroleum Exporting Countries and other producers to cut about 2% from global production this year is expected to push prices close to or above $60 a barrel, a level not seen since the summer of 2015. Market watchers expect prices to stay volatile, however, given OPEC members and other producers often haven't followed through on similar agreements in the past. Higher prices may also encourage U.S. drillers to ramp up output, while a slowdown in global demand for crude could curb any rally, analysts say. On Friday, West Texas intermediate crude closed at $53.72 a barrel, up 45% for the year, the commodity's best performance since 2009. For now, industry insiders appear optimistic. "The mood has definitely turned more bullish, people are more confident that OPEC will do enough to rebalance the market in the first half of 2017," said Adam Ritchie, a director of consulting firm Petro-Logistics SA. That would be a welcome development for an industry hit hard by lower prices. The oil rout has cost hundreds of thousands of jobs, strained the budgets of producers and led to delays or cancellation for dozens of multibillion-dollar projects. Mr. Ritchie says, however, that the glut in oil stockpiles, which he estimates at around 1 billion barrels world-wide, will take a long time to drain. "I don't think people have fully grasped the scale of the excess inventory that has to clear, so the imbalance between supply and demand needs to be corrected dramatically and for a very long period of time," he said. A survey of 14 investment banks by The Wall Street Journal projects that Brent crude, the internationaloil-price gauge, will average $56 a barrel in 2017. Brent rose 52% during 2016, ending Friday at $56.82 a barrel. They expect West Texas Intermediate, the U.S.oil gauge, to average $54 a barrel this year. Oil prices fluctuated in 2016: Brent fell to a multiyear low of under $28 a barrel last January and struggled to breach $50 until the OPEC deal pushed prices higher. One of the biggest challenges foroilprices in 2017 will be whether the countries that signed up to cut production will deliver. OPEC members and suppliers including Russia struck a deal in early December to cut around 1.8 million barrels a day of crude output starting in January. OPEC has a poor record of sticking to supply agreements. In 17 production cuts since 1982, OPEC members have reduced output by an average of 60% of their commitments, according to Goldman Sachs. "Until you start to see volumes come outof the market I don't know that you can say this is anything beyondsentiment," said Saad Rahim, chief economist at trade house Trafigura Group Pte. Ltd. Increasingly efficient U.S. shale drillers might present another hurdle on the path to rebalancing. Some analysts have called the OPEC deal a gift to U.S. producers, which are generally seen as better able to ramp up production in a hurry when prices rise. "The issue OPEC has is it becomes a self-defeating mechanism -- ifthey can cut enough to raise prices, all that does is incentivize otherproduction,"Mr. Rahim said. The number of rigs drilling for crude in the U.S. has been rising since the summer and additional supply from their wells is yet to hit the market. Citigroup estimates that if prices rise toward $60 a barrel in 2017, U.S. production would climb to 9.2 million barrels a day by December and to more than 10 million by the end of 2018. It is currently running at about 8.8 million barrels a day. Credit: By Georgi Kantchev and Sarah McFarlane
Subject: Supply & demand; International markets; Series & special reports; Crude oil; New year
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: R.3
Publication year: 2017
Publication date: Jan 3, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspape rs
Language of publication: English
Document type: News
ProQuest document ID: 1854727374
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854727374?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Boosted by Optimism Over Production-Cut Promises; Traders will focus on willingness of countries to follow through on proposed reductions
Author: McFarlane, Sarah; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Jan 2017: n/a.
Abstract:
The Organization of the Petroleum Exporting Countries, along with other oil producing countries including Russia, agreed to cut output by 1.8 million barrels a day or around 2% of global production starting this month.
Full text: Oil futures began the year with a jump Tuesday, with U.S. crude prices hitting an 18-month high, boosted by optimism that the crude-production cuts agreed to late last year will help to drain global stockpiles. The Organization of the Petroleum Exporting Countries, along with other oil producing countries including Russia, agreed to cut output by 1.8 million barrels a day or around 2% of global production starting this month. Oil prices have gained around 25% since the Nov. 30 OPEC agreement. Whether oil producers stand by their agreement and cut, and how U.S. drillers respond to continued price rises, will help set direction for the oil market into the new year. Many analysts are skeptical that producers will stick to their agreements, but on Tuesday market participants were betting that they will. U.S. crude futures were recently up $1.12, or 2.08%, at $54.84 a barrel on the New York Mercantile Exchange, after climbing as high as $55.24 in earlier trading. Brent crude, the global oil benchmark, rose $1.15, or 2.02%, to $57.97 a barrel on London's ICE Futures exchange. "It may be moving in anticipation that evidence will emerge that stocks are coming off," said Gareth Lewis-Davies, senior commodity strategist at BNP Paribas. Oil prices last year posted their biggest gains since the financial-crisis-era rebound in 2009, a recovery fueled by the apparent willingness of OPEC to cut supply again. Stocks remain at high levels, however, with global inventory estimated at around 3 billion barrels. "As long as this strong belief keeps holding, prices will remain supported and could rise further, which is no longer justified fundamentally," said Carsten Fritsch, analyst at Commerzbank AG. Confidence in the production agreement was bolstered after officials in Oman and Kuwait indicated that they are in the process of enacting the agreed-upon cuts, analysts said. Traders and analysts expect evidence of the cuts to have materialized by late January but are cautious due to OPEC members' checkered history when it comes to adhering to quotas. "It's going to be a year in which price action is driven by OPEC and these cuts," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore. "It's going to be very much a case of the extent that these guys are complying with the production cuts set at the end of November." A risk to the sustained recovery of the oil market will be how U.S. oil producers respond to the higher oil prices, after the production-cut deal sent prices back above $50 a barrel. Already, U.S. shale producers have responded to last year's price rebound by adding rigs, and any steep increase in prices is likely to spur more drilling. U.S. oil rig numbers have been steadily rising since last summer, but due to the time lag between drilling activity and production, the additional production is yet to come on stream. Positive manufacturing data also bolstered prices, said John Kilduff, founding partner of Again Capital. "Beyond the production deal, there's a lot of good news in the manufacturing sector which is energy intensive," Mr. Kilduff said. Gasoline futures rose 1.94 cents, or 1.16%, to $1.6903 a gallon. Diesel futures rose $1.51 cents, or 0.87%, to $1.7433 a gallon. Dan Strumpf contributed to this article. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Sarah McFarlane and Alison Sider
Subject: Agreements; Crude oil prices; Price increases; Manufacturing
Location: United States--US Russia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: Commerzbank AG; NAICS: 522110, 523120; Name: BNP Paribas; NAICS: 522110; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854759841
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854759841?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Creep Higher in Asia Trading Following Selloff; February Brent crude up 0.7% at $55.87
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2017: n/a.
Abstract:
[...]investors expect any sharp increase in oil prices to lead to a resumption in new drilling by U.S. oil producers, swamping the market once more.
Full text: Oil futures edged higher Wednesday, rebounding from a steep overnight loss, as investors continued to weigh the prospect of supply cuts in the coming months. Light, sweet crude for February delivery gained 38 cents, or 0.7%, to $52.71 in the Globex electronic session of the New York Mercantile Exchange. February Brent crude gained 40 cents, or 0.7%, to $55.87 on the ICE Futures exchange. Futures have veered between gains and losses in recent sessions as investors weigh the outlook that the oil market returns to balance this year, following a supply glut that has weighed down prices for more than two years. Most analysts are projecting a rebound in crude prices following November's production cut agreement by the Organization of the Petroleum Exporting Countries. "Energy outperformed in 2016 and if OPEC delivers it will happen again in 2017," said analysts at Bernstein in a note to clients Wednesday. The bank said it expects Brent crude to average $60 a barrel in 2017. "Compliance with OPEC quotas will be the key area for investors to focus on in the first half of the year." OPEC's agreed cut, which amounts to 1% of global production, is set to take effect this month. Prices rallied sharply on Tuesday after officials in Oman and Kuwait suggested they were in the process of enacting the cuts, bolstering confidence that the cartel would stick to its agreement. Still, many traders are skeptical that all members of the cartel will abide by the letter of the deal. Skepticism has centered around Iraq, which is prosecuting a costly war against Islamic State, and Iran, which is trying to raise oil revenues after years of punishing sanctions. Meanwhile, investors expect any sharp increase in oil prices to lead to a resumption in new drilling by U.S. oil producers, swamping the market once more. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 122 points to $1.6340 a gallon, while February diesel traded at $1.6854, 87 points higher. ICE gasoil for January changed hands at $492.00 a metric ton, down $1.75 from Tuesday's settlement. Credit: By Dan Strumpf
Subject: Crude oil; Crude oil prices; Price increases
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854914046
Document URL: htt ps://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854914046?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon Mobil Cashes Out Ex-CEO Tillerson Ahead of Confirmation Hearings; Exxon pay package to secretary of state nominee Rex Tillerson worth $180 million
Author: Olson, Bradley; Paletta, Damian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2017: n/a.
Abstract:
Exxon Mobil Corp. has awarded former Chief Executive Rex Tillerson a $180 million retirement package as the company moves to break financial ties with President-elect Donald Trump's nominee for secretary of state.
Full text: Exxon Mobil Corp. has awarded former Chief Executive Rex Tillerson a $180 million retirement package as the company moves to break financial ties with President-elect Donald Trump's nominee for secretary of state. If Mr. Tillerson is confirmed, Exxon will transfer the equivalent value of two million unvested shares that he was set to receive at his previously expected retirement in March into a trust, according to the company. The decision will allow Mr. Tillerson to sell off all his remaining shares in the company, a step he has committed to make if he is confirmed, according to Exxon. Currently, he holds more than 600,000 vested shares worth about $54 million. The deal amounts to about $7 million less than the compensation package that he would have received if he had not been tapped for the post. Mr. Tillerson stepped down as Exxon CEO on Jan. 1. Before his nomination, he was set to receive more than $180 million in shares that would have vested over a decade. The company consulted with federal regulators before agreeing to terms. The trust would be prohibited from investing in Exxon, and payments to Mr. Tillerson would be subject to the same 10-year schedule as his unvested stock would have been, according to the company. He will be prohibited from working in the oil and gas industry during the 10-year payout period. If he does return to the energy industry, the remaining funds in the trust would be forfeited and donated to charities "involved in fighting poverty or disease in the developing world," according to Exxon. By allowing Mr. Tillerson to fully divest his company holdings, Exxon may alleviate concerns that he could personally benefit from State Department actions that help his former company. But the decision may open Exxon to criticism that it is granting Mr. Tillerson millions of dollars just as he is poised to take a post in which he could influence the company's business results. "Exxon is trying to make the best of a tough situation," said Charles Elson, a professor of governance at the University of Delaware. "It would be unfair to take it all away, but vesting his shares would create a lot of problems. They're trying to give him value for what he accomplished and also protect the company. There's no easy solution to this." Mr. Tillerson could not be immediately reached for comment. He is scheduled to appear before the U.S. Senate Foreign Relations Committee for two days of confirmation hearings beginning Jan. 11. The severance package is likely the first of many such disclosures by President-elect Donald Trump's potential cabinet appointees, many of whom are wealthy current or former business executives. In addition to Mr. Tillerson, others include Wilbur Ross, the billionaire banker and restructuring specialist, who Mr. Trump tapped to be secretary of commerce, and Gary Cohn, the former second-in-command at Goldman Sachs Group Inc., who Mr. Trump would like to lead the National Economic Council. Exxon is seeking to avoid the scrutiny that dogged Halliburton Co. when Dick Cheney, who had been the company's chief executive, was elected vice president and joined George W. Bush's administration in 2000. Exxon shares have risen about 5% since the election. Halliburton's board granted Mr. Cheney early retirement, a step that allowed him to receive a departure package worth about $20 million. He sold shares of the oil-field-services company worth more than $30 million during the campaign, but he retained hundreds of thousands of stock options and sold them gradually during his time in elected office. Any profits from the sales were donated to charity, Mr. Cheney's office said at the time. On Sunday, Exxon elevated heir apparent Darren Woods to the chief executive role. Mr. Woods is a Kansas native who presided over the company's refining operations. Liz Hoffman contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com and Damian Paletta at damian.paletta@wsj.com Read More on Capital Journal Capital Journal is WSJ.com's home for Trump transition news. * Senate Moves to Dismantle Health Law * Trump Knocks U.S. Intelligence Agencies Over Russia Hacking Review * Obama to Discuss How to Salvage ACA With Democrats at the Capitol * House GOP Drops Bid to Undercut Ethics Board * Democrats Zero In on Treasury Pick Credit: By Bradley Olson and Damian Paletta
Subject: International relations; Political campaigns; Energy industry
People: Ross, Wilbur L Jr Trump, Donald J
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: University of Delaware; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 4, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854923496
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854923496?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Firms Thrive After Share Sales
Author: Dezember, Ryan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Jan 2017: B.1.
Abstract:
Selling stock to pay down debt "breaks a lot of rules in corporate finance" because it swaps cheap capital [debt] for more-expensive funding, said Ira Green, head of capital markets at energy-focused investment bank Simmons & Co. "It was survival mode." Credit Suisse Group AG bankers suggested that the Midland, Texas, company sell shares -- and do so in a few hours before the market opened to lessen the impact volatile oil prices would have on an offering done in the typical manner over a few days.
Full text: Energy companies that took the risky step of selling shares in the past two years to survive the vicious collapse in oil prices finished on top in 2016, rewarded as U.S. oil prices closed 2016 up 45% and with many investors betting crude could rise even higher. More than 70 North American energy companies sold about $57 billion of shares in follow-on stock offerings during the past two years. Many of these shares spent stretches trading below their offering prices, hurting investors who wagered on companies that failed to find footing as well as investors who sold out before shares rebounded. A handful of the stock sellers went bankrupt as the price of oil fell by more than half. But most survived, defying widespread predictions that the plunge in crude and high levels of debt would force many more producers out of business. Instead, these stock offerings allowed them to pay down debt and hold on long enough for oil prices to recover and their shares to rebound into a rising stock market. Collectively, shares sold over the past two years are valued at more than $14 billion above their offering price, according to a Wall Street Journal analysis of Dealogic data and securities filings. Oil-and-gas companies were star performers in 2016. Energy shares in the S&P 500 rose 24%, tops in the index of big companies. They also led the broader Russell 1000 index, up 22%. More than 40 U.S. oil producers gained at least 30%, including Parsley Energy Inc. and RSP Permian Inc., which reached all-time highs, and Cimarex Energy Co. and Concho Resources Inc., which came close. Shares of Resolute Energy Corp., a Denver company that drills in Utah and Texas, shot up 847%. Selling stock to pay down debt "breaks a lot of rules in corporate finance" because it swaps cheap capital [debt] for more-expensive funding, said Ira Green, head of capital markets at energy-focused investment bank Simmons & Co. "It was survival mode." Many of these oil-and-gas companies had few options. The bond market became unavailable to them as crude prices plunged. Banks, which lend to energy producers against the value of their untapped oil-and-gas reserves, also cut back credit lines as the value of this collateral fell. Private-equity investors, meanwhile, were generally hesitant to invest until they were sure commodity prices had bottomed. These firms also often insist on a level of control that many oil-and-gas companies were unwilling to give. Some analysts say oil is poised to rally further, which could extend the recent gains. The Organization of the Petroleum Exporting Countries in November agreed to production cuts, helping to send crude prices to their highest level of 2016. The election of Donald Trump, who has pledged to reduce regulation and promote more drilling, could provide another boost to the industry. Companies' fortunes could reverse if they produce too much oil and leave markets out of balance, or if OPEC fails to implement its output cut. Yet many North American producers have also spent the past two years wringing costs to help them drill profitably at current prices. On Tuesday, oil topped $55 a barrel for the first time in 18 months before retreating. Crude for February delivery fell $1.39, or 2.6%, to settle at $52.33 a barrel on the New York Mercantile Exchange. Even so, more than 110 U.S. and Canadian oil producers filed for bankruptcy protection over the past two years. By contrast, only a handful of companies that raised capital through the stock market filed for chapter 11. The busiest month for follow-on offerings was February, when oil prices bottomed at $26 a barrel. Oil-and-gas producers raised $7.4 billion selling stock to investors eager to buy at the bottom. "That low of a price was unsustainable," said Matthew Stephani, senior portfolio manager at Cavanal Hill Investment Management, which manages $7.3 billion and bought new shares sold by Encana Corp. and three companies that sell services and supplies to producers. The bust began in mid-2014, when oil prices fell from above $100 a barrel. OPEC pushed them lower that autumn when it decided to keep pumping freely, and a global crude glut dragged prices below $30 before they recovered. The energy-stock offerings started even as prices were in retreat. A January 2015 deal from Diamondback Energy Inc., which wanted to reduce debt, helped jump-start these sales. Credit Suisse Group AG bankers suggested that the Midland, Texas, company sell shares -- and do so in a few hours before the market opened to lessen the impact volatile oil prices would have on an offering done in the typical manner over a few days. Diamondback sold about $100 million of shares and its stock rose 9% that day. The outcome, unusual because adding stock typically pushes down the price as earnings are spread over more shares, touched off a wave of follow-on offerings. Diamondback's move ensured it could continue to drill its prized prospects in West Texas and allowed investors to buy into a less-indebted company at a discount. Rob Santangelo, the Credit Suisse banker who led the Diamondback offering and dozens of subsequent deals, told executives and investors that he believed many oil producers would emerge from the bust stronger. "We found a lot of public capital willing to make that bet, and so far it's been a good bet," he said.
Credit: By Ryan Dezember
Subject: Crude oil prices; Energy industry
Location: United States--US
Company / organization: Name: RSP Permian Inc; NAICS: 211111; Name: Parsley Energy Inc; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Jan 4, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 18549820 32
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854982032?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Cashes Out Ex-CEO Tillerson
Author: Olson, Bradley; Paletta, Damian
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Jan 2017: B.1.
Abstract:
Exxon Mobil Corp. has awarded former Chief Executive Rex Tillerson a $180 million retirement package as the company moves to break financial ties with President-elect Donald Trump's nominee for secretary of state.
Full text: Exxon Mobil Corp. has awarded former Chief Executive Rex Tillerson a $180 million retirement package as the company moves to break financial ties with President-elect Donald Trump's nominee for secretary of state. If Mr. Tillerson is confirmed, Exxon will transfer the equivalent value of two million unvested shares that he was set to receive at his previously expected retirement in March into a trust, according to the company. The decision will allow Mr. Tillerson to sell off all of his remaining shares in the company, a step he has committed to make if he is confirmed, according to Exxon. Currently, he holds more than 600,000 vested shares worth about $54 million. The deal amounts to about $7 million less than the compensation package that he would have received if he hadn't been tapped for the post. Mr. Tillerson stepped down as Exxon CEO Jan. 1. Before his nomination, he was set to receive more than $180 million in shares that would have vested over a decade. The company consulted with federal regulators before agreeing to terms. The trust would be prohibited from investing in Exxon, and payments to Mr. Tillerson would be subject to the same 10-year schedule as his unvested stock, according to the company. He will be prohibited from working in the oil-and-gas industry during the 10-year payout period. If he does return to the energy industry, the remaining funds in the trust would be forfeited and donated to charities "involved in fighting poverty or disease in the developing world," according to Exxon. By allowing Mr. Tillerson to fully divest himself of his company holdings, Exxon may alleviate concerns that he could personally benefit from State Department actions that help his former company. But the decision may open Exxon to criticism that it is granting Mr. Tillerson millions of dollars just as he is poised to take a post in which he could have influence over the company's business success. Mr. Tillerson couldn't be immediately reached for comment. He is scheduled to appear before the U.S. Senate Foreign Relations Committee for two days of confirmation hearings beginning Jan. 11. --- Liz Hoffman contributed to this article. Credit: By Bradley Olson and Damian Paletta
Subject: Retirement; Executive compensation
People: Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Jan 4, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1854982306
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854982306?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Jour nal
Oil Recovers on Prospects of a Decline in U.S. Crude Stocks; The American Petroleum Institute releases its figures later Wednesday
Author: Baxter, Kevin; Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2017: n/a.
Abstract:
Brent trading started on a strong note Tuesday with early gains of 2.7% on the back of bullish Chinese economic data and positive signs regarding production cuts from the Organization of the Petroleum Exporting Countries.
Full text: Oil prices ticked higher Wednesday, recovering some of Tuesday's losses suffered in the last few hours of volatile trading after the New Year holiday. The March contract for global crude benchmark Brent was up 0.5% at $55.80 a barrel, while its U.S. counterpart West Texas Intermediate gained 0.7% to $52.70 a barrel for February deliveries. Brent trading started on a strong note Tuesday with early gains of 2.7% on the back of bullish Chinese economic data and positive signs regarding production cuts from the Organization of the Petroleum Exporting Countries. However, the gains were soon wiped out despite no obvious headline driving down prices. Bjarne Schieldrop, analyst from the Stockholm-based SEB bank, said prices were rising Wednesday on the prospect of another decline in U.S. crude stocks. The industry body the American Petroleum Institute releases its figures later Wednesday ahead of Thursday's official data from the Energy Information Administration. Futures have veered between gains and losses in recent sessions as investors weighed the possibility of the oil market returning to balance this year, following a supply glut that has weighed down prices for more than two years. Most analysts expect a rebound in crude prices following this month's implementation of November's production cut agreement by OPEC and other major oil-producing nations. "Energy outperformed in 2016 and if OPEC delivers it will happen again in 2017," said analysts at Bernstein in a note to clients Wednesday. The bank said it expects Brent crude to average $60 a barrel in 2017. "Compliance with OPEC quotas will be the key area for investors to focus on in the first half of the year." OPEC's agreed cuts with other nations including Russia amount to 2% of global production. Prices rallied sharply on Tuesday after officials in Oman and Kuwait suggested they were in the process of enacting the cuts, bolstering confidence that the cartel would stick to its agreement. Still, many traders are skeptical that all members of the cartel will abide by the letter of the deal. Skepticism has centered around Iraq, which is pursuing a costly war against Islamic State, and Iran, which is trying to raise oil revenues after years of punishing sanctions. Meanwhile, investors expect any sharp increase in oil prices to lead to a resumption in new drilling by U.S. oil producers, swamping the market once more. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 0.43% to $1.63 a gallon, while February diesel traded at $1.68, 0.035 higher. ICE gasoil for January changed hands at $488.00 a metric ton, down 1.01% from Tuesday's settlement. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Dan Strumpf at daniel.strumpf@wsj.com Credit: By Kevin Baxter and Dan Strumpf
Subject: Crude oil prices; International markets
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855033269
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855033269?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Slippery Logic to Russia's Oil-Cut Claim; Russia's pledge to cut output may have less impact on oil supply than the headlines suggest
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2017: n/a.
Abstract:
A big component of the recent rally was Russia's pledge to contribute 300,000 barrels a day of output cuts in the first half of 2017 to supplement a deal by the Organization of the Petroleum Exporting Countries.
Full text: "They say they milk chickens" goes the Russian proverb. With crude prices up 50% from a year ago, energy investors would do well to take this skeptical saying to heart. A big component of the recent rally was Russia's pledge to contribute 300,000 barrels a day of output cuts in the first half of 2017 to supplement a deal by the Organization of the Petroleum Exporting Countries. Russian government data peg recent crude output at 11.2 million barrels a day, forming the basis for cuts . The problem is that this puts output near a post-Soviet record and about 370,000 barrels a day higher than July. In other words, production since talks began about a coordinated output freeze has risen by more than the agreed cut to production. If ignoring the cuts wouldn't even bring Russian output back to square one, then how credible are they? Russia's oil minister has said that his country's commitment depends on others meeting their pledges. This could be a get-out-of-jail-free card as OPEC members are notorious cheaters. Then there is the issue of who exactly will cut. Unlike OPEC nations, Russia's oil industry is made up of nominally independent companies such as Lukoil and Rosneft with at least partial private ownership. While Kremlin influence is strong, some big projects are currently ramping up. Russian companies could cut back spending today on older fields such as those in western Siberia and see output drop by June or they could take a risk and hope that rivals do the cutting and forgo some income with prices at an 18 month high. Oil bulls may be the ultimate losers in such a game of chicken. Credit: By Spencer Jakab
Subject: Cartels
Location: Russia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 4, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855105385
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Bonanza Creek Energy Files For Bankruptcy; Oil-and-gas company proposes bondholders take ownership of dormant operations
Author: Stech, Katy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2017: n/a.
Abstract:
"Oil-and-gas companies like Bonanza, whose revenues fluctuate depending on the price of oil and natural gas, continue to face difficult headwinds from the ongoing, prolonged downturn in commodity prices," Scott Fenoglio, a Bonanza executive, said in court papers.
Full text: Denver-based oil-and-gas company Bonanza Creek Energy Inc. filed for chapter 11 bankruptcy on Wednesday, proposing that bondholders owed $867 million take over ownership of its dormant operations amid the fuel price slump. The 235-worker company, which stopped drilling for oil and natural gas in northern Colorado in early 2016, has struggled to compete with larger competitors since energy prices plunged unexpectedly in 2014. Dozens of energy firms that pull oil and natural gas from underground deposits have since filed for chapter 11 protection. Amid the trouble, Bonanza Creek executives negotiated with bondholders to use the bankruptcy case to transfer ownership to them. Under its proposed restructuring plan, the company would raise $200 million from other creditors who decide to purchase new shares in the reorganized company. With the new money and a lighter balance sheet, Bonanza Creek officials may decide to begin drilling again in the second quarter of 2017, according to documents filed in U.S. Bankruptcy Court in Wilmington, Del. The company operated about 620 wells in Colorado at the end of 2015. Founded in 2010, Bonanza Creek also has drilling operations in southern Arkansas. It reported $1.2 billion worth of assets and $1.1 billion worth of debt in its chapter 11 petition. "Oil-and-gas companies like Bonanza, whose revenues fluctuate depending on the price of oil and natural gas, continue to face difficult headwinds from the ongoing, prolonged downturn in commodity prices," Scott Fenoglio, a Bonanza executive, said in court papers. Before the bankruptcy, some of Bonanza Creek's bondholders promised to vote in favor of the plan, which requires approval from U.S. Bankruptcy Judge Kevin J. Carey and other creditors. Company officials also cut about 100 workers and negotiated cheaper deals on its oil contracts, Mr. Fenoglio said. Under the plan, investors who own 49.66 million shares in the company wouldn't receive any money. However, they are slated to receive a 4.5% stake in the reorganized company, subject to dilution, as well as warrants to purchase additional shares as long as they don't pursue litigation against the company and others, according to a press release. The company's stock has traded publicly on the New York Stock Exchange since 2011. Bonanza Creek officials asked Judge Carey to hold a Feb. 8 hearing to review its restructuring plan. The company is set make its debut in bankruptcy court Thursday afternoon. The company has hired lawyers at Davis Polk & Wardwell to represent it in bankruptcy. It has also hired Perella Weinberg Partners as its investment banker. Write to Katy Stech at katherine.stech@wsj.com Credit: By Katy Stech
Subject: Bankruptcy; Bankruptcy reorganization; Court hearings & proceedings; Federal courts; Competition; Natural gas utilities
Location: Colorado
Company / organization: Name: Bonanza Creek Energy Inc; NAICS: 211111; Name: Bankruptcy Court-US; NAICS: 922110; Name: New York Stock Exchange--NYSE; NAICS: 523210; Name: Perella Weinberg Partners LP; NAICS: 523110, 523920; Name: Davis Polk & Wardwell; NAICS: 541110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 4, 2017
Section: Pro Bankruptcy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855130886
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855130886?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Decreasing in DOE Data; Gasoline inventories are expected to rise
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2017: n/a.
Abstract:
The American Petroleum Institute, an industry group, said late Wednesday that its own data for the week showed a 7.4-million-barrel decrease in crude supplies, a 4.3-million-barrel rise in gasoline stocks and a 5.2-million-barrel increase in distillate inventories, according to a market participant.
Full text: U.S. crude-oil stocks are expected to show a decrease in data due Thursday from the U.S. Energy Department, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 12 analysts and traders surveyed showed that U.S. oil inventories are projected to have decreased by 2 million barrels, on average, in the week ended Dec. 30. Ten analysts expect stockpiles to decline and two expect them to grow. Forecasts range from a decrease of 5 million barrels to an increase of 1.5 million barrels. The closely watched survey from the Energy Information Administration is due at 11 a.m. EST Thursday. Gasoline stockpiles are expected to show an increase of 1.3 million barrels on average, according to analysts. Nine expect them to rise and three expect them to fall. Estimates range from a fall of 2.5 million barrels to an increase of 5 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to grow by 500,000 barrels. Six analysts expect an increase and six expect a decrease. Forecasts range from a decline of 3 million barrels to an increase of 4.5 million barrels. Refinery use is seen gaining 0.4 percentage point to 91.4% of capacity, based on EIA data. Seven analysts expect an increase, one expects a decrease, two expect no change and two did not report expectations. Forecasts range from a decrease of 0.5 percentage point to an increase of 1 point. The American Petroleum Institute, an industry group, said late Wednesday that its own data for the week showed a 7.4-million-barrel decrease in crude supplies, a 4.3-million-barrel rise in gasoline stocks and a 5.2-million-barrel increase in distillate inventories, according to a market participant. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Inventory; Price increases; Supply & demand
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855150774
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855150774?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journ al
Venezuelan Leader Nicolás Maduro Shakes Up Cabinet; Appoints state governor to vice presidency; new chiefs for economy and oil ministries
Author: Kurmanaev, Anatoly
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract: None available.
Full text: CARACAS, Venezuela--President Nicolás Maduro reshuffled his cabinet Wednesday amid a deepening recession, appointing a state governor to the vice presidency and naming his sixth new economy minister in three years. In a surprise televised address, Mr. Maduro named Tarek El Aissami, governor of the central Aragua state, as his deputy. The governor takes the vice presidency amid a push by the opposition to oust Mr. Maduro through a recall referendum, which polls show the highly unpopular president would likely lose if it were to take place. Mr. El Aissami would assume the presidency if a referendum takes place and Mr. Maduro were to lose, although the proposed vote is tied up in courts amid government allegations that the opposition used fraudulent signatures in its petition. "Socialism is the way to cure the fatherland," Mr. El Aissami said on state television following his appointment. "Not the terrorist and criminal right-wing." Mr. Maduro also named Ramón Lobo, a low-ranking lawmaker from the western Merida state, as the new economy and finance minister. Nelson Martínez, head of Venezuela's oil refineries in the U.S., will take leadership of the oil ministry. He leaves the presidency of the state-owned oil producer Petróleos de Venezuela SA to the former oil minister Eulogio del Pino. Mr. Lobo has previously advocated weakening Venezuela's stringent currency and price controls, which most economists blame for the economic meltdown. The nation's economic activity has contracted by over a quarter since Mr. Maduro took office in 2013, rivaling the collapse of the Soviet Union as one of the biggest economic declines in the past century, according to the International Monetary Fund. Investors welcomed the confirmation of Mr. del Pino as head of PdVSA, as the state producer is known. Mr. del Pino has argued for continuing to service Venezuela's foreign debt despite the recession. Mr. Maduro's appointment of Mr. El Aissami puts into the vice-presidency a senior official whom U.S. authorities investigated for drug trafficking, according to people familiar with the investigation. The governor was one of several officials who were under investigation by U.S. federal prosecutors for allegedly aiding drug shipments from Venezuela, The Wall Street Journal reported in 2015. The U.S. Department of Justice declined to comment on Mr. El Aissami's appointment or the drug-trafficking investigation. Mr. El Aissami's office couldn't immediately be reached to comment on the drug-trafficking investigation. He has called the suggestion that he aided traffickers "worthless." Mr. Maduro has previously named other officials accused or sanctioned by the U.S. to top posts. The current interior minister, Néstor Reverol, was indicted on drug-smuggling charges by the U.S. last year. Mr. Reverol has previously denied the accusations and accused the U.S. of trying to destabilize Venezuela. The head of the intelligence police, Gustavo González López, has been on a U.S. blacklist since 2015 for allegedly repressing protests. He hasn't publicly commented on the blacklisting. Neither Mr. Reverol nor Mr. González López was immediately available to comment. Kejal Vyas in Bogota contributed to this article. Write to Anatoly Kurmanaev at Anatoly.kurmanaev@wsj.com Credit: By Anatoly Kurmanaev
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855178529
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855178529?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Asia Oil Futures Fall; March Brent crude fell $0.19 to $56.27 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract:
Prices for brent crude oil have slowly crept up by around $3.00 since late last year when members of the Organization of the Petroleum Exporting Countries and 11 others that are not members of the cartel agreed to slash their collective production starting this month.
Full text: Crude-oil futures lost steam in early Asia trade Thursday as investors cashed in their overnight profits, buoyed by a drawdown in U.S. crude stocks, but the markets remain upbeat as major oil producers are expected to reduce output starting this month. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.14 a barrel at 0253 GMT, down $0.12 in the Globex electronic session. March Brent crude on London's ICE Futures exchange fell $0.19 to $56.27 a barrel. Oil prices surged overnight after the industry group American Petroleum Institute reported a 7.4 million-barrel drawdown in U.S. oil inventories in the week that ended Dec 30. If confirmed by the Energy Information Administration later today, the total stock will be at 482.7 million barrels. Analysts will also be watching the production figures to gauge the effect of rising oil prices on U.S. shale producers. "Speculators have overbought in the past few sessions and they are now taking profits. This is why prices are down in absence of bad news," a Chinese fuel-oil trader based in Singapore said. For more than two years, oil prices have been in a funk as supply has outstripped growth in demand. The low prices have emptied coffers in some countries, such as Venezuela. Even cash-rich producers such as Saudi Arabia had to tighten their purse strings to accommodate the low prices. Prices for brent crude oil have slowly crept up by around $3.00 since late last year when members of the Organization of the Petroleum Exporting Countries and 11 others that are not members of the cartel agreed to slash their collective production starting this month. The proposed cut is equivalent to 1.8 million barrels a day, or roughly 2% of the world's daily oil production. However, the pact--the first of its kind in eight years--has failed to quell skepticism that oil producers would make good on their promises given their past records of cheating. This time, the cartel has set up a monitoring committee to keep producers in check. The group is reportedly holding a two-day meeting on Jan. 21 and 22 to assess the compliance situation. If the cuts are carried out, the global oil markets could slide into a deficit thanks to rising demand driven by China and India. However, some analysts are now unsure how thirsty China will be as prices climb. "When prices were low, China bought aggressively to stock up their strategic petroleum reserve. But it remains to be seen if the momentum would slow down now prices are strong," said Jonanthan Chan, an energy analyst at Phillip Futures. For the first 11 months of the year, China's crude import rose 14% year over year to 7.53 million barrels a day. Data for December and the whole year of 2016 will be released on Jan. 13. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--fell 117 points to $1.6342 a gallon, while February diesel traded at $1.6805, 125 points lower. ICE gasoil for January changed hands at $491.00 a metric ton, up $0.50 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Strategic petroleum reserve; Futures; Crude oil prices; Petroleum production
Location: China United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855184996
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855184996?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rises on Dollar's Fall, Inventory Outlook
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Jan 2017: B.11.
Abstract:
The American Petroleum Institute, an industry group, late Wednesday said its own data for the week showed a decrease of 7.4 million barrels in crude supplies, a rise of 4.3 million barrels in gasoline stocks and a 5.2-million-barrel increase in distillate inventories, according to a market participant.
Full text: Oil prices moved higher as the dollar fell and analysts said they were expecting that U.S. stockpiles had declined last week. Light, sweet crude for February delivery settled up 93 cents, or 1.8%, at $53.26 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained 99 cents, or 1.8%, to $56.46 a barrel on ICE Futures Europe. Early gains came after bullish Chinese economic data and positive signs regarding production cuts that the Organization of the Petroleum Exporting Countries agreed to in November. But many traders are skeptical about OPEC's ability to follow through, which analysts said caused a small retreat later. The dollar also influenced oil trading, analysts said. A weaker U.S. currency makes dollar-traded oil less expensive for foreign buyers, and so its price tends to rise as the dollar falls. The Wall Street Journal Dollar Index, which tracks the U.S. currency against 16 others, fell 0.6% Wednesday and spent most of the day in negative territory. That helped oil recover from Tuesday, which had been oil's worst day in nearly three weeks because of a rising dollar, said Phil Flynn, senior market analyst at the Price Futures Group in Chicago. It would make sense for oil to rebound a bit anyway after such big losses with the OPEC cuts on the horizon, he added. "It was overdone," Mr. Flynn said. The market bounced higher after briefly dipping to match the lows of Tuesday's session. That is a sign of bullish momentum that could keep technical traders bullish and the market in positive territory, brokerage iiTrader in Chicago told clients in a note. "Crude oil has seemingly stabilized from its free fall," it said. The American Petroleum Institute, an industry group, late Wednesday said its own data for the week showed a decrease of 7.4 million barrels in crude supplies, a rise of 4.3 million barrels in gasoline stocks and a 5.2-million-barrel increase in distillate inventories, according to a market participant. Official data from the Energy Information Administration is set for release Thursday. Oil has veered between gains and losses in recent sessions as investors weighed the possibility of the market returning to balance this year, after a supply glut for more than two years. Most analysts expect a rebound in prices after implementation of OPEC's production-cut agreement. Credit: By Timothy Puko
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Jan 5, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855270470
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855270470?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Pares Gains on Bearish Inventory Report; Hopes remain high that OPEC will begin cutting output this month
Author: Yang, Stephanie; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract:
The U.S. Energy Information Administration reported that crude oil stockpiles declined by a larger-than-expected 7.1 million barrels in the week ended Dec. 30.
Full text: Oil prices rose for the second day in a row on Thursday, boosted by upbeat sentiment that major oil producers will reduce output. Light, sweet crude for February delivery gained 50 cents, or 0.9%, to $53.76 a barrel on the New York Mercantile Exchange, after trading as low as $52.79 earlier in the session. Brent, the global benchmark, settled up 43 cents, or 0.8%, at $56.89 a barrel. Oil prices have jumped to 18-month highs since late November, after the Organization of the Petroleum Exporting Countries and 11 major oil-producing nations outside OPEC agreed to slash their collective production starting this month. The OPEC deal -- the first of its kind in eight years -- has been subject to skepticism that oil producers would make good on their promises to limit production, given their past records of cheating on quotas. This time, the cartel has set up a monitoring committee to keep producers in check. The group is reportedly holding a two-day meeting Jan. 21-22 to assess the compliance situation. "The market is going to wait and see how well the OPEC and non OPEC members comply," said Andy Lipow, president of Lipow Oil Associates in Houston. Saudi Arabia, the world's largest exporter, has cut its production by the agreed 486,000 barrels a day, according to a person familiar with the kingdom's output. The news helped support prices on Thursday, after data showing massive additions to gasoline and diesel stockpiles weighed on the market. The U.S. Energy Information Administration reported that crude oil stockpiles declined by a larger-than-expected 7.1 million barrels in the week ended Dec. 30. Analysts and traders surveyed by The Wall Street Journal had forecast a two-million-barrel decline on average. Meanwhile, inventories of refined fuels surged, with 8.3 million barrels added to gasoline inventories and 10.1 million-barrel increase in distillates, signaling weak demand. Analysts surveyed had on average expected an increase of 1.3 million barrels in gasoline stockpiles and a 500,000-barrel increase in diesel stockpiles. "You have a surplus of crude in the U.S. and you have a lack of need for imports," said Carl Larry, director of oil and gas at Frost & Sullivan. However, analysts said the report was influenced by seasonal irregularities as the year came to a close. "There were a number of factors that suggest you shouldn't just think these types of numbers are going to continue for the next couple weeks," said Kyle Cooper, a consultant for Ion Energy Group in Houston. The market is also watching for signs that U.S. production is picking up on the back of higher prices. U.S. shale firms are more nimble than some other producers and are expected to respond quickly to price increases. Oil rig counts have been rising since last summer, indicating drilling activity has increased and should lead to higher output. "The big supply growth last year came from OPEC. That's not going to happen this year partly because everyone's maxed out and secondly because now you've actually got an OPEC deal. This should tighten up the market and prices should push higher," said Seth Kleinman, a Citigroup analyst. However, prices "can't go too much higher because everyone's watching how hard and fast shale comes back," he said. Gasoline futures settled down 0.5% at $1.6377 a gallon and diesel futures settled up 0.1% at $1.6942 a gallon. Jenny W. Hsu and Benoit Faucon contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Stephanie Yang and Sarah McFarlane
Subject: Crude oil prices; Inventory; Price increases; Gasoline
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Frost & Sullivan; NAICS: 541910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855296005
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855296005?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Fire on Oil Platform in Gulf of Mexico Extinguished; Coast Guard says four people aboard the platform were evacuated
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract:
Renaissance Offshore, a Houston-based company, focuses on finding and buying "under-developed assets with upside potential in the Gulf of Mexico," including older, legacy fields that still can produce oil, according to its website.
Full text: A fire that broke out on an oil platform off the coast of Louisiana is fully extinguished, according to a spokesman for its owner, Renaissance Offshore LLC. "Looks like a small fire, completely extinguished, no injuries and all a-ok right now," Jay Morakis, a Renaissance spokesman, said in an email. The U.S. Coast Guard responded to the fire early Thursday morning and said it was fighting the blaze with four supply vessels. It said four people were evacuated from the platform located in the Gulf of Mexico, about 80 miles south of Grand Isle. A Coast Guard spokesman said early reports found no signs of an oil spill, but said overhead flight monitoring would continue. Clean Gulf, a specialized group called on for potential oil spill emergencies, was also headed to the scene. Renaissance Offshore, a Houston-based company, focuses on finding and buying "under-developed assets with upside potential in the Gulf of Mexico," including older, legacy fields that still can produce oil, according to its website. The cause of the incident is under investigation, the Coast Guard said. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Oil spills
Location: Louisiana Gulf of Mexico
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855307004
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855307004?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Arabia Cuts Output in Accordance With OPEC Deal; The kingdom has 'completely implemented' the production pullback it agreed to in last year's deal to raise oil prices, source says
Author: Faucon, Benoit; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract:
The higher prices will hit some of Saudi Arabian Oil Co.'s key customers in China, Japan and South Korea, where the Saudi kingdom believes demand is high enough to absorb the price hike, said Edward Bell, a commodities analyst from the Dubai-based Emirates NBD bank.
Full text: Saudi Arabia has cut its crude-oil production by at least 486,000 barrels a day since October, said a person familiar with the kingdom's output, bringing the world's largest exporter of petroleum swiftly into line with OPEC's deal to raise prices. Saudi Arabia agreed to cut its output by 486,000 barrels a day as part of a deal struck by the Organization of the Petroleum Exporting Countries on Nov. 30 to reduce production by 1.2 million barrels a day. The kingdom's leaders had said they would quickly implement their cuts, the biggest of any member in the 13-nation cartel. But, with OPEC's patchy record in implementing production pullbacks, some analysts were skeptical members would abide by their pledges. Saudi Arabia "has completely implemented the cut -- if not more," the person familiar with Saudi output said. The person said the kingdom--the world's largest oil exporter and the biggest producer in OPEC--has reduced its production to about 10.058 million barrels a day, the amount it agreed to with OPEC. Oil prices rose after The Wall Street Journal reported the Saudi production figure, with Brent crude turning positive and rising to $56.57. The disclosure came on the same day that Saudi Arabia's state-run oil company raised prices for customers in the Far East, a move analysts took as a signal of the kingdom's firm intention to curtail output. The higher prices will hit some of Saudi Arabian Oil Co.'s key customers in China, Japan and South Korea, where the Saudi kingdom believes demand is high enough to absorb the price hike, said Edward Bell, a commodities analyst from the Dubai-based Emirates NBD bank. Nearly two-third of the company's crude exports go to the Far East, according to its 2015 annual report. It is an indication that the company, known as Aramco, is testing which regions can support higher prices, Mr. Bell said. "Aramco is clearly looking to maximize its revenue as it lowers production by upping prices to its main customer base," said Mr. Bell. Aramco didn't respond to requests for comment. After a two-year slump during which prices fell to 12-year lows below $28 a barrel in 2016, the oil market has been buoyed by the OPEC agreement, with prices rising from the mid-$40 a barrel level in November to the mid-$50s this month. OPEC pledged in November to cut output by more than 1 million barrels a day in hopes of clearing a global oversupply of oil that had weighed prices down. With the exception of Iran, Nigeria and Libya, each OPEC member agreed to specific production targets. Oil traders are now watching OPEC member countries closely for signs of compliance with the pledged cuts. Most analysts have said Saudi Arabia and the majority of its neighbors in the Persian Gulf will fully comply with the proposed cuts. However, there are still some reservations about other participants. Iraq, for instance, has signaled to oil traders that it planned to increase oil exports in January. But its oil minister said Thursday the country had begun to reduce output in line with the OPEC agreement. "It is clear from both the comments and actions from Saudi Aramco that it is going to cut its output as promised," said Olivier Jakob, an analyst from the Switzerland-based Petromatrix. "[The market] should be watching other producers more closely to see if they are also falling into line." Mr. Jakob added the full extent of OPEC cuts won't be clear until official January data is released in mid-February. Other non-OPEC players, such as Russia, also pledged to cut production but forcing producers to comply is almost impossible. Write to Benoit Faucon at benoit.faucon@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Related * Oil Surges on OPEC Deal to Cut Production * Oil-Producing Countries Agree to Cut Output Along With OPEC * At a Glance: The OPEC Deal Credit: By Benoit Faucon and Kevin Baxter
Subject: Crude oil; Petroleum production; Price increases
Location: Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855346568
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855346568?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil Inventories Plunge, Fuel Supplies Surge; Crude-oil stockpiles decreased by 7.1 million barrels; Gasoline stockpiles increased by 8.3 million barrels
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract:
U.S. crude oil inventories declined much more than expected for the week ended Dec. 30, but fuel stockpiles rose higher, according to data released Thursday by the Energy Information Administration.
Full text: U.S. crude oil inventories declined much more than expected for the week ended Dec. 30, but fuel stockpiles rose higher, according to data released Thursday by the Energy Information Administration. Crude-oil stockpiles decreased by 7.1 million barrels, to 479 million barrels, which is near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would fall by 2 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 1.1 million barrels, to 67.5 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by a hefty 8.3 million barrels, to 235.5 million barrels. Analysts were expecting gasoline inventories to rise by just 1.3 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, surged by 10.1 million barrels, to 161.7 million barrels, which is above the upper limit of the average range, the EIA said. Analysts were forecasting supplies to increase by 500,000 barrels from a week earlier. Refining capacity utilization rose by a full percentage point from the previous week, to 92.0%. Analysts were expecting utilization levels to rise by 0.4 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Inventory; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855391804
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855391804?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Slick Gains: Speculative Money Fueling Oil Rally; Many betting that OPEC's agreement on a production cut will raise crude prices
Author: Sider, Alison; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract: None available.
Full text: OPEC's recent agreement to limit crude production is unleashing a tide of speculative bets on rising oil prices, raising the prospect that the oil market could reverse suddenly if the cartel fails to deliver. U.S. crude prices have soared nearly 18% since the Organization of the Petroleum Exporting Countries agreed on November 30 to its first supply reduction since 2008. Other major producers signed on for an output cut amounting to almost 2% of global daily oil production, aimed at shrinking a global glut that has weighed on prices for two years. Investors are now more bullish on oil prices than they've been since the summer of 2014, the last time oil prices were over $100 a barrel. Since just before the OPEC deal, money managers have increased the number of long positions by 7%, bringing the total number of bets on higher U.S. oil prices to 358,573. That figure is seven times the number of bets on the price falling, according to data from the Commodity Futures Trading Commission. For the week ending Dec. 27, the most recent figures available, wagers became even more one-sided: New long bets on oil outnumbered shorts by more than 35 to 1, CFTC data showed. This extreme positioning puts the oil market in a vulnerable state, some analysts said. Cuts from OPEC members may end up disappointing investors, given the group's mixed history of compliance with its production quotas. Any sign that OPEC is not following through could set off a "cascade of selling" as speculators liquidate positions, according to Carsten Fritsch, an analyst at Commerzbank AG. "It's quite a shaky situation," he said. Analysts are already on high alert. Crude prices got a brief boost on Thursday after Saudi Arabia's national oil company said it is raising prices for east Asian customers, signaling that it is initiating its promised pullback. But questions remain about whether others, like Russia or Iraq, will stick to the agreement. "The market has priced in something that has not happened yet," said Michael Wittner, head of oil research at Société Générale. "Now it's put up or shut up time." Still, he added that the large bullish position won't necessarily throw markets off kilter. "Those investors actually have a lot of dry powder" to keep pouring money into oil markets, Mr. Wittner said. Moreover, some investors say oil supply and demand were coming back into balance even before major producers agreed to cut output. They expect that process to continue, even with a gradual increase in U.S. production and less-than-perfect compliance with the OPEC accord. "At some point in the future will we oversupply the market again? Sure. But not in the next six months, probably not the next 12," said David Zusman, chief investment officer of Talara Capital Management. The recent rally will face tests beyond OPEC compliance, such as rising output from countries not included in the accord, like Libya and Nigeria. They aim to add hundreds of thousands of barrels of oil to the market this year. And U.S. drillers are already putting rigs back to work. Production increased in October to 8.8 million barrels a day. If it continues to ramp up, it could quickly cause OPEC's agreement to fray. "A U.S. output level north of 9 million barrels a day would allow U.S. producers to grab a significant portion of OPEC's market share--likely forcing a gradual breakdown of OPEC's agreement, possibly as early as next spring," Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a note last month. Analysts at Piper Jaffray Cos. now expect U.S. production to return roughly to its peak level, projecting output could reach 9.6 million barrels a day by the end of the year. That's a 400,000 barrel-a-day increase from their forecast before OPEC's agreement. If the bank's new projection is on track, the increase in U.S. output could completely outweigh the cuts pledged by Russia, for example. And the past month of stable, high oil prices opened a window for U.S. producers to lock in prices for their output over this year. Crude futures six months from now are even higher than February prices at more than $56 a barrel. Oil for delivery in December has traded around $57. That's more than enough for many shale producers to turn a profit, experts say. ARM Energy, which helps producers hedge, is advising clients to secure higher prices now in case they don't last, said ARM President Tom Heath. "Disappointment is very possible," Mr. Heath said. Several shale producers have already raised their budgets and are considering more ambitious production plans in 2017. PDC Energy Inc., for example, said in early December that it plans to spend $750 million this year, an increase of more than 80% from the $410 million it budgeted for 2016, as it increases production by more than 40%. Write to Alison Sider at alison.sider@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Alison Sider and Erin Ailworth
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855439131
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Vanguard May Not Be Able to Make Deficiency Payments; Oil and natural gas producer is negotiating with creditors and possible new investors
Author: Gleason, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract:
Oil and natural gas producer Vanguard Natural Resources LLC said it may not be able to make the $150 million in payments required to comply with the terms of its credit facility and is negotiating with creditors and potential new investors.
Full text: Oil and natural gas producer Vanguard Natural Resources LLC said it may not be able to make the $150 million in payments required to comply with the terms of its credit facility and is negotiating with creditors and potential new investors. The company said Thursday that it made a $37.5 million payment earlier this week. The so-called deficiency payment was the second installment on a payment plan implemented to close the gap between how much it has borrowed under the facility and the maximum amount its lender is willing to loan. In November, Vanguard's lenders lowered the maximum allowed borrowings on the facility to $1.1 billion through a process called borrowing base redetermination. However, Vanguard owed more than $1.1 billion on the facility and so was forced to repay the $187.5 million it had borrowed over the new limit. Without the cash immediately available, the company agreed to pay the amount in $37.5 million monthly installments. It still owes $150 million to lenders, and the next payment is due Feb. 2. To make the January payment, Vanguard said that it monetized all of its commodity and interest rate hedges, earning $11.7 million, completed a $6 million asset sale and used $19.8 million in cash on hand. It added that the company believes that cash flow from operations won't be enough to repay the deficiency. "The company intends to actively consider all available options including continued dialogue with potential new investors and existing creditors about longer term balance sheet solutions," it said Thursday. Vanguard is a natural-gas producer with holdings across the U.S., including Wyoming, New Mexico, Texas, Oklahoma and throughout the Gulf Coast. The company said in financial disclosures that the recent decline in oil and gas prices has harmed its business. It noted that the price of its publicly traded units fell during 2015 from a high of $18.72 in February 2015 to a low of $2.46 in December 2015. During 2016, the unit price hit a high of $3.11 in January and a low of 86 cents in September. For the quarter ended Sept. 30, Vanguard reported revenue of $126.3 million and a net loss of $245.4 million. For the same period in 2015, the company had $155.1 million in revenue and $462.3 million in losses. As of Sept. 30, the company had $38.8 million in cash on hand and total debt of $1.88 billion. In addition to the credit facility, which matures in 2018, Vanguard has three sets of senior bonds with $51.1 million, $381.8 million and $75.6 million outstanding, respectively. The bonds mature in 2019, 2020 and 2023. Write to Stephanie Gleason at stephanie.gleason@wsj.com Credit: By Stephanie Gleason
Subject: Acquisitions & mergers; Natural gas; Financial performance; Net losses
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: Pro Bankruptcy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Documenttype: News
ProQuest document ID: 1855447415
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855447415?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Nigeria Plans Security Advisory Council to End Oil Pipeline Vandalism; About 700,000 barrels of oil a day were lost to pipeline attacks last year
Author: Oredein, Obafemi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract:
Maikanti Baru, NNPC's managing director, said the council would consist of security agencies, Niger Delta leaders, international oil companies and other stakeholders aimed at "bringing a lasting solution to the perennial problem of pipeline vandalism and sundry security challenges bedeviling the oil and gas industry."
Full text: IBADAN, Nigeria--State-owned Nigerian National Petroleum Corp. said Thursday it plans to establish a security advisory council to solve pipeline vandalism and other security challenges in its oil and gas industry. Maikanti Baru, NNPC's managing director, said the council would consist of security agencies, Niger Delta leaders, international oil companies and other stakeholders aimed at "bringing a lasting solution to the perennial problem of pipeline vandalism and sundry security challenges bedeviling the oil and gas industry." Mr. Baru said the council would also address host community agitations, according to a statement from his office. Oil and gas pipelines are regularly vandalized by the Niger Delta Avengers and other armed militants in southern Niger Delta, where the largest percentage of the country's hydrocarbon is located, resulting in huge revenue losses. Last year, the NNPC said it lost about 700,000 barrels of oil a day to pipeline attacks by the militants, who claimed to be fighting for a fairer share of the country's huge oil wealth for the impoverished people of the Niger Delta. Negotiations between the administration of President Muhammadu Buhari and the militants, who declared a cease-fire in August, haven't progressed, and the situation in the Delta remains fragile. Nigeria plans to produce 2.2 million barrels of oil per day in 2017, but this may not be achievable if pipeline vandalism continues. "We want to passionately appeal to those behind indiscriminate acts of infrastructure vandalism to put an end forthwith to these despicable acts, which are great threat to the economy, the eco-system and energy security of the country," Mr. Baru said. He didn't say when the council, the first of its type in the country, will be established or describe its mode of operation. Credit: By Obafemi Oredein
Subject: Pipelines; Vandalism; Councils; Gas industry; Militancy
Location: Nigeria
People: Baru
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855456983
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855456983?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Venezuela's Oil Company Sued Over Latest Citgo Deal; Crystallex, ConocoPhillips seek large awards from Venezuela in international arbitration tribunals over nationalizations
Author: Scurria, Andrew
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2017: n/a.
Abstract: None available.
Full text: Petróleos de Venezuela SA is facing new legal action from North American multinationals over financial maneuvers they say are designed to shield the state-owned oil giant's U.S. assets from seizure. Canadian mining company Crystallex International Corp. on Wednesday expanded an existing lawsuit in Delaware federal court against PdVSA, as the struggling national company is known. At issue is a loan transaction that PdVSA quietly undertook last month with Rosneft Trading SA, an affiliate of Russia's state-owned oil company that was also named as a defendant. Lawyers for U.S. oil producer ConocoPhillips, another plaintiff suing PdVSA, also said on Wednesday that it would seek relief from the court. The two companies are seeking large awards from Venezuela in international arbitration tribunals over nationalizations carried out under the nation's deceased president, Hugo Chávez. PdVSA, the major economic engine in recession-ravaged Venezuela, has drawn the companies' ire by taking steps they say are meant to mortgage the assets of its U.S. subsidiary Citgo Holdings and repatriate the proceeds to Venezuela, beyond the reach of the U.S. court system and the country's so-called judgment creditors. International arbitration awards must be enforced for judgment holders to collect anything, and Citgo, one of the largest U.S. refiners, is a logical candidate for seizure. Crystallex and ConocoPhillips filed lawsuits in Delaware in October after PdVSA pledged its 50.1% stake in Citgo as collateral for investors as part of a $2.8 billion bond swap . In the transaction, which PdVSA struggled to complete , investors agreed to exchange $2.8 billion in bonds maturing in 2017 for $3.4 billion in bonds due in 2020. The plaintiffs have asked the court to cancel the lien on Citgo's stock and declare the pledge a fraudulent transfer. An attorney for PdVSA couldn't be reached for comment. The swap reduced the Venezuelan government's debt load between now and 2018 to $13 billion from about $15 billion. It also gave the company "breathing space" to stabilize a decline in oil production and let investors collect juicy yields for longer, PdVSA President Eulogio del Pino told The Wall Street Journal at the time. He also said in the interview that Citgo could be used as collateral for other deals. The following month, PdVSA filed financial documents in Delaware mortgaging its remaining 49.1% stake in Citgo to Rosneft, according to court papers submitted by the plaintiffs. PdVSA confirmed in a Dec. 23 statement that it had used the remainder of its Citgo stake "to raise new financing," though it didn't detail what it received from Rosneft in return. "It is clear that Citgo continues to be owned by PdVSA, a company that has demonstrated to be absolutely sound, serious and solvent," the statement said. A $3 billion tranche of 12.75% PdVSA bonds sold in 2011 and maturing in 2022 traded on Thursday at 63.5 cents on the dollar, according to FactSet, having recovered from their all-time low of 34.15 cents on the dollar last February. Crystallex is also suing PdVSA to recoup a $2.8 billion dividend that Citgo allegedly transferred to its parent in 2015 using the proceeds of a U.S. bond sale. That was after PdVSA abandoned plans in early 2015 to sell the subsidiary outright. Write to Andrew Scurria at Andrew.Scurria@wsj.com Credit: By Andrew Scurria
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 5, 2017
Section: Pro Bankruptcy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855456986
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855456986?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Arabia Cuts Output in Accordance With OPEC Deal; The kingdom has 'completely implemented' the production pullback it agreed to in last year's deal to raise oil prices, source says
Author: Faucon, Benoit; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Jan 2017: n/a.
Abstract:
The higher prices will hit some of Saudi Arabian Oil Co.'s key customers in China, Japan and South Korea, where the Saudi kingdom believes demand is high enough to absorb the price increase, said Edward Bell, a commodities analyst from the Dubai-based Emirates NBD bank.
Full text: Saudi Arabia has cut its crude-oil production by at least 486,000 barrels a day since October, said a person familiar with the kingdom's output, bringing the world's largest exporter of petroleum swiftly into line with OPEC's deal to raise prices. The news come as the group's secretary-general said he would hold informal talks with the Kingdom and six other oil producers next week to assess the implementation of the production agreement. Saudi Arabia agreed to cut its output by 486,000 barrels a day as part of an agreement struck by the Organization of the Petroleum Exporting Countries on Nov. 30 to reduce production by 1.2 million barrels a day. The kingdom's leaders had said they would quickly implement their cuts, the biggest of any member in the 13-nation cartel. But, with OPEC's patchy record in implementing production pullbacks, some analysts were skeptical members would abide by their pledges. Saudi Arabia "has completely implemented the cut--if not more," the person familiar with Saudi output said. The person said the kingdom--the world's largest oil exporter and the biggest producer in OPEC--has reduced its production to about 10.058 million barrels a day, the amount it agreed to with OPEC. Oil prices rose after The Wall Street Journal reported the Saudi production figure, with Brent crude turning positive and rising to $56.57. In an interview with The Wall Street Journal, OPEC's secretary-general Mohammad Barkindo said he would hold informal talks with Saudi oil minister Khalid Al-Falih, who holds the group's rotating presidency, on the side an Abu Dhabi oil conference on Jan 12-13. Dr Barkindo said that the talks, which will gather the oil ministers of Iraq, Algeria, Oman, Qatar, Kuwait and the United Arab Emirates "will focus on a compliance mechanism" for the implementation of coordinated production cuts both inside and outside OPEC. The disclosures came on the same day that Saudi Arabia's state-run oil company raised prices for customers in the Far East, a move analysts took as a signal of the kingdom's firm intention to curtail output. The higher prices will hit some of Saudi Arabian Oil Co.'s key customers in China, Japan and South Korea, where the Saudi kingdom believes demand is high enough to absorb the price increase, said Edward Bell, a commodities analyst from the Dubai-based Emirates NBD bank. Nearly two-thirds of the company's crude exports go to the Far East, according to its 2015 annual report. It is an indication that the company, known as Aramco, is testing which regions can support higher prices, Mr. Bell said. "Aramco is clearly looking to maximize its revenue as it lowers production by upping prices to its main customer base," said Mr. Bell. Aramco didn't respond to requests for comment. After a two-year slump during which prices fell to 12-year lows below $28 a barrel in 2016, the oil market has been buoyed by the OPEC agreement. Prices have risen from the mid-$40 a barrel level in November to the mid-$50s this month. OPEC pledged in November to cut output by more than 1 million barrels a day in hopes of clearing an oversupply of oil that had weighed prices down. With the exception of Iran, Nigeria and Libya, each OPEC member agreed to specific production targets. Oil traders are now watching OPEC member countries closely for signs of compliance with the pledged cuts. Most analysts have said Saudi Arabia and the majority of its neighbors in the Persian Gulf will fully comply with the proposed cuts. However, there are still some reservations about other participants. Iraq, for instance, has signaled to oil traders that it planned to increase oil exports in January. But its oil minister said Thursday the country had begun to reduce output in line with the OPEC agreement. "It is clear from both the comments and actions from Saudi Aramco that it is going to cut its output as promised," said Olivier Jakob, an analyst from the Switzerland-based Petromatrix. "[The market] should be watching other producers more closely to see if they are also falling into line." Mr. Jakob added the full extent of OPEC cuts won't be clear until official January data is released in mid-February. Other non-OPEC players, such as Russia, also pledged to cut production but forcing producers to comply is almost impossible. Write to Benoit Faucon at benoit.faucon@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Related * Oil Surges on OPEC Deal to Cut Production * Oil-Producing Countries Agree to Cut Output Along With OPEC * At a Glance: The OPEC Deal Credit: By Benoit Faucon and Kevin Baxter
Subject: International markets; Agreements; Petroleum production; Price increases
Location: Saudi Arabia
People: Al-Falih, Khalid
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855536491
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855536491?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Largely Steady as Market Monitors OPEC's Production Cuts; March Brent crude fell $0.3 to $56.86 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Jan 2017: n/a.
Abstract:
Oil prices veered higher overnight after the U.S. Energy Information Administration reported a significant drawdown of 7.1 million barrels from stockpiles in the week of Dec. 30 due to lower imports, upending the market's expectations for an increase or a smaller decrease.
Full text: Crude-oil prices lost some of their overnight gains in early Asian trade Friday as the market keeps a close eye on major producers' pledges to rein in production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.72 a barrel, down $0.04 in the Globex electronic session. March Brent crude on London's ICE Futures exchange fell $0.3 to $56.86 a barrel. Oil prices veered higher overnight after the U.S. Energy Information Administration reported a significant drawdown of 7.1 million barrels from stockpiles in the week of Dec. 30 due to lower imports, upending the market's expectations for an increase or a smaller decrease. However, the large growth in distillates and gasoline stocks -- of 10.1 million barrels and 8.3 million barrels respectively -- is considered bearish and a reflection of poor demand, said analysts at Societe Generale. The data also showed U.S. production of crude grew by 4,000 barrels a day in the same week. The tepid growth is likely to due to the year-end holidays and will likely rise in coming weeks. U.S. production is closely watched by the Middle Eastern producers who have fought fiercely for more than two years to protect its market shares from the U.S. shalers. To do so, they increased their production even though the rapid growth of unwanted barrels knocked oil prices to a 13-year low early last year. The tactic eventually forced some less-competitive U.S. oil producers to close shop. As U.S. production waned, the willingness among the Organization of the Petroleum Exporting Countries to cut production and put prices first strengthened. In late 2016, the bloc and 11 non-OPEC members agreed to cut production by around 1.8 million barrels a day starting this month, capping the cartel's monthly production at 32.5 million barrels a day. Saudi Arabia, the de facto leader of the cartel, took the lion's share of the cut. The WSJ Thursday reported the kingdom made good on its pledge by cutting its January daily production by 468,000 barrels. The deal, if carried out fully, is expected to push Brent oil prices to the $60 per barrel range this year and $70 in 2018, said Gordon Kwan, the head of Asia Pacific gas and research at Nomura. "Meanwhile, oil demand in both the US and China could surprise positively given President-elect Trump's fiscal stimulus and currency hedging in China against further yuan devaluation," he added. Still, many analysts say it remains to be seen how effective the deal would be in mopping up the world's excess oil given Libya and Nigeria, the two OPEC nations exempt from the cut, are ramping up production. "With output in Libya and Nigeria probably rising this month to some 700,000 barrels a day and 1.7 million barrels a day, respectively, we estimate that actual total OPEC output in January could be closer to 33.5 million barrels a day than to the official ceiling of 32.5 million barrels a day," said consultancy FGE in a note. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract-fell 18 points to $1.6395 a gallon. ICE gasoil for January changed hands at $495.25 a metric ton, up $6.00 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Gasoline; Energy economics
Location: United States--US
Company / organization: Name: ICE Futures; NAICS: 523210; Name: Societe Generale; NAICS: 522110, 522120, 523110, 523120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 6, 2017
Section: Markets
Publisher: Dow Jones & Compa ny Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855571626
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855571626?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Slick Gains: Speculative Money Fueling Oil Rally; Many betting that OPEC's agreement on a production cut will raise crude prices
Author: Sider, Alison; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Jan 2017: n/a.
Abstract: None available.
Full text: OPEC's recent agreement to limit crude production is unleashing a tide of speculative bets on rising oil prices, raising the prospect that the oil market could reverse suddenly if the group fails to deliver. U.S. crude prices have soared 19% since the Organization of the Petroleum Exporting Countries agreed on Nov. 30 to its first supply reduction since 2008. Other non-OPEC producers signed on to the output cut, which amounts to almost 2% of global daily oil production, aimed at shrinking a global glut that has weighed on prices for two years. Investors are now more bullish on oil prices than they've been since the summer of 2014, the last time oil prices were over $100 a barrel. Since just before the OPEC deal, money managers have increased the number of positions on rising crude prices by 7%, bringing the total number of bets to 358,573. That figure is seven times the number of bets on the price falling, according to data from the Commodity Futures Trading Commission. For the week ended Dec. 27, the most recent figures available, wagers became even more one-sided: New bets on rising crude prices outnumbered wagers that the price would fall by more than 35 to 1, CFTC data showed. This positioning puts the oil market in a vulnerable state, some analysts said. Cuts from OPEC members may end up disappointing investors, given the 13-member group's mixed history of compliance with its production quotas. Any sign that OPEC is not following through could set off a "cascade of selling" as speculators liquidate positions, said Carsten Fritsch, an analyst at Commerzbank AG. "It's quite a shaky situation," he said. Analysts are already on high alert. Crude prices got a brief boost on Thursday amid indications that Saudi Arabia is following through with its promised output cuts. But questions remain about whether some OPEC members like Iraq and non-OPEC countries like Russia will stick to the agreement. "The market has priced in something that has not happened yet," said Michael Wittner, head of oil research at Société Générale SA. "Now it's put up or shut up time." Still, he said the large bullish position won't necessarily throw markets off kilter. "Those investors actually have a lot of dry powder" to keep pouring money into oil markets, Mr. Wittner said. On Thursday, crude for February delivery gained 0.9%, to $53.76 a barrel, on the New York Mercantile Exchange. The news about the Saudi output cuts helped support prices after data showed large additions to gasoline and diesel stockpiles. The U.S. Energy Information Administration reported that crude-oil stockpiles declined by a larger-than-expected 7.1 million barrels in the week ended Dec. 30. Analysts and traders surveyed by The Wall Street Journal had forecast a decline of two million barrels on average. Meanwhile, inventories of refined fuels surged, with 8.3 million barrels added to gasoline inventories and a 10.1 million-barrel increase in distillates, signaling weak demand. Some investors said oil supply and demand were coming back into balance even before major producers agreed to cut output. They expect that process to continue, even with a gradual increase in U.S. production and less-than-perfect compliance with the OPEC accord. "At some point in the future will we oversupply the market again? Sure. But not in the next six months, probably not the next 12," said David Zusman, chief investment officer of Talara Capital Management. The recent rally will face tests beyond OPEC compliance, such as rising output from countries not included in the accord, like Libya and Nigeria. They aim to add hundreds of thousands of barrels of oil to the market this year. And U.S. drillers are already putting rigs back to work. Production increased in October to 8.8 million barrels a day. If it continues to ramp up, it could quickly cause OPEC's agreement to fray. "A U.S. output level north of nine million barrels a day would allow U.S. producers to grab a significant portion of OPEC's market share--likely forcing a gradual breakdown of OPEC's agreement, possibly as early as next spring," Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a note last month. Analysts at Piper Jaffray Cos. expect U.S. production to return roughly to its peak level, projecting output could reach 9.6 million barrels a day by the end of the year. That's a 400,000 barrel-a-day increase from their forecast before OPEC's agreement. If the bank's new projection is on track, the increase in U.S. output could completely offset the cuts pledged by Russia. And the last month of stable, high oil prices opened a window for U.S. producers to lock in prices for output over this year. Crude futures six months from now are even higher than February prices at more than $56 a barrel. Oil for delivery in December has traded at about $57. That's more than enough for many shale producers to turn a profit, some observers said. ARM Energy, which helps producers hedge, is advising clients to secure higher prices now in case they don't last, said Tom Heath, ARM president for financial advisory. "Disappointment is very possible," he said. Several shale producers have already increased their budgets and are considering more ambitious production plans in 2017. PDC Energy Inc. said in early December that it plans to spend $750 million this year, an increase of more than 80% from the $410 million it budgeted for 2016, as it increases production by more than 40%. Write to Alison Sider at alison.sider@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Alison Sider and Erin Ailworth
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855615670
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Gusher of Speculation Drives Oil Rally --- Wagers pile up that OPEC's output cut will push up crude prices; 'put up or shut up time'
Author: Sider, Alison; Ailworth, Erin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Jan 2017: B.12.
Abstract:
OPEC's recent agreement to limit crude production is unleashing a tide of speculative bets on rising oil prices, raising the prospect that the oil market could reverse suddenly if the group fails to deliver. Investors are more bullish on oil prices than they've been since the summer of 2014, the last time oil prices were over $100 a barrel. Since just before the OPEC deal, money managers have increased the number of positions on rising crude prices by 7%, bringing the total number of bets to 358,573.
Full text: OPEC's recent agreement to limit crude production is unleashing a tide of speculative bets on rising oil prices, raising the prospect that the oil market could reverse suddenly if the group fails to deliver. U.S. crude prices have soared 19% since the Organization of the Petroleum Exporting Countries agreed on Nov. 30 to its first supply reduction since 2008. Other non-OPEC producers signed on to the output cut, which amounts to almost 2% of global daily oil production, aimed at shrinking a global glut that has weighed on prices for two years. Investors are more bullish on oil prices than they've been since the summer of 2014, the last time oil prices were over $100 a barrel. Since just before the OPEC deal, money managers have increased the number of positions on rising crude prices by 7%, bringing the total number of bets to 358,573. That figure is seven times the number of bets on the price falling, according to data from the Commodity Futures Trading Commission. For the week ended Dec. 27, the most recent figures available, wagers became even more one-sided: New bets on rising crude prices outnumbered wagers that the price would fall by more than 35 to 1, CFTC data showed. This positioning puts the oil market in a vulnerable state, some analysts said. Cuts from OPEC members may end up disappointing investors, given the 13-member group's mixed history of compliance with its production quotas. Any sign that OPEC is not following through could set off a "cascade of selling" as speculators liquidate positions, said Carsten Fritsch, an analyst at Commerzbank AG. "It's quite a shaky situation," he said. Analysts are already on high alert. Crude prices got a brief boost on Thursday amid indications that Saudi Arabia is following through with its promised output cuts. But questions remain about whether some OPEC members like Iraq and non-OPEC countries like Russia will stick to the agreement. "The market has priced in something that has not happened yet," said Michael Wittner, head of oil research at Societe Generale SA. "Now it's put up or shut up time." Still, he said the large bullish position won't necessarily throw markets off kilter. "Those investors actually have a lot of dry powder" to keep pouring money into oil markets, Mr. Wittner said. On Thursday, crude for February delivery gained 0.9%, to $53.76 a barrel, on the New York Mercantile Exchange. The news about the Saudi output cuts helped support prices after data showed large additions to gasoline and diesel stockpiles. The U.S. Energy Information Administration reported that crude-oil stockpiles declined by a larger-than-expected 7.1 million barrels in the week ended Dec. 30. Analysts and traders surveyed by The Wall Street Journal had forecast a decline of two million barrels on average. Meanwhile, inventories of refined fuels surged, with 8.3 million barrels added to gasoline inventories and a 10.1 million-barrel increase in distillates, signaling weak demand. Some investors said oil supply and demand were coming back into balance even before major producers agreed to cut output. They expect that process to continue, even with a gradual increase in U.S. production and less-than-perfect compliance with the OPEC accord. "At some point in the future will we oversupply the market again? Sure. But not in the next six months, probably not the next 12," said David Zusman, chief investment officer of Talara Capital Management. The recent rally will face tests beyond OPEC compliance, such as rising output from countries not included in the accord, like Libya and Nigeria. They aim to add hundreds of thousands of barrels of oil to the market this year. And U.S. drillers are already putting rigs back to work. Production increased in October to 8.8 million barrels a day. If it continues to ramp up, it could quickly cause OPEC's agreement to fray. "A U.S. output level north of nine million barrels a day would allow U.S. producers to grab a significant portion of OPEC's market share -- likely forcing a gradual breakdown of OPEC's agreement, possibly as early as next spring," Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a note last month. Analysts at Piper Jaffray Cos. expect U.S. production to return roughly to its peak level, projecting output could reach 9.6 million barrels a day by the end of the year. That's a 400,000 barrel-a-day increase from their forecast before OPEC's agreement. If the bank's new projection is on track, the increase in U.S. output could completely offset the cuts pledged by Russia. And the last month of stable, high oil prices opened a window for U.S. producers to lock in prices for output over this year. Crude futures six months from now are even higher than February prices at more than $56 a barrel. Oil for delivery in December has traded at about $57. That's more than enough for many shale producers to turn a profit, some observers said. ARM Energy, which helps producers hedge, is advising clients to secure higher prices now in case they don't last, said Tom Heath, ARM president for financial advisory. Several shale producers have already increased their budgets and are considering more ambitious production plans in 2017. PDC Energy Inc. said in December that it plans to spend $750 million this year, an increase of more than 80% from the $410 million it budgeted for 2016, as it increases production by more than 40%. Credit: By Alison Sider and Erin Ailworth
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2017
Publication date: Jan 6, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Languageof publication: English
Document type: News
ProQuest document ID: 1855667435
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Rises as Traders Rely on Promised Output Cuts; Prices of crude are buoyed by Royal Dutch Shell's decision to close down a Nigerian pipeline
Author: Baxter, Kevin; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Jan 2017: n/a.
Abstract: None available.
Full text: Oil prices closed out a fourth consecutive week of gains, as confidence in lower production levels outweighed building oil products in storage. Light, sweet crude for February delivery settled up 23 cents, or 0.4%, on Friday at $53.99 a barrel on the New York Mercantile Exchange. Prices fluctuated between gains and losses throughout the day, going as high as $54.32 and as low as $53.46. Brent, the global benchmark, settled up 21 cents, or 0.4%, at $57.10 a barrel. Prices were buoyed by Royal Dutch Shell PLC's decision to close down the 140,000-barrel-a-day Trans-Niger Bonny Light pipeline. The company cited a fire for the shutdown, but the situation highlights the continuing struggle with attacks on Nigeria's oil infrastructure. "The Nigerian government is reportedly restarting to pay peace allowance to militants. This will probably ease things, but it will take time before world refiners regain confidence about the reliability of Nigerian supplies," said oil analyst Olivier Jakob from Switzerland-based Petromatrix. For the week, both U.S. crude and Brent gained 0.5%. Oil prices had been choppy after the U.S. Energy Information Administration on Thursday reported a significant drawdown of 7.1 million barrels from stockpiles in the week of Dec. 30 due to lower imports, upending the market's expectations for an increase or a smaller decrease. However, the large growth in distillates and gasoline stocks--of 10.1 million barrels and 8.3 million barrels, respectively--is considered bearish and a reflection of poor demand, said analysts at Société Générale. The data also showed U.S. production of crude grew by 4,000 barrels a day in the same week, a figure that is likely to rise in the postholiday period. As U.S. production continues to creep up, members of the Organization of the Petroleum Exporting Countries are starting to pull back on output to meet the 32.5 million barrels-a-day ceiling pledged at the cartel's Nov. 30 meeting. Saudi Arabia, the de facto leader of the cartel, took the lion's share of the cut. The Wall Street Journal reported Thursday the kingdom made good on its pledge by cutting its January daily production by 468,000 barrels. "Saudi Aramco has made it clear that it plans to cuts production and this will hopefully convince other producers to fully comply with the promised cuts," said Edward Bell, an analyst from the Dubai-based Emirates NBD bank. Some market observers believe prices could reach $60-$70 a barrel later this quarter if the cuts are fully enforced, though OPEC has a spotty record of adhering to past production quotas. Gasoline futures settled down 0.2% at $1.6340 a gallon and diesel futures settled up 0.5% at $1.7032 a gallon. Stephanie Yang contributed to this article. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Kevin Baxter and Jenny W. Hsu
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855701984
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855701984?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Samson Resources Reaches Deal on Bankruptcy Exit; Oil and gas company to leave chapter 11 bankruptcy with reduced balance sheet
Author: Brickley, Peg
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Jan 2017: n/a.
Abstract:
If Samson fails to come up with the rest of the cash by April 15, the company and its creditors may start the process of selling assets to make sure junior creditors get what they were promised, according to papers filed in U.S. Bankruptcy Court in Wilmington, Del. The agreed chapter 11 plan gives second-lien lenders almost all the equity in Samson and pays first-lien lenders in full in cash and new secured debt.
Full text: Samson Resources Corp., a beleaguered oil and gas company that has been caught in a clash among creditors, reached a deal that will give it a peaceful exit from bankruptcy. Instead of an open court clash Friday, the Oklahoma company and its creditors will go before a bankruptcy judge next week to cement an agreement that ends a prolonged fight over Samson's future. Under the agreed exit plan backed by the company and its senior and junior lenders, Samson will be leaving chapter 11 with a reduced balance sheet and a smaller collection of assets. The Oklahoma company filed for chapter 11 protection in September 2015, one of many energy operators struggling to cover their debts in the low-price environment. Samson's first restructuring scheme fell apart under the pressure of continued price depression, and junior creditors turned up the pressure, resisting workout schemes that would leave them with little or nothing to show for the $2.25 billion they had put into the company. Samson raised more than $600 million by selling some of its holdings but wanted to hold on to its assets in East Texas, as well as its Powder River and Greater Green River assets in Wyoming, and reorganize around them. Junior creditors clamored for an all-out liquidation of the company, saying it would leave them better off than a reorganization. In the final days of 2016 , Samson and junior creditors agreed on a dollar amount junior creditors would accept in order to drop their demands for a liquidation and allow the company to reorganize--$168.5 million. But they continued to clash over conditions junior creditors said were necessary to ensure they would collect the promised money. Announced in court papers, Friday's settlement calls for Samson to set aside $100 million to be paid to junior creditors when the company's chapter 11 exit plan is implemented. If Samson fails to come up with the rest of the cash by April 15, the company and its creditors may start the process of selling assets to make sure junior creditors get what they were promised, according to papers filed in U.S. Bankruptcy Court in Wilmington, Del. The agreed chapter 11 plan gives second-lien lenders almost all the equity in Samson and pays first-lien lenders in full in cash and new secured debt. It puts to rest threatened litigation over the circumstances that left Samson burdened with more than $4 billion in debt, unable to stay afloat once energy prices plummeted. Write to Peg Brickley at peg.brickley@wsj.com Credit: By Peg Brickley
Subject: Bankruptcy laws; Creditors; Bankruptcy reorganization
Location: Oklahoma
Company / organization: Name: Samson Resources Corp; NAICS: 211111; Name: Bankruptcy Court-US; NAICS: 922110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 6, 2017
Section: Pro Bankruptcy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855840875
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855840875?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by Four, Baker Hughes Says
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Jan 2017: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. rose by four in the past week to 529, oil-field services company Baker Hughes Inc. said Friday The U.S. oil-rig count is typically viewed as a proxy for activity in the sector.
Full text: The number of rigs drilling for oil in the U.S. rose by four in the past week to 529, oil-field services company Baker Hughes Inc. said Friday The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. However, the count has generally been climbing in recent months. The nation's gas-rig count rose by three to 135 in the past week, according to Baker Hughes. The total U.S. rig count is up one from last year's count of 664, with oil rigs up 13, gas rigs down 13, and miscellaneous rigs up 1. The U.S. offshore-rig count rose by one from last week to 24, which is three fewer than a year ago. On Friday, oil prices flipped between gains and losses as investors weighed the prospects for lower production levels against building oil products in storage. U.S. crude-oil prices were recently up 0.45% to $54 a barrel. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1855921311
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1855921311?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Jour nal
Oil Rises on Belief In OPEC's Plans
Author: Baxter, Kevin; Hsu, Jenny W
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Jan 2017: B.9.
Abstract:
Oil prices had been choppy after the U.S. Energy Information Administration on Thursday reported a significant drawdown of 7.1 million barrels from stockpiles in the week of Dec. 30 due to lower imports, upending the market's expectations for an increase or a smaller decrease.
Full text: Oil prices closed out a fourth consecutive week of gains, as confidence in lower production levels outweighed building oil products in storage. Light, sweet crude for February delivery settled up 23 cents, or 0.4%, on Friday at $53.99 a barrel on the New York Mercantile Exchange. Prices fluctuated between gains and losses throughout the day, going as high as $54.32 and as low as $53.46. Brent, the global benchmark, settled up 21 cents, or 0.4%, at $57.10 a barrel. Prices were buoyed by Royal Dutch Shell PLC's decision to close down the 140,000-barrel-a-day Trans-Niger Bonny Light pipeline. The company cited a fire for the shutdown, but the situation highlights the continuing struggle with attacks on Nigeria's oil infrastructure. "The Nigerian government is reportedly restarting to pay peace allowance to militants. This will probably ease things, but it will take time before world refiners regain confidence about the reliability of Nigerian supplies," said oil analyst Olivier Jakob from Switzerland-based Petromatrix. For the week, U.S. crude and Brent both gained 0.5%. Oil prices had been choppy after the U.S. Energy Information Administration on Thursday reported a significant drawdown of 7.1 million barrels from stockpiles in the week of Dec. 30 due to lower imports, upending the market's expectations for an increase or a smaller decrease. However, the large growth in distillates and gasoline stocks -- of 10.1 million barrels and 8.3 million barrels, respectively -- is considered bearish and a reflection of poor demand, said analysts at Societe Generale. The data also showed U.S. production of crude grew by 4,000 barrels a day in the same week, a figure that is likely to rise in the postholiday period. As U.S. production continues to creep up, members of the Organization of the Petroleum Exporting Countries are starting to pull back on output to meet the 32.5 million barrels-a-day ceiling pledged at the cartel's Nov. 30 meeting. Saudi Arabia, the de facto leader of the cartel, took the lion's share of the cut. The Wall Street Journal reported Thursday the kingdom made good on its pledge by cutting its January daily production by 468,000 barrels. "Saudi Aramco has made it clear that it plans to cuts production and this will hopefully convince other producers to fully comply with the promised cuts," said Edward Bell, an analyst from the Dubai-based Emirates NBD bank. Gasoline futures settled down 0.2% at $1.6340 a gallon and diesel futures settled up 0.5% at $1.7032 a gallon. --- Stephanie Yang contributed to this article. Credit: By Kevin Baxter and Jenny W. Hsu
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.9
Publication year: 2017
Publication date: Jan 7, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856089658
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856089658?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Fall as Production in the U.S. Picks Up; March Brent crude fell $0.19 to $56.91 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2017: n/a.
Abstract:
According to the U.S. Energy Information Administration, U.S. production fell to 8.9 million barrels a day last year, a decrease of 5.3%.
Full text: Oil prices in Asia trading were lower early on Monday as drilling activities in the U.S. intensified last week, stoking concerns that the effort by global oil producers to curtail oversupply could be undercut by American shale producers. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.74 a barrel at 0235 GMT, down $0.25 in the Globex electronic session. March Brent crude on London's ICE Futures exchange fell $0.19 to $56.91 a barrel. Over the weekend, oilfield service company Baker Hughes Inc. reported that the number of rigs drilling for oil in the U.S. rose by four in the week ended Dec 30 to 529. The boom of unconventional oil production in the U.S. has been a major threat to producers in Organization of the Petroleum Exporting Countries, who fear the onslaught of American oil could erode their market share. As a counterstrategy, the OPEC heavyweights ramped up production over a number of years to cut global prices and drive smaller producers in the U.S. out of the market. According to the U.S. Energy Information Administration, U.S. production fell to 8.9 million barrels a day last year, a decrease of 5.3%. The contraction in U.S. output gave OPEC and 11 other non-OPEC players less incentive to keep pumping at top speed and more encouragement to put prices first. Late last year, they agreed to cut production by 1.8 million barrels a day--around 2% of the global output--starting this month. "We won't see the effectiveness of the production cut plan until mid-February and most people are taking a wait-and-see stance," said Nelson Wang, a China energy analyst at CLSA. He noted that so far, major producers such as Kuwait and Saudi Arabia have indicated that they have cut their January production in line with the pact, "but that's just talk so far. We'll see what the data really shows in a month." Despite market skepticism, the global crude market started the year on a positive note, said ANZ Research. "The next leg up in prices probably won't occur until the traders see evidence that production levels are falling," ANZ said, adding that rising U.S. drilling activity and output is likely to keep prices in check. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--fell 41 points to $1.6299 a gallon, while February diesel traded at $0.0000, 30 points lower. ICE gasoil for January changed hands at $495.25 a metric ton, up $2.00 from Friday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Supply & demand; Petroleum production; Price increases
Location: United States--US Asia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 9, 2017
Section: Markets
Publisher: Dow Jones & Company In c
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856384058
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856384058?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Dow Retreats After Flirting With 20000; Declines in Exxon Mobil and Chevron pressure the blue-chip index
Author: Banerji, Gunjan; Bird, Mike
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2017: n/a.
Abstract:
Renewed concerns about a glut of crude sent U.S. oil prices down 3.8%-- their biggest daily drop since November--and weighed on a sector of the stock market that was a top performer last year.
Full text: Corrections & Amplifications: The U.K.'s FTSE 100 index closed at a record high on Tuesday, Jan. 10, marking the longest streak of records in data going back to 1986, according to the WSJ Market Data Group. An earlier version of this article, published Monday, Jan. 9, incorrectly said that if the index closed at a record high on Tuesday it would mark the longest streak of records since 1987. (Jan. 11, 2017) The S&P 500 fell Monday, led by declines in energy shares as oil prices slumped. Renewed concerns about a glut of crude sent U.S. oil prices down 3.8%-- their biggest daily drop since November--and weighed on a sector of the stock market that was a top performer last year. Declines in Exxon Mobil and Chevron pressured the Dow Jones Industrial Average, sending the blue-chip index farther from the elusive 20000 mark after it got closer than ever before on Friday. The Dow industrials have risen nearly 9% since Election Day, largely on expectations of higher growth under President-elect Donald Trump. Some investors and analysts expect volatility, which was relatively low the first week of the year, to pick up in coming months when details on Mr. Trump's policies become clearer. "We need a breather in here," said Michael Mullaney, director of global markets research at Boston Partners. "We are well overdue for some kind of a pullback. That's what we're seeing right now." Investors who have logged short-term gains are likely taking some money off the table, Mr. Mullaney said, adding that such a retreat is healthy for the market. The Dow Jones Industrial Average fell 76 points, or 0.4%, to 19887 on Monday. The S&P 500 declined 0.4% and the Nasdaq Composite edged up 0.2% on gains in tech and biotechnology shares. Nvidia, the best-performing stock in the S&P 500 last year , was one of Monday's top performers . Shares rose 4.1%. Energy companies in the S&P 500 lost 1.5%, knocking a sector that was the best performer out of 11 last year with a 24% gain. Southwestern Energy shed 4.9% Monday, Range Resources lost 4.3% and Devon Energy fell 4.3%. The declines came as U.S. crude for February delivery fell to $51.96 a barrel, its lowest settlement since Dec. 16 and its biggest one-day percentage decline since Nov. 29. Some analysts and brokers said signs of steadily high supply coming out of Iraq and Iran were undermining faith in a deal to cut supply from the Organization of the Petroleum Exporting Countries and other global exporters. Elsewhere, the Stoxx Europe 600 fell 0.5% on declines in the banking and energy sectors. The U.K.'s FTSE 100 was one of the few European indexes in positive territory, rising 0.4% to notch its eighth consecutive record close. If the index closes at another record Tuesday, it would mark the longest streak of records in data going back to 1986, according to the WSJ Market Data Group. The FTSE tends to benefit from a drop in the British pound, which slumped Monday after U.K. Prime Minister Theresa May said Britain would make a definitive break from the European Union. The pound was recently down 1.1% against the U.S. dollar at $1.2156. Demand for havens helped U.S. government bond prices rise. The yield on the 10-year U.S. Treasury note fell to 2.377% from 2.417% Friday. Hong Kong's Hang Seng rose 0.2% and the Shanghai Composite Index added 0.5%. Japanese markets were closed for a public holiday. Write to Gunjan Banerji at Gunjan.Banerji@wsj.com and Mike Bird at Mike.Bird@wsj.com Credit: By Gunjan Banerji and Mike Bird
Subject: Stock exchanges; Dow Jones averages; Investments; Energy industry
Location: United States--US
People: Trump, Donald J
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Devon Energy Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 9, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856474257
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856474257?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Slip on Fears of Oversupply; Rising rig count and lingering doubts over production cuts pressuring market
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2017: n/a.
Abstract:
Stockpiles at Cushing, Okla., the delivery point for the benchmark U.S. West Texas Intermediate oil contract, are already near their all-time highs, raising fears storage will hit capacity, the Citi analysts said. Production data from major OPEC producers won't be available until mid-February, leading most market watchers to predict prices will be more volatile than usual as snippets of information regarding the cuts are released by the media over the next six weeks.
Full text: U.S. oil prices took their largest losses in a month Monday with a wide slate of factors suggesting a glut of oil may not go away as quickly as some had bet. Early losses came from fears of growing production coming from more rigs in the U.S., and from signs of an unrelenting wave of oil from Iraq and Iran. They accelerated throughout the day, with the specter of oil sales from the U.S. government and warmer weather forecasts pushing traders to sell out of oil bets that had become heavily skewed on rising prices, analysts said. Light, sweet crude for February delivery settled down $2.03, or 3.8%, at $51.96 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, lost $2.16, or 3.8%, to $54.94 a barrel on ICE Futures Europe. Both snapped a three-session losing streak and fell to their lowest settlements in about three weeks. Monday's losses were the worst by percentage since Nov. 29 and the largest loss by dollar value for any session since July. Signs of steadily high supply coming out of Iraq and Iran are undermining faith in a deal to cut supply from the Organization of the Petroleum Exporting Countries and other global exporters, analysts and brokers said. The deal is supposed to cut global production by more than 1% , but many have noted these countries have frequently cheated output quotas in past deals . There are signs Iranians are taking advantage of higher prices to sell more. The country's floating storage has nearly halved since September, down to 17 million barrels from 32.5 million, according to ClipperData. The firm also reports Iraqi exports going through the southern oil ports of Basra are at the highest in four years of tracking, just shy of 3.5 million barrels a day in January. Germany's Commerzbank put out a note Monday citing Iraq's December record-high crude exports of 3.5 million barrels a day from Basra as an example of the difficulties OPEC faces. Baghdad, however, has stressed that it will still be able to hit its 210,000-barrel-a-day limit this month. Traders had already moved their proportion of bets on higher prices to a two-year high in recent weeks. The OPEC deal was supposed to cut enough oil off the market to balance it, helping end a two-year supply glut. But, with so many buyers already locked in, it makes it more likely that sellers will become the primary movers in the market and send prices sharply lower at times while traders have to wait for signs OPEC is following through, analysts said. That vulnerability hovered over the market Monday, said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. "It's a confluence of factors," Mr. Navy said. "The bottom line is there is still too much supply. That does not disappear." The U.S. government is in the process of selling oil from its strategic reserve, further pressure to send prices lower, analysts at Citigroup Inc. said late Monday. They also noted weather forecast updates that showed extremely mild temperatures for at least half the country deep into January, which is likely to suppress demand for heating fuels including diesel. Houston-based oil-field services company Baker Hughes said that drilling rigs in the U.S. had increased by four for the week ended Dec. 30. The uptick was the 10th straight week of rig-count growth and the U.S. now has the highest number of rigs in operation, at 529, since December 2015. Stockpiles at Cushing, Okla., the delivery point for the benchmark U.S. West Texas Intermediate oil contract, are already near their all-time highs, raising fears storage will hit capacity, the Citi analysts said. More oil coming from an increase in U.S. rigs could perpetuate that oversupply. Higher oil production from the U.S. is an expected byproduct of higher oil prices caused by OPEC's decision on Nov. 30 last year to trim output to 32.5 million barrels a day. Production data from major OPEC producers won't be available until mid-February, leading most market watchers to predict prices will be more volatile than usual as snippets of information regarding the cuts are released by the media over the next six weeks. As the market has to wait for data showing OPEC is following through, there is a chance traders are becoming more likely to sell, Jim Ritterbusch, president of energy-advisory firm Ritterbusch & Associates, said in a note. Monday was the first time U.S. oil prices settled outside a tight, $2 range since Dec. 15. "This still feels like a complex that has simply lost upside momentum," Mr. Ritterbusch said. "Some fresh unexpected news may be required to revive the bull market." Gasoline futures lost 3.9% to $1.5707 a gallon. Diesel futures fell 3.9% to $1.6376 a gallon. Both were their largest one-session declines since the summer. Kevin Baxter and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Crude oil prices; Petroleum production; Price increases
Location: United States--US Iran Iraq
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 9, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856538300
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856538300?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Bust Seeps Into Texas Budget; State's available revenue for 2018 and 2019 projected to drop 2.7%
Author: Frosch, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2017: n/a.
Abstract:
According to figures released on Monday, after a nearly 6% increase in gross state product in 2015, Texas' economy is estimated to have grown by only 0.2% during the last fiscal year, barely avoiding contraction.
Full text: Oil and gas markets are beginning to bounce back, but a protracted downturn will have a marked impact on Texas' budget over the next two years, state finance officials said Monday. Texas' available revenue for 2018 and 2019 is projected to drop by 2.7%, compared with the current two-year budget period, state comptroller Glenn Hegar said in a financial forecast for Texas lawmakers before they convene Tuesday for the state's legislative session. Texas, which accounts for roughly 9% of U.S. economic output, helped push the nation out of the recession, partly due to shale drilling. But sagging oil prices stunted the state's recent economic success, and made Texas a drag on the nation's economy . According to figures released on Monday, after a nearly 6% increase in gross state product in 2015, Texas' economy is estimated to have grown by only 0.2% during the last fiscal year, barely avoiding contraction. "Ongoing weakness in activity related to oil and natural gas has been a drag on state economic growth," Mr. Hegar said. In particular, Mr. Hegar noted the drop in total sales tax collections in Texas' mining sector--made up primarily of the oil and gas industry. Remittance from companies in the mining sector dropped by 52% in 2016 to the lowest levels the state has seen since 2010. And last year, Texas' mining sector accounted for just 2.9% of sales tax collections, down from 6.1% the previous year. The oil and gas industry's struggles also affected other areas as well, such as manufacturing and trade, Mr. Hegar said. "This was not unexpected," said Sherri Greenberg, a professor at the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin. "When you see a big drop in oil and gas, we know there will be a hit to the state budget here." Ms. Greenberg said there would likely be a debate in the legislature over whether the state should dip into its Rainy Day Fund to help make up for the revenue fall or make cuts to services. Issues likely to be affected by the revenue forecast during the legislative session are education spending and the state's beleaguered foster care system. The state is currently operating under a two year budget of $106.2 billion that was passed in 2015. Still, Mr. Hegar said there were signals that the energy sector in Texas was recovering and the state's economy was well-positioned to weather the revenue dip. Tax collections from oil production are projected to generate $4.7 billion in 2018 and 2019, a 32% increase from tax collections during the current two-year budget period, Mr. Hegar said. Natural gas tax collections are predicted to rise by 27% over the same time frame--from $1.3 billion to $1.7 billion in 2018 and 2019. Overall economic growth was projected to rise as well, by 2.5% in 2017 and 3% the following year. The state's unemployment rate--which is 4.5 %--is expected to remain relatively unchanged in the coming years, Mr. Hegar said. The cautionary revenue forecast didn't come as a surprise to Texas lawmakers as they prepare to iron out the state's budget. "Texans expect their government to live within its means, and I fully expect to sign a budget that does just that," said Texas Gov. Greg Abbott, a Republican, in a statement following the forecast. Write to Dan Frosch at dan.frosch@wsj.com Credit: By Dan Frosch
Subject: Tax collections; Sales taxes; State budgets; Natural gas; Petroleum production; Economic growth; Energy industry; Gas industry
Location: Texas United States--US
Company / organization: Name: University of Texas; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 9, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856683982
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856683982?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Inside Rex Tillerson's Negotiating Style: Cozy With Power, Unbending and Theatrical; Senate to weigh if Exxon chief's experience with multibillion-dollar, international deals prepares him to be secretary of state
Author: Scheck, Justin; Marson, James; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2017: n/a.
Abstract:
The Exxon Mobil Corp. chief executive, now Donald Trump's nominee for secretary of state , would deepen his company's longstanding partnership with the Kremlin. In a 2004 interview with The Wall Street Journal he described how when a Russian minister in the 1990s slammed his fist on the bargaining table in a dispute over a permit, raising images of former Soviet leader Nikita Khrushchev, he gingerly brought him back to the discussion.
Full text: MOSCOW--In the spring of 2014, after the U.S. punished Russia with sanctions for seizing Ukrainian territory, Rex Tillerson made a major decision. The Exxon Mobil Corp. chief executive, now Donald Trump's nominee for secretary of state , would deepen his company's longstanding partnership with the Kremlin. During negotiations, the CEO of Rosneft, the Kremlin's state-controlled oil company, looked over a proposed contract related to the pair's operations off Sakhalin Island, in Russia's Far East, and scowled, said a person with knowledge of the meeting. Exxon, he said, put language in the contract he didn't expect. He looked at Mr. Tillerson and tore it up. Mr. Tillerson, the person said, leaned back, put his hands together, smiled silently--and waited. With billions of dollars already invested, the Russians had few other options. Rosneft's CEO, a former intelligence officer and top Putin ally named Igor Sechin, eventually backed down, and an agreement was struck. A look at Mr. Tillerson's negotiating style, honed over years at the head of one of the world's largest oil companies, shows an executive determined to hold the course, even when the landscape shifts dramatically. Personal relationships were often a deciding factor. So were deliberately theatrical tactics, such as preplanned temper tantrums and silent stare-offs. The question for the Senate, which is expected to consider Mr. Tillerson's nomination on Wednesday, is to what extent this kind of expertise prepares him for the job of secretary of state. He has vast experience hammering out multibillion-dollar deals that potentially span decades with government leaders of all stripes. On the other hand, a company is not a country. The former Exxon chief's dealings with Rosneft are likely to be a major line of questioning from both Republicans and Democrats, many of whom have said they are uncomfortable with Mr. Tillerson's close ties there in the wake of Russia's alleged hacking attack on figures in the Democratic Party. The Russia deals added hundreds of millions of dollars to Exxon's bottom line and billions of barrels of potential reserves to bolster the company's future production. At the same time, they ran afoul of State Department priorities at a time when the U.S. was using sanctions to try to check Russian military interventions in Ukraine. For Exxon, one of the world's largest publicly traded oil companies, the results of the Russia deals are mixed. The deals struck in 2014, which technically expanded projects already in operation, didn't violate sanctions, which targeted the spread of oil and gas technology. But other projects, especially a vast Arctic investment, ground to a halt, blocking Exxon's access to rich reserves it hoped would ease its longtime struggle to find new resources . "This is an industry with very long timelines," said Alan Jeffers, an Exxon spokesman. "The current situation prevents us from activities in the area that are sanctioned, but we see that as a pause." Mr. Tillerson declined to comment. Mr. Sechin and Rosneft didn't respond to emailed questions. Mr. Tillerson, who joined Exxon in 1975 and became CEO in 2006, specialized in the types of deals that typified the oil industry in the run-up to the recent price crash: Giant agreements, sometimes in unstable places, that cost billions of dollars to develop and aimed to produce huge volumes of oil and gas over decades. He spent hours with the company's negotiating teams, preparing for every potential aspect and plotting tactics, including the theatrical, according to people he worked with. In a meeting in Yemen in the 1990s, he threw a book and stormed out of talks. The tantrum was preplanned, one person said. "Anger is a strategy, not an emotion," Mr. Tillerson told colleagues. He negotiated deals worth more than the GDP of some countries with officials who had vast power but lacked expertise. That meant he dealt with concerns other than money, such as a leader's desire for Exxon to educate local workers or help a state-owned oil company gain technology. He drank tea with tribal leaders and showed off Exxon facilities to visiting dignitaries. In interactions with Russian leaders, Mr. Tillerson avoided giving any impression of American superiority, especially amid the post-Cold War tensions of the 1990s. In a 2004 interview with The Wall Street Journal he described how when a Russian minister in the 1990s slammed his fist on the bargaining table in a dispute over a permit, raising images of former Soviet leader Nikita Khrushchev, he gingerly brought him back to the discussion. "You make yourself very aware of it, and almost go out of your way to make sure there's nothing that conveys" a superior attitude, he said. At the same time, he rarely budged on terms, seeking to project strength, said people familiar with his negotiating style. Mr. Tillerson arrived in post-Soviet Russia in 1997 to chase the same prize as every other big Western oil executive: access to the country's vast stores of untapped crude. He set up in a suite in the Metropol Hotel, just steps from Red Square, and tried to make sense of a Kremlin in turmoil. Russia cycled through six prime ministers in Mr. Tillerson's first 14 months. Even before the musical chairs ended with Mr. Putin in charge, in 1999, Exxon realized something its Western rivals didn't. Joining with the Kremlin could shield the company from hostile takeovers by other state-owned firms and regulatory obstacles from the Russian government. At a time when other Western oil giants dismissed state-owned companies as too bureaucratic and inflexible, Exxon committed to an ambitious project with Rosneft to develop an oil and gas field near Sakhalin Island. It would cost billions of dollars to develop and be one of the most technically complex projects in Exxon's history, with oil and gas deep beneath sea ice in an area prone to earthquakes and 50-foot waves. Over the years, it would be expanded multiple times. In the past decade, the partners have produced more than 300 million barrels from three separate fields, with a potential peak of 200,000 barrels a day, Exxon said. Mr. Tillerson had a key person on the ground, a personable, Russian-speaking Croat named Zeljko Runje, who formed close relationships with Rosneft executives and years later would help pull off an even bigger Russian deal for Exxon. When it first partnered with Exxon, Rosneft "had no equipment, they had no technology," a former Rosneft executive said. Exxon's expertise and financing helped build Rosneft into one of the world's largest producers, which strengthened Russian President Vladimir Putin's grip on power. Energy revenues allowed him to boost spending at home and to project power abroad; Rosneft's dominance gave him control of Russia's most important industry. In 2004, the Kremlin seized assets from OAO Yukos, then the country's largest oil company, and Rosneft took control of its main production unit, becoming the country's second-largest producer. Exxon worked closely with Moscow to devise legislation on taxation and other issues that affected its investment, according to Igor Yusufov, Russia's energy minister from 2001 to 2004. Mr. Tillerson met with ministers and gave suggestions for legislation, Mr. Yusufov said. "He met everyone," the Russian said. "He helped us to formulate the relationship between the state and investors." During a U.S.-Russia energy summit in Houston in 2002, Mr. Tillerson wooed Mr. Yusufov with a trip to Exxon facilities, where he showed the Russian minister a 3-D model of the Sakhalin project as it was at the time and as it would look at peak production. Mr. Tillerson worked closely with Rosneft executives as the project began producing in 2005. He and then-Rosneft CEO Sergey Bogdanchikov landed their private jets at tiny Teterboro Airport, in suburban New Jersey, in 2006 and discussed Sakhalin and Rosneft's coming initial public offering, said a person familiar with the talk. Mr. Sechin, who had spent years in intelligence in Africa and elsewhere and later became a Kremlin political operative close to Mr. Putin, had become chairman of Rosneft in 2004. He took over as CEO in 2012 with the aim of extending its reach. His underlings quickly came to fear his 3 a.m. calls ordering them to pack for a trip to Asia as much as his outbursts at meetings over frustrations like project delays, former executives said. He and Mr. Tillerson developed a comfortable rapport, said people who attended their meetings. Mr. Sechin was careful to show Mr. Tillerson he had the highest-possible backing. Two or three times a year or more, Mr. Sechin would ask Mr. Putin to speak, by phone or in person, with Mr. Tillerson, said one of the people. Mr. Sechin came to like Mr. Tillerson because he was transparent and forceful in his communications--and was one of the few Western executives strong enough to push back against Mr. Sechin, said people familiar with the matter. The relationship helped Exxon land one of its biggest coups. In 2011, Exxon rival BP PLC reached a deal for access to a giant Rosneft-controlled Arctic field, but BP's oligarch partners in a separate Russian joint venture blocked the deal. Exxon's longtime Russia hand, Mr. Runje, who had been key to the Sakhalin project more than a decade earlier, saw an opening and sent a message to Mr. Tillerson, said people familiar with the matter. Mr. Runje declined to comment. Messrs. Tillerson and Sechin hashed out a $3.2 billion deal that was to be one of the biggest exploration contracts ever. It gave Exxon access to the Arctic fields BP lost, as well as basins in Siberia and in the Black Sea. Mr. Putin, who had come to trust Mr. Tillerson as a man of his word, blessed the deal and said investment could eventually reach $500 billion. Mr. Putin later awarded Mr. Tillerson the Russian Order of Friendship, the country's highest honor for foreigners, after a request by Mr. Sechin, according to a person familiar with the matter. By late 2014, when the partners hit oil and gas in the Arctic, sanctions by the U.S. and other countries were in place barring companies from sending oil and gas exploration technology to Russia, bringing operations to a halt. In Washington, Exxon lobbied against the sanctions. Mr. Tillerson and others told senior officials that because of the complexity of the Arctic project Exxon couldn't immediately pull out without significant safety and environmental risks. The CEO also said U.S. sanctions applied to an existing project, unlike European sanctions, which exempted developments already under way, people familiar with the matter said. Exxon withdrew from its Arctic project, and Mr. Tillerson stayed home from a St. Petersburg economic summit in 2014 for the first time in years. He continued to attend to Russia business, including efforts to build a gas export plant at Sakhalin and other operations. "Over the years, I think we have earned each other's respect," Mr. Tillerson told students at an event in March 2015 at Texas Tech University. When Exxon says "yes," he told them, the Russians would know that the company would "follow through on that yes. Your commitment means something. And so I think it's the most important attribute." Credit: By Justin Scheck, James Marson and Bradley Olson
Subject: Sanctions
Location: Russia United States--US Sakhalin Island
People: Trump, Donald J
Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Democratic Party; NAICS: 813940; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 9, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856692739
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856692739?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Volatile in Asia on Supply Concerns; March Brent crude on London's ICE Futures exchange rose $0.22 to $55.16 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Jan 2017: n/a.
Abstract:
Market participants had placed bets on oil prices rising after the Organization of the Petroleum Exporting Countries and 11 other non-cartel producers in November agreed to rein in their productions.
Full text: Crude oil prices were volatile in Asian trade Tuesday as concerns over a stubborn global supply overhang kept prices in a tight range. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $52.13 a barrel at 0408 GMT, up $0.17 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.22 to $55.16 a barrel. Market participants had placed bets on oil prices rising after the Organization of the Petroleum Exporting Countries and 11 other non-cartel producers in November agreed to rein in their productions. However, with the pact in effect for less than a month, many people are unsure whether the agreement will be carried out and if participating producers will comply with their allotted quota. Overnight, prices fell almost 4% after data from industry firm ClipperData showed Iran's floating storage had nearly halved since September, a sign that the country is aggressively taking advantage of the higher prices to sell more. The firm also reported Iraqi exports going through the southern oil ports of Basra to be the highest in four years of tracking, just shy of 3.5 million barrels a day in January. Baghdad, however, has stressed that it will still be able to hit its 210,000-barrel-a-day limit this month. Analysts say Iraq's record high exports is a reminder that the market is still mired in surplus despite efforts to reduce the overhang. "This doesn't mean that the market won't rebalance in 2017, but it does suggest that it may not happen to the extent or on the schedule that the bulls would prefer," said Tim Evans, a Citi Futures analyst. OPEC is expected to release the January production data next month which will give traders and investors a better idea on the compliance by oil producers. Another area of concern is the U.S., which is said to be in the process of selling barrels from its strategic reserve, likely adding to the pressure on prices, analysts at Citigroup said. U.S. shale production could also pivot higher in the future as data shows the number of rigs digging for oil in the U.S. have increased for 10 straight weeks. The U.S. now has the highest number of rigs in operation, at 529, in more than a year. U.S. crude inventories, a highly-watched gauge of the supply there, is likely to show an increase of 1.75 million barrels in the week ended January 6. Citigroup also forecasts gasoline stocks to have grown by 1.25 million barrels while distillate stocks have shrunk only by 130,000 barrels in the same week. Official data from the Energy Information Administration will be released on Wednesday. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 76 points to $1.5783 a gallon, while February diesel traded at $1.6449, 73 points higher. ICE gas oil for January changed hands at $480.25 a metric ton, down $2.75 from Monday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Gasoline; Futures
Location: United States--US
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856723645
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856723645?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. News: Oil and Gas Slump Expected To Crimp Revenue in Texas
Author: Frosch, Dan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Jan 2017: A.2.
Abstract:
According to figures released on Monday, after a nearly 6% increase in gross state product in 2015, Texas' economy is estimated to have grown by only 0.2% during the last fiscal year, barely avoiding contraction.
Full text: Oil and gas markets are beginning to bounce back, but a protracted downturn will have a marked impact on Texas' budget over the next two years, state finance officials said Monday. Texas' available revenue for 2018 and 2019 is projected to drop by 2.7%, compared with the current two-year budget period, state Comptroller Glenn Hegar said in a financial forecast for Texas lawmakers before they convene Tuesday for the state's legislative session. Texas, which accounts for roughly 9% of U.S. economic output, helped push the nation out of the recession, partly because of shale drilling. But sagging oil prices stunted the state's recent economic successand made Texas a drag on the nation's economy. According to figures released on Monday, after a nearly 6% increase in gross state product in 2015, Texas' economy is estimated to have grown by only 0.2% during the last fiscal year, barely avoiding contraction. "Ongoing weakness in activity related to oil and natural gas has been a drag on state economic growth,"Mr. Hegar said. In particular, Mr. Hegar noted the drop in total sales-tax collections in Texas' mining sector -- made up primarily of the oil and gas industry. Remittances from companies in the mining sector dropped 52% in 2016 to the lowest levels the state has seen since 2010. And last year, Texas' mining sector accounted for just 2.9% of sales-tax collections, down from 6.1% the previous year. The oil and gas industry's struggles also affected other areas, as well, such as manufacturing and trade, Mr. Hegar said. "This was not unexpected," said Sherri Greenberg, a professor at the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin. "When you see a big drop in oil and gas, we know there will be a hit to the state budget here." Ms. Greenberg said there would likely be a debate in the Legislature over whether the state should dip into its Rainy Day Fund to help make up for the revenue decline or cut services. Issues likely to be affected by the revenue forecast during the legislative session are education spending and the state's beleaguered foster-care system. The state is currently operating under a two year budget of $106.2 billion that was passed in 2015. Still, Mr. Hegar said there were signals that the energy sector in Texas was recovering and the state's economy was well-positioned to weather the revenue dip. Tax collections from oil production are projected to generate $4.7 billion in 2018 and 2019, a 32% increase from tax collections during the current two-year budget period, Mr. Hegar said. Natural-gas tax collections are predicted to rise over the same time frame -- from $1.3 billion to $1.7 billion in 2018 and 2019. Overall economic growth was projected to rise as well, by 2.5% in 2017 and 3% the following year. The state's unemployment rate -- which is 4.5 % -- is expected to remain relatively unchanged in the coming years, Mr. Hegar said. The cautionary revenue forecast didn't come as a surprise to Texas lawmakers as they prepare to iron out the state's budget. "Texans expect their government to live within its means, and I fully expect to sign a budget that does just that," said Texas Gov. Greg Abbott, a Republican, in a statement following the forecast. Credit: By Dan Frosch
Subject: Tax collections; State budgets; Energy industry
Location: Texas
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.2
Publication year: 2017
Publication date: Jan 10, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856772043
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Log Big Drop on Supply Worries
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Jan 2017: B.12.
Abstract:
Stockpiles at Cushing, Okla., the delivery point for the benchmark U.S. West Texas Intermediate oil contract, are already near records, raising fears that storage will hit capacity, the Citigroup analysts said.
Full text: U.S. oil prices took their largest losses in a month Monday, with a wide slate of factors suggesting a glut of oil may not go away as quickly as some had bet. Early losses came from fears of growing production coming from more rigs in the U.S. and from signs of an unrelenting wave of oil from Iraq and Iran. They accelerated throughout the day, with the specter of oil sales from the U.S. government and warmer-weather forecasts pushing traders to sell out of oil bets that had become heavily skewed on rising prices, analysts said. Light, sweet crude for February delivery settled down $2.03, or 3.8%, at $51.96 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, lost $2.16, or 3.8%, to $54.94 a barrel on ICE Futures Europe. Both snapped three-session winning streaks and fell to their lowest settlements in about three weeks. Monday's losses were the worst by percentage since Nov. 29 and the largest loss by dollar value for any session since July. Signs of steadily high supply coming out of Iraq and Iran are undermining faith in a deal to cut supply from the Organization of the Petroleum Exporting Countries and other global exporters, analysts and brokers said. The deal is supposed to cut global production by more than 1%, but many traders have noted these countries have frequently cheated on output quotas in past deals. There are signs that Iranians are taking advantage of higher prices to sell more. The country's floating storage has nearly halved since September, down to 17 million barrels from 32.5 million, according to ClipperData. The firm also reports Iraqi exports going through the southern oil ports of Basra are at the highest in four years of tracking, just shy of 3.5 million barrels a day in January. Germany's Commerzbank put out a note Monday citing Iraq's December record crude exports of 3.5 million barrels a day from Basra as an example of the difficulties OPEC faces. Baghdad, however, has stressed that it will still be able to hit its 210,000-barrel-a-day limit this month. Traders had already moved their proportion of bets on higher prices to a two-year high in recent weeks. The OPEC deal was supposed to cut enough oil off the market to balance it, helping end a two-year supply glut. But with so many buyers already locked in, it makes it more likely that sellers will become the primary movers in the market and send prices sharply lower at times while traders have to wait for signs OPEC is following through on promised cuts, analysts said. The U.S. government is in the process of selling oil from its strategic reserve, further pressuring prices lower, analysts at Citigroup Inc. said late Monday. They also noted weather forecasts that showed extremely mild temperatures for at least half of the country deep into January, which is likely to suppress demand for heating fuels including diesel. Houston-based oil-field-services company Baker Hughes said that drilling rigs in the U.S. had increased by four for the week ended Dec. 30. The uptick was the 10th consecutive week of rig-count growth and the U.S. now has the highest number of rigs in operation, at 529, since December 2015. Stockpiles at Cushing, Okla., the delivery point for the benchmark U.S. West Texas Intermediate oil contract, are already near records, raising fears that storage will hit capacity, the Citigroup analysts said. More oil coming from an increase in U.S. rigs could perpetuate that oversupply. Production data from major OPEC producers won't be available until mid-February, leading most market watchers to predict prices will be more volatile than usual as snippets of information regarding the cuts are released by the media over the next six weeks. As the market has to wait for data showing OPEC is following through, there is a chance traders are becoming more likely to sell, Jim Ritterbusch, president of energy-advisory firm Ritterbusch & Associates, said in a note. "This still feels like a complex that has simply lost upside momentum," Mr. Ritterbusch said. "Some fresh unexpected news may be required to revive the bull market." Gasoline futures lost 3.9% to $1.5707 a gallon. Diesel futures fell 3.9% to $1.6376 a gallon. Both were their largest one-session declines since the summer. --- Kevin Baxter and Jenny W. Hsu contributed to this article. Credit: By Timothy Puko
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2017
Publication date: Jan 10, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856772076
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856772076?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Tillerson's Deal Style: Unbending, Theatrical --- Senate to weigh if Exxon experience, especially in Russia, is qualification for secretary of state
Author: Scheck, Justin; Marson, James; Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Jan 2017: A.1.
Abstract:
The Exxon Mobil Corp. chief executive, now Donald Trump's nominee for secretary of state, would deepen his company's longstanding partnership with the Kremlin. In a 2004 interview with The Wall Street Journal he described how when a Russian minister in the 1990s slammed his fist on the bargaining table in a dispute over a permit, raising images of former Soviet leader Nikita Khrushchev, he gingerly brought him back to the discussion.
Full text: MOSCOW -- In the spring of 2014, after the U.S. punished Russia with sanctions for seizing Ukrainian territory, Rex Tillerson made a major decision. The Exxon Mobil Corp. chief executive, now Donald Trump's nominee for secretary of state, would deepen his company's longstanding partnership with the Kremlin. During negotiations, the CEO of Rosneft, the Kremlin's state-controlled oil company, looked over a proposed contract related to the pair's operations off Sakhalin Island, in Russia's Far East, and scowled, said a person with knowledge of the meeting. Exxon, he said, put language in the contract he didn't expect. He looked at Mr. Tillerson and tore it up. Mr. Tillerson, the person said, leaned back, put his hands together, smiled silently -- and waited. With billions of dollars already invested, the Russians had few other options. Rosneft's CEO, a former intelligence officer and top Putin ally named Igor Sechin, eventually backed down, and an agreement was struck. A look at Mr. Tillerson's negotiating style, honed over years at the head of one of the world's largest oil companies, shows an executive determined to hold the course, even when the landscape shifts dramatically. Personal relationships were often a deciding factor. So were deliberately theatrical tactics, such as preplanned temper tantrums and silent stare-offs. The question for the Senate, which is expected to consider Mr. Tillerson's nomination on Wednesday, is to what extent this kind of expertise prepares him for the job of secretary of state. He has vast experience hammering out multibillion-dollar deals that potentially span decades with government leaders of all stripes. On the other hand, a company is not a country. The former Exxon chief's dealings with Rosneft are likely to be a major line of questioning from both Republicans and Democrats, many of whom have said they are uncomfortable with Mr. Tillerson's close ties there in the wake of Russia's alleged hacking attack on figures in the Democratic Party. The Russia deals added hundreds of millions of dollars to Exxon's bottom line and billions of barrels of potential reserves to bolster the company's future production. At the same time, they ran afoul of State Department priorities at a time when the U.S. was using sanctions to try to check Russian military interventions in Ukraine. For Exxon, one of the world's largest publicly traded oil companies, the results of the Russia deals are mixed. The deals struck in 2014, which technically expanded projects already in operation, didn't violate sanctions, which targeted the spread of oil and gas technology. But other projects, especially a vast Arctic investment, ground to a halt, blocking Exxon's access to rich reserves it hoped would ease its longtime struggle to find new resources. "This is an industry with very long timelines," said Alan Jeffers, an Exxon spokesman. "The current situation prevents us from activities in the area that are sanctioned, but we see that as a pause." Mr. Tillerson declined to comment. Mr. Sechin and Rosneft didn't respond to emailed questions. Mr. Tillerson, who joined Exxon in 1975 and became CEO in 2006, specialized in the types of deals that typified the oil industry in the run-up to the recent price crash: Giant agreements, sometimes in unstable places, that cost billions of dollars to develop and aimed to produce huge volumes of oil and gas over decades. He spent hours with the company's negotiating teams, preparing for every potential aspect and plotting tactics, including the theatrical, according to people he worked with. In a meeting in Yemen in the 1990s, he threw a book and stormed out of talks. The tantrum was preplanned, one person said. "Anger is a strategy, not an emotion," Mr. Tillerson told colleagues. He negotiated deals worth more than the GDP of some countries with officials who had vast power but lacked expertise. That meant he dealt with concerns other than money, such as a leader's desire for Exxon to educate local workers or help a state-owned oil company gain technology. He drank tea with tribal leaders and showed off Exxon facilities to visiting dignitaries. In interactions with Russian leaders, Mr. Tillerson avoided giving any impression of American superiority, especially amid the post-Cold War tensions of the 1990s. In a 2004 interview with The Wall Street Journal he described how when a Russian minister in the 1990s slammed his fist on the bargaining table in a dispute over a permit, raising images of former Soviet leader Nikita Khrushchev, he gingerly brought him back to the discussion. "You make yourself very aware of it, and almost go out of your way to make sure there's nothing that conveys" a superior attitude, he said. At the same time, he rarely budged on terms, seeking to project strength, said people familiar with his negotiating style. Mr. Tillerson arrived in post-Soviet Russia in 1997 to chase the same prize as every other big Western oil executive: access to the country's vast stores of untapped crude. He set up in a suite in the Metropol Hotel, just steps from Red Square, and tried to make sense of a Kremlin in turmoil. Russia cycled through six prime ministers in Mr. Tillerson's first 14 months. Even before the musical chairs ended with Mr. Putin in charge, in 1999, Exxon realized something its Western rivals didn't. Joining with the Kremlin could shield the company from hostile takeovers by other state-owned firms and regulatory obstacles from the Russian government. At a time when other Western oil giants dismissed state-owned companies as too bureaucratic and inflexible, Exxon committed to an ambitious project with Rosneft to develop an oil and gas field near Sakhalin Island. It would cost billions of dollars to develop and be one of the most technically complex projects in Exxon's history, with oil and gas deep beneath sea ice in an area prone to earthquakes and 50-foot waves. Over the years, it would be expanded multiple times. In the past decade, the partners have produced more than 300 million barrels from three separate fields, with a potential peak of 200,000 barrels a day, Exxon said. Mr. Tillerson had a key person on the ground, a personable, Russian-speaking Croat named Zeljko Runje, who formed close relationships with Rosneft executives and years later would help pull off an even bigger Russian deal for Exxon. When it first partnered with Exxon, Rosneft "had no equipment, they had no technology," said a former Rosneft executive said. Exxon's expertise and financing helped build Rosneft into one of the world's largest producers, which strengthened Russian President Vladimir Putin's grip on power. Energy revenues allowed him to boost spending at home and to project power abroad; Rosneft's dominance gave him control of Russia's most important industry. In 2004, the Kremlin seized assets from OAO Yukos, then the country's largest oil company, and Rosneft took control of its main production unit, becoming the country's second-largest producer. Exxon worked closely with Moscow to devise legislation on taxation and other issues that affected its investment, according to Igor Yusufov, Russia's energy minister from 2001 to 2004. Mr. Tillerson met with ministers and gave suggestions for legislation, Mr. Yusufov said. "He met everyone," the Russian said. "He helped us to formulate the relationship between the state and investors." During a U.S.-Russia energy summit in Houston in 2002, Mr. Tillerson wooed Mr. Yusufov with a trip to Exxon facilities, where he showed the Russian minister a 3-D model of the Sakhalin project as it was at the time and as it would look at peak production. Mr. Tillerson worked closely with Rosneft executives as the project began producing in 2005. He and then-Rosneft CEO Sergey Bogdanchikov landed their private jets at tiny Teterboro Airport, in suburban New Jersey, in 2006 and discussed Sakhalin and Rosneft's coming initial public offering, said a person familiar with the talk. Mr. Sechin, who had spent years in intelligence in Africa and elsewhere and later became a Kremlin political operative close to Mr. Putin, had become chairman of Rosneft in 2004. He took over as CEO in 2012 with the aim of extending its reach. His underlings quickly came to fear his 3 a.m. calls ordering them to pack for a trip to Asia as much as his outbursts at meetings over frustrations like project delays, former executives said. He and Mr. Tillerson developed a comfortable rapport, said people who attended their meetings. Mr. Sechin was careful to show Mr. Tillerson he had the highest-possible backing. Two or three times a year or more, Mr. Sechin would ask Mr. Putin to speak, by phone or in person, with Mr. Tillerson, said one of the people. Mr. Sechin came to like Mr. Tillerson because he was transparent and forceful in his communications -- and was one of the few Western executives strong enough to push back against Mr. Sechin, said people familiar with the matter. The relationship helped Exxon land one of its biggest coups. In 2011, Exxon rival BP PLC reached a deal for access to a giant Rosneft-controlled Arctic field, but BP's oligarch partners in a separate Russian joint venture blocked the deal. Exxon's longtime Russia hand, Mr. Runje, who had been key to the Sakhalin project more than a decade earlier, saw an opening and sent a message to Mr. Tillerson, said people familiar with the matter. Mr. Runje declined to comment. Messrs. Tillerson and Sechin hashed out a $3.2 billion deal that was to be one of the biggest exploration contracts ever. It gave Exxon access to the Arctic fields BP lost, as well as basins in Siberia and in the Black Sea. Mr. Putin, who had come to trust Mr. Tillerson as a man of his word, blessed the deal and said investment could eventually reach $500 billion. Mr. Putin later awarded Mr. Tillerson the Russian Order of Friendship, the country's highest honor for foreigners, after a request by Mr. Sechin, according to a person familiar with the matter. By late 2014, when the partners hit oil and gas in the Arctic, sanctions by the U.S. and other countries were in place barring companies from sending oil and gas exploration technology to Russia, bringing operations to a halt. In Washington, Exxon lobbied against the sanctions. Mr. Tillerson and others told senior officials that because of the complexity of the Arctic project Exxon couldn't immediately pull out without significant safety and environmental risks. The CEO also said U.S. sanctions applied to an existing project, unlike European sanctions, which exempted developments already under way, people familiar with the matter said. Exxon withdrew from its Arctic project, and Mr. Tillerson stayed home from a St. Petersburg economic summit in 2014 for the first time in years. He continued to attend to Russia business, including efforts to build a gas export plant at Sakhalin and other operations. "Over the years, I think we have earned each other's respect," Mr. Tillerson told students at an event in March 2015 at Texas Tech University. When Exxon says "yes," he told them, the Russians would know that the company would "follow through on that yes. Your commitment means something. And so I think it's the most important attribute."
Credit: By Justin Scheck, James Marson and Bradley Olson
Subject: Sanctions; Political appointments; Cabinet
Location: Russia
People: Trump, Donald J Tillerson, Rex W
Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Jan 10, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856794237
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856794237?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Falls Again on OPEC Output Increases; Data on Libya output, Iran causes investors to ask whether OPEC's agreed production cuts will be fully implemented
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Jan 2017: n/a.
Abstract:
Data in recent days also showed growing exports from Iran and Iraq, which has made investors nervous that a plan for output cuts from the Organization of the Petroleum Exporting Countries may not be enough to end two years of oversupply. By its end, money managers moved to hold seven bullish positions for every one bearish position on oil prices, according to regulatory data.
Full text: Oil prices sank to a one-month low Tuesday with investors still questioning the impact of an OPEC deal to cut production that had originally sent prices to 18-month highs. The Wall Street Journal reported early Tuesday that Libya, exempted from production cuts, had more than tripled its crude output in the past six months. Data in recent days also showed growing exports from Iran and Iraq, which has made investors nervous that a plan for output cuts from the Organization of the Petroleum Exporting Countries may not be enough to end two years of oversupply. Light, sweet crude for February delivery lost $1.14, or 2.2%, at $50.82 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, lost $1.30, or 2.4%, to $53.64 a barrel on ICE Futures Europe. Both have lost about 6% in just two sessions, their largest such declines since the summer. OPEC members and several other big global exporters agreed last month to cut output by nearly 1.8 million barrels a day in total, more than 1% of global supply. However, some countries, including Libya and Iran, were given exemptions because of civil conflicts or economic considerations. Iraq was allowed to cut by just a relatively small amount, and then government officials laid plans to increase exports anyway. The Journal reported Tuesday that Libyan militias that once kept oil fields and ports closed have instead struck deals that allowed the National Oil Co., or NOC, to raise production to a three-year high of 708,000 barrels a day this week, an NOC spokesman said. It had been just 200,000 barrels a day last year, but now NOC believes it could hit 900,000 barrels a day in 2017. Iran has likely sold oil it had been holding in storage. ClipperData had said Monday that Iranian floating storage was down to 17 million barrels from 32.5 million. The firm also reported Iraqi exports going through the southern oil ports of Basra are at the highest in four years of tracking, just shy of 3.5 million barrels a day in January. "It's just incredible how much" production is still coming, said Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC. "All of these cuts could be negated just by Libyan production." Oil had posted gains earlier during Asian and European trading, likely from bearish investors cashing out winning bets, analysts and brokers said. Monday's trade brought oil's largest losses in a month with a slate of factors--including Iraqi and Iranian exports--reviving concern about a glut of oil that has halved prices from highs above $100 a barrel back in 2014. The OPEC deal to cut output had sparked a rebound throughout most of last year. By its end, money managers moved to hold seven bullish positions for every one bearish position on oil prices, according to regulatory data. That kind of heavy favor for one side of a trade can often lead to a sharp reversal, and many say that has accelerated the selloff to start this week. With so many buyers already locked in, it makes it more likely that sellers become the primary movers in the market. Without more big bullish news, money managers may start bailing from their bullish positions, sparking others to do the same, a cascading effect that overwhelms the market with sellers. "There's a lack of new information that's bullish," said Scott Shelton, broker at ICAP PLC. "The Iraqis are selling more oil than they're supposed to. There are signs the Iranians have sold a lot of extra oil." The chance of bullish news coming soon may also be sparse, analysts said. Some have said it could be weeks or months before it becomes clear that the OPEC cuts--which are supposed to start now--are indeed happening and are large enough to reduce record-high storage levels. Until then, drips of news like the increasing production out of Iraq and Iran make selling more likely than buying, analysts said. U.S. crude inventories are also making traders bearish. They likely rose by 1.8 million barrels in the week ended Jan. 6, according to a survey of analysts by S&P Global Platts. Citigroup also estimates gasoline stocks grew by 1.25 million barrels in the same week while distillate stocks shrunk by only 130,000 barrels. Official data from the Energy Information Administration will be released on Wednesday. All the oil in the U.S. and coming even still from OPEC members like Iraq is a reminder that the market is still mired in surplus despite efforts to reduce the overhang. "This doesn't mean that the market won't rebalance in 2017, but it does suggest that it may not happen to the extent or on the schedule that the bulls would prefer," said Tim Evans, a Citi Futures analyst. Gasoline futures lost 1.5% to $1.5467 a gallon, its sixth loss in seven sessions. Diesel futures fell 1.6% to $1.6114 a gallon, now down 5.4% in back-to-back losing sessions. Benoit Faucon, Hassan Morajea, Kevin Baxter and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Crude oil prices; Crude oil; Cartels; Investment advisors; International trade
Location: Libya Iraq Iran
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856831377
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856831377?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Libya Ramps Up Oil Production, Threatening OPEC Plans; Output hit three-year high this week as militias make deals to reopen facilities
Author: Faucon, Benoit; Morajea, Hassan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Jan 2017: n/a.
Abstract:
(Jan. 10, 2017) Libya's crude-oil production has more than tripled in the past six months, imposing an obstacle to the Organization of the Petroleum Exporting Countries' plans to raise petroleum prices by collectively lowering output. [...]the militias that once kept oil fields and ports closed have switched gears, striking deals with the National Oil Co., or NOC, as it is commonly known, to reopen important petroleum-producing infrastructure.
Full text: Corrections & Amplifications: Libya's oil production fell to less than 200,000 barrels a day last year. An earlier version of this article incorrectly said Libya's oil production had fallen to less than 200,000 barrels a day this year. Also, the graphic has been replaced because an earlier version contained incorrect data for each of the countries. (Jan. 10, 2017) Libya's crude-oil production has more than tripled in the past six months, imposing an obstacle to the Organization of the Petroleum Exporting Countries' plans to raise petroleum prices by collectively lowering output. Oil prices have surged 19% to more than $55 a barrel since OPEC's Nov. 30 deal to throttle down its output by about 4%, but the surge in Libyan production challenges a bet the cartel made against the North African country. OPEC exempted Libya from any requirement to cut because the country has been riven by violence among militias that have severely disrupted its oil flows since the 2011 ouster and death of leader Moammar Gadhafi. Now, the militias that once kept oil fields and ports closed have switched gears, striking deals with the National Oil Co., or NOC, as it is commonly known, to reopen important petroleum-producing infrastructure. They have left oil fields and equipment untouched, even as they fight in other areas. The result: Libya's production rose to a three-year high of 708,000 barrels a day this week, an NOC spokesman said, after having fallen to less than 200,000 barrels a day last year. The country has Africa's largest oil reserves and has produced as much as 1.6 million barrels a day in the past. Libya's output is flowing so freely that the NOC believes it could hit 900,000 barrels a day this year, up from average daily production of 575,000 barrels a day in November when OPEC struck its deal. That would cancel out the entire cut contributed by Russia and could force Saudi Arabia to slash more output than planned to ensure OPEC meets its output targets, something the kingdom's officials have suggested they would do. Ole Hansen, head of commodity strategy at Norway's Saxo Bank, said Libya's production posed a "significant challenge" for oil prices hitting $60 a barrel because hedge funds are looking for bearish news. To be sure, Libya's political instability could upend its gains in oil production quickly. A U.N.-backed government in Tripoli has struggled to impose its authority on much of the country, and suffered a new blow this week when its deputy chief resigned. Islamic State was routed from its Libyan stronghold recently, but its members still roam the country's southern deserts, according to Western counterterrorism officials. Militias still rule much of the country, and violence has ticked up in and around Tripoli in recent weeks. Other countries' output also poses a threat to OPEC's production agreement. Nigeria, an OPEC member that was exempted from cutting, increased its output by 200,000 barrels a day in December. Some analysts have questioned Iraq's commitment to cutting output after The Wall Street Journal reported the country's plans to increase exports in January. Still, Libyan output looms largest over OPEC and its plans. Libya's National Oil Co. remains one of the last functioning institutions left in Libya and has gotten stronger in recent weeks. Its 61,000 employees make it the largest Libyan company by far, and it accounts for 95% of the country's annual export revenue. "It's the oil company as a nation," said Geoff Porter, head of North Africa Risk Consulting, who advises oil companies active in the region. "The real driving force behind rebuilding Libya as a nation state is the NOC." The NOC was once a target for militias that wanted to either control its resources or deprive their rivals of oil revenue. Back in 2014, oil storage tanks were set on fire in Tripoli and in eastern terminals after warring militias tried to seize control of the facilities. As recently as August, the NOC opposed reopening Libya's eastern oil ports in exchange for payments to the militia controlling them. Company officials feared the militia would simply shut down the ports again after receiving payment. Changes in militias' tactics in recent months has helped the NOC's bid to jump-start oil production. In September this year, the Libyan National Army, a militia that opposes the Tripoli government, wrested control of the oil ports and allowed them to reopen. The army's chief, Khalifa Haftar, believed the reopening would give him political legitimacy and allow him access to oil revenue needed to pay his fighters, people familiar with the matter said. A spokesman for Gen. Haftar didn't respond to requests for comment. Another deal came together last month when two militias that controlled different sections of Libya's biggest oil field, called Sharara, agreed to allow the NOC to pump again. In talks that spanned seven months, NOC's chairman, Mustafa Sanallah, told local political factions that the company wouldn't pay to reopen facilities but argued instead they would all lose out if oil revenue didn't increase soon, according to NOC and Western security officials. Most militias still receive wages from the government for their role in the 2011 uprising and for securing oil facilities. Western governments, including the U.S., also contacted militia leaders to convince them it was in their interest to let the oil flow, according to the security officials. Jomode Elie Getty, the president of the Toubou Revolutionary Council, which represents one of the militias abroad, said Western governments persuaded his group to address its grievances with Tripoli through legal means instead of violence. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon and Hassan Morajea
Subject: Oil fields; Foreign investment; Crude oil prices; Petroleum production; Militia groups
Location: Libya
People: Qaddafi, Muammar El
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856831391
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856831391?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil and Gas Firms Pledge $5 Billion in Investments in Argentina This Year; President Mauricio Macri says companies have agreed more than double this year's investments in coming years after unions agreed to lower costs
Author: Turner, Taos
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Jan 2017: n/a.
Abstract:
Deep beneath red rocks and desert scrub lie 27 billion barrels of technically recoverable oil and 802 trillion cubic feet of gas trapped in a layer of shale as much as 1,200 feet thick, according to the U.S. Energy Information Administration.
Full text: BUENOS AIRES--Oil and gas companies on Tuesday have pledged to invest at least $5 billion in Argentina this year and more than double that annually in coming years after unions agreed to lower labor costs, President Mauricio Macri said. Industry executives hailed the agreement, saying it will cut drilling costs and make Argentina's oil and gas sector more competitive globally. The three-party deal also calls for the government to maintain a minimum floor price for newly produced natural gas through 2021, industry officials said. "We would likely invest 20% to 30% less this year without the agreement," Miguel Gutierrez, chairman of Argentine oil company YPF, said after attending the announcement by Mr. Macri. State-run YPF plans to invest almost $2.3 billion in 2017, Mr. Gutierrez said. The company accounts for about half of all the oil and gas investment in Argentina and about 90% of its new wells. The deal, which for now is a verbal agreement, will help YPF reduce capital expenditure costs by about 10% and operating costs by 30%, Mr. Gutierrez said. Argentina is home to some of the world's largest unconventional oil and gas resources in Vaca Muerta, a vast swath of land in windswept Patagonia. Deep beneath red rocks and desert scrub lie 27 billion barrels of technically recoverable oil and 802 trillion cubic feet of gas trapped in a layer of shale as much as 1,200 feet thick, according to the U.S. Energy Information Administration. That is enough oil and gas to power Argentina for decades and turn it into a top energy exporter. For most of the past decade, though, high labor costs have combined with price caps and government regulations to make drilling in the area more expensive than in the U.S., where unconventional oil and gas output has surged. Argentina's unions have also spooked investors--in some cases requiring double the number of workers to operate a rig than at unconventional fields in North America, industry officials say. Concern about layoffs led labor leaders to agree to make it easier for companies to manage drilling sites. For example, the agreement will allow companies to determine when work at drilling sites should be suspended because of weather, union and industry officials said Tuesday. "This is a very important first step," said Daniel Gerold, director at G&G Energy Consultants. Mr. Gerold said a recent move by Mr. Macri to eliminate taxes on oil exports will also help boost investment. Under the deal, the government will continue subsidizing the price of gas at $7.50 per million British thermal units, gradually reducing that to $6.50 in 2021. Aides to Mr. Macri said they hope Tuesday's agreement will be the first of many across multiple industries, all aimed at lowering operating costs for companies in Argentina. Foreign investors have praised Mr. Macri's policies since he took office a year ago, but some remain cautious about investing in Argentina. One reason is that investors are waiting to see how durable Mr. Macri's policies are and how much political sway he will retain after midterm elections in October. Mr. Gutierrez said Tuesday's deal should help YPF attract investment. YPF, which signed multibillion-dollar joint ventures with Chevron Corp. and Malaysia's Petroliam Nasional Bhd., or Petronas, under previous Chief Executive Miguel Galuccio, is already holding "very important" joint venture talks with four to five foreign investors, Mr. Gutierrez said. "I'm hopeful we'll be able to close at least two deals this year," he said. Write to Taos Turner at taos.turner@wsj.com Credit: By Taos Turner
Subject: Agreements; Operating costs; Labor costs; Natural gas utilities
Location: United States--US Argentina
Company / organization: Name: Petronas; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 10, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856904480
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856904480?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Sikorsky Orders Safety Checks on Choppers; An S-92 operated by CHC Group suffered a malfunction when landing on an oil rig in December
Author: Wall, Robert; Cameron, Doug
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Jan 2017: n/a.
Abstract:
Lockheed Martin Corp. said Tuesday that it was ordering inspections of the global Sikorsky S-92 helicopter fleet following an accident in the U.K. last month, disrupting use of a workhorse for the offshore oil and gas industry.
Full text: Lockheed Martin Corp. said Tuesday that it was ordering inspections of the global Sikorsky S-92 helicopter fleet following an accident in the U.K. last month, disrupting use of a workhorse for the offshore oil and gas industry. Sikorsky issued a safety alert for the S-92 but isn't grounding the fleet, which is widely used to carry energy workers and supplies as well as for search and rescue operations and transporting VIPs. Lockheed Martin also is supplying a heavily modified version that will be used for the new presidential helicopter fleet that serves as Marine One, with the first due to enter service in 2020. The move poses another challenge for helicopter operators such as Bristow Group Inc. that already wrestle with a downturn in demand because of low energy prices and the aftermath of a fatal crash involving an Airbus SE Super Puma helicopter off the Norwegian coast last year. HeliOffshore, which represents companies involved in North Sea offshore helicopter operations, said the Sikorsky safety alert "will disrupt the offshore oil and gas industry in the short term." Sikorsky ordered the extra checks after an S-92 operated by CHC Group Ltd. suffered a malfunction on landing on an oil rig Dec. 28. Nobody was hurt in the hard landing, which is still under investigation. Last year's Super Puma crash led to the fleet's grounding, leaving operators to scramble to replace the capacity usually provided by the model that was a mainstay of offshore operations. The problems with the Airbus helicopter forced operators to lean more heavily on the Sikorsky model. Sikorsky said it would take around two days to complete the 11-hour inspections. It said it was working closely with customers and authorities to determine the cause of the problem. Operators have been instructed to inspect the tail rotor of their S-92s before returning them to service. The British Airline Pilots Association, which represents many of the pilots laid off because of reductions in services in the North Sea, said it wanted "to see these checks carried out as quickly and efficiently as possible so that North Sea and Search and Rescue operations can return to normal." Those flying the S-92 also should complete more frequent inspections until a software fix is provided, Britain's air safety regulator, the Civil Aviation Authority, said. Shares in Bristow were recently down more than 3% at $18.77. The stock had doubled since early November as rising oil prices raised the prospect of improving demand. The company uses the S-92 to support the energy industry and to provide search and rescue services for the U.K. government. A Bristow spokeswoman said checks on its aircraft would take about six hours each and would have "minimal impact" on its operations. CHC, the second-largest offshore operator, filed for chapter 11 bankruptcy protection in May. The downturn has prompted operators to cancel or defer some new orders, affecting manufacturers such as Lockheed, Airbus and Leonardo SpA. Write to Robert Wall at robert.wall@wsj.com and Doug Cameron at doug.cameron@wsj.com Credit: By Robert Wall and Doug Cameron
Subject: Military helicopters; Pilots; Energy industry
Location: United Kingdom--UK North Sea
Company / organization: Name: Bristow Group Inc; NAICS: 481211, 481212; Name: British Airline Pilots Association; NAICS: 813920
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 10, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1856904571
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon vs. Russia Illusions; The oil giant's Rosneft joint venture was a product of the Obama 'reset.'
Author: Jenkins, Holman W, Jr
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.
Abstract:
[...]the deal was a fruit of the Obama reset. [...]in its typically Boy-Scouty way, Exxon said as long as we're having a debate, let it be a serious one--and pointed out the ways a carbon tax is superior to cap and trade.
Full text: With former Exxon Mobil chief Rex Tillerson to be grilled Wednesday on Capitol Hill, let's save the chefs time by knocking down some obvious nonsense. Exxon is hostage to Vladimir Putin because Exxon needs Russia's oil. At the time of the 2011 agreement in question, the Russian partners threw around giant numbers for the potential revenues involved. These numbers are still thrown around by left-wing groups. The website DemocracyNow recently spun a fantasy about how this "$500 billion oil exploration partnership" lay at the heart of a Russian plan to get Donald Trump elected. In fact, the deal is tiny by big-oil standards. Exxon says the sanctions may have cost it $1 billion; the partners had originally talked of spending $3.2 billion. These are small numbers in relation to Exxon's $240 billion in annual revenues and $360 billion market cap. Exxon pursued Russia in defiance of U.S. national interests. Actually the deal was a fruit of the Obama reset. President Obama, with an Exxon executive in tow, dropped in on a Moscow business conference during his July 2009 summit with Mr. Putin. Twenty months later, Joe Biden highlighted the resulting deal in his own speech at Moscow State University. The Oil Daily headlined its story: "White House Gives Blessing to Alliance Between Exxon, Rosneft." Exxon opposed sanctions over Crimea. Sure it did, but the company knows force majeure when it sees it. And notice something else: carrot begets stick. Of all the sanctions levied after Mr. Putin's Crimea grab, biting hardest were those that froze Russian access to Exxon's shale and arctic know-how. Mr. Tillerson is not only a friend but an "unabashed admirer" of Vladimir Putin, according to ABC News's Brian Ross. Uh huh. A "friend" in Mr. Putin's world is somebody ripe to be thrown to the wolves when it suits Mr. Putin's interests, and who would probably sever Mr. Putin's spine if he could get away with it. And Mr. Tillerson is perhaps the one to be admired, including by Mr. Putin, for the way he fought off Gazprom's attempt to seize the benefits of the firm's 20-year-old Sakhalin project, which still constitutes most of Exxon's modest stake in Russian oil. Mr. Putin intervenes in such fights hesitantly, warily, according to his ever-changing calculations of self-preservation. Witness his flip-flopping over Rosneft's recent takeover of Bashneft, which he opposed and then supported. At the same time, he knows that shakedowns of the sort that befell BP and Shell, amid the predatory scramble of Russian elites for control of resources, are a continuing danger to his regime and its all-important oil revenues. Exxon "stands out even among oil giants in its steadfast refusal to invest in renewable energy . . . a strategy of maximizing immediate earnings at the price of future generations' ability to live on the planet," writes Masha Gessen in the New York Review of Books. When senators aren't bashing Mr. Tillerson over Russia, they are likely to bash him over climate change. But several common mistakes are illustrated in this indictment. It makes no sense for a company whose expertise is oil geology to invest in wind or solar, very different skill sets. Oil companies do so only for PR reasons--so they can decorate their annual reports with windmills and solar panels. Meanwhile, the easiest way to "maximize immediate earnings" is by not investing at all. Exxon has done a lot of this, returning half its prodigious earnings to shareholders over the past decade in the form of dividends and share buybacks. Both left and right have dubbed Exxon a hypocrite for its lukewarm endorsement of a carbon tax. In fact, in its typically Boy-Scouty way, Exxon said as long as we're having a debate, let it be a serious one--and pointed out the ways a carbon tax is superior to cap and trade. And Exxon continues to confound critics on both sides by talking about climate change as a "risk," and, equally accurately, a risk that climate science has done far less to elucidate than common rhetoric suggests. Russia, though, is likely to dominate Wednesday's hearing. Watch to see if a senator tries to make Mr. Tillerson accuse Mr. Putin of the many crimes the U.S. government declines to accuse him of--the murders of Anna Politkovskaya and Boris Nemtsov, the 1999 Russian apartment-building bombings, etc. David Satter, in his own piece in today's Journal, hopes U.S. policy makers will use the opportunity to acknowledge the true nature of the Putin regime. Don't bet on it. As chess champion Garry Kasparov explained in his Putin book two years ago, "If they admitted the truth, they would have to act, and nobody wants to act." Russian politics is a tough and dangerous business, but somebody's got to do it--that's been America's bottom line on Mr. Putin. Mr. Tillerson's success as our next secretary of state is not guaranteed--success is hard even to define in today's complex world. But at least Americans would be getting somebody with a record of succeeding in difficult assignments. Credit: By Holman W. Jenkins, Jr.
Subject: Sanctions; Annual reports; Climate change; Environmental tax
Location: United States--US Russia
People: Obama, Barack Biden, Joseph R Jr Trump, Donald J
Company / organization: Name: Bashneft; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: ABC Inc; NAICS: 515120; Name: Moscow State University; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 11, 2017
column: Business World
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857002368
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857002368?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Recoups Losses; Focus on U.S. Data; March Brent crude rose $0.13 to $53.77 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.
Abstract:
According to data provided by a shipbroker, Iran moved about 13.2 million barrels of oil from its floating storage in the period between November 16 and January 7.
Full text: Crude futures regained momentum in early Asian trade Wednesday after a strong selloff overnight, even as investors remain unsure whether the recent oil production cut deal can help restore supply and demand balance in the market. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $50.97 a barrel at 0357 GMT, up $0.15 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.13 to $53.77 a barrel. Analysts said buying was mainly driven by bargain-hunting after prices fell over 6% in the past two U.S. trading sessions. The headwind was a result of signs that some producers inside the Organization of the Petroleum Exporting Countries were ramping up production faster than expected, while others such as Iran, were aggressively selling off their inventories. The Wall Street Journal reported Tuesday that Libyan militias have struck deals to allow the National Oil Co., or NOC, to reopen important petroleum-producing infrastructure. As a result, Libya's production rose to a three-year high of 708,000 barrels a day this week, an NOC spokesman said, after having fallen to less than 200,000 barrels a day. NOC believes it could hit 900,000 barrels a day this year, up from average daily production of 575,000 barrels a day in November when OPEC struck its deal. Iran, which has been exempted from the production cut deal has apparently sold off over a dozen million barrels in less than two months. According to data provided by a shipbroker, Iran moved about 13.2 million barrels of oil from its floating storage in the period between November 16 and January 7. "Most of the barrels were exported to Asia, mainly China," the shipbroker said. Given that the production pact became effective earlier this month, early impact of the reduction won't be known until mid-February when OPEC releases its January production data. U.S. crude inventories are also making traders bearish. They likely rose by 700,000 barrels in the week ended Jan. 6, according to a survey by The Wall Street Journal. The 13 forecasters in the survey also expect gasoline stockpiles to have grown by an average of 1.6 million barrels and distillate stocks, which include heating oil and diesel, to be higher by 500,000 barrels. Official data, including production figures, from the Energy Information Administration will be released later today. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 1.5-million-barrel increase in crude supplies, a 1.7-million-barrel rise in gasoline stocks and a 5.5-million-barrel increase in distillate inventories, according to a market participant. Oil betters are also scrutinizing the U.S. production trend which had abated in the past two years when oil prices fell and investment in the energy sector fumbled. However, with prices creeping up the U.S. Department of Energy has raised its production forecast. The DOE now expects U.S. crude production to average 9 million barrels a day this year and 9.3 million barrels in 2018. In the week ended December 30, U.S. production stood at 8.8 million barrels a day. "We see these estimates as conservative, with room for both figures to walk higher in the months ahead," said analysts at Citi Futures. Increased U.S. production could undermine OPEC's effort to rein in global production and even prompt OPEC members to ignore their quotas and produce more in order to defend their market share. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 107 points to $1.5574 a gallon, while February diesel traded at $1.6135, 21 points higher. ICE gasoil for January changed hands at $470.25 a metric ton, down $2.50 from Tuesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Supply & demand; Inventory; Futures; Petroleum production; Energy industry
Location: Iran United States--US
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210; Name: American Petroleum Institute; NAICS: 813910, 541820
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857010501
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857010501?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Rex Tillerson May Make Unusual Tax Argument; Trump nominee wants to spread out taxes on his retirement package from Exxon Mobil
Author: Rubin, Richard
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.
Abstract:
IRS rules under Section 83 of the tax code say noncompete clauses themselves generally don't amount to a substantial risk of forfeiture, said Thomas Cryan, a lawyer at Buchanan, Ingersoll & Rooney PC in Washington.\n
Full text: Rex Tillerson, President-elect Donald Trump's pick as secretary of state, aims to use an unusual interpretation of U.S. tax law to spread out taxes owed on his retirement package over the next decade instead of paying more than $70 million immediately. That deferral could save Mr. Tillerson more than $10 million if Mr. Trump and congressional Republicans follow through on their plans to cut individual tax rates. Mr. Tillerson, 64, whose confirmation hearing is scheduled for Wednesday, was owed roughly $170 million when he left Exxon Mobil Corp. in December, but now the company and its former chief executive are breaking financial ties . Exxon plans to put the cash owed to Mr. Tillerson into a trust that will pay him on the same deferred-compensation schedule on which the restrictions on his Exxon holdings were slated to lift. Normally, the creation of such a trust for Mr. Tillerson's benefit outside Exxon would create immediate taxable income on the full $170 million. But, the trust for Mr. Tillerson is designed to match the economic and tax treatment he would have gotten had he retired from Exxon as scheduled in March, with payments and taxes spread over a decade, according to Exxon and a person familiar with Mr. Tillerson's thinking. To defer tax payments on the package, Mr. Tillerson must argue there is a substantial risk he will never collect the money. Forfeited payments would go to charity, according to the terms of the trust. His claim will hinge on an argument that Mr. Tillerson himself could end up violating a noncompete agreement in the trust agreement and forfeit what has been set aside for him, the sources said. The transition team, representing Mr. Tillerson, declined to comment. Robert Jackson, director of the program on corporate law and policy at Columbia Law School, described the tax strategy as "one of the most aggressive and least successful tax positions executives have taken over the past two decades." If Mr. Tillerson's position survives any scrutiny from the Internal Revenue Service, then he may benefit from the Republicans' proposed revision in the tax code to lower individual top tax rate to 33% from 39.6% and Medicare tax to 2.9% from 3.8%. Mr. Tillerson and Exxon faced several challenges working out his separation. Exxon sought to preserve as much of its existing long-term compensation agreement with Mr. Tillerson as possible, which involved deferring pay for up to a decade. They also needed to delink those future payments from the value of Exxon stock so that Mr. Tillerson wouldn't have a conflict of interest while at the State Department. Mr. Tillerson's tax deferrals go beyond the normal practice for corporate executives entering government service. Normally, executives can sell shares and reinvest in cash, Treasurys or some mutual funds while deferring capital-gains taxes they would otherwise owe. Mr. Tillerson can do that with Exxon stock he already holds without restrictions. But most of his Exxon holdings are in restricted stock and restricted stock units that are scheduled to be fully available to him over the next decade. The question of whether Mr. Tillerson must pay taxes now turns primarily on whether there is a substantial risk that he may forfeit some of the payments from the trust. IRS rules under Section 83 of the tax code say noncompete clauses themselves generally don't amount to a substantial risk of forfeiture, said Thomas Cryan, a lawyer at Buchanan, Ingersoll & Rooney PC in Washington. But the rules also say that presumption can be overcome by looking at the person's age, skills, the availability and likelihood of other employment and the employer's likelihood of enforcing the clause, factors that could work in Mr. Tillerson's favor. The former Exxon executive might become more valuable to oil-and-gas companies after being secretary of state, leading him back into the industry and in violation of his noncompete. He might also have opportunities outside the industry that would lower the risk of triggering the noncompete clause, including paid speeches and service on corporate boards. "He's going to be much sought after," said Gregg Polsky, a tax law professor at the University of Georgia. He called Exxon's argument that the taxes can be deferred aggressive but not frivolous. Bradley Olson contributed to this article. Write to Richard Rubin at richard.rubin@wsj.com Credit: By Richard Rubin
Subject: Executive compensation; Taxes; Agreements; Tax rates; Restricted stock
Location: United States--US
People: Trump, Donald J
Company / organization: Name: Internal Revenue Service--IRS; NAICS: 921130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 11, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857010502
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857010502?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Falls Anew as Libya Ramps Up
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Jan 2017: B.12.
Abstract:
By its end, money managers moved to hold seven bullish positions for every one bearish position on oil prices, according to regulatory data.
Full text: Oil prices sank to a one-month low with investors still questioning the impact of an OPEC deal to cut production that had originally sent prices to 18-month highs. The Wall Street Journal reported Tuesday that Libya, exempted from production cuts, had more than tripled its crude output in the past six months. Data in recent days also showed increasing exports from Iran and Iraq, which has made investors nervous that a plan for output cuts from the Organization of the Petroleum Exporting Countries may not be enough to end an oversupply. Light, sweet crude for February delivery lost $1.14, or 2.2%, at $50.82 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, fell $1.30, or 2.4%, to $53.64 a barrel on ICE Futures Europe. Both have lost about 6% in just two sessions. OPEC members and several other big global exporters agreed last month to cut output by nearly 1.8 million barrels a day in total, more than 1% of global supply. However, some countries, including Libya and Iran, were given exemptions because of civil conflicts or economic considerations. Iraq was allowed to cut by a small amount, then government officials made plans to increase exports anyway. The Journal reported Tuesday that Libyan militias that once kept oil fields and ports closed have instead struck deals that allowed the National Oil Co., or NOC, to raise production to a three-year high of 708,000 barrels a day this week, a NOC spokesman said. It had been just 200,000 barrels a day last year, but now NOC believes it could hit 900,000 barrels a day in 2017. Iran has likely sold oil it had been holding in storage. ClipperData had said Monday that Iranian floating storage was down to 17 million barrels from 32.5 million. "It's just incredible how much" production is still coming, said Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC. "All of these cuts could be negated just by Libyan production." The OPEC deal to cut output had sparked a rebound throughout most of last year. By its end, money managers moved to hold seven bullish positions for every one bearish position on oil prices, according to regulatory data. That kind of heavy favor for one side of a trade can often lead to a sharp reversal, and many said that has accelerated the selloff to start this week. With so many buyers already locked in, it makes it more likely that sellers become the primary movers in the market. Without more big bullish news, money managers may start bailing from their bullish positions, sparking others to do the same. Credit: By Timothy Puko
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2017
Publication date: Jan 11, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857171643
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857171643?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rise as Investors Shrug Off Stockpile Data; Refiners processed record amount of crude last week, EIA data showed
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.
Abstract:
The market shrugged off data showing that stockpiles of crude oil and gasoline swelled last week and U.S. oil production rose, and focused on indications that Russia and Saudi Arabia are complying with promised production cuts .
Full text: Oil prices climbed Wednesday after data showed that refiners processed a record amount of crude and that supplies drained from the main storage hub in Cushing, Okla. The market shrugged off data showing that stockpiles of crude oil and gasoline swelled last week and U.S. oil production rose, and focused on indications that Russia and Saudi Arabia are complying with promised production cuts . U.S. crude futures rose $1.43, or 2.81%, to $52.25 a barrel on the New York Mercantile Exchange--their largest daily gain since December 1. Brent, the global benchmark, rose $1.46, or 2.72%, to $55.10 a barrel on ICE Futures Europe. U.S. refiners churned 17.1 million barrels of crude into fuel a day last week, according to the U.S. Energy Information Administration--the highest weekly figure in data going back to 1982. And stocks at the Cushing storage hub, which have been on the rise in recent weeks, fell by 579,000 barrels. "That takes the pressure off any talk of storage at Cushing filling up," said Bob Yawger, director of the futures division at Mizuho Securities USA. But the amount of crude in storage nationwide increased by 4.1 million barrels during the week--a build that was well above the 700,000 barrel increase traders and analysts surveyed by The Wall Street Journal had expected. The EIA data also showed big increases in stockpiles of gasoline and diesel during the week. And U.S. production jumped to more than 8.9 million barrels a day during the week--its highest level since April. Some analysts said crude's move higher is a sign that prices are unlikely to drop much below $50 to $51. Others expect that the positive sentiment won't last and that oil prices will give way to pressure from the rising dollar and rising production. "I'm surprised we've gotten this much momentum," said Tariq Zahir, managing member of Tyche Capital Advisors. "I think this rally is going to be relatively short lived." The swelling stockpiles were largely driven by an increase in oil imports, which rose to their highest level since 2012 as shipments of crude that were delayed at the end of last year for tax purposes are starting to appear. That could be one reason the market didn't react to the bearish number. "Given that today's report has been influenced by a number of tax and data revision issues, we would not make too much of the increases in stocks of oil and gasoline," analysts at Capital Economics wrote in a research note. That prices rose despite data showing swelling stockpiles and rising production is a sign that market participants are more focused on reports that Russia is complying with an agreement to cut output and Saudi Arabia is trimming sales to China and other Asian countries, said Gene McGillian, research manager at Tradition Energy. "The market is for direction. It's kind of ignoring some of the bearish fundamentals like the inventory report," he said. Gasoline futures rose 4.62 cents, or 2.99%, to $1.5929 a gallon. Diesel futures rose 4.1 cents, or 2.54%, to $1.6524 a gallon. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Petroleum production; Price increases; Crude oil
Location: Russia United States--US Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857307756
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Libya Ramps Up Oil Production, Threatening OPEC Plans; Output hit three-year high this week as militias make deals to reopen facilities
Author: Faucon, Benoit; Morajea, Hassan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.
Abstract:
(Jan. 10, 2017) Libya's crude-oil production has more than tripled in the past six months, imposing an obstacle to the Organization of the Petroleum Exporting Countries' plans to raise petroleum prices by collectively lowering output. [...]the militias that once kept oil fields and ports closed have switched gears, striking deals with the National Oil Co., or NOC, as it is commonly known, to reopen important petroleum-producing infrastructure.
Full text: Corrections & Amplifications: Libya's oil production fell to less than 200,000 barrels a day last year. An earlier version of this article incorrectly said Libya's oil production had fallen to less than 200,000 barrels a day this year. Also, the graphic has been replaced because an earlier version contained incorrect data for each of the countries. (Jan. 10, 2017) Libya's crude-oil production has more than tripled in the past six months, imposing an obstacle to the Organization of the Petroleum Exporting Countries' plans to raise petroleum prices by collectively lowering output. Oil prices have surged 19% to more than $55 a barrel since OPEC's Nov. 30 deal to throttle down its output by about 4%, but the surge in Libyan production challenges a bet the cartel made against the North African country. OPEC exempted Libya from any requirement to cut because the country has been riven by violence among militias that have severely disrupted its oil flows since the 2011 ouster and death of leader Moammar Gadhafi. Now, the militias that once kept oil fields and ports closed have switched gears, striking deals with the National Oil Co., or NOC, as it is commonly known, to reopen important petroleum-producing infrastructure. They have left oil fields and equipment untouched, even as they fight in other areas. The result: Libya's production rose to a three-year high of 708,000 barrels a day this week, an NOC spokesman said, after having fallen to less than 200,000 barrels a day last year. The country has Africa's largest oil reserves and has produced as much as 1.6 million barrels a day in the past. Libya's output is flowing so freely that the NOC believes it could hit 900,000 barrels a day this year, up from average daily production of 575,000 barrels a day in November when OPEC struck its deal. That would cancel out the entire cut contributed by Russia and could force Saudi Arabia to slash more output than planned to ensure OPEC meets its output targets, something the kingdom's officials have suggested they would do. Ole Hansen, head of commodity strategy at Norway's Saxo Bank, said Libya's production posed a "significant challenge" for oil prices hitting $60 a barrel because hedge funds are looking for bearish news. To be sure, Libya's political instability could upend its gains in oil production quickly. A U.N.-backed government in Tripoli has struggled to impose its authority on much of the country, and suffered a new blow this week when its deputy chief resigned. Islamic State was routed from its Libyan stronghold recently, but its members still roam the country's southern deserts, according to Western counterterrorism officials. Militias still rule much of the country, and violence has ticked up in and around Tripoli in recent weeks. Other countries' output also poses a threat to OPEC's production agreement. Nigeria, an OPEC member that was exempted from cutting, increased its output by 200,000 barrels a day in December. Some analysts have questioned Iraq's commitment to cutting output after The Wall Street Journal reported the country's plans to increase exports in January. Still, Libyan output looms largest over OPEC and its plans. Libya's National Oil Co. remains one of the last functioning institutions left in Libya and has gotten stronger in recent weeks. Its 61,000 employees make it the largest Libyan company by far, and it accounts for 95% of the country's annual export revenue. "It's the oil company as a nation," said Geoff Porter, head of North Africa Risk Consulting, who advises oil companies active in the region. "The real driving force behind rebuilding Libya as a nation state is the NOC." The NOC was once a target for militias that wanted to either control its resources or deprive their rivals of oil revenue. Back in 2014, oil storage tanks were set on fire in Tripoli and in eastern terminals after warring militias tried to seize control of the facilities. As recently as August, the NOC opposed reopening Libya's eastern oil ports in exchange for payments to the militia controlling them. Company officials feared the militia would simply shut down the ports again after receiving payment. Changes in militias' tactics in recent months has helped the NOC's bid to jump-start oil production. In September this year, the Libyan National Army, a militia that opposes the Tripoli government, wrested control of the oil ports and allowed them to reopen. The army's chief, Khalifa Haftar, believed the reopening would give him political legitimacy and allow him access to oil revenue needed to pay his fighters, people familiar with the matter said. A spokesman for Gen. Haftar didn't respond to requests for comment. Another deal came together last month when two militias that controlled different sections of Libya's biggest oil field, called Sharara, agreed to allow the NOC to pump again. In talks that spanned seven months, NOC's chairman, Mustafa Sanallah, told local political factions that the company wouldn't pay to reopen facilities but argued instead they would all lose out if oil revenue didn't increase soon, according to NOC and Western security officials. Most militias still receive wages from the government for their role in the 2011 uprising and for securing oil facilities. Western governments, including the U.S., also contacted militia leaders to convince them it was in their interest to let the oil flow, according to the security officials. Jomode Elie Getty, the president of the Toubou Revolutionary Council, which represents one of the militias abroad, said Western governments persuaded his group to address its grievances with Tripoli through legal means instead of violence. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon and Hassan Morajea
Subject: Oil fields; Foreign investment; Crude oil prices; Petroleum production; Militia groups
Location: Libya
People: Qaddafi, Muammar El
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857351640
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857351640?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mexican November Industrial Production Up From Year Before; Oil production dropped 10% but manufacturing and construction expanded
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexican industrial production rose in November from a year earlier, with increases in factory output and construction offsetting a continued decline in oil and gas production. Industrial production was up 1.3% from November 2015, its first increase in three months, the National Statistics Institute said Wednesday. Production was unchanged from October in seasonally adjusted terms. Manufacturing output rose 4.3% from a year before, with gains in food processing, metals, textiles and transport equipment. Construction was 3.6% higher as housing and other buildings offset lower public works construction, and utilities rose. Oil and gas production fell 10% as state oil company Petróleos Mexicanos struggled to maintain output, while mining production rose. Industrial production lagged behind the private consumption of goods and services last year, with overall output in January through November unchanged from the same period in 2015. Economic growth is expected to have ended 2016 at around 2.1%. The start of 2017 has seen increased worries about manufacturing, which accounts for around nine-tenths of Mexico's exports. The auto industry in particular has come under scrutiny after Ford Motor Co. canceled plans to invest $1.6 billion in a new assembly plant, and other auto makers have been criticized by U.S. President-elect Donald Trump for building cars in Mexico. Mexico produced a record 3.47 million cars and light trucks in 2016, 2% more than the previous year, while exports were little changed at 2.77 million units. The industry depends heavily on the U.S. market, which received more than 77% of the auto exports. Domestic new car sales also set a record at 1.6 million units. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 11, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857 380306
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil and Fuel Inventories Rise Sharply; Crude-oil stockpiles increased by 4.1 million barrels; gasoline stockpiles increased by 5 million barrels
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.
Abstract:
U.S. crude oil inventories rose much more than expected for the week ended Jan. 6, as did stockpiles of gasoline and other processed fuels, according to data released Wednesday by the Energy Information Administration.
Full text: U.S. crude oil inventories rose much more than expected for the week ended Jan. 6, as did stockpiles of gasoline and other processed fuels, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles increased by 4.1 million barrels, to 483.1 million barrels, which is at the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 700,000 barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, decreased by 579,000 barrels, to 66.9 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by 5 million barrels, to 240.5 million barrels. Analysts were expecting gasoline inventories to rise by 1.6 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, surged by 8.4 million barrels, to 170 million barrels, and are above the upper limit of the average range, the EIA said. Analysts were forecasting supplies to increase by just 500,000 barrels from a week earlier. Refining capacity utilization rose by 1.6 percentage points from the previous week, to 93.6%. Analysts were expecting utilization levels to decline by 0.1 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Supply & demand; Inventory; Price increases
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857393581
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857393581?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Slip on High U.S. Crude Stocks; March Brent crude fell $0.04 to $55.06 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Jan 2017: n/a.
Abstract:
According to BMI Research, initial compliance to the agreement appears to be positive, with current compliance level seen at around 73% based on the firm's own calculations.
Full text: Crude prices slipped in early Asian trade Thursday after data showed a stronger-than-expected increase in U.S. crude and distillate fuel stocks at a time when oil exports out of the Middle East are surging. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $52.18 a barrel at 0226 GMT, down $0.07 in the Globex electronic session. March Brent crude on London's ICE Futures exchange fell $0.04 to $55.06 a barrel. For the week ended January 6, U.S. domestic crude stockpiles rose by 4.1 million barrels to 483.11 million barrels, a much larger growth than forecast by most analysts. Gasoline stocks rose by 5 million barrels and distillate fuels surged by 8.4 million barrels. "Imports were the biggest driver behind last week's crude build," said S&P Global Platts. Energy Information Administration report showed the U.S. shipped in about 9.1 million barrels per day last week, up 1.9 million barrels per day from the previous week. However, the same week also saw strong refinery runs of 17.1 million barrels per day, an increase of 418,000 barrels a day from the week before. The jump indicates a robust demand for U.S. oil products. The EIA data also showed American oil producers added 176,000 barrels a day in same week, pushing the total to 8.95 million barrels, the highest since mid-April last year. "With prices steadily rising, it is logical to see more investment being poured back into the upstream operation. But this will also take time," said Gao Jian, an energy analyst at SCI International. A strong influx of U.S. oil into the market is a top concern for many oil investors after the Organization of the Petroleum Exporting Countries and 11 non-cartel producers agreed to a pact to cut their production in early December. A sharp rise of U.S. oil into the market could derail OPEC's plan by prompting participating members to produce beyond their output quota. The pact went into effect this month and will undergo a review in six months. According to BMI Research, initial compliance to the agreement appears to be positive, with current compliance level seen at around 73% based on the firm's own calculations. "However, we note the Gulf Cooperation Council countries that have reportedly enacted the bulk of the production cuts are currently in the lowest domestic demand period of the year," said the firm, hinting production could veer upward when demand increases. Meanwhile, Libya which is exempted from the pact, hiked production to around 700,000 barrels as of early January, more than tripling the level seen in the same period last year. "The increases by smaller countries are not significant enough to interrupt the rebalancing process," said Grace Liu, head of research at the Hong Kong-based Guotai Junan International, adding that investors should set their eyes on heavyweight producers such as Saudi Arabia and Russia who are reportedly sticking to their pledges to cut output. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 13 points to $1.5942 a gallon, while February diesel traded at $1.6553, 29 points higher. ICE gasoil for February changed hands at $488.25 a metric ton, up $1.25 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Supply & demand; Crude oil prices; Price increases
Location: United States--US Middle East
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 12, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857466914
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857466914?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Trans-Mountain Pipeline Clears Final Hurdle for Expansion; British Columbia says Kinder Morgan can proceed with plans to triple capacity on existing 714-mile crude-oil pipeline
Author: Vieira, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Jan 2017: n/a.
Abstract:
Canadian Prime Minister Justin Trudeau gave his approval to the project in November as part of a compromise on pipeline development that included blocking the more controversial Northern Gateway pipeline proposed by Enbridge Inc. Kinder Morgan said the British Columbia's approval means it has met the province's five pre-existing conditions, which cover matters related to the environment, aboriginal communities and economic benefits.
Full text: The Canadian province of British Columbia said Wednesday Kinder Morgan Inc. could proceed with plans to expand its Trans Mountain crude-oil pipeline, representing the final regulatory hurdle for the multibillion-dollar project. Kinder Morgan's plan, which received federal government approval in late November, would triple capacity to 890,000 barrels of crude oil a day on the existing 714-mile pipeline that carries crude oil from Alberta to British Columbia's Pacific coast. The total cost of the project is an estimated 5.5 billion Canadian dollars ($4.17 billion). The project would increase Canadian crude exports to Asia and reduce its dependence on the U.S. market, where Canada's oil sells at a substantial discount to global prices. Kinder Morgan plans to increase ship loads of crude oil to foreign markets, including China, to 34 ships a month from five now. Canadian Prime Minister Justin Trudeau gave his approval to the project in November as part of a compromise on pipeline development that included blocking the more controversial Northern Gateway pipeline proposed by Enbridge Inc. Kinder Morgan said the British Columbia's approval means it has met the province's five pre-existing conditions, which cover matters related to the environment, aboriginal communities and economic benefits. The province had the power to block the project, despite the federal support. British Columbia's decision to approve the Kinder Morgan expansion "represents a positive outcome for our company, customers and for British Columbians and all Canadians who will benefit from the construction and operation of an expanded pipeline," said Ian Anderson, president of Kinder Morgan's Canadian unit. Kinder Morgan said the project still requires final approval from Kinder Morgan's board of directors. Construction could begin in September 2017, with an in-service date for the expanded pipeline system in late 2019, the company added. Kinder Morgan has also agreed to pay up to C$50 million a year to a provincial fund that can be tapped by cities and towns in the process for environmental protection if crude shipments exceed certain volumes. The British Columbia government said its approval comes with an additional 37 conditions, on top of the 157 conditions federal authorities have mandated, ranging from having strategies in place to protect the grizzly bear population to assurances Kinder Morgan will offset carbon emissions the project creates. "Clearly, the project will have economic benefits for British Columbia workers, families and communities. However, we have always been clear economic development will not come at the expense of the environment," the British Columbia government said in a statement. Write to Paul Vieira at paul.vieira@wsj.com Credit: By Paul Vieira
Subject: Financing leases; Pipelines; Master limited partnerships; Investment bankers
Location: Canada United States--US Asia British Columbia Canada
People: Trudeau, Justin
Company / organization: Name: Kinder Morgan Inc; NAICS: 486910, 324110, 211111, 221210; Name: Enbridge Inc; NAICS: 486110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 12, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857466918
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Active in Sanctions Debates, but Rex Tillerson Denies Lobbying; Testimony may reflect view that public comments and private efforts don't constitute a formal effort to lobby against certain sanctions
Author: Tau, Byron; Olson, Bradley; Ballhaus, Rebecca
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Jan 2017: n/a.
Abstract:
Yet, Rex Tillerson, the former CEO of Exxon Mobil, argued forcefully Wednesday that neither he nor his former company ever lobbied against U.S. sanctions on Russia or Iran, a statement that a number of senators aggressively questioned in a marathon day of confirmation hearings over his appointment to serve in the incoming administration of President-elect Donald Trump as secretary of State.
Full text: WASHINGTON--Oil giant Exxon Mobil Corp. has a long history of advocacy and engagement around issues related to international sanctions, including membership in a Washington-based trade group that strongly opposes unilateral U.S. sanctions against foreign countries and entities. Yet, Rex Tillerson, the former CEO of Exxon Mobil, argued forcefully Wednesday that neither he nor his former company ever lobbied against U.S. sanctions on Russia or Iran, a statement that a number of senators aggressively questioned in a marathon day of confirmation hearings over his appointment to serve in the incoming administration of President-elect Donald Trump as secretary of State. "I never lobbied against the sanctions. To my knowledge, Exxon Mobil never lobbied against the sanctions. Exxon Mobil participated in understanding how the sanctions were going to be constructed. And was asked and provided information regarding how those might impact American business interest," Mr. Tillerson said to the committee in a hearing that lasted most of Wednesday. His testimony may reflect his interpretation that public comments in opposition to certain sanctions and private efforts to weaken or scale them back don't constitute a formal effort to lobby against them. However, his company and its outside consultants have filed more than 30 lobbying disclosure reports, listing sanctions issues in Iran, Russia and Libya as among its issues. Those reports didn't specify whether Exxon supported or opposed the various sanctions efforts--but the company in financial disclosures and public statements by executives like Mr. Tillerson have indicated that sanctions often hurt the company's business interests. In addition, the company is a dues-paying member of USA*Engage, a corporate-funded advocacy group that opposes U.S. sanctions and has called on lawmakers to reject unilateral efforts aimed at punishing Iran, Russia, Myanmar and Cuba, among others. At issue is a policy question about the use of sanctions, a major tool of U.S. diplomacy that gives the executive branch the ability to deter, compel or punish states, foreign individuals and groups. In Wednesday's hearing, Mr. Tillerson expressed concerns about the idea of sanctions, which he says can sometimes punish U.S. businesses. "It's important to acknowledge that when sanctions are imposed, they by their design are going to harm American business. That's the idea--it's to disrupt America's business engagement in whatever country's being targeted for sanctions," he said. Exxon spent $8.8 million on lobbying the federal government in the first three quarters of 2016, making it the top lobbyist in the oil-and-gas industry, according to a Center for Responsive Politics analysis of the most recent disclosures. Exxon has spent years lobbying the State Department on trade and energy issues, including U.S. relations with Russia. In 2014, the company lobbied the department over congressional legislation on sanctions against Russia, according to federal lobbying disclosures. The bill wasn't approved by Congress. The company also sought to have some of its continuing projects exempted from sanctions, a request that would have mirrored European restrictions on business in Russia after the country seized Ukrainian territory in 2014. The Obama administration denied the request, and Exxon had to withdraw from some operations in the country, according to people familiar with the matter. Exxon sought permission for an extension to finish drilling a well, because of safety concerns, a request that was granted. Once Exxon exited, Russia announced that the well was a near-billion-barrel-discovery. Exxon has said its losses due to sanctions would amount to $1 billion, but the company sees some of its work in Russia , such as in the Arctic, as on "pause" because of the restrictions. A spokeswoman for USA*Engage confirmed that Exxon is a member of the advocacy group, which is part of the National Foreign Trade Council--a pro-free trade industry group funded by major corporations. The group doesn't oppose all sanctions and has backed sanctions in conjunction with other international partners--in part to ensure that U.S. businesses aren't restricted while foreign companies remain free to do business with the targets of the sanction. "Exxon Mobil regularly engages with lawmakers and others to discuss the potential impact of sanctions and to express our view that sanctions should treat American companies fairly. We do not express an opinion as to whether or not sanctions should be imposed; that is a decision for policy makers," said a spokesman for the company. In Washington, corporations routinely channel their more controversial lobbying practices through trade associations to give themselves "plausible deniability," said Lisa Gilbert, director of Public Citizen's Congress Watch division. The practice "gives them the ability to say one thing in their mission statements or to their shareholders, and straightforwardly support the policies out the other side of their mouths," Ms. Gilbert said. Write to Byron Tau at byron.tau@wsj.com , Bradley Olson at Bradley.Olson@wsj.com and Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com * Trump Nominee Rex Tillerson Suggests Tough Line on Russia, but Won't Commit on Sanctions * Recap: Tillerson Confirmation Hearing * Q&A: What to Know About Rex Tillerson's Ties to Russia Credit: By Byron Tau, Bradley Olson and Rebecca Ballhaus
Subject: Sanctions; Advocacy; Bills; Lobbying
Location: United States--US Iran Russia
People: Trump, Donald J
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publicationtitle: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 12, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857509379
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857509379?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
World News: Industrial Output Gets a Boost From North Sea Oil
Author: Douglas, Jason
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]12 Jan 2017: A.9.
Abstract: None available.
Full text: British industrial production grew strongly in November following a revival in North Sea oil and gas production, adding to signs the economy expanded at a healthy pace in the final quarter of 2016. Industrial production rose 2.1% in the month, the U.K. Office for National Statistics said. Manufacturing output also boosted overall production, driven by sectors including pharmaceuticals, electrical equipment and transport. Credit: By Jason Douglas
Subject: Industrial production
Location: United Kingdom--UK
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.9
Publication year: 2017
Publication date: Jan 12, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857563906
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Gain Even As Supply Expands
Author: Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]12 Jan 2017: B.12.
Abstract:
The market shrugged off data showing that stockpiles of crude oil and gasoline swelled last week and U.S. oil production rose, and focused on indications that Russia and Saudi Arabia are complying with promised production cuts.
Full text: Oil prices climbed Wednesday after data showed that refiners processed a record amount of crude and that supplies drained from the main storage hub in Cushing, Okla. The market shrugged off data showing that stockpiles of crude oil and gasoline swelled last week and U.S. oil production rose, and focused on indications that Russia and Saudi Arabia are complying with promised production cuts. U.S. crude futures rose $1.43, or 2.81%, to $52.25 a barrel on the New York Mercantile Exchange -- their largest daily gain since Dec. 1. Brent, the global benchmark, rose $1.46, or 2.72%, to $55.10 a barrel on ICE Futures Europe. U.S. refiners churned 17.1 million barrels of crude into fuel daily last week, according to the U.S. Energy Information Administration -- the highest weekly figure in data going back to 1982. And stocks at the Cushing storage hub, which have been on the rise in recent weeks, fell by 579,000 barrels. "That takes the pressure off any talk of storage at Cushing filling up," said Bob Yawger, director of the futures division at Mizuho Securities USA. But the amount of crude in storage nationwide increased by 4.1 million barrels during the week -- well above the rise of 700,000 barrels traders and analysts polled by The Wall Street Journal expected. The EIA data also showed big gains in stockpiles of gasoline and diesel during the week. U.S. production jumped to more than 8.9 million barrels a day during the week -- its highest level since April. Some analysts said crude's rise is a sign that prices are unlikely to drop much below $50 to $51. Others expect the positive sentiment won't last and oil prices will give way to pressure from the rising dollar and swelling production. "I'm surprised we've gotten this much momentum," said Tariq Zahir, managing member of Tyche Capital Advisors. Credit: By Alison Sider
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2017
Publication date: Jan 12, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857566274
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857566274?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rises on Reports of Production Cuts; Evidence of supply reduction offsets U.S. inventory data
Author: Yang, Stephanie; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Jan 2017: n/a.
Abstract:
According to BMI Research, initial compliance to the agreement appears to be positive, with current compliance level seen at around 73% based on the firm's own calculations.
Full text: Crude-oil prices rose Thursday, boosted by reports that Saudi Arabia has cut production by more than previously agreed. Light, sweet crude for February delivery gained 90 cents, or 1.7%, to $53.15 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose $1.05, or 1.9%, to $56.15 a barrel. On Thursday, Saudi Arabia's oil minister said the country has cut its crude-oil production to below 10 million barrels a day, exceeding the cuts established by the deal from the Organization of the Petroleum Exporting Countries to limit output. The news helped instill faith among market participants that major oil-producing nations will adhere to the cuts imposed by the agreements between OPEC and non-OPEC countries. "[Saudi Arabia's] commitment to this is key," said John Kilduff, founding partner of Again Capital. "One question was would they step up and carry the load for much of the producing community. It looks like they are in fact doing that." Optimism over falling production has helped offset concerns from rising inventory levels in the U.S. For the week ended Jan. 6, U.S. crude stockpiles rose by 4.1 million barrels, a much larger increase than expected by most analysts. Gasoline stocks rose by 5 million barrels and distillate fuels surged by 8.4 million barrels, data from the U.S. Energy Information Administration showed on Wednesday. However, strong activity from U.S. refiners signaled a positive outlook for demand, analysts said. EIA data showed that refiners churned 17.1 million barrels of crude into fuel a day last week, the highest weekly figure in data going back to 1982. Still, prices have largely been driven by developments on the deal between OPEC and 11 non-cartel producers late last year to cut around 2% of global production. "The market still remains focused on OPEC and non-OPEC compliance," said Kyle Cooper, a consultant for Ion Energy Group on Houston. The pact went into effect this month and will undergo a review in six months. According to BMI Research, initial compliance to the agreement appears to be positive, with current compliance level seen at around 73% based on the firm's own calculations. "However, we note the Gulf Cooperation Council countries that have reportedly enacted the bulk of the production cuts are currently in the lowest domestic demand period of the year," said the firm, hinting production could veer upward when demand increases. Some analysts have doubts Iraq will comply with its pledge to cut output by 210,000 barrels a day. "While Saudi Arabia and other core members of the Organization of the Petroleum Exporting Countries remain most committed to the cut supplies, this appears to be less the case for other countries such as Iraq," said Carsten Menke, analyst at Julius Baer. The head of Baghdad's State Oil Marketing Co., Falah Alamri, said earlier this week that Iraq has cut crude-oil production by more than 150,000 barrels a day from October levels. A strong influx of U.S. oil into the market is a top concern for many oil investors after the pact to cut global production sent prices back above $50 a barrel. A sharp rise of U.S. oil into the market could derail OPEC's plan by prompting participating members to produce beyond their output quota. The EIA weekly data showed American oil producers added 176,000 barrels a day, pushing the total to 8.95 million barrels, the highest since mid-April last year. "With prices steadily rising, it is logical to see more investment being poured back into the upstream operation. But this will also take time," said Gao Jian, an energy analyst at SCI International. Gasoline futures were recently up 1.4% to $1.6152 a gallon, and diesel futures were up 1.5% at $1.6769 a gallon. Ahmed Al Omran and Jenny Hsu contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Stephanie Yang and Sarah McFarlane
Subject: Compliance; Petroleum production; Price increases; Crude oil
Location: United States--US Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 12, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857594388
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857594388?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Hess to Up Investment in Shale Oil, Will Take Hefty Charge; Oil producer will take more than $4.6 billion in charges in the fourth quarter
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Jan 2017: n/a.
Abstract:
Some producers, such as Devon Energy Corp. and Pioneer Natural Resources Co., have planned to boost spending on new wells as the price of crude oil has risen above $50-a-barrel territory, but investors have been wary that more drilling activity may be premature.
Full text: Hess Corp. said its capital and exploratory budget will grow by 18% in 2017 compared with last year as it dives deeper into the oil patch, following similar moves from other shale drillers that have made investors wary. The company also announced it will take more than $4.6 billion in charges in the fourth quarter. Hess stock fell 6.8% to $57.66 in morning trading. Some producers, such as Devon Energy Corp. and Pioneer Natural Resources Co., have planned to boost spending on new wells as the price of crude oil has risen above $50-a-barrel territory, but investors have been wary that more drilling activity may be premature. Hess said Thursday it plans to spend $700 million this year on unconventional shale with plans to bring about 75 new wells online in the Bakken Shale in North Dakota and to increase its rig count there from two to six by year-end. The company also said it is funding pad construction in preparation for drilling in 2018. Over all, the company said its 2017 capital and exploration budget will be $2.25 billion compared with $1.9 billion in 2016 . The company said its fourth quarter results, which it is slated to report later this month, will include a $3.8 billion charge to establish valuation allowances against net deferred tax assets, which Hess said would have no economic impact on the company. Hess will also take a $700 million charge related to deferred development of natural gas fields offshore the North West Shelf of Australia, and an additional $140 million for rig exit costs, loss on debt extinguishment, impairment of railcars, severance and other charges. Hess also said a well offshore Guyana on the Stabroek Block discovered more than 95 feet of oil-bearing sandstone reservoirs, with further drilling planned later this year to determine the full potential of the discovery. An affiliate of Exxon Mobil Corp. holds 45% interest in the Stabroek Block, Hess Guyana Exploration Ltd. holds 30% interest and Cnooc Nexen Petroleum Guyana Ltd. holds 25% interest. Exxon Mobil shares edged down 0.4% to $86.46 in morning trading. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Deferred income taxes; Investments
Location: North Dakota
Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Devon Energy Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 12, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857775250
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857775250?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Takes Aim at Its Biggest Problem: Oil Storage; The cartel is scrambling to push inventories lower
Author: Benoit Faucon; Sarah McFarlane; Ahmed Al Omran; Faucon, Benoit; McFarlane, Sarah; Ahmed Al Omran
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Jan 2017: n/a.
Abstract:
Crude inventories rose to a record of more than 1.2 billion barrels in 2016 in the Organization for Economic Cooperation and Development group of industrialized nations, which includes the U.S. The amount in storage is a hangover from two years of low crude prices that made it potentially profitable for traders to buy petroleum, store it in tanks, ships and even trains and sell it later when prices rose.
Full text: A big obstacle is emerging for the Organization of the Petroleum Exporting Countries' plan to raise oil prices with output cuts: vast global reserves of crude that threaten its power over markets. Oil prices have risen about 20% since the 13-nation group decided to cut production in November. However, analysts said there isn't enough incentive for oil traders to start emptying storage tanks that rose to record levels in 2016. OPEC is scrambling to find ways to force stored-oil volumes down to more manageable levels before U.S. producers use the price recovery to kick-start output. "It's a bit of a race between the extent to which OPEC can implement its production cuts and how other producers, particularly U.S. shale, respond," said Jason Bordoff, director of Columbia University's Center on Global Energy Policy. On Thursday, Saudi Arabia, the world's largest exporter of crude, said it was cutting more than it had promised under the OPEC agreement. Its production fell below 10 million barrels a day in January, said energy minister Khalid al-Falih, and will likely decline further in February. "Our objective is to set the market on an accelerated rebalancing course," he said at a conference in Abu Dhabi. Mr. Falih's comments came a day after the U.S. Energy Information Administration said domestic crude stockpiles rose by 4.1 million barrels, to 483.1 million barrels, in the week ended Jan. 6, a much larger rise than analysts had expected. U.S. oil prices rose 1.7%, to $53.13 a barrel , after Mr. Falih's comments on Thursday, following several days of losses fueled by concern over high inventory levels and production from OPEC members such as Libya that are exempt from cuts. OPEC officials have long expressed concern about expanding levels of stored oil. Crude inventories rose to a record of more than 1.2 billion barrels in 2016 in the Organization for Economic Cooperation and Development group of industrialized nations, which includes the U.S. The amount in storage is a hangover from two years of low crude prices that made it potentially profitable for traders to buy petroleum, store it in tanks, ships and even trains and sell it later when prices rose. Analysts said all that stored oil is a swing supplier--a role OPEC has long sought to play--meaning it can be released when prices rise and built up when they fall. "There's no sign that we're drawing down inventories at a particularly rapid clip today, we're not there yet," said Seth Kleinman, a Citigroup analyst. The architect of the output-cut plan, OPEC Secretary-General Mohammad Barkindo, has said inventories are the primary target, not U.S. shale producers, which are often described as the group's chief adversary. The collective reduction of 1.8 million barrels a day, including reductions from non-OPEC producers such as Russia, adds up to about 320 million barrels over the six-month term of the deal. That is close to what the group said needs to drain out of storage to bring supply and demand into balance and raise prices. Oil storage is a more difficult issue in one way for OPEC than shale production. "People genuinely don't know how much of an overhang even exists to begin with," said Amrita Sen, analyst at Energy Aspects. While most industrialized nations publish data about oil storage, An increasing proportion of inventories are stored in Asian countries that don't publicize oil-storage data. Russia, the world's largest oil producer, stopped publishing such information in 2009. Singapore, a storage and refining hub, keeps storage numbers secret for refiners, which consider the information proprietary. OPEC has begun pushing countries to disclose more information, largely through the International Energy Forum, an organization that fosters dialogue between oil producers and consumers. "If you don't get the right information, you can't assess demand," said Yuichiro Torikata, an energy analyst at the International Energy Forum. OPEC will need to force prices up quickly to move oil out of storage, pushing the market into backwardation--a term that means oil is more expensive today than in the future. Storing oil generally works only when traders believe they can sell for higher prices in the future. "The question is whether the structure of the market is paying you to store or draw," said Adam Ritchie, director at OPEC-monitoring company Petro-Logistics SA. Write to Benoit Faucon at benoit.faucon@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Ahmed Al Omran at Ahmed.AlOmran@wsj.com Credit: By Benoit Faucon, Sarah McFarlane and Ahmed Al Omran
Subject: Crude oil prices; Supply & demand; Cartels; Inventory; Industrialized nations
Location: United States--US
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: Columbia University; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 12, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857775510
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857775510?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Rises as Saudi Arabia Cuts Output, China Imports Rise; Saudi Arabia said it has slashed its production to under 10 million barrels a day
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Jan 2017: n/a.
Abstract:
According to BMI Research, the compliance rate among the signatories is currently 73%.
Full text: Crude prices edged up in early Friday trade following reports that major producers have started cutting production as pledged, strengthening views the global oil glut was ebbing. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $53.09 a barrel at 0407 GMT, up $0.08 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.07 to $56.08 a barrel. Oil prices have seesawed since the Organization of the Petroleum Exporting Countries and 11 non-bloc players agreed late last year to cut production. The pact, if fully implemented, could wipe out about 1.8 million barrels of excess oil a day. However, skepticism over participation nations' commitment has kept prices from rising higher. Saudi Arabia, OPEC's de facto leader, said Thursday it has slashed its production to under 10 million barrels a day. If confirmed, the reduction would be more than the 486,000-barrel-a-day cut it had promised. The OPEC monthly report on January production will be released in mid-February. The kingdom has also notified its Asia customers it would reduce supply to the region in February, according to reports. "This was followed by comments from Russia's Energy Minister Alexander Novak that Russia also cut its January oil production," ANZ Research said, noting that Algeria also announced it has deepened its cut to 60,000 barrels a day from 50,000 barrels a day. According to BMI Research, the compliance rate among the signatories is currently 73%. "Saudi Arabia will do everything it can to make sure global prices stay on a good level before its state-own oil company goes public next year even if it means it needs to cut more of its production," said a Chinese fuel-oil trader based in Singapore. Oil prices also got a boost from Chinese crude imports, which jumped 14% in 2016 from the previous year to 381.01 million metric tons, or roughly 7.65 million barrels a day. China is seen as a major growth driver for the global crude market, based on the International Energy Agency's forecast. Analysts say China's import volume will likely stay elevated even though growth might slow due to a high comparison base. "China's crude imports will likely see another double-digit growth in 2017 due to strong refinery demand," said Nelson Wang, an energy analyst at investment firm CLSA. China National Petroleum Corp., one of China's top state-owned energy giants, said Thursday the country's reliance on foreign crude is expected to hit a new high in 2017, surpassing 65%. In November, the National Bureau of Statistics said the country's reliance on foreign oil was at 65.3%. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 42 points to $1.6150 a gallon, while February diesel traded at $1.6776, 20 points higher. ICE gas oil for February changed hands at $494.25 a metric ton, up $1.75 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; International markets; Petroleum production
Location: China Russia Saudi Arabia
People: Novak, Alexander
Company / organization: Name: China National Petroleum Corp; NAICS: 211111; Name: ICE Futures; NAICS: 52321 0; Name: New York Mercantile Exchange; NAICS: 523210; Name: International Energy Agency; NAICS: 926130, 928120, 541720
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857940752
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857940752?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Prospects for a U.S. Oil-Export Boom; Rising oil production raises the possibility of selling more crude abroad--but the discount is the key
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Jan 2017: n/a.
Abstract:
U.S. oil production is inching higher again, and could get a boost from November's pact to cut output by the Organization of the Petroleum Exporting Countries--raising anew the prospect of greater U.S. exports, which has long tantalized U.S. oil producers, traders and policy makers.
Full text: Could America become a big oil exporter? U.S. oil production is inching higher again, and could get a boost from November's pact to cut output by the Organization of the Petroleum Exporting Countries--raising anew the prospect of greater U.S. exports, which has long tantalized U.S. oil producers, traders and policy makers. All but banned after the 1973 Arab oil embargo, U.S. exports have grown significantly since Congress and the Obama administration lifted the restriction in 2015 --hitting 520,000 barrels a day in the first 10 months of 2016, up 7.2% from the year before. They could keep rising in 2017--or, analysts note, the U.S. could simply consume more of its own crude at home. "The more likely scenario is that the U.S. cuts its imports of oil from other countries, pushing oil from Africa and elsewhere to Asia," said Nelson Wang, oil analyst at CLSA. "I do believe the U.S. is getting increasingly independent on crude oil as production seems to be ramping up again." By global standards, the U.S. is still a modest exporter. If it were a member of OPEC, it would rank 10th of 14, between Algeria and Qatar, though well ahead of last-place Libya, which ships out 235,000 barrels a day. But the U.S. is sending more crude to more varied destinations.Though most still heads to Canada for blending with ultraheavy Canadian crude--and return to the U.S.--last year the U.S. sent about 10 times as much oil to China as the year before, while shipping for the first time to the likes of the U.K. and Thailand. Analysts say the outlook for U.S. exports depends largely on oil prices. For exports to rise substantially, U.S. crude needs to trade at a sizable discount to oil produced elsewhere, as measured by the spread between U.S. benchmark WTI and global standard Brent. While a big rise in U.S. production could widen the price gap, the two benchmarks have been pretty closely in line for a while--meaning U.S. exports aren't likely to skyrocket anytime soon, analysts say. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Petroleum production; Price increases; US exports; Crude oil
Location: Asia United States--US Africa
Company / organization: Name: Congress; NAICS: 921120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1857964129
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1857964129?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Slips as Market Keeps Watch on Production Pledges; Skepticism remains, despite evidence of lower output
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Jan 2017: n/a.
Abstract:
According to BMI Research, the compliance rate among the signatories is currently 73%, pointing to follow-through from OPEC members including Saudi Arabia, the United Arab Emirates and Kuwait.
Full text: Crude oil prices ended the week lower, with all eyes on the extent to which pledges on production cuts are being met. U.S. crude for February delivery settled down 64 cents, or 1.21%, at $52.37 a barrel on the New York Mercantile Exchange on Friday. Brent, the global benchmark, fell 56 cents, or 1%, to $55.45 a barrel on ICE Futures. U.S. crude futures lost $1.62 a barrel this week--the largest weekly decline since early November--snapping a four-week streak of weekly price increases. Oil prices have traded in a higher range since the Organization of the Petroleum Exporting Countries and 11 nonmembers of the bloc agreed late last year to cut production starting from this month. The pact, if fully implemented, could wipe out about 1.8 million barrels of excess oil a day. However, skepticism over participating nations' commitment to output quotas has weighed on prices. "The market is in high level consolidation between $50 and something short of $55," said John Saucer, vice president of research and analysis at Mobius Risk Group. "It's waiting for a concrete signal to make a move." Reports that OPEC members and other major producers are implementing planned cuts have boosted prices at times this week, with some analysts suggesting that producers could have coordinated their announcements of production cuts to reassure market participants and support prices. Saudi Arabia, OPEC's de facto leader, said Thursday it had cut its production to less than 10 million barrels a day. If confirmed, the reduction would be more than the 486,000-barrel daily cut it had promised . The OPEC monthly report on January production will be released in mid-February. The kingdom has also notified its customers in Asia that it would reduce supply to the region in February, according to reports. "Saudi Arabia continues to show that the huge oil producer is actually walking the talk about cutting production and complying with the OPEC and non-OPEC deal," said Michael Poulsen, oil risk manager at Global Risk Manager. According to BMI Research, the compliance rate among the signatories is currently 73%, pointing to follow-through from OPEC members including Saudi Arabia, the United Arab Emirates and Kuwait. Many analysts say that level of compliance is enough to bring down global crude stocks. But some remain unconvinced. "As the Saudis hint at even deeper reductions in February, assumptions are rife that its enthusiastic approach to output cuts is an admission that cheating is expected on the part of other producers," brokerage PVM said in a note. "Plenty of pitfalls lie ahead and we have reached the point whereby hard evidence of output restraint is needed if prices are to break out of their current range." Market participants are also weighing a large build in U.S. oil and fuel inventories reported by the Energy Information Administration this week, said Andy Lipow, president of Lipow Oil Associates in Houston. The market "is on the one hand looking at how much compliance we're seeing from OPEC and non-OPEC producers. On the other hand, it is trying to decide the impact of the significant inventory increases in products over the last two weeks, and whether products inventories are going to impact prices and put pressure on crude," Mr. Lipow said. Data showing that Chinese crude imports hit a record 8.6 million barrels a day last month supported prices in overnight trading. But exports of fuel also surged. "A lot of this so-called Chinese oil demand is being U-turned--it is going right back out as refined products," said John Kilduff, founding partner of Again Capital. Gasoline futures edged up 0.09 cent, or 0.06%, to $1.6117 a gallon. Diesel futures fell 2.42 cents, or 1.44%, to $1.6514 a gallon. Jenny W. Hsu contributed to this article Write to Alison Sider at alison.sider@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Alison Sider and Sarah McFarlane
Subject: Crude oil prices; Cartels; Compliance; Inventory
Location: United States--US Saudi Arabia
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858052504
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858052504?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil Rig Count Falls By Seven, Baker Hughes Says; Gas rig count in U.S. rises by one in past week
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Jan 2017: n/a.
Abstract:
The number of rigs drilling for oil in the U.S. fell by seven in the past week to 522, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector.
Full text: The number of rigs drilling for oil in the U.S. fell by seven in the past week to 522, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. The rig count level has generally been trending upward since the summer. The nation's gas-rig count rose by one to 136 in the past week, according to Baker Hughes. The U.S. offshore-rig count rose by one from last week to 25, which is one fewer than a year ago. On Friday, investors were keeping an eye on the extent to which pledges on production cuts are being met following reports that major producers have started cutting production. U.S. crude-oil prices slipped 0.8% to $52.58 a barrel in early afternoon trading. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858139783
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858139783?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Marco Rubio's Vote Is Key for Secretary of State Nominee; Florida senator hasn't decided whether to back former Exxon CEO Rex Tillerson
Author: Tau, Byron
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Jan 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--Republican Sen. Marco Rubio has become the central figure in the Senate confirmation drama over President-elect Donald Trump's choice to lead the State Department, emerging as the key vote on confirming Rex Tillerson to the nation's top diplomatic post. A trio of Republican senators have expressed deep reservations about Mr. Tillerson, the former Exxon Mobil Corp. chief executive. In addition to Mr. Rubio of Florida, they are Sens. John McCain of Arizona and Lindsey Graham of South Carolina. The three have raised concerns about Mr. Tillerson's personal and business relationships with senior figures in the Russian government, an especially sensitive topic due to the U.S. intelligence assessment that the Kremlin interfered with the nation's presidential election. All three remain undecided on whether to support Mr. Tillerson after a marathon, eight-hour hearing with the former CEO on Capitol Hill this week. But no senator is more critical to Mr. Tillerson's fate than Mr. Rubio, who sits on the Foreign Relations Committee, which will vote on whether to support the nomination. Republicans have a one-vote advantage on the panel, meaning that Mr. Rubio may be crucial to moving Mr. Tillerson's nomination to the floor with a recommendation that he be confirmed for the job. Mr. Rubio has remained tight-lipped about his intentions. He has said he has additional questions for Mr. Tillerson as part of the vetting process and would withhold comment until he has come to a decision. "We're just going to continue to go through the process, and we'll make a decision soon," said Mr. Rubio on Capitol Hill this week after the confirmation hearing. A committee vote on Mr. Tillerson's nomination could come as soon as next week. Messrs. Graham and McCain also say that they are withholding judgment, but that they are concerned about Mr. Tillerson's views on Russia and the broader direction of the Trump administration's proposed detente with Moscow. Mr. Trump has proposed improving relations with Russian President Vladimir Putin, a stance that is at odds with many Republicans in Congress. In a television appearance this week, Mr. Graham said the Tillerson nomination was "salvageable," with the potential to win his vote. "I just still haven't made up my mind," Mr. McCain told reporters. The senator has said he is concerned about Mr. Tillerson's relationships with senior members of the Russian government. Mr. Rubio subjected Mr. Tillerson to several rounds of withering questioning, with a special focus on the issue of Russia, economic sanctions and human rights. In one exchange, Mr. Rubio asked whether Mr. Putin was a war criminal, citing the Russian military's actions in Syria as the reason for the question. Mr. Tillerson demurred, saying: "Those are very, very serious charges to make, and I would want to have much more information before reaching a conclusion." There is enormous pressure within the Senate Republican caucus to start the Trump administration with a series of smooth confirmation hearings and votes. But Republicans have a thin margin for error, holding 52 out of 100 seats in the Senate. GOP leaders have signaled that the confirmation of Mr. Tillerson, as well as all of Mr. Trump's other nominees, is a top priority. No cabinet nominee has been rejected by the Senate since 1989, though several have withdrawn. Mr. Rubio's willingness to withhold his support comes is an indication that he has more room for political independence. "I think in his view he's doing what the Senate is supposed to do--to provide advice and consent on presidential nominees," said Ryan Williams, a Republican strategist who expects Mr. Tillerson to be ultimately confirmed. "He's just been re-elected, with six years in front of him in the Senate," said Mr. Williams. "I think he feels liberated to approach decisions in his second term without the same political considerations. He's liberated to do what he thinks is the right thing without having to think about running for president or for re-election." Many Democrats have spoken out about their concerns about Mr. Tillerson, though it is possible he will draw some Democratic support in the final vote tally. He could also win Democratic support in the committee, offsetting the potential loss of Mr. Rubio's vote. "I will oppose the nomination of Rex Tillerson as secretary of state. He has a notable record of business success and a laudable commitment to civic affairs. But he did not demonstrate the awareness, judgment or independence I expect from our nation's chief diplomat," said Sen. Tim Kaine (D., Va.), who also sits on the Foreign Relations panel. A committee decision not to approve Mr. Tillerson wouldn't block his nomination from moving to the Senate floor, though such a development is rare. Another possible pathway is that Senate Republican leadership could bypass the committee entirely and bring Mr. Tillerson directly to the floor--another extremely rare procedural maneuver that nevertheless remains available to Senate leadership. Read More on Capital Journal Capital Journal is WSJ.com's home for politics, policy and national security news. * U.S. Ends 'No-Visa' Era for Cuban Émigrés * Obama Surprises Joe Biden With Medal of Freedom * Trump's Cabinet Nominees Diverge on Russia, Security Issues * Justice Department Watchdog to Probe FBI's Handling of Clinton Email Case * Justice Department Lawyer Defends Contact with Clinton Campaign Credit: By Byron Tau
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 13, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858182225
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858182225?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Despite Plunging Peso, Wildcatters Try Making Money on Oil in Mexico; Riverstone Holdings has committed more than $1 billion to Mexican energy ventures over the last two years
Author: Whelan, Robbie; Dezember, Ryan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Jan 2017: n/a.
Abstract: None available.
Full text: Wildcatters are crossing the border into Mexico to pour money into the country's recently deregulated energy sector, betting that the plunging peso and other economic stress won't disrupt their business. Mexico's privatization of its deep-water reserves and onshore fields, which began 18 months ago, represents a new opportunity for energy explorers and investors that have been competing against each other in U.S. and Canadian oil fields for more than a decade. Riverstone Holdings LLC, a New York-based private-equity firm which is one of the world's largest energy investors, has committed more than $1 billion to Mexican energy ventures over the last two years. That includes funding a pair of companies launched specifically to profit from the sector's privatization--oil explorer Sierra Oil & Gas and Avant Energy, which will build and operate pipelines and refineries. "We're determined to be players here," said Alfredo Marti, a Riverstone managing director who is part of its Mexico-focused team. "We decided that this was a very real, genuine opening involving high-quality assets." But Mexico's financial markets have been volatile since the election of Donald Trump, reflecting potential risks that few investors could have anticipated even a year ago. The peso began sliding against the dollar as Mr. Trump's campaign gained traction and the currency's value, a proxy for Mexico's broader economic prospects, plunged when he was elected president. Mr. Trump has pledged to renegotiate or pull out of the North American Free Trade Agreement and has pressured U.S. companies such as Ford Motor Co. and Carrier Corp. to scale back or cancel large manufacturing investments in Mexico. His actions have punished the peso, which has lost about 15% of its value against the dollar since the election and 27% since July 2015 when Mexico held its first auction of oil fields. The currency's decline makes local costs cheaper for companies funded with dollars. Some investment firms, including Riverstone, have raised funds in pesos, and some of their costs, such as leasing drilling rigs, are often invoiced in dollars. So a weak peso makes those costs more expensive. Energy investors could also face political risk if a populist backlash grows against Mexican President Enrique Peña Nieto. He made energy deregulation a centerpiece of his economic agenda, but protesters have recently taken to the streets in response to government cuts of gasoline subsidies that are part of the deregulatory measures. That development has some observers worried that the privatization process could stall if Mr. Peña Nieto's party doesn't win the presidency next year. Mr. Peña Nieto's political opponents "can't stop the process, but it could throw sand in the gears and really slow things down," said Steven Otillar, a Houston-based partner with law firm Akin Gump Strauss Hauer & Feld LLP, who has worked on deals in Mexico's energy industry for two decades. It could "really be bad for business," he added. A Riverstone spokesman said: "Regarding any potential political risk, our partners are local Mexican pension funds and many of our companies active in Mexico, such as Sierra and Avant, are established in Mexico, staffed by Mexicans and with a Mexican identity, rather than the stereotypical foreign oil interests." Mexico's oil industry had been a monopoly run by state oil company Petróleos Mexicanos, or Pemex, since 1938. In 2015, Mexico was the world's 12th largest oil producer, according to BP PLC's most recent Statistical Review of Energy. But Mexico's production has been declining, in part because it lacks the technical ability for deep-water drilling. The country last year produced about 2.16 million barrels a day, its lowest output since 1980, according to Pemex. Mr. Peña Nieto in 2013 signed laws intended to modernize the industry by opening up the sector to foreign partners and their expertise. Riverstone has raised more than $34 billion from investors since 2002, notching big profits investing in pipeline operators and U.S. shale explorers. The recent oil-price slump reduced the value of many of its holdings, though lately the firm has posted big gains buying and selling West Texas oil fields. Jason Marczak, a Mexico expert with the Atlantic Council, a nonpartisan Washington think tank, described wildcatters like the companies backed by Riverstone, as a kind of "first line" of investors in what amounts to an untested process of privatization. He said the first auction of two shallow-water drilling blocks in July 2015 helped draw bidders to subsequent offerings, including auctions last month of deep-water drilling blocks. Those sales attracted global giants like Exxon Mobil Corp., Chevron Corp. and China National Offshore Oil Corp. Pedro Joaquín Coldwell, Mexico's energy secretary, called the privatization process a success. "We've managed to show internationally that Mexico has a bidding system for oil contracts characterized by high standards of transparency and a level playing field," he said in an interview. Riverstone, along with Houston-based investment firm EnCap Investments LP and a Mexican unit of BlackRock Inc., have collectively invested $525 million in Sierra, which is based in Mexico City and was part of a bidding group that in December won rights to explore a deep-water block. That month Riverstone also committed another $300 million to Avant, which is also based in Mexico City and plans to focus on oil and gas distribution and processing. Riverstone "decided that having first-mover advantage in Mexico was worth the risk," said Pablo Medina, a Latin America analyst with energy information firm Wood Mackenzie. Write to Robbie Whelan at robbie.whelan@wsj.com and Ryan Dezember at ryan.dezember@wsj.com Credit: Robbie Whelan, Ryan Dezember
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858939474
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858939474?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rises Slightly in Asia Ahead of OPEC Data; January Brent crude on London's ICE Futures exchange rose $0.44 to $46.59 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Jan 2017: n/a.
Abstract:
March Brent crude on London's ICE Futures exchange rose $0.20 to $55.65 a barrel. Because oil is traded in U.S. dollars, a weaker dollar means cheaper prices for foreign traders.
Full text: Crude futures made tepid gains in Asia on Monday morning--driven mainly by a weaker dollar--as investors await a report on how compliant major global producers have been with regard to the recent production-cut deal. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $52.55 a barrel at 0422 GMT, up $0.18 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.20 to $55.65 a barrel. Because oil is traded in U.S. dollars, a weaker dollar means cheaper prices for foreign traders. The dollar was last up 0.2% at 92.05 according to The Wall Street Journal Dollar index, which compares the dollar to a basket of currencies. Trading is likely to be quiet today because U.S. markets are closed for Martin Luther King Jr. Day. "Market attention will likely revolve around this Friday's inauguration of U.S. President Trump as well as China's fourth quarter gross domestic product print," OCBC said. President-elect Donald Trump is a supporter of relaxing rules on U.S. oil drilling. His campaign platform included a plank on accelerating the country's energy independence. That could mean lower U.S. oil imports and may bode badly for other producers who are competing for market share. Last week, the U.S. Department of Energy said domestic oil production would likely rise to an average of 9.3 million barrels a day by next year. The increases "largely reflect increase in federal offshore Gulf of Mexico production," it said. Goldman Sachs expects, based on a the current oil rig count, that U.S. oil production will increase by 235,000 barrels a day year-over-year in 2017 if taking into account the backlog of oil wells being gradually brought back to active drilling between last quarter and the first half of this year. The release of U.S. oil output and inventory for the week ending Jan. 13 will be delayed one day to Thursday this week due to a public holiday. This week, market participants will also be paying attention to the monthly production data released by OPEC on Wednesday. Analysts and traders will be combing through it for any early clues or comments on the production-cut deal signed late last year. In early December, OPEC and 11 other nonmembers such as Russia, agreed to slash their combined output by nearly 2 million barrels a day. In an attempt to assure compliance, OPEC set up an oversight committee to keep participating nations' production in check. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 3 points to $1.6120 a gallon, while February diesel traded at $1.6577, 63 points higher. ICE gasoil for February changed hands at $489.00 a metric ton, up $1.50 from Friday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Political campaigns; Futures; Petroleum production; Price increases; Crude oil
Location: United States--US Asia
People: Trump, Donald J
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: ICE Futures; NAICS: 523210; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: New York Mercantile Exchange; NAICS: 523210; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858553137
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858553137?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Creep Lower Ahead of OPEC Data; Donald Trump's inauguration also in focus
Author: Baxter, Kevin; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Jan 2017: n/a.
Abstract:
Oil prices edged lower Monday, with investors set to digest key numbers from the Organization of the Petroleum Exporting Countries this week that will give further clues on supply and demand.
Full text: Oil prices edged lower Monday, with investors set to digest key numbers from the Organization of the Petroleum Exporting Countries this week that will give further clues on supply and demand. The March contract for global benchmark Brent was down 0.14% at $55.36 a barrel, while its U.S. counterpart, West Texas Intermediate, rose 0.21% to $52.26 a barrel for February deliveries. Earlier prices were slightly higher. The primary driver in oil markets remains the deal struck by OPEC members and several other large producers to cut output. So far, the accord has been adhered to, as energy giants like Saudi Arabia and Russia ease back their output. OPEC releases its monthly production data Wednesday, offering early clues on the deal signed late in 2016. SEB Markets expects prices to linger around the $55 a barrel-mark for the first quarter of 2017, until the true effect of the cuts are felt. The surge in OPEC's output toward the end of 2016 pushed up global inventories by 55 million barrels, meaning there is plenty of oil around, according to SEB analyst, Bjarne Schieldrop. Donald Trump's presidential inauguration Friday will shift focus to the U.S. Mr. Trump supports relaxing regulatory rules on U.S. oil drilling and talked in his campaign of accelerating U.S. energy independence. That could mean higher production and lower imports, boding badly for foreign producers competing for market share in the U.S., which is the world's biggest consumer of crude. The U.S. oil drilling sector got off to a slow start in 2017. Oil-field services company Baker Hughes released its regular rig-count data Friday, which showed rigs had fallen by seven in the last week . Also last week, the U.S. Department of Energy said domestic oil production would likely rise to an average of 9.3 million barrels a day by 2018. The changes "largely reflect increase in federal offshore Gulf of Mexico production," it said. Goldman Sachs predicts that U.S. oil production will increase by 235,000 barrels a day on the year in 2017, taking into account the backlog of oil wells that have or will be brought back to active drilling between the last quarter of 2016 and the first half of 2017. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell by 0.38% to $1.61 a gallon, while diesel futures traded at $1.65, 0.32% lower. ICE gasoil futures changed hands at $489.25 a metric ton, up 0.41% from Friday's settlement. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Kevin Baxter and Jenny W. Hsu
Subject: Supply & demand; Political campaigns; Petroleum production
Location: Russia United States--US Saudi Arabia
People: Trump, Donald J
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858723099
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858723099?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
For Shale Drillers, Rising Oil Prices Also Come With Rising Costs; Much of shale firms' savings during downturn came at expense of oil-field-services firms, which aim to raise prices
Author: Cook, Lynn; Ailworth, Erin; Matthews, Christopher M
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Jan 2017: n/a.
Abstract:
Sand mines are pushing up prices, hoping to get 20% or more for the fracking ingredient used to help prop open underground fissures and allow oil to flow to the surface. [...]recently sand mined in Wisconsin hovered around $20 a ton, but a company recently reported a purchase at $30 a ton, according to Simmons & Co. International.
Full text: U.S. shale drillers that proved resilient during the oil downturn face a new test in 2017: Can they make money producing more now that prices have stabilized? The price of crude is hovering just below $55 a barrel--the level many energy companies said they needed to make a profit--and that is setting off a race to drill again . Producers boosted U.S. oil output to nearly 9 million barrels a day, pumping an extra 500,000 barrels a day in the past three months. The additional American production is more than the volume that Saudi Arabia committed to stop producing to help shore up global crude prices. But the cost middlemen charge companies to help them tap new wells is rising along with the new activity. That is threatening to wipe out some of the savings the industry gained by belt-tightening during the bust. Shale companies have put more than 90 additional rigs back into the field in recent weeks, after a November agreement by Russia and the Organization of the Petroleum Exporting Countries to curb global output boosted oil prices. However, the cost to hire an experienced drilling crew and source critical oil-field supplies, including the sand used in hydraulic fracturing, has surged between 10% and 20% this winter, experts say. Shale companies could face even higher prices if crude keeps climbing to $60 a barrel, they add. Much of the cost savings that U.S. producers realized during the downturn came at the expense of oil-field-services companies, which have made it clear they intend to raise prices when demand for their help rises. Halliburton Co. has likened negotiations with its customers to a "barroom brawl." Hundreds of small to midsize rivals that run rigs, truck water and pipe in and out of the field and provide the labor to frack wells are also trying to charge more in the new year . "What we're seeing at the moment is a massive industry renegotiation," said Colin Davies, a senior analyst at AB Bernstein and former vice president of corporate strategy with Hess Corp. Though a recovery remains tenuous, the U.S. shale sector hit an important inflection point in the fall, after two years in which companies hemorrhaged cash as oil prices plunged from over $100 a barrel in the summer of 2014 to less than $30 a year ago. Sixteen shale producers, including Apache Corp., Continental Resources Co. and Marathon Oil Corp., managed to slash costs enough to generate free cash flow during the third quarter of 2016, according to a Wall Street Journal analysis of data compiled by S&P Global Market Intelligence on the 40 largest U.S. oil and gas producers by market capitalization. That means more shale producers are living within their means than at any point in the last five years. But whether more can prosper this year, when oil is expected to stay between $50 and $60 a barrel, remains to be seen. Shale companies like Carrizo Oil & Gas Inc., a driller active in Texas, Colorado and Pennsylvania, have tried to entice service providers to maintain current pricing under long-term contracts. They have met some resistance, said Chip Johnson, Carrizo's chief executive. "Service companies don't really want to lock in today's prices for any longer than they have to," he told an industry conference audience in Houston in November. Kenneth Shore, vice president of Tec Well Service, Inc. in Longview, Texas, said that at the peak of the oil boom, Tec Well charged $325 an hour to drill wells, but dropped that to around $200 as crude prices slumped. Mr. Shore recently quoted an oil producer customer a rate of $220 per hour to operate a rig in the Permian Basin because there was no experienced crew on hand and he knew he would be unable to lure workers back without boosting their salaries. The client agreed, and Tec Well announced an 11% wage increase. Producers have had "service companies working for them below their cash cost," said Mr. Shore, adding that "all of our competitors went bankrupt, every single one of them". Sand mines are pushing up prices, hoping to get 20% or more for the fracking ingredient used to help prop open underground fissures and allow oil to flow to the surface. Until recently sand mined in Wisconsin hovered around $20 a ton, but a company recently reported a purchase at $30 a ton, according to Simmons & Co. International. The Houston energy investment bank is forecasting demand for frack sand could jump 60% to 60 million tons in 2017 as shale producers try to coax more from every well by using more sand and fracking wells more often. Those kinds of advances in production techniques are what helped many U.S. shale companies make drilling wells economic at around $55 a barrel, down from $90 just two years ago. So rising prices for sand and other services could increase the price they need to break even, analysts say. In Oklahoma's Scoop formation, one of the hottest current drilling areas in the country, a typical well can now make money at $51 oil, according to Simmons. But factoring in a 15% to 30% escalation in service costs, those same wells would need between $57 and $63 a barrel to break even, the bank estimates. New wells are only one of the ways U.S. drillers stand poised to pump up production. More than 5,200 drilled-but-uncompleted wells, known as DUCs, are waiting to be pumped. With initial drilling costs already spent, most can now be completed and pumped profitably at $40 barrel, said Ryan Duman, a senior analyst with consultancy Wood Mackenzie. "The DUCs are well into the money these days," Mr. Duman said. Write to Lynn Cook at lynn.cook@wsj.com , Erin Ailworth at Erin.Ailworth@wsj.com and Christopher M. Matthews at christopher.matthews@wsj.com Related * Noble Sets $2.7 Billion Deal Credit: By Lynn Cook, Erin Ailworth and Christopher M. Matthews
Subject: Cost control; Competition; Crude oil prices; Energy industry
Location: United States--US
Company / organization: Name: Marathon Oil Corp; NAICS: 486110, 324110, 211111, 213112; Name: Apache Corp; NAICS: 324110, 211111, 213112; Name: Hess Corp; NAICS: 447110, 324110, 211111; Name: Halliburton Co; NAICS: 213112, 237990
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 16, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858731736
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858731736?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
How Using Less Oil Helps the Economy; American families are saving more than $1,000 each year.
Author: Deese, Brian; Zients, Jeff
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract:
The EPA found that the standards are on track to increase the current fuel-efficiency average by 10 miles per gallon by 2025. [...]since the standards were first proposed in 2009, auto makers have developed far more innovative fuel-efficiency technologies than anticipated.
Full text: There has been significant focus recently on increasing oil production, but too little on the economic and energy-security benefits of reducing oil consumption. Today, Americans consume less oil than they did in 2008, even as the economy and miles traveled grew by more than 10% and 5%, respectively. This outcome was unexpected. Oil consumption in 2015 was lower by 6.2 million barrels a day than had been projected in 2003. Projections for 2025 are now 34% under the 2003 projection for that year. Cutting consumption has been more significant than boosting oil production, which has increased by 4.4 million barrels a day since 2008. Over this period, the U.S. has cut its oil imports by more than half--a feat that would have been impossible if consumption had followed prior trends. Because America uses more than 20% of the world's oil, our reduced demand has played an important role in lowering global prices. With the average gasoline price in the U.S. down to $2.38 a gallon, American families are saving more than $1,000 each year. A key question for the incoming administration is how to improve upon these consumption trends. Two near-term issues will be critical. The first is fuel economy. Although demographics and driving patterns have helped reduce oil consumption, this administration's fuel-economy standards, built on bipartisan 2007 legislation, have also contributed. Last week the Environmental Protection Agency determined that its greenhouse-gas standards for light-duty vehicles continue to be appropriate. The EPA found that the standards are on track to increase the current fuel-efficiency average by 10 miles per gallon by 2025. Moreover, since the standards were first proposed in 2009, auto makers have developed far more innovative fuel-efficiency technologies than anticipated. This occurred while the American auto industry hit some of its best sales numbers in decades, and while the U.S. added more than 800,000 manufacturing jobs since 2010. Reversing these standards risks creating uncertainty for auto makers. Even if the federal standards are weakened, states such as California have the authority to maintain stronger rules, which could force auto makers to produce different models for different areas of the country. The economic dividend for American families from lower oil consumption provides an additional rationale for maintaining a unified national standard. The second issue is infrastructure. Any comprehensive approach to rebuilding roads and bridges should consider not merely the direct economic benefits, but also those of reduced petroleum consumption. Pragmatic investments to minimize congestion and create new fuel-efficient transportation options--like public transit and autonomous vehicles--would save money and enjoy bipartisan support. On these issues, the American people will be best served by an open-minded approach that recognizes the dividend to American families from lower oil consumption. This not only helps combat climate change, but it makes the U.S. economy stronger and more prosperous. Mr. Deese is a senior adviser to President Obama. Mr. Zients is director of the National Economic Council. Credit: By Brian Deese And Jeff Zients
Subject: Oil consumption; Energy efficiency; Automobile industry; Standards; Trends; Petroleum production
Location: United States--US California
Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858789015
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858789015?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Rebound Brings Rising Costs --- As shale companies ramp up drilling, middlemen like oil-field-services firms are boosting prices
Author: Cook, Lynn; Ailworth, Erin; Matthews, Christopher M
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 Jan 2017: B.1.
Abstract:
Sand mines are pushing up prices, hoping to get 20% or more for the fracking ingredient used to help prop open underground fissures and allow oil to flow to the surface. [...]recently sand mined in Wisconsin hovered around $20 a ton, but a company recently reported a purchase at $30 a ton, according to Simmons & Co. International.
Full text: U.S. shale drillers that proved resilient during the oil downturn face a new test in 2017: Can they earn money producing more now that prices have stabilized? The price of crude is hovering just below $55 a barrel -- the level many energy companies said they needed to make a profit -- and that is setting off a race to drill again. Producers boosted U.S. oil output to nearly nine million barrels a day, pumping an extra 500,000 barrels a day in the past three months. The additional American production is more than the volume that Saudi Arabia committed to stop producing to help shore up global crude prices. But the cost middlemen charge companies to help them tap new wells is rising along with the new activity. That is threatening to wipe out some of the savings the industry gained by belt-tightening during the bust. Shale companies have put more than 90 additional rigs back into the field in recent weeks, after a November agreement by Russia and the Organization of the Petroleum Exporting Countries to curb global output boosted oil prices. However, the cost to hire an experienced drilling crew and source critical oil-field supplies, including the sand used in hydraulic fracturing, has surged between 10% and 20% this winter, experts say. Shale companies could face even higher prices if crude keeps climbing to $60 a barrel, they add. Much of the cost savings that U.S. producers realized during the downturn came at the expense of oil-field-services companies, which have made it clear they intend to raise prices when demand for their help rises. Halliburton Co. has likened negotiations with its customers to a "barroom brawl." Hundreds of small to midsize rivals that run rigs, truck water and pipe in and out of the field and provide the labor to frack wells are also trying to charge more in the new year. "What we're seeing at the moment is a massive industry renegotiation," said Colin Davies, a senior analyst at AB Bernstein and former vice president of corporate strategy with Hess Corp. Though a recovery remains tenuous, the U.S. shale sector hit an important inflection point in the fall, after two years in which companies hemorrhaged cash, as oil prices plunged from over $100 a barrel in the summer of 2014 to less than $30 a year ago. Sixteen shale producers, including Apache Corp., Continental Resources Co. and Marathon Oil Corp., managed to slash costs enough to generate free cash flow during the third quarter of 2016, according to a Wall Street Journal analysis of data compiled by S&P Global Market Intelligence on the 40 largest U.S. oil and gas producers by market capitalization. That means more shale producers are living within their means than at any point in the past five years. But whether more can prosper this year, when oil is expected to stay between $50 and $60 a barrel, remains to be seen. Shale companies such as Carrizo Oil & Gas Inc., a driller active in Texas, Colorado and Pennsylvania, have tried to entice service providers to maintain current pricing under long-term contracts. They have met some resistance, said Chip Johnson, Carrizo's chief executive. "Service companies don't really want to lock in today's prices for any longer than they have to," he told an industry conference audience in Houston in November. Kenneth Shore, vice president of Tec WellService, Inc. in Longview, Texas, said that at the peak of the oil boom, Tec Well charged $325 an hour to drill wells, but dropped that to around $200 as crude prices slumped. Mr. Shore recently quoted an oil-producer customer a rate of $220 per hour to operate a rig in the Permian Basin because there was no experienced crew and he knew he would be unable to lure workers back without boosting their salaries. The client agreed, and Tec Well announced an 11% wage increase. Producers have had "service companies working for them below their cash cost," said Mr. Shore, adding that "all of our competitors went bankrupt, every single one of them." Sand mines are pushing up prices, hoping to get 20% or more for the fracking ingredient used to help prop open underground fissures and allow oil to flow to the surface. Until recently sand mined in Wisconsin hovered around $20 a ton, but a company recently reported a purchase at $30 a ton, according to Simmons & Co. International. The Houston energy investment bank is forecasting demand for frack sand could jump 60% to 60 million tons in 2017 as shale producers try to coax more from every well by using more sand and fracking wells more often. Those kinds of advances in production techniques are what helped many U.S. shale companies make drilling wells economic at around $55 a barrel, down from $90 just two years ago. So rising prices for sand and other services could increase the price they need to break even, analysts say. In Oklahoma's Scoop formation, one of the hottest current drilling areas in the country, a typical well can now earn money at $51 oil, according to Simmons. But factoring in a 15% to 30% escalation in service costs, those same wells would need between $57 and $63 a barrel to break even, the bank estimates.
Credit: By Lynn Cook, Erin Ailworth and Christopher M. Matthews
Subject: Cost control; Energy industry; Middlemen; Crude oil prices; Oil shale
Location: United States--US
Company / organization: Name: Carrizo Oil & Gas Inc; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Jan 17, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858835825
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858835825?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Saudi Oil Minister Plays Down U.S. Oil Rebound Concerns; Minister says it will take time for U.S. producers to recoup lost ground
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract:
Saudi Arabia's oil minister Tuesday said U.S. oil production will take time to regain lost ground amid concerns resurgent prices driven by OPEC production cuts could benefit North American rivals.
Full text: Saudi Arabia's oil minister Tuesday said U.S. oil production will take time to regain lost ground amid concerns resurgent prices driven by OPEC production cuts could benefit North American rivals. The Organization of the Petroleum Exporting Countries and other low-cost producers decided late last year to reduce their production by nearly 1.8 million barrels a day to boost flagging prices. But oil prices rising above $50 a barrel has driven up the number of rigs in the U.S. as oil shale production that had shut because of low prices become profitable again. However, speaking at the World Economic Forum in Davos, Switzerland, Khalid al-Falih, the oil minister of the world's largest oil exporter Saudi Arabia, said it would take time for U.S. producers to regain lost ground. U.S. oil shale producers "will find they need higher prices" because the most prolific reservoirs are being exhausted and squeezed contractors are increasing the amount they charge, he said. The year "2017 will include an inflation on the cost of doing business," the Saudi oil minister said. Fatih Birol, the executive director of the International Energy Agency--which represents oil consumers--said U.S. production would increase again this year after a decline in 2016. U.S. crude oil production fell by about 500,000 barrels a day last year from 2015 levels to 8.9 million barrels a day, according to the U.S. Energy Information Administration. But the EIA forecasts it will increase to an average of 9.0 million barrels a day--a boost of about 100,000 barrels a day--in 2017. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Supply & demand; Crude oil; Petroleum production; Oil shale
Location: Switzerland United States--US Saudi Arabia
People: Birol, Fatih
Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: World Economic Forum; NAICS: 926110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858857863
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858857863?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
China's Oil Output Set for Long-Term Slump; Reduced oil-production target also means increased imports from overseas
Author: Spegele, Brian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract:
The drop-off reflects a lack of recent investment in aging domestic fields by the country's state-owned oil producers, as well as their struggles to replicate the unconventional extraction techniques that have revived production in the U.S. The turnabout in the energy sector follows a broad shift under way in China's economy, in which industry and manufacturing are ceding way to service-oriented sectors.
Full text: BEIJING--China's oil production has entered a long-term decline, the government acknowledged Tuesday, signaling that the country will become increasingly dependent on imports. In releasing its latest five-year plan for energy--a road map for the state-dominated industry--the government said domestic oil production would fall 7% by 2020 versus 2015, to about 4 million barrels a day. The drop-off reflects a lack of recent investment in aging domestic fields by the country's state-owned oil producers, as well as their struggles to replicate the unconventional extraction techniques that have revived production in the U.S. The turnabout in the energy sector follows a broad shift under way in China's economy, in which industry and manufacturing are ceding way to service-oriented sectors. That has translated into slowing energy-demand growth across the economy--a trend the government believes will accelerate in the coming years. "Over the next five years, demand for iron, steel, nonferrous metals, building materials and other major energy-consuming products is expected to peak, and energy demand will steadily decline," said the five-year plan from China's National Development and Reform Commission, the government's top economic planning body. Falling oil production from China is a welcome reprieve for the global oil industry , which is struggling beneath a glut of supply that led prices to crash. Many big producers carefully eye production data and projections from China to infer future imports. All three of China's big state-owned oil companies reported double-digit declines in capital investment last year as they struggled to weather the low prices that hit profit industrywide. Even as global prices are poised to rebound this year, companies including PetroChina Co. and Sinopec Corp. aren't expected to unveil large new budgets when they detail annual spending plans in the next few weeks. The reduced target also means increased imports from overseas, including from turbulent Middle East producers such as Iran and Iraq, from which China sources growing amounts of its oil. Imports are expected to make up more than two-thirds of China's total crude oil supply this year, up from just 50% less than a decade ago. Big oil fields in China were saddled with losses as oil prices hovered around $50 or below for much of last year, leading to sizable cuts in domestic output. Production in November last year--the latest monthly data available--fell 9% versus a year earlier. Industry observers said even the reduced target could be tough to meet without a major shake-up of the sector that would include allowing more private investment in domestic acreage and other changes. "My view is that it's too high," said Kang Wu, vice chairman for Asia at energy consultancy FGE, referring to the production target. Similarly, energy consultancy Wood Mackenzie said it expected Chinese domestic oil production to be around 3.5 million barrels a day by 2020--far below the government's target--and that it expected production to continue falling at China's biggest fields in the coming years. Tuesday's government report also stressed China's intention to transition away from polluting energy sources such as oil and coal to rely more on cleaner energy including wind, solar and natural gas. Leaders have promised to spend more than $360 billion by 2020 to build out clean energy and curb fossil fuels. Write to Brian Spegele at brian.spegele@wsj.com Credit: By Brian Spegele
Subject: Petroleum production; Energy industry; Supply & demand
Location: United States--US China
Company / organization: Name: China Petroleum & Chemical Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858865022
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858865022?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Crude Prices Boosted by Saudi Oil Minister's Comments; Dollar's plummet adds pressure to go higher
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract:
Crude prices strengthened overnight after Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, touted the effect of its production cut pact with major non-OPEC producers.
Full text: Corrections & Amplifications: Recent government-backed research forecast China's net crude imports would rise by 400,000 barrels a day this year, but new refinery capacity, growing strategic government reserves and declining domestic production could make that an underestimate, the bank said. An earlier version of this article incorrectly stated the number of barrels a day. (Jan. 17) U.S. oil prices rose Tuesday on the back of optimistic forecasts from the Saudi oil minister and a steep fall in the dollar, traders and analysts said. Saudi Oil Minister Khalid al-Falih told reporters in the United Arab Emirates that the market would rebalance by the end of the first half, according to media reports. The dollar also fell to a one-month low , the type of move that makes dollar-traded oil less expensive for foreign buyers and often causes prices to rise. "All the above," trader Donald Morton at Herbert J. Sims & Co. said about why oil was moving higher. "It doesn't have an excuse to go lower." Light, sweet crude for February delivery recently gained 24 cents, or 0.5%, to $52.61 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost 12 cents, or 0.2%, to $55.74 a barrel on ICE Futures Europe. Crude prices strengthened overnight after Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, touted the effect of its production cut pact with major non-OPEC producers. Declining oil revenue for the government has forced Saudi leaders to become very supportive of oil production cuts, and public comments like those from Mr. al-Falih reemphasizes their urgency, said Peter Cardillo, chief market economist at First Standard Financial in New York. "Producing nations want to avoid a slump in prices," he said. "What they command, they can still achieve." Oil also got a boost from the dollar, which President-elect Donald Trump said in an interview with The Wall Street Journal was already "too strong" in part because China holds down its currency. The WSJ Dollar Index, which measures the U.S. currency against 16 others, was recently down 1.1%, and trading at its lowest level in a month. Prices have been stuck at levels just above $50 since the start of December, boosted there by the OPEC deal. Though they neared the bottom of the range in the last week or so, they are unlikely to break below it, in part because of OPEC but also from "aggressive Chinese buying," analysts at Citigroup Inc. analysts said Tuesday. Refineries are running hard and heating demand is high because of cold weather in Asia, Citi said. Recent government-backed research forecast China's net crude imports would rise by 400,000 barrels a day this year, but new refinery capacity, growing strategic government reserves and declining domestic production could make that an underestimate, the bank said. Gasoline futures recently gained 0.4% to $1.6175 a gallon and diesel futures gained 0.6% to $1.6620 a gallon. Chris Dieterich and Jenny W. Hsu contributed to this article Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: American dollar; Cartels; Supply & demand; Futures; Crude oil prices; Petroleum production
Location: China United States--US United Arab Emirates
People: Trump, Donald J
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Citigroup Inc; NAICS: 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858869254
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858869254?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Comerica Says Interest Rates, Oil Prices Boost Results; The Dallas-based regional bank continues to reduce its exposure to energy loans
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract:
Net interest income grew 5.5% from a year prior on higher yields on loans and Federal Reserve deposits.
Full text: Comerica Inc. said increased interest rates and stabilizing oil prices would boost results this year. The Dallas-based regional bank reported a fourth-quarter profit of $164 million, up from $116 million in the same period a year ago. On a per-share basis, earnings grew to 92 cents from 64 cents. In all, revenue in the fourth quarter, a combination of net interest income and noninterest income, rose 3.3% to $722 million. Analysts polled by Thomson Reuters had anticipated 87 cents in per-share profit and $729.2 million in revenue. In December, the Federal Reserve approved its second rate increase in a decade and signaled that interest rates would rise at a faster pace than previously projected. The bank said the rate increase would boost revenue and that the rise in energy prices has assuaged concerns about the bank's energy loans. When the recent slide in energy prices began, Comerica had a relatively high share of loans in the sector and took large provisions to cover loans potentially going bad. With oil prices up recently, the bank hasn't had to set aside as much. During the quarter, it set aside $35 million in its provision for losses, down from $60 million in the quarter last year but up from $16 million last quarter. Comerica, which does a chunk of its business in Texas and lends to many companies in the energy sector, has continued to reduce its exposure to energy loans, which are now less than 5% of its total portfolio. The bank had $2.3 billion in energy business loans compared with $2.5 billion in the previous quarter. Comerica had $582 million of nonaccrual loans in the fourth quarter, meaning there is uncertainty about whether they will be paid back on time, down from $631 million in nonaccrual loans in the previous quarter but up from $367 million in the previous year. Net interest margin, an important measure of lending profitability largely tied to interest rates, was 2.65% in the December quarter, down from 2.66% in the third quarter but up from 2.58% a year prior. Net interest income grew 5.5% from a year prior on higher yields on loans and Federal Reserve deposits. Fee-based income increased 0.4% to $267 million in the quarter on an increase in card fees and asset management income. Noninterest expenses fell 4.4% to $461 million on lower salaries. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Interest rates; Bank earnings; Financial performance; Banking industry; Profitability; Energy industry
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858886800
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858886800?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Mobil Expands Permian Basin Footprint in Deal Worth More Than $5.6 Billion; Company joins other oil firms in race to build up drilling portfolios in West Texas and New Mexico
Author: Olson, Bradley; Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract:
Exxon Mobil Corp. is the latest company to expand in Texas' red-hot Permian basin, announcing a deal Tuesday to buy companies owned by the Bass family for $5.6 billion in stock and up to $1 billion in additional payments.
Full text: Exxon Mobil Corp. is the latest company to expand in Texas' red-hot Permian basin, announcing a deal Tuesday to buy companies owned by the Bass family for $5.6 billion in stock and up to $1 billion in additional payments. Once a dominant player in the region, Exxon is joining other oil firms in a race to build up drilling portfolios in West Texas and New Mexico . Even as crude prices hover slightly above $50 a barrel, about half the level of three years ago, the value of land in the Permian basin has skyrocketed to records amid a flurry of land buying as companies gear up for a rebound. With the purchase, newly installed Exxon Chairman and Chief Executive Darren Woods will nearly double the oil and gas the company holds in the area to the equivalent of 6 billion barrels, the company said. While Exxon had among the largest positions in the Permian basin before the deal, it was far smaller than that of peers including Chevron Corp. and Occidental Petroleum Corp. The Exxon deal brings acquisitions in the area to nearly $10 billion in just the past two days. On Monday Noble Energy Inc. said it would pay $2.7 billion to buy West Texas producer Clayton Williams Energy Inc. And on Tuesday, WPX Energy Inc. announced a $775 million deal to boost its operations. The companies paid an average of about $30,000 an acre or less, values that are lower than records but still high compared with historical averages. The deals, which analysts expect will continue, show the extent to which U.S. companies are betting on Texas as they seek to return to growth after more than two years of shrinking amid falling prices. Crude has begun to stabilize above $50 a barrel after the Organization of the Petroleum Exporting Countries elected to cut output late last year. Many U.S. drillers have begun to put rigs back to work in recent months, particularly in West Texas. U.S. oil rose about 1.2% to $52.97 Tuesday morning. Exxon is buying companies owned by the Bass family, which is closely associated with Fort Worth, Texas and whose fortune was built by legendary wildcatter Sid Richardson, including mammoth discoveries in West Texas that date to the 1930s and 1940s. In the past 15 years, the family has sold off much of what remained of the empire Mr. Richardson amassed. The operations, which include the operating entity Bopco, may hold as much as 3.4 billion barrels and about 275,000 acres, according to Exxon, which highlighted a "highly prolific, oil-prone" section in New Mexico. The company plans to use the position to drill longer horizontal wells, a technique many have adopted in the crash that reduces costs by extending the reach of drilling operations. "We can drill the longest wells in the Permian basin, reducing development costs and increasing reserve capture," Mr. Woods said. He took over the helm at Exxon on Jan. 1 after his predecessor Rex Tillerson was nominated to become President-elect Donald Trump's secretary of state. Companies have been paying never-before-seen levels for drillable acres in the Permian Basin. Players in the space say land there has layers of oil-bearing rock which are stacked on top of each other and hold substantial oil reserves that can be tapped in tandem, making each acre more valuable than in a typical oil field. Some in the industry have voiced concerns that the high prices indicate a bubble is building up in the region. More than a dozen people who responded to survey questions posed recently by the Federal Reserve Bank of Dallas said they believed the acreage was overvalued . "The Permian transactions are approaching price multiples associated with a bubble or a Ponzi scheme," one respondent wrote. Write to Bradley Olson at Bradley.Olson@wsj.com and Austen Hufford at austen.hufford@wsj.com Credit: By Bradley Olson and Austen Hufford
Subject: Oil fields; Oil wells
Location: United States--US West Texas New Mexico
People: Woods, Darren
Company / organization: Name: WPX Energy; NAICS: 211111; Name: Clayton Williams Energy Inc; NAICS: 211111, 237210; Name: Noble Energy Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Occidental Petroleum Corp; NAICS: 324110, 211111; Name: Chevron Corp; NAICS: 324110, 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1858966492
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858966492?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Saudi Arabia's Non-Oil Growth Expected to Increase This Year, IMF Says; IMF says cut in oil output will weigh on kingdom's overall economy
Author: Ahmed Al Omran
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract:
The kingdom depends on oil sales for a big chunk of its budget revenues. Since the successful bond sale, a record for a developing country, the government has started making delayed payments to its contractors which raised confidence, Mr. Callen said.
Full text: RIYADH, Saudi Arabia--The International Monetary Fund on Tuesday said it expects non-oil growth in Saudi Arabia to pick up this year as the government's move to release delayed payments to private companies boosts confidence, but said a cut in oil output will weigh on the overall economy. The IMF, while unveiling its outlook for the world economies a day earlier, forecast Saudi Arabia's gross domestic product will expand 0.4% in 2017, sharply down from its October prediction of 2%. That revision is to factor in the impact of the recent deal by the Organization of the Petroleum Exporting Countries to reduce oil production in an effort to raise crude prices, the IMF said. "We do expect a recovery in non-oil growth this year. That is because we've seen confidence rebound in recent months after the sovereign bond issue," Timothy Callen, Assistant Director of Middle East and Central Asia Department at IMF, told reporters in a live webcast. Saudi Arabia issued a $17.5 billion bond sale last October to plug a huge budget deficit that widened to about 16% of GDP in 2015 as oil prices tumbled. The kingdom depends on oil sales for a big chunk of its budget revenues. Since the successful bond sale, a record for a developing country, the government has started making delayed payments to its contractors which raised confidence, Mr. Callen said. Saudi Arabia's government in November pledged to pay the money it owes to the country's private companies , but didn't provide details on how much it owes the sector. The government's inability to complete payments to its contractors had threatened to create a snowball effect on numerous subcontractors and smaller companies, and cause a spike in loan delinquencies. The IMF also praised economic reform plans announced by the government last year, including a fiscal program announced in December that aims to achieve a balanced budget by 2020. But the lender said implementing these reforms poses challenges for the government, particularly on creating the environment for faster growth in the private sector and encouraging Saudi nationals to take jobs there. The main challenge is "to identify the reforms and prioritize and sequence the reforms that are going to be critical for this move toward a greater reliance on the non-oil sector," Mr. Callen said. "At the heart of this is changing the incentives for both Saudi companies and Saudi workers," he added. Saudi Arabia in December said it narrowed its budget deficit for 2016 to 297 billion Saudi riyals ($79.2 billion), down from a record 366 billion riyals the previous year, by adopting austerity measures such as a cut in subsidies for water, electricity and fuel. The government at the time said it plans to spend 200 billion riyals over the next four years to boost the private sector. Write to Ahmed Al Omran at Ahmed.AlOmran@wsj.com Related * Saudi Arabia to Increase Spending After Budget Deficit Shrinks (Dec. 22, 2016) * Saudi Government to Pay Money Owed to Private Companies by Year's End (Nov. 8, 2016) * Saudi Arabia's $17.5 Billion Bond Sale Draws Investors (Oct. 19, 2016) Credit: By Ahmed Al Omran
Subject: Bond issues; Economic development; Budget deficits; Petroleum production
Location: Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859044885
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Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Wildcatters Head for Mexico
Author: Whelan, Robbie; Dezember, Ryan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 Jan 2017: B.10.
Abstract:
Mr. Trump has pledged to renegotiate or pull out of the North American Free Trade Agreement and has pressured U.S. companies such as Ford Motor Co. and Carrier Corp. to scale back or cancel large manufacturing investments in Mexico.
Full text: Wildcatters are crossing the border into Mexico to pour money into the country's recently deregulated energy sector, betting that the plunging peso and other economic stress won't disrupt their business. Mexico's privatization of its deep-water reserves and onshore fields, which began 18 months ago, represents a new opportunity for energy explorers and investors that have been competing against each other in U.S. and Canadian oil fields for more than a decade. Riverstone Holdings LLC, a New York-based private-equity firm that is one of the world's largest energy investors, has committed more than $1 billion to Mexican energy ventures over the past two years. That includes funding a pair of companies launched specifically to profit from the sector's privatization -- oil explorer Sierra Oil & Gas and Avant Energy, which will build and operate pipelines and refineries. "We're determined to be players here," said Alfredo Marti, a Riverstone managing director who is part of its Mexico-focused team. "We decided that this was a very real, genuine opening involving high-quality assets." But Mexico's financial markets have been volatile since the U.S. election of Donald Trump, reflecting potential risks that few investors could have anticipated even a year ago. The peso began sliding against the dollar as Mr. Trump's campaign gained traction, and the currency's value, a proxy for Mexico's broader economic prospects, plunged when he was elected president. Mr. Trump has pledged to renegotiate or pull out of the North American Free Trade Agreement and has pressured U.S. companies such as Ford Motor Co. and Carrier Corp. to scale back or cancel large manufacturing investments in Mexico. His actions have punished the peso, which has lost about 15% of its value against the dollar since the election and 27% since July 2015 when Mexico held its first auction of oil fields. The currency's decline makes local costs cheaper for companies funded with dollars. Some investment firms, including Riverstone, have raised funds in pesos, and some of their costs, such as leasing drilling rigs, are often invoiced in dollars. So a weak peso makes those costs more expensive. Energy investors could also face political risk if a populist backlash grows against Mexican President Enrique Pena Nieto. He made energy deregulation a centerpiece of his economic agenda, but protesters have recently taken to the streets in response to government cuts of gasoline subsidies that are part of the deregulatory measures. That development has some observers worried that the privatization process could stall if Mr. Pena Nieto's party doesn't win the presidency next year. Mr. Pena Nieto's political opponents "can't stop the process, but it could throw sand in the gears and really slow things down," said Steven Otillar, a Houston-based partner with law firm Akin Gump Strauss Hauer & Feld LLP, who has worked on deals in Mexico's energy industry for two decades. It could "really be bad for business," he added. A Riverstone spokesman said: "Regarding any potential political risk, our partners are local Mexican pension funds and many of our companies active in Mexico, such as Sierra and Avant, are established in Mexico, staffed by Mexicans and with a Mexican identity, rather than the stereotypical foreign oil interests." Mexico's oil industry had been a monopoly run by state oil company Petroleos Mexicanos, or Pemex, since 1938. In 2015, Mexico was the world's 12th largest oil producer, according to BP PLC's most recent Statistical Review of Energy. But Mexico's production has been declining, in part because it lacks the technical ability for deep-water drilling. The country last year produced about 2.16 million barrels a day, its lowest output since 1980, according to Pemex. Mr. Pena Nieto in 2013 signed laws intended to modernize the industry by opening up the sector to foreign partners and their expertise. Riverstone has raised more than $34 billion from investors since 2002, notching big profits investing in pipeline operators and U.S. shale explorers. The recent oil-price slump reduced the value of many of its holdings, though lately the firm has posted big gains buying and selling West Texas oil fields. Jason Marczak, a Mexico expert with the Atlantic Council, a nonpartisan Washington think tank, described wildcatters like the companies backed by Riverstone as a kind of "first line" of investors in what amounts to an untested process of privatization. Riverstone, along with Houston-based investment firm EnCap Investments LP and a Mexican unit of BlackRock Inc., have collectively invested $525 million in Sierra, which is based in Mexico City and was part of a bidding group that in December won rights to explore a deep-water block. That month Riverstone also committed another $300 million to Avant, which is also based in Mexico City and plans to focus on oil and gas distribution and processing. Credit: Robbie Whelan, Ryan Dezember
Subject: Foreign investment; Deregulation; Energy industry; Privatization
Location: United States--US Mexico
Company / organization: Name: Petroleos Mexicanos; NAICS: 211111; Name: Riverstone Holdings LLC; NAICS: 523910
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Jan 17, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859410689
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Ultra Petroleum Settles Lawsuit Over Use of Gas Pipeline; Oil and gas explorer allowed to continue using Rockies Express Pipeline infrastructure
Author: Randles, Jonathan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract: None available.
Full text: Ultra Petroleum Corp. has settled a $303 million lawsuit accusing the oil and gas explorer of missing payments owed for using a major U.S. natural gas pipeline in the months before seeking bankruptcy protection. The settlement will have Ultra pay $150 million to the pipeline's operator, Rockies Express Pipeline LLC, and will allow Ultra to continue using the pipeline under a new seven-year contract. The agreement is subject to court approval and will be included in Ultra's chapter 11 plan of reorganization, which must also be approved by a judge. Rockies Express Pipeline, known as REX, sued Ultra in April over the use of its pipeline and accused the company of missing multimillion-dollar payments for use of the pipeline. Ultra disputed the breach-of-contract lawsuit, which was filed weeks before the company filed for bankruptcy protection in Texas. REX was later appointed to a committee that represents Ultra's unsecured creditors, court papers say. The settlement requires Ultra to make the payment to REX six months after the company emerges from bankruptcy but no later than Oct. 30, the company said. The new service contract would commence Dec. 1, 2019, for west-to-east service, Ultra said. The Rockies Express Pipeline stretches approximately 1,712 miles from Colorado and Wyoming to eastern Ohio, according to REX. The pipeline, which transports natural gas, began operating in 2009, the company said. The settlement was announced as Ultra spars with bondholders in bankruptcy over control of the company. Last month, an Ultra bondholder group urged a Texas bankruptcy judge to appoint an independent trustee to oversee the business, arguing that the restructuring plan the company has proposed favors its shareholders and more junior creditors. Ultra said Friday in court papers that the request was an attempt by these bondholders to manufacture a conflict in the chapter 11 in hopes of improving their payout. The company aims to emerge from bankruptcy in April. Ultra, whose stock trades publicly on over-the-counter markets under the UPLMQ symbol, employed 159 people and tended to roughly 1,800 wells at its main operations at the time of the filing. Its workers drill for natural gas underneath roughly 68,000 acres of land in Wyoming it purchased in the 1990s. Founded in 1979, Ultra also extracts crude oil out of northeast Utah land it purchased in December 2013. It sold some of its properties located in Pennsylvania's Appalachian region in September 2014 and hasn't drilled in the state in the last three years, according to court papers. Ultra's proposed reorganization plan is intended to restructure $3.8 billion in debt. Katy Stech contributed to this article Write to Jonathan Randles at Jonathan.Randles@wsj.com Credit: By Jonathan Randles
Subject: Bankruptcy; Bankruptcy reorganization; Pipelines; Natural gas
Location: Colorado Wyoming Pennsylvania Texas United States--US Utah
Company / organization: Name: Rockies Express Pipeline LLC; NAICS: 486210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: Pro Bankruptcy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859761138
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Pearl Energy Invests $30 Million to Form New Oil Company; SLANT is the second investment the private-equity firm made this month in a newly formed oil-and-gas company
Author: Garcia, Luis
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.
Abstract: None available.
Full text: Pearl Energy Investments agreed to invest $30 million to form oil-and-gas producer SLANT Energy LLC, the startup said in a news release. With offices in Wichita Falls, Texas, and Lafayette, La., SLANT focuses on conventional oil-and-gas fields in North Texas and the midcontinent region. The investment will allow the company to drill new wells in established reservoirs and buy existing assets, the news release said, adding that SLANT is led by three co-founders with lengthy experience in the oil-and-gas industry. Founded in 2015 and based in Dallas, Pearl Energy typically invests between $25 million and $75 million in small to midmarket companies operating in the North American upstream, midstream and oil field-services sectors. Earlier this month, Pearl Energy and fellow private-equity firm Natural Gas Partners jointly invested $77.5 million in another newly formed oil-and-gas company: Dallas-based Avad Energy Partners LLC. Pearl Energy was co-founded by Billy Quinn, a former managing partner at Natural Gas Partners, and Chris Aulds, a former co-founder of TEAK Midstream. Pearl Energy raised $500 million for its debut fund in 2015. Write to Luis Garcia at luis.garcia@wsj.com Credit: By Luis Garcia
Subject: Acquisitions & mergers; Corporate profiles; Private equity; Natural gas
Location: Texas
Company / organization: Name: Natural Gas Partners; NAICS: 523910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 17, 2017
Section: Pro Private Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859764144
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Exxon Joins Land Rush In Red-Hot Southwest --- Oil company commits as much as $6.6 billion to Permian Basin in Texas and New Mexico
Author: Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Jan 2017: B.3.
Abstract:
Exxon Mobil Corp. is the latest company to expand in the red-hot Permian Basin in Texas and New Mexico, announcing a deal Tuesday to buy companies owned by the Bass family for $5.6 billion in stock and up to $1 billion in additional payments.
Full text: Exxon Mobil Corp. is the latest company to expand in the red-hot Permian Basin in Texas and New Mexico, announcing a deal Tuesday to buy companies owned by the Bass family for $5.6 billion in stock and up to $1 billion in additional payments. Once a dominant player in the region, Exxon is joining other oil firms in a race to build up drilling portfolios in West Texas and New Mexico. Even as crude prices hover slightly above $50 a barrel, about half the level of three years ago, the value of land in the Permian basin has skyrocketed to records amid a flurry of land buying as companies gear up for a rebound. With the purchase, newly installed Exxon Chairman and Chief Executive Darren Woods will nearly double the oil and gas the company holds in the area to the equivalent of 6 billion barrels, the company said. While Exxon had among the largest positions in the Permian basin before the deal, it was far smaller than that of peers including Chevron Corp. and Occidental Petroleum Corp. The Exxon deal brings acquisitions in the area to more than $10 billion in just the past week. On Monday, Noble Energy Inc. said it would pay $2.7 billion to buy West Texas producer Clayton Williams Energy Inc. Exxon paid about $23,500 an acre including potential future payments, according to Jefferies & Co., about 25% less than the average price paid in the past six months. Exxon's ability to use shares in treasury to buy assets may be attractive to sellers based on potential tax advantages, according to Jefferies analysts. The string of deals, which analysts expect will continue, shows the extent to which U.S. companies are betting on Texas as they seek to return to growth after more than two years of shrinking amid falling prices. Crude began to stabilize above $50 a barrel after the Organization of the Petroleum Exporting Countries elected to cut output late last year. Many U.S. drillers have begun to put rigs back to work in recent months, particularly in West Texas. U.S. oil was roughly flat on Tuesday, closing at $52.48. Exxon is buying companies owned by the Bass family, which is closely associated with Fort Worth, Texas, and whose fortune was built by legendary wildcatter Sid Richardson, including mammoth discoveries in West Texas that date to the 1930s and 1940s. In the past 15 years, the family has sold off much of what remained of the empire Mr. Richardson amassed. The operations, which include the operating entity Bopco, cover about 275,000 acres and may hold as much as 3.4 billion barrels of oil and gas, according to Exxon, which highlighted a "highly prolific, oil-prone" section in New Mexico. The company plans to use the position to drill longer horizontal wells, a technique many have adopted in the crash and that reduces costs by extending the reach of drilling operations. "We can drill the longest wells in the Permian basin, reducing development costs and increasing reserve capture," Mr. Woods said. He took over the helm at Exxon on Jan. 1 after predecessor Rex Tillerson was nominated to become President-elect Donald Trump's secretary of state. --- Austen Hufford contributed to this article. Credit: By Bradley Olson
Subject: Drilling; Expansion; Oil wells
Location: West Texas New Mexico Permian Basin
People: Woods, Darren
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Jan 18, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859426930
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
World News: Islamic State Gains in Syria --- Terror group advances in an oil-rich province even as its forces lose ground elsewhere
Author: Noam Raydan; Nour Alakraa; Raydan, Noam; Nour Alakraa
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Jan 2017: A.10.
Abstract:
Islamic State forces cut in half the last Syrian government enclave in an oil-rich eastern province, pro-government media and opposition activists said Tuesday, putting new pressure on the regime after the terror group suffered setbacks elsewhere.
Full text: Islamic State forces cut in half the last Syrian government enclave in an oil-rich eastern province, pro-government media and opposition activists said Tuesday, putting new pressure on the regime after the terror group suffered setbacks elsewhere. The group's advances in Deir Ezzour -- the capital of a province of the same name -- came during a fierce Islamic State offensive. By Tuesday morning, the extremists had cut off a supply route to a Syrian military air base. Islamic State has laid complete siege to the government-held part of the city for about two years. With the fresh advances, the group cut off an area where tens of thousands of civilians live from a Syrian air base that has been used to bring supplies and aid to the enclave. The extremists advanced despite heavy airstrikes by Syrian regime and allied Russian warplanes. The gains against the regime come at a time when Islamic State is losing ground across its self-declared caliphate, though it did manage last month to win back control of the ancient city of Palmyra, less than a year after Syrian forces recaptured it. Deir Ezzour province and neighboring Raqqa province form Islamic State's most significant territorial foothold in Syria today. In Iraq, the group is being slowly squeezed out of its last major stronghold there, the city of Mosul. The division of the government-held enclave in Deir Ezzour threatens to worsen the humanitarian situation of some 200,000 civilians trapped in the areas that have been separated from the air base, according to the U.K.-based Syrian Observatory for Human Rights, an opposition monitoring group. The base is vital for supplying the Syrian military there and for aid to residents of the area. "People in the besieged part of Deir Ezzour are living under terrible conditions. They are spending most of their time in basements to avoid the mortar shells which Islamic State is raining down on the city," said a Turkey-based antigovernment activist who said he was in contact with relatives trapped in the city. The fighting in Deir Ezzour has killed at least 122 civilians in both government and Islamic State areas in the past three days, according to the Observatory. On Tuesday, the Syrian troops received military reinforcements, according to Rami Abdelrahman, head of the Observatory. "Islamic State needs to secure the belt around the city to fully control it," said Omar Abu Layla, head of the antigovernment activist network Deir Ezzor24. Syrian warplanes continued to pummel Islamic State positions in the city on Tuesday, according to SANA, Syria's state-controlled news agency, killing and wounding a number of fighters and destroying their vehicles in the area. In September, the U.S.-led coalition fighting Islamic State said it mistakenly struck Syrian army positions in the same area where government forces are currently battling Islamic State. --- Raja Abdulrahim contributed to this article. Credit: By Noam Raydan and Nour Alakraa
Subject: Paramilitary groups; Extremism
Location: Syria
Company / organization: Name: Islamic State of Iraq & the Levant--ISIS; NAICS: 813940
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.10
Publication year: 2017
Publication date: Jan 18, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859429606
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Higher Ahead of U.S., OPEC Production Data; March Brent crude rose $0.16 to $55.63 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: Crude futures ticked higher Wednesday in Asia on optimism that declining production in over 20 major oil nations, including China, will reset the market into a shortage in the first half of the year. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $52.60 a barrel at 0205 GMT, up $0.12 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.16 to $55.63 a barrel. On Tuesday, China's top economic planning body said the country's oil production will likely fall to around 4 million barrels a day annually, or 7%, in 2020 compared to the level in 2015. At the same time, China's net crude imports are expected to widen by 5.3% on-year to around 8 million barrels a day in 2017, according to estimates by China's state-run energy giant China National Petroleum Corporation. In 2016, China's crude imports hit a historical high at 7.65 million barrels a day, a 14% on-year growth. Analysts say robust demand by local refineries and the government's aggressive effort to enlarge its strategic petroleum reserve will keep China's crude import elevated. "China met about 64.8% of its oil needs via imports in 2016, and this could increase to 66.7% in 2017," said BMI Research in a note. China sources most of its crude from the Middle East and Africa, making producers there the biggest gainers of China's growing thirst. China's falling production comes at a time when the world's top crude suppliers, including 10 of the 13 members of the Organization of the Petroleum Exporting Countries and 11 non-cartel players, are also reducing their output. The goal is to chip away the global overhang in order to raise oil prices and spur more investments. Saudi Arabia, the world's largest crude exporter, earlier this week said if producers stick to the agreed plan to cut production, the market will shift into a deficit by mid-year. Moreover, a production cap might be unnecessary by then because of the typical rise in oil demand during the summer months. But some analysts believe the price rally will not sustain as U.S. production is expected to surge this and next year. President-elect Donald Trump, a vocal supporter of easing restriction on U.S. oil drilling, will be sworn in on Friday. Seen as the marginal producer, U.S. production is the key in narrowing the gap between supply and demand in oil, said Vivek Dhar, commodities strategist at Commonwealth Bank of Australia. "So what will happen in the second half of the year when OPEC and others ramp up production again and the U.S.'s production keeps growing?" he said, forecasting oil to likely revert to the low $50 range after crawling up to the $55-60 range in the first half. In the near term, market watchers will also be following the fluctuation of the U.S. greenback, which has fallen around 2.5% since the beginning of the year. A depreciating dollar bodes well with foreign oil traders as the oil business is done in dollars. "Political uncertainty continues to weigh on the markets, although strong fundamentals should keep prices trending higher," said ANZ Research. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 47 points to $1.6051 a gallon, while February diesel traded at $1.6523, 37 points higher. ICE gasoil for February changed hands at $488.25 a metric ton, down $2.50 from Tuesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Petroleum production; Futures; Crude oil prices; Supply & demand
Location: United States--US
People: Trump, Donald J
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859763023
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859763023?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Scott Pruitt, Donald Trump's Pick for EPA Chief, Backs View Agency Has Overreached; In confirmation hearing, Pruitt says EPA 'is not a legislative body' while Democrats grill Oklahoma attorney general on ties to oil-and-gas industry
Author: Harder, Amy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--President-elect Donald Trump's choice to head the Environmental Protection Agency, Scott Pruitt, defended his record Wednesday against harsh questioning from Senate Democrats, while getting help from Republicans who back his bid to head an agency he has sued more than a dozen times. Mr. Pruitt, currently Oklahoma's attorney general, reiterated his view that the EPA has overreached, in essence making its own laws, and that states should lead on environmental regulation. "EPA is an administrative agency. It is not a legislative body," he said. "There's an idea in Washington that the states don't care about the water we drink or the air we breathe." Mr. Pruitt was one of a handful of Mr. Trump's controversial nominees facing confirmation hearings across Capitol Hill Wednesday. Democratic senators say Mr. Pruitt is one of the most extreme nominees of Mr. Trump, but he will likely receive enough Senate support for his confirmation. Most, if not all, Republicans are likely to vote for him, along with at least one Democrat, Sen. Joe Manchin of West Virginia, whose views on energy and environment align more with the GOP than his own party. Mr. Pruitt has been part of a coalition of about two dozen mostly Republican state attorneys general who have sued the federal government over an array of regulations during Mr. Obama's presidency, including numerous environmental rules. Mr. Pruitt has often joined lawsuits with energy companies that have also contributed to his campaigns to be attorney general. To Mr. Pruitt and his backers, that work shows he has representing his state's interests and can work well with industries affected by environmental regulations. To critics, it shows a disregard for public health and an allegiance to deep-pocketed fossil fuel companies. That difference of perspective has dominated much of Wednesday's hearing. Sen. Jeff Merkley (D., Ore.) asked Mr. Pruitt about a letter he sent as Oklahoma attorney general to the EPA criticizing a regulation curtailing emissions of methane, a potent greenhouse gas. The letter was written largely by oil-and-gas company Devon Energy Corp. but sent by Mr. Pruitt's office, the New York Times reported in 2014. "You took an oil company position without consulting people with diverse views," Mr. Merkley said. "How can you present that as representing Oklahoma?" Given more time to respond by Republicans, Mr. Pruitt said, "The letter sent to EPA was not sent on behalf of any one company, not particular to Devon Energy...It was particular to an industry." He went on to say that Oklahoma, as a big producer of oil and natural gas, has a responsibility to convey that sector's concerns to EPA. Asked by Sen. Ed Markey (D., Mass.) if he would recuse himself from lawsuits he has pursued as Oklahoma attorney general, Mr. Pruitt said he would do so only if EPA's lawyers and ethics experts recommend it. Mr. Pruitt's ties to the fossil-fuel industry were also the focus of protests inside and outside of the committee room. Capitol Police officers dragged out one female protester wearing a BP hat and coveralls who was shouting disparaging remarks about Mr. Pruitt. Another protester trying to get into the hearing room yelled, "Pruitt takes money from oil companies." Scores of people waited outside the hearing room. Among those hoping to witness the confirmation hearing were more than a dozen coal miners from Murray Energy, a privately held coal company whose CEO, Bob Murray, has been especially critical of President Barack Obama's climate regulations. Environmentalists and Native Americans, along with lobbyists from all sections of the energy and environment landscape, also waited in line. Mr. Trump has signaled that he picked Mr. Pruitt to head the EPA largely because he has sued the agency and believes it has issued regulations outside its legal authority. But Democrats sought to highlight that Mr. Pruitt's background isn't in environmental and public-health issues, for example when Sen. Ben Cardin (D., Md.) asked if he knew the safe level of lead, including in drinking water and in human bodies. "That's not something I've reviewed nor know about," Mr. Pruitt responded. Particular regulations EPA has issued during Mr. Obama's presidency, such as the Clean Power Plan that would cut power-plant carbon emissions, took a back seat in the hearing to broader issues and Democratic allegations of conflicts of interest given Mr. Pruitt's closeness to industry. Mr. Pruitt did tell Democrats he thinks the EPA has a legal obligation to address carbon emissions somehow, though he didn't elaborate on how he would do that. Democrats pressed Mr. Pruitt on whether he accepts the scientific consensus that human activity is a major contributor to climate change. Mr. Pruitt said he agrees the climate is changing and that human activity impacts that, but he added, "It is the ability to measure and the extent of that impact and what to do that is subject to continued debate and dialogue." That contrasts with the position of Mr. Trump, who has over the years and while on the campaign trail said climate change is a hoax. Rep. Ryan Zinke (R., Mont.), Mr. Trump's interior secretary pick, and Rex Tillerson, the former Exxon Mobil Corp. CEO tapped to be secretary of state, have also differed from the president-elect on climate change. Two federal agencies--the National Aeronautics and Space Administration and the National Oceanographic and Atmospheric Administration--announced earlier Wednesday that 2016 was the warmest since current record-keeping began in 1880. Write to Amy Harder at amy.harder@wsj.com Related Coverage * Scott Pruitt Is Chief Target of Opposition to Trump's Environmental Policy Plan
(Jan. 16) * Carl Icahn, Critic of the EPA, Is Helping Donald Trump Shape It
(Dec. 4, 2016) * Companies on Climate: Trump or No, Still Cutting Emissions
(Dec. 8, 2016) Credit: By Amy Harder
Subject: Agreements; Testimony; Hearings & confirmations; Attorneys general; Emissions; Political campaigns; Coal-fired power plants; Environmental protection; Emission standards; Energy industry; Industrial plant emissions; Climate change; Litigation; Congressional committees
Location: United States--US Oklahoma
People: Obama, Barack
Company / organization: Name: Congress; NAICS: 921120; Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859763185
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859763185?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Memorial Production Partners Bankruptcy Receives Approvals; Oil-and-gas company gets permission to operate business with cash that secures its debt
Author: Gleason, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: Oil-and-gas company Memorial Production Partners LP made its first bankruptcy court appearance Tuesday, less than 24 hours after filing for chapter 11 bankruptcy protection and garnered the handful of approvals it needed to continue toward a speedy exit from bankruptcy. Judge Marvin Isgur of the U.S. Bankruptcy Court in Houston approved requests from Memorial that included short-term permission to operate its business with cash that secures its debt and to make necessary payments like employee wages, insurance and utilities. With some adjustments, Judge Isgur and Memorial's lawyers were able to reach an agreement on the terms of a request that will allow Memorial to continue hedging its oil and gas production. The company will return to court on Feb. 8 for final approvals of these interim orders. With these approvals, Memorial hopes to move quickly toward its exit from bankruptcy. Judge Isgur agreed to consider the company's disclosure statement on Feb. 27 and its bankruptcy-exit plan on April 4. The company filed for bankruptcy on Monday with a so-called prearranged bankruptcy plan, meaning that lender and bondholder groups have already negotiated and agreed with Memorial on the terms of the plan. The agreement with its creditors requires Memorial to gain approval of the bankruptcy-exit plan within 90 days of its bankruptcy filing. The plan would pay senior lenders, owed more than $455 million, with new debt and cash. Unsecured bondholders, owed $1.1 billion, would receive a 98% stake in the restructured company. General unsecured claims would be paid in full as they come due and current equity holders are set to receive a 2% stake plus warrants for another 8%. The payment to equity holders is the result of the company's and its debtholders' desire to move quickly through chapter 11, it said. Many recent energy companies have fought or are waging battles with their equity holders over whether the group deserves to be wiped out. The deal has the support of 100% of the company's lenders and more than 66% of its bondholders. Notably, a group that Memorial calls the Beta Trust creditors hasn't consented to the plan. Memorial is proposing swapping out cash in a $152 million escrow account, held for the U.S. Bureau of Ocean Energy Management, for a surety bond in the same amount as part of the restructuring. Over all the plan will eliminate $1.3 billion of the company's $1.8 billion debt load. Memorial, a publicly traded limited partnership, drills for oil and natural gas in Louisiana, Texas and Wyoming. It also has offshore operations in Southern California. Write to Stephanie Gleason at stephanie.gleason@wsj.com Credit: By Stephanie Gleason
Subject: Debt restructuring; Equity; Federal courts; Energy industry; Bankruptcy; Bankruptcy reorganization; Natural gas
Location: Southern California
Company / organization: Name: Memorial Production Partners LP; NAICS: 324110; Name: Bankruptcy Court-US; NAICS: 922110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Pro Bankruptcy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859763604
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859763604?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Says Oil Output Fell After Production Deal, but U.S. Output Rising; Saudi Arabia made largest cut to production following agreement
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: OPEC's total output began falling in December after its members agreed to slash output, the cartel said Wednesday, but the group appears to need deeper cuts than expected to achieve its goals. The Organization of the Petroleum Exporting Countries--the 13-nation oil cartel that controls over a third of global crude production--promised to throttle back its output by 1.2 million barrels a day, or almost 4%, on Nov. 30. The bid to raise oil prices by making crude more scarce has worked to an extent, with prices up almost 20% since the deal was announced. The group made some progress on that goal in December, with OPEC production falling by 221,000 barrels a day compared with November, the cartel said in its closely watched monthly market report. Overall, the cartel produced almost 33.1 million barrels a day in December and still has to cut to about 31.8 million barrels a day to reach the levels it promised in its historic agreement. The report demonstrated the challenges facing the cartel in reaching its goal of draining a flood of oil production that devastated oil prices over the past three years. Iraqi production rose to a record, breaking over 4.6 million barrels a day and stoking concerns about that country's commitment to cut down to 4.351 million barrels a day. Those figures are according to sources like shipping trackers and oil-price agencies; Iraq's own official production figures soared over 4.8 million barrels a day in December. Almost half of last month's cut came from Nigeria because of supply disruptions, and that country is allowed to ramp up production in the coming months. In Libya, another OPEC member exempted from the obligation to cut, production rose to a monthly high for 2016 at 608,000 barrels a day. Libyan oil officials say their January production is even higher. Further, the increase in prices spurred by OPEC's deal appears to be spurring new output in the U.S., where shale-oil producers who had pulled back when prices fell are now taking advantage of the hot market. OPEC revised its projections for U.S. output up by 230,000 barrels a day in 2017, bringing it into agreement with other forecasters who see American production canceling out some of the effect of OPEC's cut. "U.S. shale oil production is on the verge of breaking higher," said Bjarne Schieldrop, chief commodities analyst at SEB, a Norwegian bank. Oil prices fell after OPEC's report and were down overall on Wednesday as investors digested news from the U.S. about greater productivity among U.S. shale drillers. Brent crude, the international benchmark for prices, was down 1.48% in London trading at $54.67 while U.S. prices were down 1.64% at $51.62. To be sure, OPEC is just beginning its effort to cut production. The group promised to begin cutting output in January, so its compliance will become clearer in the next few weeks. The largest production cut in December came from Saudi Arabia, which exports more crude than any other country and is OPEC's most powerful member. The kingdom reduced output by 149,000 barrels a day to 10.47 million barrels a day, drawing it closer to its agreed level of about 10 million barrels a day. Saudi Arabia's energy minister, Khalid al-Falih, has said the country has actually cut much farther this month, going below 10 million barrels a day for the first time. Saudi Arabian officials have suggested they would cut even further and have played down American producers' ability to thwart their plans to raise prices this year. On Tuesday, Mr. Falih told the World Economic Forum in Davos, Switzerland, that American oil production would take time to regain lost ground this year. In another positive sign for OPEC, Iran's output rose only by 10,000 barrels a day, suggesting the country has hit a wall after aggressively ramping up production after world powers lifted sanctions last year in exchange for curbs on its nuclear program. OPEC said it was counting on a group of 12 producers outside the cartel--led by Russia, the world's largest crude producer--to help it pull back global output and reduce the glut. Those countries promised 558,000 barrels a day in output cuts this year. In its report, OPEC said the "non-OPEC supply adjustment commitments are somewhat challenging for those countries" but added "initial reports show positive signs of compliance with pledged production adjustments. The cartel said Russia, Azerbaijan, Mexico and Oman, four key participants in cuts outside the organization, were now expected to register sharp production declines this year. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Cartels; International markets; Supply & demand
Location: Azerbaijan Mexico Russia United States--US Saudi Arabia North America Oman
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859764600
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859764600?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shale Rebound Will Cramp OPEC's Style; U.S. shale oil production is rising too quickly for OPEC's and Russia's comfort
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: The Energy Department gave oil bulls a sobering reminder Tuesday: Shale oil production is rising strongly, particularly from the Permian Basin in western Texas and New Mexico. Putting an exclamation point on that resurgence, energy giant Exxon Mobil hours earlier announced a multibillion-dollar acquisition that doubled its exposure to that prolific oil patch. Is this making petrostates nervous less than a month into a coordinated push to revive oil prices by restricting supply? Speaking the same day at the World Economic Forum in Davos, Switzerland, Saudi Arabia's oil minister, Khalid al-Falih, was skeptical. His most valuable observation was that oil-field-service providers are starting to regain some pricing power, raising the price at which shale production can break even. If oil-producing countries think that slightly higher costs will deter production and send prices higher, though, they should recalibrate their expectations. The Energy Department forecasts that prices for West Texas Intermediate will average $52.50 a barrel this year, just a dollar higher than the current price. Yet it sees output marching higher. U.S. petroleum-liquids production peaked in April 2015 and appears to have hit a trough last September. In just three months it bounced by some 350,000 barrels a day--slightly more than the output cut promised by Russia in the first half of 2017 as part of its deal with the Organization of the Petroleum Exporting Countries. The Energy Department says that at $52.50, U.S. liquids output will rise by another 775,000 barrels a day by the end of 2017. U.S. drillers can be forgiven if they are too busy to send OPEC a "thank you" card. Credit: By Spencer Jakab
Subject: Petroleum production; Oil shale; International markets
Location: Permian Basin Texas Switzerland Russia New Mexico United States--US Saudi Arabia
Company / organization: Name: World Economic Forum; NAICS: 926110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859765034
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859765034?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Increasing in DOE Data; Gasoline inventories are also expected to rise
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Thursday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 13 analysts and traders surveyed showed U.S. oil inventories are projected to have increased by 100,000 barrels, on average, in the week ended Jan. 13. Six analysts expect stockpiles to rise and seven expect them to fall. Forecasts range from a decrease of 3 million barrels to an increase of 4 million barrels. The closely watched survey from the Energy Information Administration is due at 11 a.m. EST Thursday, delayed by one day due to the shortened week. Gasoline stockpiles are expected to show an increase of 1.7 million barrels on average, according to analysts. Ten analysts expect them to rise and three analysts expect them to fall. Estimates range from a fall of 3 million barrels to an increase of 4 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to rise by 100,000 barrels. Seven analysts expect an increase and six expect a decrease. Forecasts range from a decline of 3 million barrels to an increase of 3 million barrels. Refinery use is seen falling 0.9 percentage point to 92.7% of capacity. Ten analysts expect a decrease and one expect no change. Two didn't report expectations. Forecasts range from a decrease of 2 points to no change. The American Petroleum Institute, an industry group, said late Wednesday that its own data for the week showed a 5-million-barrel decline in crude supplies, a 9.8-million-barrel rise in gasoline stocks and a 1.2-million-barrel increase in distillate inventories, according to a market participant. Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Financial performance; Inventory
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859765832
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859765832?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Deal Overtures Roil Bonanza Creek Bankruptcy; Bill Barrett is taking a run at its Rocky Mountain oil and gas rival
Author: Brickley, Peg
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: Thrown into jeopardy in bankruptcy, shares of Bonanza Creek Energy Inc. rode up this week on word that Bill Barrett Corp. is taking a run at its Rocky Mountain oil and gas rival. Stock that sold for $1.99 per share Friday jumped briefly as high as $3 per share Tuesday, as shareholders mulled the possibility that merger talks would shift value their way. As of Wednesday afternoon, the shares had settled down to about $2.60. Bill Barrett disclosed the deal overtures in a filing Tuesday with the Securities and Exchange Commission. Bonanza Creek noted in a release, saying it gets offers from time to time, and expected its Jan. 4 chapter 11 filing would attract such "unsolicited inquiries." Bonanza Creek didn't say what it thought of Bill Barrett's offer to discuss a combination of the two companies, both of which operate in the energy-rich Rocky Mountains, with headquarters in Denver. The timing could create problems for Bonanza Creek's bid to push a fast balance-sheet reshaping through bankruptcy court. Shareholders will see their stakes whittled down to a sliver if Bonanza Creek's chapter 11 plan is put in place. According to the company, the 4.5% slug of equity it is offering is the best it can do for shareholders, given the decline in oil and gas prices that have cut into its revenues. Shareholders raised questions about the value reflected in Bonanza Creek's plan at the company's debut hearing in the U.S. Bankruptcy Court in Wilmington, Del. Thursday, the company is scheduled to go before Judge Kevin Carey again, this time to seek permission to move ahead on a fast-paced reorganization that could see a chapter 11 exit plan approved in February. Bonanza Creek's turnaround plan is backed by affiliates of D.E. Shaw & Co., Apollo Capital Management, Luxor Capital Group LP and Paloma Partners Management Co., among other investors in its bond debt. Some are raising as much as $200 million to boost the balance sheet on the way out of bankruptcy. The infusion of new cash would translate into cutting the stake existing shareholders will hold in the reorganized Bonanza Creek from 4.5% to 2%, court papers say. The company is promising payment in full to unsecured trade creditors under its chapter 11 plan. However, an official committee of unsecured creditors was appointed Tuesday, so Bonanza Creek could face pushback from that constituency. Existing shareholders, including some that bought into Bonanza Creek just two years ago, represent the largest block of opposition to the chapter 11 plan. Bonanza Creek sold new shares in the face of the collapse of energy prices a few years back. Bill Barrett raised $110 million in December from selling stock. Like others in the industry, Bill Barrett watched its share price tumble at the end of 2014, when price depression swept through the energy sector. Write to Peg Brickley at peg.brickley@wsj.com Credit: By Peg Brickley
Subject: Stockholders; Federal courts; Bankruptcy; Energy industry; Bankruptcy reorganization
Location: Rocky Mountains
Company / organization: Name: Securities & Exchange Commission; NAICS: 926150; Name: Bankruptcy Court-US; NAICS: 922110; Name: Bonanza Creek Energy Inc; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Pro Bankruptcy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859766183
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859766183?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Patch Rescue: How to Make $1.2 Billion in Less than a Year
Author: Dezember, Ryan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: Last year, during the depths of the oil price slump, Los Angeles investment firm Ares Management LP threw a lifeline to a struggling Texas crude producer. Now that Noble Energy has agreed to pay $2.7 billion for that company, Clayton Williams Energy, Ares is in line to triple its money and reap more than $1 billion in profit. Ares's huge gain is the sort of prize private-equity investors envisioned when oil prices collapsed in late 2014 and pressured U.S. shale drillers that had been financed with $100-a-barrel oil in mind. But opportunities have been rare to buy into companies strong enough to survive but too strained to tap other financing sources, such as the stock market, that are cheaper and have fewer strings attached than what firms such as Ares usually offer. Clayton Williams, named for its octogenarian chairman and chief executive, was an alluring target. The Midland, Texas company held a swath of land in what has emerged as the hottest drilling area in the U.S. but not much money to develop it, and Clayton Williams was in danger of tripping debt-to-earnings limits set by its creditors. In mid March, about a month after oil prices slumped to about $26 a barrel, Ares lent Clayton Williams $350 million, charging 12.5% with an option to defer interest payments and add more debt for two years. Ares, which got a pair of board seats in the deal, also bought warrants to buy more than 2 million shares. The cash allowed Clayton Williams to pay down its bank debt and renegotiate credit agreements to give it breathing room. The timing was fortuitous as the February low turned out to be the bottom, and oil prices rose to roughly $50 a barrel where they've hovered in recent months. Ares padded its bet by snapping up another million shares on the open market as the stock languished at its lowest levels in more than a decade. In late July Ares agreed to buy about 5 million shares from Clayton Williams for $150 million, gaining another board seat. The company used the cash to keep drilling in the Delaware Basin, a part of West Texas' Permian Basin where prolific wells sparked a land grab among oil producers and big Wall Street firms. The firm's enthusiasm for Clayton Williams wasn't shared by many investors. In mid July more than half of the company's publicly traded shares were held short in bets that the stock would lose value, according to SunTrust Robinson Humphrey. Sentiment would soon shift, however. The week before Clayton Williams and Ares agreed to the big stock sale, a blank-check company run by former EOG Resources CEO Mark Papa agreed to buy Centennial Resource Development, a closely held company, in a deal that valued its 42,500 Delaware Basin acres at about $1.74 billion. Clayton Williams' 65,000 acres were basically next door. The move by Mr. Papa, a major figure in the shale business who built EOG into the largest oil producer in the lower 48 states, "certainly gave people much more faith in that acreage," says SunTrust analyst Neal Dingmann. Clayton Williams' stock rose sharply as oil prices moved higher and Delaware Basin properties started fetching record highs. By Monday, when Noble said it would buy the company with a combination of cash and stock, Clayton Williams' shares had risen to more than three times the price Ares paid for most of its stake. Noble agreed to pay a big premium and a 7.1% pop in its own shares on Tuesday boosted the return for Ares, which is also due a big prepayment penalty on the loan. In all, the roughly $516.6 million Ares invested in Clayton Williams is currently worth more than $1.7 billion under terms of the Noble deal, according to securities filings and people familiar with the matter. About half of that will be paid in cash, while the rest is represented by what will be a roughly 5% stake in Houston-based Noble, one of the largest U.S. exploration and production companies. "That's what happens in the oil business," Mr. Dingmann said. "Had the Delaware acreage been a county or two counties over, they might have gotten half to a quarter of that." Write to Ryan Dezember at ryan.dezember@wsj.com Credit: By Ryan Dezember
Subject: Prices; Investments
Location: Permian Basin Los Angeles California United States--US West Texas
Company / organization: Name: SunTrust Robinson Humphrey; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Pro Private Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859798727
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859798727?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil-Patch Deal Pays Off Big; Ares Management made more than $1 billion in under a year by aiding Clayton Williams Energy
Author: Dezember, Ryan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Jan 2017: n/a.
Abstract: None available.
Full text: Last year, during the depths of the oil-price slump, Los Angeles investment firm Ares Management LP threw a lifeline to a struggling Texas crude producer. Now that Noble Energy Inc. has agreed to pay $2.7 billion for that company, Clayton Williams Energy Inc., Ares is in line to triple its money and reap more than $1 billion in profit. Ares's huge gain is the sort of prize private-equity investors envisioned when oil prices collapsed in late 2014 and pressured the U.S. shale drillers that had been financed with $100-a-barrel oil in mind. But opportunities have been rare to buy into companies strong enough to survive but too strained to tap other financing sources, such as the stock market, that are cheaper and have fewer strings attached than what firms such as Ares usually offer. Clayton Williams, named for its octogenarian chairman and chief executive, was an alluring target. The Midland, Texas, company held a swath of land in what has emerged as the hottest drilling area in the U.S. but not much money to develop it, and Clayton Williams was in danger of tripping debt-to-earnings limits set by its creditors. Last March, about a month after oil prices slid to about $26 a barrel, Ares lent Clayton Williams $350 million, charging 12.5% with an option to defer interest payments and add more debt for two years. Ares, which got a pair of board seats in the deal, also bought warrants to buy more than two million shares. The cash allowed Clayton Williams to pay down its bank debt and renegotiate credit agreements to give it breathing room. The timing was fortuitous, as oil's February low turned out to be the bottom, and oil prices rose to roughly $50 a barrel, where they have hovered in recent months. Ares padded its bet by snapping up another million shares on the open market as the stock languished at its lowest levels in more than a decade. In late July, Ares agreed to buy about five million shares from Clayton Williams for $150 million, gaining another board seat. The company used the cash to keep drilling in the Delaware Basin, a part of West Texas' Permian Basin, where prolific wells sparked a land grab among oil producers and big Wall Street firms. The firm's enthusiasm for Clayton Williams wasn't shared by many investors. In mid-July, more than half of the company's publicly traded shares were held short, in bets that the stock would lose value, according to SunTrust Robinson Humphrey. Sentiment would soon shift, however. The week before Clayton Williams and Ares agreed to the big stock sale, a blank-check company run by former EOG Resources Inc. CEO Mark Papa agreed to buy Centennial Resource Development Inc., a closely held company, in a deal that valued its 42,500 Delaware Basin acres at about $1.74 billion. Clayton Williams's 65,000 acres were basically next door. The move by Mr. Papa, a major figure in the shale business who built EOG into the largest oil producer in the lower 48 states, "certainly gave people much more faith in that acreage," says SunTrust analyst Neal Dingmann. Clayton Williams's stock rose sharply as oil prices moved higher and Delaware Basin properties started fetching record highs. By Monday, when Noble said it would buy the company with a combination of cash and stock, Clayton Williams's shares had risen to more than three times the price Ares paid for most of its stake. Noble agreed to pay a large premium, and a 7.1% pop in its own shares on Tuesday boosted the return for Ares, which is also due a big prepayment penalty on the loan. In all, the roughly $516.6 million Ares invested in Clayton Williams is currently worth more than $1.7 billion under terms of the Noble deal, according to securities filings and people familiar with the matter. About half of that will be paid in cash, while the rest is represented by what will be a roughly 5% stake in Houston-based Noble, one of the largest U.S. exploration and production companies. "That's what happens in the oil business," Mr. Dingmann said. "Had the Delaware acreage been a county or two counties over, they might have gotten half to a quarter of that." Write to Ryan Dezember at ryan.dezember@wsj.com Credit: By Ryan Dezember
Subject: Prices; Investments
Location: Permian Basin Los Angeles California United States--US West Texas
People: Papa, Mark
Company / organization: Name: Clayton Williams Energy Inc; NAICS: 211111, 237210; Name: Noble Energy Inc; NAICS: 211111; Name: SunTrust Robinson Humphrey; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 18, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859869097
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859869097?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Markets & Finance: Oil-Patch Deal Pays Off Big --- Investment firm made more than $1 billion in under a year by aiding Clayton Williams
Author: Dezember, Ryan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]19 Jan 2017: B.10.
Abstract:
The company used the cash to keep drilling in the Delaware Basin, a part of West Texas' Permian Basin, where prolific wells sparked a land grab among oil producers and big Wall Street firms.
Full text: Last year, during the depths of the oil-price slump, Los Angeles investment firm Ares Management LP threw a lifeline to a struggling Texas crude producer. Now that Noble Energy Inc. has agreed to pay $2.7 billion for that company, Clayton Williams Energy Inc., Ares is in line to triple its money and reap more than $1 billion in profit. Ares's huge gain is the sort of prize private-equity investors envisioned when oil prices collapsed in late 2014 and pressured the U.S. shale drillers that had been financed with $100-a-barrel oil in mind. But opportunities have been rare to buy into companies strong enough to survive but too strained to tap other financing sources, such as the stock market, that are cheaper and have fewer strings attached than what firms such as Ares usually offer. Clayton Williams, named for its octogenarian chairman and chief executive, was an alluring target. The Midland, Texas, company held a swath of land in what has emerged as the hottest drilling area in the U.S. but not much money to develop it, and Clayton Williams was in danger of tripping debt-to-earnings limits set by its creditors. Last March, about a month after oil prices slid to about $26 a barrel, Ares lent Clayton Williams $350 million, charging 12.5% with an option to defer interest payments and add more debt for two years. Ares, which got a pair of board seats in the deal, also bought warrants to buy more than two million shares. The cash allowed Clayton Williams to pay down its bank debt and renegotiate credit agreements to give it breathing room. The timing was fortuitous, as oil's February low turned out to be the bottom, and oil prices rose to roughly $50 a barrel, where they have hovered in recent months. Ares padded its bet by snapping up another million shares on the open market as the stock languished at its lowest levels in more than a decade. In late July, Ares agreed to buy about five million shares from Clayton Williams for $150 million, gaining another board seat. The company used the cash to keep drilling in the Delaware Basin, a part of West Texas' Permian Basin, where prolific wells sparked a land grab among oil producers and big Wall Street firms. The firm's enthusiasm for Clayton Williams wasn't shared by many investors. In mid-July, more than half of the company's publicly traded shares were held short, in bets that the stock would lose value, according to SunTrust Robinson Humphrey. Sentiment would soon shift, however. The week before Clayton Williams and Ares agreed to the big stock sale, a blank-check company run by former EOG Resources Inc. CEO Mark Papa agreed to buy Centennial Resource Development Inc., a closely held company, in a deal that valued its 42,500 Delaware Basin acres at about $1.74 billion. Clayton Williams's 65,000 acres were basically next door. The move by Mr. Papa, a major figure in the shale business who built EOG into the largest oil producer in the lower 48 states, "certainly gave people much more faith in that acreage," says SunTrust analyst Neal Dingmann. Clayton Williams's stock rose sharply as oil prices moved higher and Delaware Basin properties started fetching records. By Monday, when Noble said it would buy the company with a combination of cash and stock, Clayton Williams's shares had risen to more than three times the price Ares paid for most of its stake. Noble agreed to pay a large premium, and a 7.1% pop in its own shares on Tuesday boosted the return for Ares, which is also due a big prepayment penalty on the loan. In all, the roughly $516.6 million Ares invested in Clayton Williams is currently valued at more than $1.7 billion under terms of the Noble deal, according to securities filings and people familiar with the matter. About half of that will be paid in cash, while the rest is represented by what will be a roughly 5% stake in Houston-based Noble, one of the largest U.S. exploration and production companies. "That's what happens in the oil business," Mr. Dingmann said. "Had the Delaware acreage been a county or two counties over, they might have gotten half to a quarter of that."
Credit: By Ryan Dezember
Subject: Petroleum production; Acquisitions & mergers
Company / organization: Name: Clayton Williams Energy Inc; NAICS: 211111, 237210; Name: Noble Energy Inc; NAICS: 211111; Name: Ares Management LLC; NAICS: 523920
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Jan 19, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859706958
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859706958?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Says Oil Output Is Falling --- Production dropped in December, but bigger cuts may be needed to hit its targets
Author: Faucon, Benoit
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]19 Jan 2017: B.11.
Abstract:
The Organization of the Petroleum Exporting Countries -- the 13-nation group that controls over a third of global crude production -- promised to throttle back its output by 1.2 million barrels a day, or almost 4%, on Nov. 30.
Full text: OPEC's total oil output began declining in December after its members agreed to reduce output, the organization said, but the group appears to need deeper cuts than expected to achieve its goals. The Organization of the Petroleum Exporting Countries -- the 13-nation group that controls over a third of global crude production -- promised to throttle back its output by 1.2 million barrels a day, or almost 4%, on Nov. 30. The bid to raise oil prices by making crude more scarce has worked to an extent, with prices up almost 20% since the deal was announced. The group made some progress on that goal in December, with OPEC production falling by 221,000 barrels a day compared with November, the group said in a monthly market report. Overall, the group produced almost 33.1 million barrels a day in December and still has to cut to about 31.8 million barrels a day to reach the levels it promised in its agreement. The report demonstrated the challenges facing OPEC in reaching its goal of draining a flood of oil production that pressured oil prices over the past three years. Iraqi production rose to a record, to more than 4.6 million barrels a day, stoking concerns about that country's commitment to cut down to 4.351 million barrels a day. Those figures are according to sources like shipping trackers and oil-price agencies; Iraq's own official production figures soared to over 4.8 million barrels a day in December. Almost half of last month's cut came from Nigeria because of supply disruptions, and that country is allowed to ramp up production in coming months. In Libya, another OPEC member exempted from the obligation to cut, production rose to a monthly high for 2016 at 608,000 barrels a day. Libyan oil officials said January production is higher. Further, the increase in prices spurred by OPEC's deal appears to be spurring new output in the U.S., where shale-oil producers who had pulled back when prices fell are now taking advantage of the hot market. OPEC revised its projections higher for U.S. output by 230,000 barrels a day in 2017, bringing it into agreement with other forecasters who see American production canceling out some of the effect of OPEC's cut. Oil prices fell after OPEC's report and were down overall on Wednesday after news from the U.S. about greater productivity among U.S. shale drillers. Brent crude, the international benchmark, fell 2.8%, to settle at $53.92, while U.S. prices dropped 2.7%, to $51.08. To be sure, OPEC is just beginning its effort to cut production. The group promised to begin cutting output in January, so its compliance will become clearer in the next few weeks. The largest production cut in December came from Saudi Arabia, which exports more crude than any other country and is OPEC's most powerful member. The kingdom reduced output by 149,000 barrels a day, to 10.47 million barrels a day, drawing it closer to its agreed level of about 10 million barrels a day. Saudi Arabia's energy minister, Khalid al-Falih, has said the country has actually cut much further this month, going below 10 million barrels a day for the first time. Saudi Arabian officials have suggested they would cut even further. On Tuesday, Mr. Falih told the World Economic Forum in Davos, Switzerland, that American oil production would take time to regain lost ground this year. In another positive sign for OPEC, Iran's output rose by 10,000 barrels a day, suggesting the country has hit a wall after aggressively ramping up production after world powers lifted sanctions last year in exchange for curbs on its nuclear program.
Credit: By Benoit Faucon
Subject: Crude oil prices; Petroleum production
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Jan 19, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859776108
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859776108?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Settles Higher After IEA Says OPEC Cuts on Track; Gains could be offset by the likely expansion in U.S. shale production
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: Oil prices rose Thursday after the International Energy Agency's monthly report suggested global oversupply is easing. The Paris-based IEA said production from the Organization of the Petroleum Exporting Countries was falling and inventories in big consumer countries have been draining. Bulls highlighted this information in pushing for higher prices, but the IEA warned that gains could be offset by expansion outside of OPEC, especially in the U.S. where inventories are still high and capping gains. Light, sweet crude for February delivery settled up 29 cents, or 0.6%, at $51.37 a barrel on the New York Mercantile Exchange. February options expired at Thursday's settlement and futures expire at Friday's settlement. The March contract, which has become the most actively traded, settled up 23 cents, or 0.4%, to $52.12 a barrel. Brent crude, the global benchmark, gained 24 cents, or 0.4%, to $54.16 a barrel on ICE Futures Europe. The IEA said crude production from OPEC fell 320,000 barrels a day from record rates, to 33.09 million barrels a day in December, after lower Saudi output and disruptions in Nigeria curbed supply. The cartel itself said its output fell by 221,000 barrels a day last month. Output from OPEC was likely to fall more steeply in January than the 320,000 barrels a day cut in December, IEA added. "Early indications suggest a deeper OPEC reduction may be under way for January, as Saudi Arabia and its neighbors enforce supply cuts," the IEA said. OPEC and several non-OPEC countries agreed to reduce oil output by around 1.8 million barrels a day starting this month. Oil prices have risen by around 14% since the deal was announced, on expectations it will help ease a glut that has halved prices from above $100 a barrel and left the amount of oil sitting in storage around record highs. But oil storage levels in the industrialized nations of the Organization for Economic Cooperation and Development fell in November. Both crude and oil products declined, a fourth consecutive monthly decrease. Taking into account preliminary data for December, OECD stocks are 82 million barrels below July's historical peak, even if for now they remain above the symbolic 3 billion level. "Got your attention yet? The market is undersupplied BEFORE the OPEC cuts take effect," analysts at Tudor, Pickering, Holt & Co. said about the report in their morning note to clients Thursday. "Bullish, really bullish." The report did, however, show U.S. oil production was expected to increase by 320,000 barrels a day to average 12.8 million barrels a day, similar to the increase forecast by the U.S. Energy Information Administration earlier this month. Long-planned projects coming on stream in Brazil and Canada will also bring a combined increase of 415,000 barrels a day, IEA said. That is likely to keep non-OPEC production growing by 380,000 barrels a day despite cuts pledged by Russia and other exporters working in collaboration with OPEC. U.S. supply already has the potential to shake the market. Oil prices pared gains after EIA's weekly update on storage levels showed crude levels up 2.3 million barrels in the week ended Jan. 13, compared with expectations of just a 100,000-barrel increase from analysts surveyed by The Wall Street Journal. At 485.5 million barrels, U.S. crude oil inventories are near the upper limit of the average range for this time of the year, the EIA said. Gasoline stocks also grew by 6 million barrels. More than half of the gasoline addition came on the East Coast. That is especially bad for futures because the gasoline benchmark is set at New York, said Jim Ritterbusch, president of energy-advisory firm Ritterbusch & Associates. Gasoline futures did flip to losses after the report and settled down 0.9%, to $1.5345 a gallon, a one-month low. Oil prices followed, falling by about 50 cents in the minutes immediately after the report, which was delayed by a day this week because of a government holiday Monday. They did rally slightly before settlement. Many traders will likely see it as temporary, helping to keep prices in positive territory, said Scott Shelton, broker at ICAP PLC. Severe winter weather kept people off the roads in some parts of the country, but that is unlikely to be a long-term trend and future storage reports are likely to be more bullish, he added. "It's hard for me to believe that all of a sudden the U.S. has decided not to drive," Mr. Shelton said. "It's just the time of the year when the weather has an effect." Diesel futures gained 0.9%, to $1.6183 a gallon, snapping a three-session losing streak. Benoit Faucon, Sarah McFarlane and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Petroleum production; Oil shale; Crude oil prices; Price increases; Crude oil
Location: United States--US Saudi Arabia
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859826860
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859826860?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Gets a Nudge from Bullish OPEC Production Data; March Brent crude on London's ICE Futures exchange rose $0.43 to $54.35 a barrel
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: Crude-oil prices moved higher in Asian trade Thursday on encouraging data that showed oil production by the Organization of the Petroleum Exporting Countries was falling, pushing the market closer toward a rebalance. However, any gains could be offset by the likely expansion in U.S. shale oil production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $51.45 a barrel at 0208 GMT, up $0.37 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.43 to $54.35 a barrel. According to OPEC's latest data, production by the 13-member bloc contracted by 221,000 barrels a day in December from the previous month. Overall, the cartel produced almost 33.1 million barrels a day in December. The group still needs to cut down to about 31.8 million barrels a day to meet the level it pledged in its production cut deal signed last year. "There are always two sides to a coin; on one hand, market-watchers had cheered on OPEC's surprise decision to cut oil production by 1.2 million barrels a day with non-OPEC countries following suit with their own cut of 600,000 barrels a day just two weeks later," said Barnabas Gan, an economist at OCBC. "On the other hand, the oil bears will always be the harbingers of OPEC's cheating behavior," he said, referring to the group's patchy record of underreporting production figures. The production cut deal went into effect this month which means the January production data would be a more indicative gauge on the countries' compliance. That data will be released in mid-February. An OPEC oversight committee will convene later this week to review the progress so far. Asia-Pacific is expected to see the sharpest drop in crude production compared with other regions by falling to an estimated 6.6 million barrels a day in 2017 from 7 million barrels a day seen in 2016, based on calculations by Energy Aspects. Given that oil consumption in Asia-Pacific is rapidly rising, a decline in production will keep imports elevated, said Virendra Chauhan, an energy analyst at the firm. This will also help whittle down the high inventory levels in OPEC members, he added. Production by non-OPEC African nations is also likely to drop another 100,000 barrels a day this year from the year before to 1.9 million barrels in 2017, said the consultancy. However, a potential black swan which could derail the rebalance effort by OPEC, is the rising production in the U.S. Based on Energy Information Administration's own projection, shale oil output in the U.S. will increase to 4.75 million barrels a day in February, a 4.6% jump from January. "This confirms that U.S. shale oil production has bottomed out," Commerzbank analysts said in a note. The shale ramp-up will make it harder for OPEC to rebalance oil markets, they added. U.S. oil storage and production data for the week ended January 13 is due for release later today by the EIA. Analysts and traders surveyed by The Wall Street Journal expect crude oil stockpiles to increase by 100,000 barrels on average for that week. Data from the American Petroleum Institute, an industry group, predicts a decline of 5-million-barrel in crude supplies, a 9.8-million-barrel rise in gasoline stocks and a 1.2-million-barrel increase in distillate inventories. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--fell 36 points to $1.5451 a gallon, while February diesel traded at $1.6216, 124 points higher. ICE gas oil for February changed hands at $478.50 a metric ton, down $7.25 from Wednesday's settlement. Stephanie Yang, Neanda Salvaterra, and Benoit Faucon contributed to this article. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Petroleum production; Oil shale; Futures; Cartels
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859853689
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859853689?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
China Predicts Oil-Import Slowdown, But Analysts Skeptical; Many doubt the five-year forecast of a sharp drop in import growth
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: China's government expects a sharp slowdown in the growth of the country's oil imports, but the forecast is tough to square with the situation on the ground. In a five-year outlook for the country's oil-and-gas industry , China's economic planning agency said net imports of oil would average 7.8 million barrels a day by 2020--rising 17% from 6.7 million barrels a day in 2015. On its face, the figure from the National Development and Reform Commission looks like an impressive clip. But it would be far slower than China's current pace of import growth--too slow, some analysts say, given the country's stumbling oil production. In the previous five-year period from 2010 to 2015, China's net oil imports--or imports minus exports--rose 41% amid an economic boom that brought with it a deep thirst for imported energy. In 2016 alone, customs data show China's net oil imports rose 14%. As China's economy cools , the country's oil needs are expected to slow as well, especially its once-massive need for diesel used to fuel its construction boom. The concern with the NDRC's forecast is that the downturn in oil prices has led to a sharp fall in China's own oil output. In November, the most recent month for which data is available, China's oil production fell 9% from a year earlier. And the NDRC expects the oil-output fall to continue in the coming years, while demand is projected to rise, albeit at a slower pace than in the past. "The oil has to come from somewhere," said Yen Ling Song, an oil analyst at S&P Global Platts. She said the forecast "implies a contraction in GDP at some point over the next three years...It's not realistic at all." Ms. Song said she expects the NDRC's import forecast to be revised higher. To meet both rising demand and lower oil production, the company expects net imports of about 9 million barrels a day for 2020, she said, an increase of about one-third from 2015. Earlier in the week, the NDRC projected oil production would fall 7% to about 4 million barrels a day by 2020, from 2015 levels. It said oil demand should rise 8% over the same period to 11.8 million barrels a day. Oil demand in China has been cooling for a while as the country undergoes structural reforms aimed at bringing about a more consumer-oriented economy. Still, the country has for a while rivaled the U.S. for the title of world's largest oil importer and has been a source of demand mopping up excess crude during the more than two-year slump in oil prices. "Refining capacity is not expected to rise much higher from the current level because demand growth is slowing down," said Li Li, energy research director at ICIS China. One way in which oil imports could slow drastically is if China runs through what are widely believed to be big inventory stockpiles. In November, China's commercial crude inventories shrank by 18.7 million barrels to 226.5 million barrels from one year ago, according to the Organization of the Petroleum Exporting Countries. Jenny W. Hsu and Brian Spegele contributed to this article. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Petroleum production; Imports
Location: China United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859868350
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859868350?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Fed Adds to Factors Pushing Oil; Higher borrowing costs could limit the growth of the U.S. shale industry
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: Beyond OPEC, China's economy or geopolitics, oil investors are monitoring another key factor for crude--the Federal Reserve. With the Fed poised to raise rates at a faster clip than previously anticipated, analysts expect the resulting rise in the dollar and potential blow that implies for emerging markets to weigh on oil prices. Higher borrowing costs, meanwhile, could limit the growth of the U.S. shale industry, which has fueled its meteoric rise with cheap debt. Oil prices have risen by close to a fifth since last year's deal between the Organization of the Petroleum Exporting Countries and other heavyweight producers to cut around 2% from global output. Some analysts expect prices to rise close to or above $60 a barrel, a level not seen since the summer of 2015. On Thursday, Brent crude was trading up 0.9% at $54.41 a barrel. A stronger dollar typically weighs down on the oil price because it makes the greenback-denominated commodity more expensive for holders of other currencies. The election of Donald Trump added more fuel to the dollar's rise, given expectations that the president elect's tax cuts and fiscal spending could boost inflation and the economy, causing the Fed to raise rates even faster. The Wall Street Journal dollar index, which measures the greenback against a basket of its peers, is up around 4% since the U.S. election. "Rising interest rates are certainly a risk for the oil market this year," said Tom Pugh, a commodities analyst at Capital Economics. "With Trump possibly embarking on a policy of fiscal expansion, we should see a real increase in interest rates this year and a higher dollar--all headwinds for oil prices." The Fed has penciled in three rate increases this year, possibly raising its benchmark rate to 1.375% by year-end. Rate rises often increase the value of a currency because they attract money looking for the extra yield. "A higher dollar makes me skeptical of the recent strength above $50" a barrel, said Hamza Khan, head of commodity strategy at ING Bank. Mr. Khan believes that Brent will average $45 a barrel this year, a below-consensus forecast that is partly shaped by the dollar's strength. A Wall Street Journal survey of investment banks last month predicted that Brent will average $56 a barrel in 2017 . Gains in the oil price have added to inflation elsewhere, which could sap appetite from other developed-world central banks, such as the European Central Bank, to increase or maintain their massive monetary stimulus programs. The ECB meets on Thursday to discuss its monetary policy. "Monetary policies continue to have an important influence on the global economy and recent efforts by OPEC and some non-OPEC producers to rebalance the oil market," OPEC said in its monthly report Wednesday Emerging markets, an important source of demand for crude, tend to suffer when U.S. rates climb, as capital leaves those markets and as dollar-denominated debt becomes more expensive to service. "Rising U.S. interest rates could result in increased capital outflows from emerging and some other economies, and hence lower economic activity...limiting oil demand growth," OPEC wrote in its report. Still, rising rates may also end up limiting growth in U.S. oil supply, which would add support for prices. That's because rising interest rates makes capital more expensive and so investments costlier for the U.S. shale industry. A key question therefore is whether "higher interest rates will make it harder for shale drillers to borrow, in turn slowing the production boom," Mr. Khan said. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Emerging markets; Interest rates; Crude oil prices; American dollar
Location: China United States--US
People: Trump, Donald J
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859869655
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859869655?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Faces Headwinds From Rising Non-OPEC Production; The oil cartel has promised to cut output by 1.2 million barrels a day, or almost 4%
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: OPEC is facing headwinds with rising production from rivals, the International Energy Agency said Thursday, the latest warning that OPEC's efforts to take barrels out of the market could backfire. The Organization of the Petroleum Exporting Countries--the 13-nation oil cartel that controls over a third of global crude production--promised to throttle back its output by 1.2 million barrels a day, or almost 4%, on Nov. 30. There are 11 countries outside the group--including Russia--that have agreed to join with cuts of 558,000 barrels a day on Dec. 10. But in its closely watched monthly report, the Paris-based IEA, which advises key oil consuming nations, said other producers were stepping into the breach, as investment in their fields is bolstered by higher oil prices. Despite pledges to reduce output by Russia and others, the agency upgraded its estimates for non-OPEC production growth by 175,000 barrels a day for this year, with a rise now estimated at 380,000 barrels a day. That increase will come largely from U.S. output--which the IEA says will grow by 170,000 barrels a day in 2017. The industry there has become more efficient following an era of low oil prices, with shorter drilling times. "There is no doubt that U.S. shale industry has emerged from the $30 barrels-a-day oil world we lived in a year ago much leaner and fitter," the IEA said. On Wednesday, OPEC had already raised its projections for U.S. output by 230,000 barrels a day in 2017. But the IEA said long-planned projects coming on stream in Brazil and Canada will also bring an increase of 415,000 barrels a day this year for the two countries combined. The news comes after OPEC cut its production in December, which may decline further this month as output cuts are implemented. The IEA said OPEC crude production fell 320,000 barrels a day from record rates to 33.09 million barrels a day in December after lower Saudi output and disruptions in Nigeria curbed supply. The cartel itself said its output fell by 221,000 barrels a day last month. The IEA said "early indications suggest a deeper OPEC reduction may be under way for January, as Saudi Arabia and its neighbors enforce supply cuts." "If OPEC and non-OPEC were to implement strictly their agreed cuts, global inventories could start to draw in the first half of this year," it said. But OPEC itself is facing internal challenges from higher production from Libya and Nigeria, both of which are exempt from the production cuts. Libyan output, for instance, rose above 700,000 barrels a day early this month--its highest in three years--after a key pipeline reopened in the West of the country. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Cartels; Crude oil prices; Crude oil
Location: Brazil Russia United States--US Libya Canada Saudi Arabia Nigeria
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859869918
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Woodside Expecting Production to Recover with New Projects; The company remains on the lookout for further undeveloped oil-and-gas assets to bolster reserves
Author: Stewart, Robb M
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: MELBOURNE, Australia--Woodside Petroleum Ltd. (WPL.AU) anticipates production levels will recover from next year as its investment in Australian oil and gas projects starts to deliver. The Australian energy company has projects that will soon begin adding growth, offsetting any decline in other parts of the business, said Chief Executive Peter Coleman. That's even as Woodside remains on the lookout for further undeveloped oil-and-gas assets that will bolster its reserves, he said in an interview. At the heart of near-term growth is Chevron Corp.'s (CVX) US$34 billion Wheatstone gas-export project, which is expected to produce its first liquefied natural gas midway through the year from a first production line and then add a second line early next year. The project, which was joined by Woodside in 2015, also is set to provide natural gas to the domestic market in Western Australia state from 2018. Woodside will then add output from the US$1.9 billion Greater Enfield oil development with partner Mitsui Australia. First oil from the fields off the northwestern coast of Australia is expected in mid-2019. "The degree of growth will be a function of how quickly the projects start up and how reliable they are," Mr. Coleman said. The Perth-based company has forecast production would fall to between 84 million and 90 million barrels of oil equivalent in 2017, after rising 3% to 94.9 million last year. It said production of LNG are likely to build on a record level last year, but will be offset by a decline in oil output and a drop in domestic natural gas as its equity stake in pipeline volumes from the North West Shelf project in Australia's west falls as planned. Woodside, Chevron, Royal Dutch Shell PLC (RDSA) and other major energy companies have in recent years invested tens of billions of dollars in massive liquefied natural gas developments in anticipation of continued strong energy demand from Asia. As the various plants around the country ramp up output they have positioned Australia to overtake Qatar as the top exporter of the chilled gas in the next few years. In Western Australia, Woodside has stakes in the North West Shelf LNG project, which has been operating since 1984, and the Pluto LNG plant that began producing in 2012. It closed a US$2.8 billion deal in 2015 with Apache Corp. (APA) that includes a 13% stake in the Wheatstone project, as well as interests in the Kitimat LNG project in Canada. Mr. Coleman said that over the last two years the company had added the equivalent of 20 years production to its resources base with assets across offshore Western Australia, Kitimat and with US$350 million deal last year to buy ConocoPhilips' (COP) interest in three promising oil discoveries off Senegal. Added to that, the company plans a drilling campaign for gas in Myanmar this year. "We have in many ways refilled the cupboard," he said. "We don't need to be in the market acquiring any more this year...[but] we haven't stopped looking." Mr. Coleman said there remained a window of opportunity to pick up oil-and-gas assets this year, as companies still burdened by debt look at ways to free up cash and as buyers grow more confident on the oil price, following the slump from over US$100 a barrel in the summer of 2014 to less than US$30 a year ago. Woodside is well positioned should a compelling asset come along, he said, after it took advantage of low interest rates last year to extend the tenure of its debt and with free cash-flow break even at US$35 a barrel. Write to Robb M. Stewart at robb.stewart@wsj.com Credit: By Robb M. Stewart
Subject: Equity stake; LNG; Crude oil prices; Capital expenditures; Natural gas
Location: Western Australia Australia United States--US Senegal
Company / organization: Name: Woodside Petroleum Ltd; NAICS: 211111; Name: Chevron Corp; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859872789
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859872789?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
PV Oil Stake Is Vietnam's Latest Investor Bait; Government offers 44% of PetroVietnam Oil in its continuing hunt for foreign capital
Author: Vu, Trong Khanh; Venkat, P R
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: Vietnam is putting more of its state-owned companies up for sale, as the country looks to lure foreign investors. The latest: a minority stake in PetroVietnam Oil Corp., known as PV Oil. The government is looking to sell up to 44% of its stake in Vietnam's monopoly crude-oil trader to strategic investors, said Do Manh Binh, head of the planning department in PV Oil. He didn't specify a potential valuation for that stake. Mr. Binh said the aim of the stake sale was to get foreign money and technology to help PV Oil grow its market share in refined oil products and build ties with international partners. The asset sale plan is the latest in a series of divestments planned by the Communist government to open up its economy to foreign investors. The government announced earlier this month that it plans to privatize 137 state-owned enterprises either fully or partially by 2020. Earlier this week, a senior government official said that the administration was also seeking strategic investors for a local power company called PetroVietnam Power Corp. People familiar with the sale plans for PetroVietnam Power said that the stake sale could fetch up to $700 million. Vietnam hopes the stake sales will improve the efficiency of state firms while reducing the government's role. The sales will also fill the government's coffers as public debt nears the government's mandated ceiling of 65% of gross domestic product. Since last year, the government has put various assets on the block, as diverse as breweries and energy firms. Investors have been eager to bid for these assets, which benefit from the country's growing consumer spending. Foreign investors are looking to buy more assets in Vietnam, one of the world's fastest-growing economies. Vietnam benefits from a young population and a booming export sector that is taking business from higher-cost countries, particularly China. The country's stock market was one of the best performing in Asia last year with the benchmark index up nearly 15%. Mr. Binh said that the sale of PV Oil stake is expected to take place in June and that some foreign investors have already shown some interest. He didn't name the foreign investors. The official said that the government is yet to decide on how much it expects to raise from the stake sale. "We will submit the list of potential investors to the Prime Minister later this year for approval," Mr. Binh said. PV Oil is the trading arm of Vietnam Oil & Gas Group. The company holds a quarter of Vietnam's retail oil-product market and is also the only importer and exporter of crude oil in the country. PV Oil reported a pretax profit of 530 billion dong ($23.5 million) last year, 96% higher than its initial target for the year. The company reported revenue of $1.51 billion in 2016. Jake Maxwell Watts contributed to this article. Write to Vu Trong Khanh at Trong-Khanh.Vu@dowjones.com and P.R. Venkat at venkat.pr@wsj.com * As Vietnam Deals Surge, Brewers Go Up for Sale * Vietnam Primed to Share More Beers With Neighbors in Southeast Asia * Vietnam Churns Investor Interest by Lifting Foreign-Ownership Limit on Vinamilk Credit: Vu Trong Khanh, P.R. Venkat
Subject: Foreign investment
Location: Southeast Asia China Vietnam
Company / organization: Name: Vietnam Oil & Gas Group; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1859873866
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859873866?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil and Gasoline Inventories Rise Sharply
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: U.S. crude oil inventories increased more than expected for the week ended Jan. 13, while stockpiles of gasoline also rose sharply, according to data released Thursday by the Energy Information Administration. Crude-oil stockpiles climbed by 2.3 million barrels, to 485.5 million barrels, which is near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 100,000 barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, decreased by 1.3 million barrels, to 65.7 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by 6 million barrels, to 246.4 million barrels. Analysts were expecting gasoline inventories to rise by 1.7 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, declined by 968,000 barrels, to 169.1 million barrels, but are still above the upper limit of the average range, the EIA said. Analysts were forecasting supplies to increase by 100,000 barrels from a week earlier. Refining capacity utilization fell by 2.9 percentage points from the previous week, to 90.7%. Analysts were expecting utilization levels to decline by 0.9 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Inventory; Price increases; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861588661
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861588661?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Islamic State Steps Up Oil and Gas Sales to Assad Regime; U.S., European officials say the sales are providing the militant group with desperately needed cash
Author: Benoit Faucon; Ahmed Al Omran
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Jan 2017: n/a.
Abstract: None available.
Full text: Islamic State has ramped up sales of oil and gas to the regime of Syrian President Bashar al-Assad, U.S. and European officials said, providing vital fuel to the government in return for desperately needed cash. The regime's purchases are helping sustain Islamic State amid unprecedented military pressure on the militant group in both Syria and Iraq. It is also helping the group despite the regime's insistence that it is dedicated to eradicating the militant group with the help of its top allies Russia and Iran. Oil and gas sales to Mr. Assad's regime are now Islamic State's largest source of funds, replacing revenue the group once collected from tolls on the transit of goods and taxes on wages within its territory, the officials said. Their information comes from the monitoring of oil-truck traffic routes, which have changed from carrying oil to Turkey and Iraq to transporting it to Syria. "Daesh's revenue and energy generation is being supported by the Syrian regime," said Amos Hochstein, a U.S. State Department official, referring to Islamic State by its Arabic acronym. Islamic State's energy sales to the Syrian regime illustrate the shifting, and sometimes confounding, alliances that have marked the country's nearly six-year war. Islamic State has found some relief from U.S. airstrikes targeting their oil-smuggling operations in central and western Syria, where the Russian military has a heavy air presence, a Western official said. The group is also harder to hit in Syria because the pockets of territory it controls are smaller, the official said. Although Islamic State is a regular target of Mr. Assad's pronouncements against terrorism, his government depends on the militant group for oil and natural gas to the extent that the Syrian capital Damascus "relies on gas produced in ISIS territory in the Palmyra area for a large part of its power generation," a European counterterrorism official said. Western officials said the Assad regime has fallen behind on payments to Islamic State for the gas. They said they suspect that Islamic State blew up a separate Syrian gas plant on Jan. 8 to send a message demanding payment. "It shows not only the degree of trade between the two entities, the regime and Daesh, but also the brutality of these kinds of trades," said Mr. Hochstein, who oversees U.S. efforts to cripple Islamic State's energy business. Donald Trump, who is being sworn in as president on Friday, has said that the U.S. campaign to destroy Islamic State would be a higher priority than toppling Mr. Assad and suggested that might mean joining with Russia and the Syrian government in the undertaking. Mr. Hochstein said the Al-Akram natural-gas facility between the Syrian cities of Palmyra and Raqqa that is used by Islamic State "should be considered for termination" by the Trump administration. Syria's state-run gas company and oil ministry, which has previously denied that the government buys oil from Islamic State, didn't respond to telephone calls and emails. Islamic State captured a host of Syrian and Iraqi oil fields and gas facilities after it took over much of northern Iraq and large parts of Syria in 2014. The group continued selling oil to Iraqi and Syrian buyers, including the Assad regime, bringing in up to $1 million a day. That amount has fallen because of sustained aerial bombing by Russia and the U.S.-led international coalition and anti-Islamic State ground operations in Iraq and Syria. In the Baghdad government's fight to reclaim the northern city of Mosul, now in its fourth month, government forces are nearly in control of the city's eastern half. Islamic State has put up stiff resistance in fighting marked by unusually high Iraqi military and civilian casualties that, according to Iraqi commanders and the United Nations, have been caused by the large number of combatants in a confined area and the extremist group's use of human shields. Western Mosul remains under full Islamic State control, but the militants are surrounded and the group's supply lines from Syria have been cut, Iraqi and American officials said. Oil trucks that once carried petroleum to Iraq from the Tanak oil field near Islamic-State-held Deir Ezzour, Syria, have been rerouted. Now they transport their cargo to the Assad regime instead, Mr. Hochstein and other Western security officials said. The oil-smuggling routes in Syria and Iraq that Islamic State once used to transport crude to southern Turkey have been severed by Turkish military and Turkey-backed militants, a Western security official said. The battlefield has tilted against the group, and its finances are strained, according to Jonathan Schanzer, a former U.S. Treasury Department counterterrorism official. "Islamic State is under sustained pressure" and is struggling to extract taxes and sell oil, forcing it to deal with the Assad regime, said Mr. Schanzer, now vice president of research at the Foundation for Defense of Democracies in Washington. Faced with a country in ruins, Mr. Assad is also under economic pressure. In recent weeks, Russia and Iran have reduced deliveries of cheap gas that normally power Syria's electricity plants, Western security officials said. The cutbacks have increased the regime's need for other sources of oil and especially natural gas. Tamer El-Ghobashy in Erbil, Iraq, contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com and Ahmed Al Omran at Ahmed.AlOmran@wsj.com Credit: Benoit Faucon, Ahmed Al Omran
Subject: Paramilitary groups; Smuggling; Counterterrorism; Political campaigns; Militancy; Energy industry; Natural gas
Location: Turkey Russia United States--US Iraq Iran Syria
People: Assad, Bashar Al
Company / organization: Name: Department of State; NAICS: 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 19, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862087817
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862087817?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Traders Add Fed To Pricing Calculation
Author: Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]20 Jan 2017: B.11.
Abstract:
On Thursday, ECB President Mario Draghi pledged to continue the bank's bond-buying program through the end of the year "Monetary policies continue to have an important influence on the global economy and recent efforts by OPEC and some non-OPEC producers to rebalance the oil market," OPEC said in its monthly report Wednesday.
Full text: Beyond OPEC, China's economy or geopolitics, oil investors are monitoring another factor for crude: the Federal Reserve. With the Fed poised to raise rates at a faster clip than previously anticipated, analysts expect the resulting rise in the dollar and potential blow that implies for emerging markets to weigh on oil prices. Higher borrowing costs, meanwhile, could limit the growth of the U.S. shale industry, which has fueled its meteoric rise with cheap debt. Oil prices have risen by close to one-fifth since November's deal between the Organization of the Petroleum Exporting Countries and other big producers to cut about 2% from global output. Some analysts expect prices to rise near or above $60 a barrel, a level not seen since the summer of 2015. On Thursday, Brent crude, the international benchmark, rose 0.4% to $54.16 a barrel, while U.S.-traded oil gained 0.6% to $51.37. A stronger dollar typically weighs on the price of oil because it makes the greenback-denominated commodity more expensive for holders of other currencies. The election of Donald Trump added more fuel to the dollar's rise, given expectations that the incoming president's tax cuts and fiscal spending could boost inflation and the economy, causing the Fed to raise rates at a quicker pace. The WSJ Dollar Index, which measures the greenback against a basket of its peers, has risen about 4% since the U.S. election. "Rising interest rates are certainly a risk for the oil market this year," said Tom Pugh, a commodities analyst at Capital Economics. "With Trump possibly embarking on a policy of fiscal expansion, we should see a real increase in interest rates this year and a higher dollar, all headwinds for oil prices." The Fed has penciled in three rate increases this year. Rate rises often increase the value of a currency because they attract money looking for extra yield. "A higher dollar makes me skeptical of the recent strength above $50" a barrel, said Hamza Khan, head of commodity strategy at ING Bank. Mr. Khan said he believes Brent will average $45 a barrel this year, a below-consensus forecast that is partly shaped by the dollar's strength. A Wall Street Journal survey of investment banks last month predicted that Brent will average $56 a barrel in 2017. Gains in the oil price have added to inflation elsewhere, which could sap appetite from other developed-world central banks, such as the European Central Bank, to increase or maintain their monetary-stimulus programs. On Thursday, ECB President Mario Draghi pledged to continue the bank's bond-buying program through the end of the year "Monetary policies continue to have an important influence on the global economy and recent efforts by OPEC and some non-OPEC producers to rebalance the oil market," OPEC said in its monthly report Wednesday. Credit: By Georgi Kantchev
Subject: Crude oil; Commodity prices
Location: United States--US
Company / organization: Name: Federal Reserve System; NAICS: 921130
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Jan 20, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1860021533
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1860021533?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
World News: Terror Group Boosts Sales of Oil, Gas to Assad Regime
Author: Benoit Faucon; Ahmed Al Omran; Faucon, Benoit; Ahmed Al Omran
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]20 Jan 2017: A.10.
Abstract:
Oil and gas sales to Mr. Assad's regime are now Islamic State's largest source of funds, replacing revenue the group once collected from tolls on the transit of goods and taxes on wages within its territory, the officials said.
Full text: Islamic State has ramped up sales of oil and gas to the regime of Syrian President Bashar al-Assad, U.S. and European officials said, providing vital fuel to the government in return for desperately needed cash. The regime's purchases are helping sustain Islamic State amid unprecedented military pressure on the militant group in both Syria and Iraq. It is also helping the militant group despite the regime's insistence that it is dedicated to eradicating it with the help of its top allies Russia and Iran. Oil and gas sales to Mr. Assad's regime are now Islamic State's largest source of funds, replacing revenue the group once collected from tolls on the transit of goods and taxes on wages within its territory, the officials said. Their information comes from the monitoring of oil-truck traffic routes, which have changed from carrying oil to Turkey and Iraq to transporting it to Syria. "Daesh's revenue and energy generation is being supported by the Syrian regime," said Amos Hochstein, a U.S. State Department official, referring to Islamic State by its Arabic acronym. Islamic State's energy sales to the Syrian regime illustrate the shifting, and sometimes confounding, alliances that have marked the nearly six-year war. Islamic State has found some relief from U.S. airstrikes targeting its oil-smuggling operations in central and western Syria, where the Russian military has a heavy air presence, a Western official said. The group is also harder to hit in Syria because the pockets of territory it controls are smaller, the official said. Although Islamic State is a regular target of Mr. Assad's pronouncements against terrorism, his government depends on the militant group for oil and natural gas to the extent that the Syrian capital Damascus "relies on gas produced in ISIS territory in the Palmyra area for a large part of its power generation," a European counterterrorism official said, using another name for the group. Western officials said the Assad regime has fallen behind on payments to Islamic State for the gas. They said they suspect that Islamic State blew up a separate Syrian gas plant on Jan. 8 to send a message demanding payment. "It shows not only the degree of trade between the two entities, the regime and Daesh, but also the brutality of these kinds of trades," said Mr. Hochstein, who oversees U.S. efforts to cripple Islamic State's energy business. Donald Trump, who is being sworn in as president on Friday, has said that the U.S. campaign to destroy Islamic State would be a higher priority than toppling Mr. Assad and suggested that might mean joining with Russia and the Syrian government in the undertaking. Syria's state-run gas company and oil ministry, which has previously denied that the government buys oil from Islamic State, didn't respond to telephone calls and emails. Islamic State captured a host of Syrian and Iraqi oil fields and gas facilities after it took over much of northern Iraq and large parts of Syria in 2014. The group continued selling oil to Iraqi and Syrian buyers, including the Assad regime, bringing in as much as $1 million a day. That amount has fallen because of sustained aerial bombing by Russia and the U.S.-led international coalition and anti-Islamic State ground operations in Iraq and Syria. --- Tamer El-Ghobashy in Erbil, Iraq, contributed to this article.
Credit: Benoit Faucon, Ahmed Al Omran
Subject: Crude oil
Location: Russia Iran Syria
People: Assad, Bashar Al
Company / organization: Name: Islamic State of Iraq & the Levant--ISIS; NAICS: 813940
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.10
Publication year: 2017
Publication date: Jan 20, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1860081745
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1860081745?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is pro hibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil-Field Services Company Keane Group Prices Upsized IPO at High End of Range; Offering of 26.76 million shares priced at $19 each with Keane selling 15.7 million shares
Author: Beckerman, Josh
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: Oil-field services company Keane Group Inc., which increased the size of its initial public offering at least twice, said the IPO priced at the high end of its estimated range Thursday. The Houston provider of hydraulic fracturing and other well completion services said the offering of 26.76 million shares priced at $19 each. Keane is selling 15.7 million of the shares, while the rest are being sold by an entity that includes private-equity firm Cerberus Capital Management LP. Cerberus bought a majority of Keane in 2011. In November, Keane filed confidential IPO paperwork, and the next month it revealed its plans to go public. Regulatory filings this month mentioned an estimated price of $17 to $19, with the size projected at 16.7 million shares and then 22.3 million shares. A severe energy downturn in recent years has led to net losses and job cuts at oil-field services providers like Halliburton Co. and Baker Hughes Inc. For the nine months ended Sept. 30, Keane's revenue fell to $269.5 million from $312.2 million in the comparable 2015 period. Net loss widened to $148.6 million from $38.9 million. In December, Keane said it believes it "well positioned to capitalize efficiently on an industry recovery." The company pointed to its active role in North American shale areas and said its strong balance sheet will help it expand. Keane will trade on the New York Stock Exchange under the symbol FRAC. The company will use the proceeds to repay debt. Citigroup, Morgan Stanley, BofA Merrill Lynch, and J.P. Morgan are joint book-running managers. Write to Josh Beckerman at josh.beckerman@wsj.com Credit: By Josh Beckerman
Subject: Acquisitions & mergers; Initial public offerings
Company / organization: Name: Merrill Lynch & Co Inc; NAICS: 523110, 523120; Name: Citigroup Inc; NAICS: 551111; Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Stock Exchange--NYSE; NAICS: 523210; Name: Cerberus Capital Management LP; NAICS: 523110, 525990; Name: Halliburton Co; NAICS: 213112, 237990; Name: Keane Group; NAICS: 213111, 213112; Name: Morgan Stanley; NAICS: 523110, 523120, 523920
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861596499
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861596499?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Gets a Boost From Weaker Dollar and Supply Optimism; March Brent crude on London's ICE Futures exchange rose $0.17 to $54.33 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: Crude futures gained traction in Asia trade on Friday, driven by a weaker U.S. dollar and signs of the market tightening after major oil producers agreed to cut output. On the New York Mercantile Exchange, light, sweet crude futures for delivery in February traded at $51.54 a barrel at 0228 GMT, up $0.17 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.17 to $54.33 a barrel. The U.S. dollar wavered as investors held back from making large moves ahead of President-elect Donald Trump's inauguration speech on Friday. The WSJ Dollar Index, which measures the U.S. currency against 16 others, was recently down 0.1% after rising as much as 0.3% overnight. As oil is traded in dollars, a weaker dollar gives foreign traders stronger buying power. "Everyone is waiting to see if U.S. oil production will really surge under Trump," a Singapore-based fuel oil trader said, adding that he expects volatile prices in the first 100 days of Trump's administration. An oil glut has depressed prices for more than two years. The price collapse prompted a group of 20 oil producers from within and outside the Organization of the Petroleum Exporting Countries to agree on an output cut last year. Even though the deal only went into effect this month, the International Energy Agency said OPEC production has slowed, declining by 320,000 barrels a day to 33.09 million barrels in December. "Early indications suggest a deeper OPEC reduction may be under way for January, as Saudi Arabia and its neighbors enforce supply cuts," the IEA said. The contraction in inventory levels has added to the encouraging news. IEA data showed oil storage in industrialized nations of the Organization for Economic Cooperation and Development fell in November. "If the pattern continues it would be fair to assume a pickup in demand combined with lower production in early 2017 will see prices higher," said Stuart Ive, a client manager at OM Financial. However, rising oil prices in the wake of an output cut may prompt more U.S. shale producers to return to the oil patches. Seen as the marginal producer, higher U.S. output could easily wipe out OPEC's efforts to remove surplus barrels. That worry was reflected in the price movement overnight. Oil prices pared gains after data from the U.S. Energy Information Administration showed crude stockpiles rose by 2.3 million barrels in the week ended Jan. 13. The increase upended analysts' expectations for a much smaller expansion. "The crude build was due to a drop in refinery runs signaling the beginning of maintenance season, while imports corrected only modestly following the previous week's huge jump," Société Générale said in a note. U.S. gasoline stocks also rose unexpectedly as production, down just 2,000 barrels from the previous week, was little changed despite softer domestic demand. With slower global supply growth and lower production in many oil-guzzling countries, global demand is expected to rise. In China, the world's second-largest oil importer, crude production for 2016 dropped 6.9% to 199.7 million metric tons, or 4 million barrels, the National Bureau of Statistics said Friday. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 53 points to $1.5398 a gallon, while February diesel traded at $1.6205, 22 points higher. ICE gas oil for February changed hands at $479.50 a ton, unchanged from Thursday's settlement. Chelsey Dulaney contributed to this article. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; American dollar
Location: United States--US Asia Saudi Arabia
People: Trump, Donald J
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861596956
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861596956?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohi bited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Settles Higher on Signs of Tightening Supply; Weakening dollar also buoying bullish sentiment
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: Crude prices rose, driven by signs of the market tightening after major oil producers agreed to cut output and by weakness in the U.S. dollar. U.S. crude prices settled up $1.05, or 2%, to settle at $52.42 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose $1.33, or 2.46%, to $55.49 a barrel on ICE Futures Europe. Major oil producers have taken great pains in recent weeks to emphasize that they are complying with an agreement struck Nov. 30 to cut production. That has helped keep U.S. crude prices trading above $50 a barrel, but hasn't propelled them out of a range that has been capped at around $55 a barrel. "The indications are at that OPEC guys are basically starting their cuts. As we really begin to get verification, the market could be further strengthened," said Gene McGillian, research manager for Tradition Energy. "It might play out over a couple of months, but I do think we'll have higher prices." Analysts said market participants may be closing out short positions, or bets that oil prices will fall, ahead of a meeting between the Organization of the Petroleum Exporting Countries and other major producers this weekend to discuss compliance with the deal. "Ostensibly they're there to talk about mechanisms to measure compliance, but the market is anticipating a little more," said Andy Lipow, president of Lipow Oil Associates in Houston. Even though the agreement only went into effect this month, the International Energy Agency said on Thursday that OPEC production has slowed, declining by 320,000 barrels a day to 33.09 million barrels in December, and is likely to fall more steeply this month. Saudi Arabian oil minister Khalid al-Falih said Thursday at the World Economic Forum in Davos, Switzerland that most participants have exceed their targeted cuts. "A year ago we were talking oil at $27 to $28 a barrel. They have successfully prevented crude oil from going into a free fall," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates. The IEA, OPEC and the U.S.'s Energy Information Administration all expect steady demand growth in 2017, along with rising non-OPEC output as producers respond to higher prices. The entities vary on when they see oil stocks contracting, which analysts believe is the key to prices moving much higher. IEA data showed oil storage in industrialized nations of the Organization for Economic Cooperation and Development fell in November. "Despite non-OPEC production being on the rise, the increase in global oil demand will make sure that global oil inventories will start depleting from the beginning of this year," said brokerage PVM, adding that this differs from the views of OPEC and EIA, who broadly expect global oil stocks to rise in the first half of 2017. Crude prices also got a boost from the U.S. dollar's move lower earlier Friday. Oil is traded in dollars and becomes less expensive for buyers holding other currencies when the greenback weakens. But growing U.S. production in the wake of an output cut could easily wipe out OPEC's efforts to remove surplus barrels. Gasoline futures rose 3.15 cents, or 2.05%, to $1.5660 a gallon. Diesel futures rose 2.76 cents, or 1.71%, to $1.6459 a gallon. Jenny W. Hsu contributed to this article Write to Alison Sider at alison.sider@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Alison Sider and Sarah McFarlane
Subject: Futures; Stocks; Crude oil prices; Supply & demand
Location: United States--US
People: Trump, Donald J
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210; Name: Societe Generale; NAICS: 522110, 522120, 523110, 523120; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861598214
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861598214?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Schlumberger Looks Towards Growth After Posting Another Quarterly Loss; Oil-field services company chief executive said energy prices and production were set to rise in 2017
Author: Matthews, Christopher M; Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: The chief executive of Schlumberger Ltd. expressed cautious optimism Friday that a two-year downturn that ravaged the world-wide energy industry has reached its bottom and recovery is on the way. The world's largest oil-field services company posted a fourth-quarter loss of $204 million Friday, markedly lower than the loss of $1 billion it reported for the period a year earlier. Chief Executive Paal Kibsgaard said energy prices and production were both poised to increase in 2017, led by shale drillers in North America. But he warned that a ramp-up in offshore projects and international production could take longer to materialize. "It should be up from here in basically all markets...but the pace and scope of the recovery from here is uncertain," Mr. Kibsgaard said during the company's earnings call. Schlumberger and other companies in the oil-field-services sector have been hurt by weak demand from oil and natural gas producers for services such as drilling and completing oil-and-gas wells due to a two-year decline in energy prices. Analysts often look to energy service companies as a barometer for the overall health of the industry. During 2016, energy prices rose and then stabilized. Though a recovery remains tenuous, after oil prices plunged from over $100 a barrel in the summer of 2014 to less than $30 a year ago, they are now hovering around $55 a barrel. Mr. Kibsgaard said that as 2017 begins, increased revenues and cash flow will be driven by North American land production, particularly in the oil-rich Permian shale basin in West Texas. Shale companies have put more than 90 additional rigs back into the field in recent weeks, after a November agreement by Russia and the Organization of the Petroleum Exporting Countries to curb global output boosted oil prices. Some shale producers have found a way to eke out profits during the downturn, often at the expense of service companies who were forced to swallow pricing concessions. Mr. Kibsgaard said that the company had begun renegotiating prices with clients. Revenue on land in the U.S.increased 4% to $1.76 billion, driven both on volume and on a modest pricing recovery in the fourth quarter on land projects, the company said in its earnings statement. North American offshore drilling posted a loss, the company said. "The direction [service companies] all need to go is that we need to recover some of the pricing concessions that we've given," Mr. Kibsgaard said. In the international markets, Mr. Kibsgaard referred to the company's capabilities as a "tightly coiled spring." He said he expected recovery in markets outside the U.S., but warned that over the last two years, production had largely come from the completion of existing wells and global supplies are dwindling. The only way to reverse that trend will be capital expenditure from international oil producers, he said. Mr. Kibsgaard said that company has limited spare capacity for many of its assets, particularly offshore resources. He said the company would redeploy those assets to projects that are financially viable and where they are guaranteed to receive payment. "We aren't going to incur the cost unless there is an adequate financial return," he said. In all, Schlumberger reported a fourth-quarter loss of $204 million, or 15 cents a share, compared with a loss of $1.02 billion, or 81 cents a share, a year earlier. Schlumberger said Friday that it took a $536 million restructuring charge, largely related to workforce reduction and facility closure, but added that it didn't anticipate any significant cost-cutting measures in 2017. The company also took $139 million in charges relating to its $12.7 billion purchase of rival Cameron International Corp. and a currency devaluation in Egypt. For the year, Schlumberger expects $2.2 billion in capital expenditures, compared with $2.1 billion last year. Excluding items such as acquisition-related charges, Schlumberger's adjusted per-share earnings were 27 cents. Revenue declined 8.2% to $7.11 billion. Analysts polled by Thomson Reuters had expected adjusted per-share profit of 27 cents and revenue of $7.07 billion. In its production unit, its largest, revenue fell 17% to $2.18 billion. In its reservoir-characterization unit, revenue fell 23% to $1.7 billion, and in its drilling unit revenue fell 32% to $2.01 billion The company's stock fell slightly Friday morning to $86.51 from an open of $87.12. Write to Christopher M. Matthews at christopher.matthews@wsj.com and Austen Hufford at austen.hufford@wsj.com Credit: By Christopher M. Matthews and Austen Hufford
Subject: Prices; Financial performance; Losses
Location: Egypt
People: Kibsgaard, Paal
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Cameron International Corp; NAICS: 333912
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861598343
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861598343?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
GE Revenue Slips, Dragged Down by Oil Woes; Company shipped fewer jet engines and power turbines than originally planned
Author: Mann, Ted; Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: General Electric Co.'s revenue declined 2% in the fourth quarter, as the company dealt with a depressed oil industry and shipped fewer jet engines and power turbines than it had planned. Although revenue was below investors' expectations, Chief Executive Jeff Immelt said Friday that GE performed well, given its exposure to a world economy that is growing slowly, and volatility in the markets in which it operates. GE shares were off nearly 2% in afternoon trading. Once again, GE's biggest problem is oil. The company's oil-and-gas unit, which makes equipment for petroleum exploration and production, has been hammered by the more-than-two-year slump in the price of crude, which prompted customers to rein in their spending. Oil-and-gas revenue in the fourth quarter fell 22% from a year earlier, and segment profit fell 43%. GE recorded $12.9 billion in sales in the oil-and-gas business last year, down from $16.5 billion in 2015 and $19.1 billion a year earlier. GE remains committed to the oil business, and says it will be poised to profit from an eventual rebound; but, meanwhile, the company is restructuring and trying to limit the pain. In late October, GE announced a deal to combine its oil-and-gas business with Baker Hughes Inc., a move seen as a cost-effective way for GE to reap the benefits of any recovery in the sector. Executives said on Friday's earnings call that they expect that deal to close midyear. There were bright spots elsewhere, such as a 29% increase in sales in the company's renewable-energy business, driven by a surge of investment in onshore wind turbines. Revenue from GE's power business, which makes gas turbines for power plants, rose 20%, helped by the acquisition of Alstom's power business. GE's industrial operating cash flow of $8.2 billion in the fourth quarter made it "the biggest cash quarter in our history," Mr. Immelt said. Orders for GE equipment fell, for the quarter and for the year, but orders for services rose by 20% in the fourth quarter and 13% for the year. Strong service orders bode well for the predictable industrial earnings of the sort Mr. Immelt has been seeking in his transformation of GE back into a more traditional industrial company, after years of being powered by its lending arm, GE Capital. Mr. Immelt shrugged off a question about whether the incoming Trump administration could play havoc with some of those business lines. A campaign adviser to Mr. Trump, Continental Resources Inc. CEO Harold Hamm, has called for the elimination of renewable energy subsidies--a critical factor not just in sales of GE's wind turbines, but also in some of its own energy-finance investments. Also, Mr. Trump and the Republican Congress have pledged to undo the Affordable Care Act, generating uncertainty in the health-care industry that could slow sales of GE's medical equipment, like MRI and X-ray machines. And Mr. Trump has pledged a resurgence in the coal industry, while GE has positioned itself to benefit as American utilities switch from coal to natural gas to generate electricity. "You could see some caution around the Affordable Care Act as you go forward," Mr. Immelt said, but the industry hasn't shown much disruption yet. Tax benefits for renewable energy are "pretty much locked in place," he said. "I still think the basic thesis around gas power in the U.S. remains intact as it pertains to being a base load technology in the future." The current challenge for GE, now that it has pivoted away from finance to refocus on industrial businesses, is to meet the demand for its high-tech products, like jet engines and power turbines. GE delivered only 77 of its new LEAP aircraft engines, made in partnership with France's Safran SA, down from a goal of 100 deliveries in 2016. Chief Financial Officer Jeffrey Bornstein said the company met "all our commercial commitments" after consultations with customers, and will deliver about 500 of the engines in 2017. The company also didn't meet its goals for power-turbine shipments, a shortfall Mr. Bornstein attributed to the complicated markets where GE increasingly does business. Six turbines that company executives were convinced would be shipped by the end of the year weren't shipped, Mr. Bornstein said, including four bound for the Middle East. "They were going into Bahrain and Iraq, and these were just enormously difficult geographies to get stuff done," Mr. Bornstein said. "And right up to the end of the year, we thought those transactions were going to go. They didn't end up going. I think we're confident they will go in the first half of 2017." Overall for the latest quarter, GE's profit fell to $3.67 billion, or 39 cents a share, from a year-earlier $6.28 billion, or 64 cents a share, reflecting in part the paring back of GE Capital. On an adjusted basis, earnings were 46 cents a share, in-line with the consensus estimate from analysts polled by Thomson Reuters. Revenue slipped to $33.1 billion from $33.89 billion in the year-earlier fourth quarter, missing analysts' projections for $33.63 billion. Write to Ted Mann at ted.mann@wsj.com and Joshua Jamerson at joshua.jamerson@wsj.com Related * GE to Buy Two Tech Startups (Nov. 15) * With Oil Deal, Immelt Revamps His Strategy (Oct. 31) * GE Goes Into High Gear to Attract Silicon Valley Talent (Sept. 20) Credit: By Ted Mann and Joshua Jamerson
Subject: Acquisitions & mergers; Energy industry
People: Hamm, Harold
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861602795
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861602795?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
ECB Survey Shows Rising Eurozone Inflation Expectations; Forecasts boosted by higher oil prices
Author: Buell, Todd
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: FRANKFURT--Inflation in the eurozone will be somewhat higher than previously expected both this year and next because of higher oil prices, forecasters polled by the European Central Bank said in a report released Friday. The forecast underscores the message from ECB President Mario Draghi on Thursday that monetary policy would remain very accommodative to borrowing and investment for the foreseeable future. The report comes one day after the ECB kept its policy of negative interest rates and large-scale bond buying unchanged, pushing aside German demands that policy be tightened to combat rising inflationary pressure. The quarterly Survey of Professional Forecasters said that inflation in the current year would average 1.4%, 0.2 percentage points higher than the polled experts said three months earlier. For 2018, the forecasters see inflation of 1.5%, compared with 1.4% in the previous quarter. The forecasters said that inflation would be 1.6% in 2019. The report said that the upward revisions over the short term were mostly due to higher oil prices. The economists polled raised their gross domestic product growth outlook for the current year, moving it to 1.5% from 1.4%. The forecast for next year remained at 1.5%, matching the forecast for 2019. The survey results supported comments from Mr. Draghi on Thursday that despite the pickup in headline inflation, so-called core inflation, which eliminates volatile items such as food and energy, remained weak. "Underlying inflation is also expected to pick up but to remain weaker than headline inflation," the report said. The 2019 survey forecast also likely supports Mr. Draghi's commitment to keeping policy accommodative for the foreseeable future. The ECB strives to achieve an inflation rate of just below 2% over the medium term. The survey suggests that it will still take some time for inflation to reach that benchmark. In his news conference Thursday, Mr. Draghi said the ECB was looking for four characteristics to determine if inflation was hitting its target. It had to be over the medium-term, "not transient," sustained without extraordinary policy accommodation, and across the entire eurozone. The survey's inflation outlook is broadly in line with the ECB's most recent staff forecast, which it issued in December. ECB staff then saw 2019 inflation at 1.7%. Asked in December if this was in line with the ECB's price stability goal, Mr. Draghi said, "not really." To combat very low inflation, the ECB has employed negative interest rates and large-scale bond purchases. It currently buys [euro]80 billion ($85.26 billion) a month of mostly government bonds. Starting in April it will purchase [euro]60 billion a month. It says it will do this until at least December. Write to Todd Buell at todd.buell@wsj.com Credit: By Todd Buell
Subject: Central banks; Inflation; Eurozone
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861603505
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861603505?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil Producers Ramp Up Spending; Companies are optimistic that higher crude prices are here to stay
Author: Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Extraction Oil & Gas expects to boost output this year to 51,000 barrels of oil equivalent a day. An earlier version of this article incorrectly stated it planned to boost output to 51 million barrels a day. (Jan. 20, 2017) U.S. oil producers, optimistic that higher crude prices are here to stay, have issued 2017 budgets that call for dramatically greater spending to tap new wells. Preliminary capital-spending plans released in recent weeks by more than a dozen American shale drillers, including Hess Corp. and Noble Energy Inc., show an average 60% budget increase for the group. The trend comes after two years of austere budget cuts and layoffs at shale companies to help them cope with a protracted oil bust. The price of U.S. crude started to collapse in 2014 from over $100 a barrel to below $30 in early 2016, prompting drillers to idle rigs and lay off more than 150,000 workers in the U.S. Many more energy firms will announce capital budgets in the coming weeks, and early indications are that they expect to spend more, as well as pump more oil and natural gas this year. Praveen Narra, an energy analyst with Raymond James & Associates, predicts a surge in shale spending based on an improved outlook for the sector. Raymond James is forecasting that crude prices will average $70 a barrel this year, up from a $43 average in 2016. U.S. oil prices closed at $51.37 a barrel Thursday. "That willingness to spend is certainly there," Mr. Narra said. "People are just optimistic that we have put the worst behind us." Paal Kibsgaard, chief executive of oil-field-services provider Schlumberger Ltd., said Friday that oil prices and production are poised to rebound this year, led by U.S. shale drillers that pump in the Permian Basin of West Texas. Globally, the energy-sector pickup could take longer to materialize, in part, because many operators are not as well funded or nimble as American producers. "The pace and scope of the recovery from here is uncertain," he added. Wall Street darling RSP Permian Inc., which drills exclusively in West Texas, is boosting this year's budget by 97% to $600 million. RSP's stock price has more than doubled in the last year to a recent $42.41 per share. Last week, Hess, one of the biggest drillers in North Dakota, unveiled a $2.25 billion budget for 2017, an 18% increase over the $1.9 billion it spent last year. The company will spend a significant amount putting more rigs back to work in the Bakken formation, and its production is expected to rise by about 10% this year, according to Greg Hill, president of Hess. Noble has said it would spend up to $2.5 billion this year, a potential 67% jump over last year's $1.5 billion budget, as it doubles its rig activity from Texas to Colorado. Earlier this week, the company said it would buy Clayton Williams Energy Inc., based in West Texas, for $2.7 billion, giving it another 2,400 prospective wells to tap. The oil price stabilized over $50 a barrel in the fall thanks, in part, to an agreement to curb output by members of the Organization of the Petroleum Exporting Countries, such as Saudi Arabia, as well as other major producers such as Russia. Several U.S. oil producers, including Pioneer Natural Resources Co. and EOG Resources Inc., have said that advanced technology and efficiency gains implemented during the oil-price downturn will allow them to not just survive but thrive at $55 a barrel. Spending by oil and gas producers world-wide is expected to jump 7% in 2017, according to Barclays PLC, a British bank which recently surveyed 215 energy companies about their plans. U.S. onshore oil and gas producers will lead the way, particularly as larger shale drillers ramp back up, said J. David Anderson, a Barclays analyst. He estimates that spending among American exploration and production companies will rise more than 50%, setting off a wave of activity that may surprise OPEC and other foreign competitors. "They're about to find out how efficient the U.S. producers have become," Mr. Anderson said. There are already signs of increased U.S. oil activity. The number of oil and gas rigs drilling from Colorado to Oklahoma has been on the rise, reaching 670 working onshore as of Friday, up from a low of 380 in May. The past week's gain of 36 marked is the biggest one-week surge in land rigs since 2011. Earlier this month, U.S. oil production surpassed 8.9 million barrels a day, its highest level in nine months, and has stayed roughly at that level, according to the latest weekly federal data. One of the most pronounced increases in planned spending was announced by Denver-based Extraction Oil & Gas Inc. The company was the first initial public offering of a U.S. oil and gas producer in two years when it made its debut on the Nasdaq Stock Market in October. Extraction said it would spend about $865 million in 2017, up 137% from the $365 million it budgeted for 2016. The company expects to boost output this year by nearly 76% to 51,000 barrels of oil equivalent a day. Mark Erickson, Extraction's chief executive, said $45 oil has proven to be a sweet spot for the company, and any improvement in price just means stronger returns and more activity are on the way. "We're looking at this just being a very high-growth year," he said. Christopher M. Matthews contributed to this article. Credit: By Erin Ailworth
Subject: Petroleum production; Budgets; Energy industry; Natural gas
Location: North Dakota Russia United States--US Saudi Arabia Colorado West Texas
People: Kibsgaard, Paal
Company / organization: Name: Clayton Williams Energy Inc; NAICS: 211111, 237210; Name: RSP Permian Inc; NAICS: 211111; Name: Pioneer Natural Resources Co; NAICS: 211111; Name: Raymond James & Associates Inc; NAICS: 523120; Name: Noble Energy Inc; NAICS: 211111; Name: EOG Resources Inc; NAICS: 211111, 213112
Publication title: Wall Street Journ al (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861603869
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861603869?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Higher Oil Prices Put Smiles on the Faces of Energy Executives at Davos; Volatility in the sector remains a concern
Author: Cherney, Elena
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: DAVOS, Switzerland--A recovery in oil prices has cheered energy-industry leaders gathered this week for the annual meeting of the World Economic Forum, with many confident that demand is finally better matched with supply after a two-year price collapse. "Everybody thinks the worst is over," said Emma Marcegaglia, chairman of Eni SpA, Italy's biggest oil company. "The mood is completely different compared with last year. The mood is better." To support their faith in the recovery, several industry leaders cited mounting evidence that the 24 countries that agreed to lower production late in 2016 are complying with the pledges they made. Executives are also closely watching U.S. shale output, which could limit price gains if production rebounds too much. A report by the International Energy Agency released Thursday forecast that shale volumes would increase by an average of 170,000 barrels a day. The resurgence of shale production means that even though prices have stabilized for now, energy markets are headed for more, not less, volatility, the IEA's executive director, Fatih Birol, said in an interview. "The name of the game is the increasing volatility of oil producers," Mr. Birol said. Brent crude rose 1.7% to $55.05 a barrel with bullish oil-market sentiment buoyed by the latest signs of waning production. To guard against the possibility of further price declines, several executives said they are taking a more cautious approach to spending and will keep in place cost-cutting strategies adopted during the downturn. "We'll be very selective," BP PLC Chief Executive Bob Dudley said in an interview. "What we don't want to do is lose the discipline we've built in." That caution suggests that it may take longer for suppliers and oil-services companies to benefit. "You really have a sense of optimism and people want to believe the recovery is there," said Lorenzo Simonelli, the head of General Electric Co.'s oil and gas unit. "If I look at it from a supplier perspective, it's early to say everything's rosy," Mr. Simonelli said. In addition to worries about price volatility in the near-term, longer-term questions about fossil fuel demand growth--including forecasts that oil demand will peak--played a more central role in discussions this year, several executives said. As regulation to combat climate change mounts and alternatives to fossil fuels become more cost-competitive, more energy companies are concerned about "what is demand going to look like," said Daniel Yergin, vice chairman of IHS Market and a longtime energy analyst. "This is on the mind of everyone in the industry." Executives are also beginning to talk more openly about how the carbon intensity of projects influences investment decisions. For example, BP's Mr. Dudley said that as the company seeks to be more selective about which projects to sanction, some of the most carbon-intensive projects, such as Canadian oil sands, wouldn't meet the bar. He and others emphasized the role of natural gas in their business mix as part of moving toward "lower-carbon energy." Write to Elena Cherney at elena.cherney@wsj.com Credit: By Elena Cherney
Subject: Carbon; Prices; Energy industry; Economic summit conferences; Volatility
Location: Italy Switzerland United States--US
People: Simonelli, Lorenzo Dudley, Bob Birol, Fatih
Company / organization: Name: BP PLC; NAICS: 211111, 324110, 447110; Name: World Economic Foru m; NAICS: 926110; Name: Eni SpA; NAICS: 211111, 324110; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: General Electric Co; NAICS: 332510, 334290, 334512, 334519
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861605335
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861605335?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 29, Baker Hughes Says; Gas rig count in U.S. down by one in past week
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by 29 in the past week to 551, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. But the rig count has generally been rising since the summer. The nation's gas-rig count rose by 6 to 142 in the past week, according to Baker Hughes. The U.S. offshore-rig count is down 1 rig from last week to 24, which is 5 fewer rigs year over year. On Friday, crude futures rose amid signs of the market tightening, though across markets investors held back from making large moves before President Donald Trump's inauguration speech on Friday. U.S. crude-oil prices rose 2.4%, or $1.22, to $52.59 in afternoon trading. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
People: Trump, Donald J
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861605731
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861605731?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Faces Headwinds From Rising Non-OPEC Production; Oil cartel has promised to cut output by 1.2 million barrels a day, or almost 4%
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications: The increase in non-OPEC production growth would come in large part from U.S. shale output--which the IEA says is likely to grow by 170,000 barrels a day in 2017. An earlier version of this article didn't specify that the increase of 170,000 barrels a day would be for U.S. shale oil only. Also, the IEA said, "There is no doubt that U.S. shale industry has emerged from the $30-a-barrel-oil world we lived in a year ago much leaner and fitter." An earlier version of this article incorrectly cited the IEA as saying "$30 barrels a day." (Jan. 19, 2017) OPEC is facing headwinds with rising production from rivals, the International Energy Agency said Thursday, the latest warning that the oil cartel's efforts to take barrels out of the market could backfire. The Organization of the Petroleum Exporting Countries--the 13-nation oil cartel that controls more than one-third of global crude production --promised to throttle back its output by 1.2 million barrels a day, or almost 4%, on Nov. 30. There are 11 countries outside the group--including Russia--that agreed to join with cuts of 558,000 barrels a day on Dec. 10. Saudi Arabia, the world's largest oil exporter, said Thursday that most participants were now cutting production by more than they initially promised. But in its closely watched monthly report, the Paris-based IEA, which advises key oil-consuming nations, said other producers were stepping into the breach, as investment in their fields is bolstered by higher oil prices. Despite pledges to reduce output by Russia and others, the agency upgraded its estimates for non-OPEC production growth by 175,000 barrels a day for this year, with a rise now estimated at 380,000 barrels a day. That increase would come in large part from U.S. shale output--which the IEA says is likely to grow by 170,000 barrels a day in 2017. The industry there has become more efficient following an era of low oil prices, with shorter drilling times. "There is no doubt that U.S. shale industry has emerged from the $30-a-barrel-oil world we lived in a year ago much leaner and fitter," the IEA said. Speaking at the World Economic Forum in Davos, Switzerland, the agency's Executive Director Fatih Birol said that if prices remain at the current level or rise, U.S. shale oil production could even increase more than currently forecast, bringing volatility and a downward pressure on oil prices. The IEA said long-planned projects coming on stream in Brazil and Canada will also bring an increase of 415,000 barrels a day this year for the two countries combined. The news comes after OPEC reduced production in December, and it may decline further this month as output cuts are implemented. The IEA said OPEC crude production fell 320,000 barrels a day from record rates to 33.09 million barrels a day in December after lower Saudi output and disruptions in Nigeria curbed supply. The cartel itself said its output fell by 221,000 barrels a day last month. The IEA said "early indications suggest a deeper OPEC reduction may be under way for January, as Saudi Arabia and its neighbors enforce supply cuts." "If OPEC and non-OPEC were to implement strictly their agreed cuts, global inventories could start to draw in the first half of this year," it said. Speaking at the same panel at the World Economic Forum, Saudi Arabia's Energy Minister Khalid al-Falih said most participants in the production deal have exceeded their agreed cuts. A "very high level of data available" on the group of 24 countries is showing "very strong compliance," he said. Saudi Arabia, OPEC's largest producer, has previously said it cut its production below the level of 10 million barrels a day already agreed--a drop of over 486,000 barrels a day from October levels. Mr. Falih said the most "probable outcome" would be a rebalancing of the oil market by mid-2017--which would make an extension of the six-month output cuts unnecessary. But OPEC itself is facing internal challenges from higher production from Libya and Nigeria, both of which are exempt from the production cuts. Libyan output, for instance, rose above 700,000 barrels a day early this month--its highest in three years--after a key pipeline reopened in the west of the country. Still, Messrs. Falih and Birol concurred oil markets face a risk of shortage, rather than oversupply, in the medium term. If there are no major Investments in 2017, that will ring "alarm bells" for future shortages by the end of the decade, the IEA's head said. While the Saudi oil minister said current investments are insufficient to cover future needs. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Petroleum production; Oil shale; Crude oil prices; Supply & demand; Cartels; Economic summit conferences
Location: Switzerland Russia United States--US Canada Saudi Arabia Nigeria Brazil
People: Birol, Fatih
Company / organization: Name: World Economic Forum; NAICS: 926110; Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861655370
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861655370?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Business News: GE Says Revenue Felt Oil's Pressure
Author: Mann, Ted; Jamerson, Joshua
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Jan 2017: B.3.
Abstract:
A campaign adviser to Mr. Trump, Continental Resources Inc. CEO Harold Hamm, has called for the elimination of renewable-energy subsidies -- a critical factor in sales of GE's wind turbines.
Full text: General Electric Co.'s revenue declined 2% in the fourth quarter, as the company dealt with a depressed oil industry and shipped fewer jet engines and power turbines than it had planned. Although revenue was below investors' expectations, Chief Executive Jeff Immelt said Friday that GE performed well, given its exposure to a world economy that is growing slowly, and volatility in the markets in which it operates. GE shares fell 2.2% on the New York Stock Exchange. Once again, GE's biggest problem is oil. The company's oil-and-gas unit, which makes equipment for petroleum exploration and production, has been hammered by the more-than-two-year slump in the price of crude, which prompted customers to rein in their spending. Oil-and-gas revenue in the fourth quarter fell 22% from a year earlier, and segment profit fell 43%. GE recorded $12.9 billion in sales in the oil-and-gas business last year, off from $16.5 billion in 2015. GE remains committed to the oil business, and says it will be poised to profit from an eventual rebound; but, meanwhile, the company is restructuring. In late October, GE announced a deal to combine its oil-and-gas business with Baker Hughes Inc., a move seen as a cost-effective way for GE to reap the benefits of any recovery in the sector. Executives said on Friday's earnings call that they expect that deal to close in midyear. There were bright spots elsewhere, such as a 29% increase in sales in GE's renewable-energy business, driven by a surge of investment in onshore wind turbines. Revenue from GE's power business, which makes gas turbines for power plants, rose 20%, helped by the acquisition of Alstom's power business. GE's industrial operating cash flow of $8.2 billion in the fourth quarter made it "the biggest cash quarter in our history," Mr. Immelt said. Orders for GE equipment fell, for the quarter and for the year, but orders for services rose by 20% in the fourth quarter and 13% for the year. Strong service orders bode well for the predictable industrial earnings of the sort Mr. Immelt has been seeking in his transformation of GE back into a more traditional industrial company, after years of being powered by its lending arm, GE Capital. Mr. Immelt shrugged off a question about whether the incoming Trump administration could play havoc with some of those business lines. A campaign adviser to Mr. Trump, Continental Resources Inc. CEO Harold Hamm, has called for the elimination of renewable-energy subsidies -- a critical factor in sales of GE's wind turbines. Also, Mr. Trump and the Republican Congress have pledged to undo the Affordable Care Act, generating uncertainty in the health-care industry that could slow sales of GE's medical equipment, such as MRI and X-ray machines. "You could see some caution around the Affordable Care Act as you go forward," Mr. Immelt said, but the industry hasn't shown much disruption yet. Tax benefits for renewable energy are "pretty much locked in place," he said. Overall for the latest quarter, GE's profit fell to $3.67 billion, or 39 cents a share, from a year-earlier $6.28 billion, or 64 cents a share, reflecting in part the paring back of GE Capital. Revenue fell to $33.1 billion from $33.89 billion, missing analysts' projections for $33.63 billion. Credit: By Ted Mann and Joshua Jamerson
Subject: Energy industry; Company reports
Company / organization: Name: General Electric Co; NAICS: 332510, 334290, 334512, 334519
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Jan 21, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1860267281
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1860267281?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Producers Gear Up For Oil's Recovery
Author: Ailworth, Erin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Jan 2017: B.1.
Abstract:
Several U.S. oil producers, including Pioneer Natural Resources Co. and EOG Resources Inc., have said that advanced technology and efficiency gains implemented during the oil-price downturn will allow them to not just survive but thrive at $55 a barrel.
Full text: U.S. oil producers, optimistic that higher crude prices are here to stay, have issued 2017 budgets that call for dramatically greater spending to tap new wells. Preliminary capital-spending plans released in recent weeks by more than a dozen American shale drillers, including Hess Corp. and Noble Energy Inc., show an average 60% budget increase for the group. The trend comes after two years of austere budget cuts and layoffs at shale companies to help them cope with a protracted oil bust. The price of U.S. crude started to collapse in 2014 from over $100 a barrel to below $30 in early 2016, prompting drillers to idle rigs and lay off more than 150,000 workers in the U.S. Many more energy firms will announce capital budgets in the coming weeks, and early indications are that they expect to spend more, as well as pump more oil and natural gas this year. Praveen Narra, an energy analyst with Raymond James & Associates, predicts a surge in shale spending based on an improved outlook for the sector. Raymond James is forecasting that crude prices will average $70 a barrel this year, up from a $43 average in 2016. U.S. oil prices closed at $52.42 a barrel Friday. "That willingness to spend is certainly there," Mr. Narra said. "People are just optimistic that we have put the worst behind us." Paal Kibsgaard, chief executive of oil-field-services provider Schlumberger Ltd., said Friday that oil prices and production are poised to rebound this year, led by U.S. shale drillers that pump in the Permian Basin of West Texas. Globally, the energy-sector pickup could take longer to materialize, in part, because many operators are not as well funded or nimble as American producers. "The pace and scope of the recovery from here is uncertain," he added. Wall Street darling RSP Permian Inc., which drills exclusively in West Texas, is boosting this year's budget by 97% to $600 million. RSP's stock price has more than doubled in the last year; on Friday it edged up to $42.72 a share. Last week, Hess, one of the biggest drillers in North Dakota, unveiled a $2.25 billion budget for 2017, an 18% increase over the $1.9 billion it spent last year. The company will spend a significant amount putting more rigs back to work in the Bakken formation, and its production is expected to rise by about 10% this year, according to Greg Hill, president of Hess. Noble has said it would spend up to $2.5 billion this year, a potential 67% jump over last year's $1.5 billion budget, as it doubles its rig activity from Texas to Colorado. Earlier this week, the company said it would buy Clayton Williams Energy Inc., based in West Texas, for $2.7 billion, giving it another 2,400 prospective wells to tap. The oil price stabilized over $50 a barrel in the fall thanks, in part, to an agreement to curb output by members of the Organization of the Petroleum Exporting Countries, such as Saudi Arabia, as well as other major producers such as Russia. Several U.S. oil producers, including Pioneer Natural Resources Co. and EOG Resources Inc., have said that advanced technology and efficiency gains implemented during the oil-price downturn will allow them to not just survive but thrive at $55 a barrel. Spending by oil and gas producers world-wide is expected to jump 7% in 2017, according to Barclays PLC, a British bank which recently surveyed 215energy companies about their plans. U.S. onshore oil and gas producers will lead the way, particularly as larger shale drillers ramp back up, said J. David Anderson, a Barclays analyst. He estimates that spending among American exploration and production companies will rise more than 50%, setting off a wave of activity that may surprise OPEC and other foreign competitors. "They're about to find out how efficient the U.S. producers have become," Mr. Anderson said. There are already signs of increased U.S. oil activity. The number of oil and gas rigs drilling from Colorado to Oklahoma has been on the rise, reaching 670 working onshore as of Friday, up from a low of 380 in May. The past week's gain of 36 marked is the biggest one-week surge in land rigs since 2011. Earlier this month, U.S. oil production surpassed 8.9 million barrels a day, its highest level in nine months, and has stayed roughly at that level, according to the latest weekly federal data. One of the most pronounced increases in planned spending was announced by Denver-based Extraction Oil & Gas Inc. The company was the first initial public offering of a U.S. oil and gas producer in two years when it made its debut on the Nasdaq Stock Market in October. Extraction said it would spend about $865 million in 2017, up 137% from the $365 million it budgeted for 2016. The company expects to boost output this year by nearly 76% to 51,000 barrels of oil equivalent a day. Mark Erickson, Extraction's chief executive, said $45 oil has proven to be a sweet spot for the company, and any improvement in price just means stronger returns and more activity are on the way. "We're looking at this just being a very high-growth year," he said. --- Christopher M. Matthews contributed to this article.
Credit: By Erin Ailworth
Subject: Budgets; Crude oil prices; Oil wells
Location: United States--US
Company / organization: Name: Clayton Williams Energy Inc; NAICS: 211111, 237210; Name: Noble Energy Inc; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Jan 21, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1860703493
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1860703493?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Oil Minister: OPEC Complying with Production-Cut Agreement; Officials said the estimates were preliminary; final, end-of-month average numbers could be different
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Jan 2017: n/a.
Abstract: None available.
Full text: VIENNA--Saudi Arabia's oil minister said Saturday the Organization of the Petroleum Countries was showing "very good" compliance with an agreement to cut back its output of crude oil, part of the cartel's bid to raise global prices. Khalid al-Falih, the top Saudi oil official, met with other OPEC ministers over dinner Saturday night in Vienna ahead of talks Sunday over the 13-nation cartel's adherence to its November agreement to slash almost 4% of its output, or about 1.2 million barrels a day. Saudi Arabia was joined in Vienna by one of its key rivals, Russia, which produces more crude oil than any other country but isn't a member of OPEC. Russia and 10 other non-OPEC producers pledged to help the cartel raise oil prices with promises to cut an additional 558,000 barrels a day. According to OPEC officials, OPEC and non-OPEC producers have already cut 1.5 million barrels a day out of the global oil market--over 80% of the amount pledged. The officials said the estimates were preliminary, however, and the final, end-of-month average numbers could be different. The OPEC officials didn't give other, important details, such as the current collective output of OPEC or whether Saudi Arabia was shouldering a larger load of cuts to make up for other members that aren't complying. The 1.5 million barrels a day in cuts also don't account for OPEC members that were exempted from the agreement to cut production, including Libya, Iran and Nigeria. Libyan production has risen significantly since November when the OPEC production deal was struck, rising above 700,000 barrels a day in January for the first time in three years, Libyan National Oil Co. officials say. That is up almost a third since October, the month most other OPEC members used as a baseline for their production cuts. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Agreements; Cartels; Crude oil; Supply & demand
Location: Iran Russia Libya Saudi Arabia Nigeria
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861619879
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861619879?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil-Output Cuts Proceeding Faster Than Planned; OPEC, non-OPEC producers have cut production by 1.5 million barrels a day since agreements, says Saudi minister
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Jan 2017: n/a.
Abstract: None available.
Full text: VIENNA--The Organization of the Petroleum Exporting Countries and Russian officials said Sunday they were making good progress on their pledges to cut back crude-oil production and raise global prices. Saudi Energy Minister Khalid al-Falih said OPEC's 13 nations and 11 producers outside the cartel had made collective cuts totaling 1.5 million barrels a day since agreements were struck in late November and early December. Oil prices have risen nearly 20% since those deals were made, despite widespread skepticism over whether OPEC and other producers would follow through. Mr. Falih also brushed off a new energy policy statement from the Trump administration, which said the U.S. would seek independence from OPEC but maintain close relationships with its Persian Gulf allies to fight terrorism. "We in Saudi Arabia look forward to work closely, cooperatively, constructively with the incoming Trump administration, especially in the area of energy," the minister said. The estimates being handed out on Sunday morning were preliminary and the officials didn't provide other important details, such as the current collective output of OPEC or whether Saudi Arabia was shouldering a larger load of cuts to make up for other members that aren't complying. The cuts announced Sunday don't take into account rising production from OPEC members excepted from the output cuts, including Libya, where crude flows reached a three-year high this month . The estimates were released as OPEC convened its first meeting to monitor compliance with its production-cut regime. Not all of OPEC's members were present--just Saudi Arabia, Qatar, Venezuela, Kuwait and Algeria, and nonmembers Oman and Russia. The countries announced breakthroughs, including an additional monitoring committee that will include Saudi Arabia and meet every two months. Compliance for non-OPEC producers will be determined by an examination of data supplied by each government and an assessment of other sources such as shipping trackers, traders and pricing agencies. The meeting was held amid widespread skepticism in the oil market that OPEC and its new allies will follow through on their pledges to cut what amounts to about 2% of global oil supply from the market. Several OPEC members, including Venezuela, are going through severe economic contractions after over years of depressed oil prices, making production cuts potentially economically unfeasible and politically dicey as prices rise. The doubt has helped put a cap on oil prices, which have hovered between $54 a barrel and $57 a barrel for international benchmark Brent crude since the agreement. Most OPEC members need higher prices to balance their national budgets and pay for their social-welfare programs. But producers here said they were making progress. Venezuelan oil minister Nelson Martinez said his country had already delivered about half its pledged output cuts and would make good on the rest in the next month. Venezuela's output has long been in decline because of underinvestment anyway, so its ability to cut wasn't necessarily questioned. Among the non-OPEC members, Russia said it had already trimmed part of the 300,000 barrels a day it promised to cut and would cut the rest soon. Overall, Mr. Falih said Sunday that compliance with the OPEC agreement was "fantastic." He said oil supply and demand--which has been tilted toward oversupply for several years--was moving back into balance faster because of the output cuts. Mr. Falih reiterated comments that his country--the world's largest exporter of crude oil--had already cut its output by more than promised, to less than 10 million barrels a day. He predicted more cuts to customers in February and said output wouldn't go back above 10 million barrels a day. OPEC officials on Sunday estimated its compliance level at 80%, meaning about four-fifths of the oil it pledged to cut has been slashed. That is a faster rate than in 2009, when the cartel had a compliance rate of about 57% a month after its agreement. "The only acceptable rate is 100%" of compliance with the agreement, said Kuwaiti oil minister Essam Al-Marzouq, who leads the monitoring committee. Efforts to raise prices face headwinds from producing countries that aren't part of any output agreement. U.S. production is ramping up quickly, threatening to bring new supplies back into the system and weigh down prices again. "Even with increasing shale drilling, we still see a rebalancing of the market," said Qatari oil minister Mohammed al-Sada. Summer Said contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com Related * Saudi Oil Minister: OPEC Complying With Production-Cut Agreement (Jan. 21) * OPEC Faces Headwinds From Rising Non-OPEC Production (Jan. 19) * Oil Settles Higher After IEA Says OPEC Cuts on Track (Jan. 19) Credit: By Benoit Faucon
Subject: Petroleum production; Agreements; Compliance; Crude oil prices; Supply & demand; Cartels
Location: Russia United States--US Venezuela Libya Saudi Arabia Qatar Persian Gulf Kuwait Algeria Oman
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 22, 2017
Section: Markets
Publisher: Dow Jones & Com pany Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861615803
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861615803?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Saudi Oil Minister: OPEC Complying With Production-Cut Agreement; Officials said the estimates were preliminary; final, end-of-month average numbers could be different
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Jan 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications An earlier version of this article incorrectly referred to the Organization of the Petroleum Exporting Countries as the Organization of the Petroleum Countries. (Jan. 22, 2017) VIENNA--Saudi Arabia's oil minister said Saturday the Organization of the Petroleum Exporting Countries was showing "very good" compliance with an agreement to cut back its output of crude oil, part of the cartel's bid to raise global prices. Khalid al-Falih, the top Saudi oil official, met with other OPEC ministers over dinner Saturday night in Vienna ahead of talks Sunday over the 13-nation cartel's adherence to its November agreement to slash almost 4% of its output, or about 1.2 million barrels a day. Saudi Arabia was joined in Vienna by one of its key rivals, Russia, which produces more crude oil than any other country but isn't a member of OPEC. Russia and 10 other non-OPEC producers pledged to help the cartel raise oil prices with promises to cut an additional 558,000 barrels a day. According to OPEC officials, OPEC and non-OPEC producers have already cut 1.5 million barrels a day out of the global oil market--over 80% of the amount pledged. The officials said the estimates were preliminary, however, and the final, end-of-month average numbers could be different. The OPEC officials didn't give other, important details, such as the current collective output of OPEC or whether Saudi Arabia was shouldering a larger load of cuts to make up for other members that aren't complying. The 1.5 million barrels a day in cuts also don't account for OPEC members that were exempted from the agreement to cut production, including Libya, Iran and Nigeria. Libyan production has risen significantly since November when the OPEC production deal was struck, rising above 700,000 barrels a day in January for the first time in three years, Libyan National Oil Co. officials say. That is up almost a third since October, the month most other OPEC members used as a baseline for their production cuts. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Agreements; Cartels; Crude oil; Supply & demand
Location: Iran Russia Libya Saudi Arabia Nigeria
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861676466
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861676466?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC, Russia Say Cuts Proceeding --- Producers are complying with their pacts to pump less oil, increase prices
Author: Faucon, Benoit
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]23 Jan 2017: B.9.
Abstract:
Compliance for non-OPEC producers will be determined by an examination of data supplied by each government and an assessment of other sources such as shipping trackers, traders and pricing agencies.
Full text: VIENNA -- The Organization of the Petroleum Exporting Countries and Russian officials said Sunday they were making good progress on their pledges to cut back crude-oil production and raise global prices. Saudi Energy Minister Khalid al-Falih said OPEC's 13 nations and 11 producers outside the cartel had made collective cuts totaling 1.5 million barrels a day since agreements were struck in late November and early December. Oil prices have risen nearly 20% since those deals were made, despite widespread skepticism over whether OPEC and other producers would follow through. Mr. Falih also brushed off a new energy-policy statement from the Trump administration, which said the U.S. would seek independence from OPEC but maintain close relationships with its Persian Gulf allies to fight terrorism. "We in Saudi Arabia look forward to work closely, cooperatively, constructively with the incoming Trump administration, especially in the area of energy," the minister said. The estimates being handed out Sunday morning were preliminary, and the officials didn't provide other important details, such as the current collective output of OPEC or whether Saudi Arabia was shouldering a larger load of cuts to make up for other members that aren't complying. The cuts announced Sunday don't take into account rising production from OPEC members excepted from the output cuts, including Libya, where crude flows reached a three-year high this month. The estimates were released as OPEC convened its first meeting to monitor compliance with its production-cut regime. Not all of OPEC's members were present -- just Saudi Arabia, Qatar, Venezuela, Kuwait and Algeria, and nonmembers Oman and Russia attended. The countries announced breakthroughs, including an additional monitoring committee that will include Saudi Arabia and meet every two months. Compliance for non-OPEC producers will be determined by an examination of data supplied by each government and an assessment of other sources such as shipping trackers, traders and pricing agencies. The meeting was held amid widespread skepticism in the oil market that OPEC and its new allies will follow through on their pledges to cut what amounts to about 2% of global oil supply from the market. Several OPEC members, including Venezuela, are going through severe economic contractions after years of depressed oil prices, making production cuts potentially economically unfeasible and politically dicey as prices rise. The doubt has helped put a cap on oil prices, which have hovered between $54 a barrel and $57 a barrel for international benchmark Brent crude since the agreement. Most OPEC members need higher prices to balance national budgets and pay for social-welfare programs. But producers here said they were making progress. Venezuelan Oil Minister Nelson Martinez said his country had already delivered about half its pledged output cuts and would make good on the rest in the next month. Venezuela's output has long been in decline because of underinvestment, so its ability to cut wasn't necessarily questioned. Among the non-OPEC members, Russia said it had already trimmed part of the 300,000 barrels a day it promised to cut and would cut the rest soon. Overall, Mr. Falih said Sunday that compliance with the OPEC agreement was "fantastic." He said oil supply and demand was moving back into balance faster because of the output cuts. Mr. Falih reiterated comments that his country -- the world's largest exporter of crude oil -- had already cut its output by more than promised, to less than 10 million barrels a day. He predicted more cuts to customers in February and said output wouldn't go back above 10 million barrels a day. OPEC officials Sunday estimated its compliance level at 80%, meaning about four-fifths of the output it pledged to cut has been slashed. That is a faster rate than in 2009, when the cartel had a compliance rate of about 57% a month after its agreement. "The only acceptable rate is 100%" of compliance with the agreement, said Kuwaiti Oil Minister Essam Al-Marzouq, who leads the monitoring committee. Efforts to raise prices face headwinds from producing countries that aren't part of any output agreement. U.S. production is ramping up quickly, threatening to bring new supplies back into the system and weigh down prices again. "Even with increasing shale drilling, we still see a rebalancing of the market," said Qatari oil minister Mohammed al-Sada. --- Summer Said contributed to this article. Credit: By Benoit Faucon
Subject: Crude oil; Petroleum production; Commodity prices
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.9
Publication year: 2017
Publication date: Jan 23, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1860632403
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1860632403?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Tick Higher as OPEC Deal Drains Supply, Dollar Slides; March Brent crude on London's ICE Futures exchange rose $0.12 to $55.61 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: Crude futures rose marginally in early Asia trade Monday after Saudi Arabia voiced confidence that a major international deal to cut production has started to drain the market of excess supply. A weaker greenback also pushed oil prices higher. The dollar, the currency used in oil trading, was last down 0.5% at 91.10, according to the WSJ Dollar index, which compares the dollar with over a dozen currencies. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.31 a barrel at 0346 GMT, up $0.09 in the Globex electronic session. March Brent crude on London's ICE Futures exchange rose $0.12 to $55.61 a barrel. Oil prices gained traction over the weekend after Saudi Arabia's energy minister, Khalid al-Falih, said the 20 nations that have agreed to rein in output are showing "very good compliance." According to officials of the Organization of the Petroleum Exporting Countries, OPEC and 11 non-OPEC producers have already cut 1.5 million barrels a day from the global oil market--over 80% of the amount pledged. The latest figure only reflects the amount cut by participating nations and doesn't count OPEC members who didn't join the deal, however. Libya, for example, was exempt because its oil industry has been marred by monthslong civil unrest. The state-owned oil company recently reported that production has risen above 700,000-barrels a day for the first time in three years. Official OPEC January production data will be released in mid-February. "Reports that compliance with the OPEC production cut agreement is high should support oil prices and drag the rest of the complex higher," said ANZ Research. Analysts say that if producers continue to adhere to the production limit, the oil market may encounter a supply shortage later this year, pushing Brent prices to the $60 a barrel range, despite expected slower growth in global demand. The world's energy watchdog, the International Energy Agency, now forecasts growth in global oil demand to ease to 1.3 million barrels a day this year, from 1.5 million barrels a day in 2016. "The prospect of higher product prices assuming that the cost of crude oil rises in 2017--plus the possibility of a stronger U.S. dollar -- are factors behind our reduced demand growth outlook for this year," the agency said in its monthly report. Another potential threat to OPEC's plan is intensifying oil-digging activities in the U.S. The more oil the U.S. produces, the less it will need from the Middle East. Data from industry group Baker Hughes shows the number of working oil rigs in the U.S. climbed by 29 in the week ended Jan. 20 to a total of 551. The oil rig count stands at its highest level in 14 months, according to Price Futures Group's Phil Flynn. "Assuming the U.S. oil rig count stays at the current level, we estimate U.S. oil production would increase by 315,000 barrels a day between fourth quarter 2016 and fourth quarter 2017 across the Permian, Eagle Ford, Bakken and Niobrara Shale plays," Goldman Sachs said in a note. The house now forecasts oil production in the U.S. will grow by 265,000 barrels a day this year from last if the dormant rigs come back online between September last year and June. Nymex reformulated gasoline blendstock for February, the benchmark gasoline contract, rose 60 points to $1.5720 a gallon, while February diesel traded at $1.6464, five points higher. ICE gas oil for February changed hands at $488.75 a metric ton, down $0.75 from Friday's settlement. Benoit Faucon contributed to this article. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Petroleum production; Futures; Crude oil prices
Location: United States--US New York Saudi Arabia
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861609619
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861609619?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Gulf Keystone Gets $15M Oil Payment; CEO says company no longer needs a farm-in deal
Author: Waller, Philip
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: LONDON--The chief executive of Gulf Keystone Petroleum Ltd. (GKP.LN) Monday said his company doesn't need a takeover deal to grow the business, but he would be willing to consider any sensible offer. Analysts have said the company, an oil producer in Iraqi Kurdistan, is more attractive as an investment proposition after it completed a debt restructuring in October. Last month, its shares rose following reports that Chinese oil major China Petroleum & Chemical Corp., or Sinopec Ltd., had made a takeover approach for the group. CEO Jón Ferrier said the company would have welcomed a farm-in deal when it was facing financial problems, though the debt shake-up had changed that. "That's not the case any more and we don't need a deal," Ferrier told Dow Jones Newswires in a telephone interview. "But I know that if someone comes along and makes a sensible offer, of course I'll put it to the board." Gulf Keystone earlier Monday said it has received $15 million from the Kurdistan Regional Government for oil sales made in October. The group, which produces 40,000 barrels of oil a day from its Shaikan field in the semi-autonomous region of Iraq, said it has $106.1 million of cash after receiving the payment. Gulf Keystone has been receiving regular oil-related payments from the KRG since September 2015, albeit with delays. The company remains in talks with the regional government about further potential payments to which it claims to be entitled for past oil production and field development costs. Mr. Ferrier said Gulf Keystone is in a good position because it is cash-flow positive and because the Kurdistan government knows that keeping up payments to oil producers is important to the region's credibility with investors. Kurdistan is under-explored with relatively low exploration costs, oil prices are stable and members of the Organization of the Petroleum Exporting Countries appear to be in agreement about proposed production cuts, Mr.Ferrier said. "There's still [likely to be] nice, steady oil demand for some years to come so Kurdistan is among the most attractive investment destinations," he said. At 1418 GMT, shares in Gulf Keystone were up 1.7 pence, or 1.3%, at 131.5 pence. Credit: By Philip Waller
Subject: Petroleum production; Acquisitions & mergers
Location: Iraq
Company / organization: Name: China Petroleum & Chemical Corp; NAICS: 211111; Name: Dow Jones Newswires; NAICS: 519110; Name: Gulf Keystone Petroleum Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861640573
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861640573?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Equatorial Guinea Applies to Join OPEC; The African oil-rich nation has agreed to production cuts
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: Equatorial Guinea said Monday it had applied to join OPEC, in a sign of the cartel's renewed clout following its first output cuts in eight years. The African oil-rich nation was part of a group of 11 producers that agreed to join the Organization of the Petroleum Exporting Countries last month in carrying combined production cuts of 1.8 million barrels a day and end a global oil glut. "There is a consensus amongst producers that an oversupply of oil has been dragging down the price of the barrel," the country's ministry said in a press release. "Equatorial Guinea is doing its part to ensure stability in the market and that the industry continues to invest in exploring and developing our resources." Equatorial Guinea, which has produced about 300,000 barrels a day of crude in recent years, has agreed to cut output by 12,000 barrels per day. Last year, Gabon, another small African producer, also joined the cartel of which it had previously been a member. But Indonesia quit OPEC again in December after refusing to carry out production cuts. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Cartels; Crude oil
Location: Gabon Indonesia Equatorial Guinea
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861640578
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861640578?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Halliburton Standing Firm on Price Increases; Oil-field-services company says the market in North America is on the upswing
Author: Matthews, Christopher M; Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: Halliburton Co. is taking a tough new line with its customers in the oil patch: pay us more or we will take our equipment elsewhere. Chief Executive Dave Lesar on Monday said the oil-field-services company has begun negotiating prices with customers after offering them steep discounts during a two-year oil downturn. "If a customer agreed to better pricing, we continued to work for them," Mr. Lesar said during the company's fourth-quarter earnings call . "If not, we took that equipment and used it to fill the incremental demand with a customer that shared our view on how to work together and make better wells." Those conversations "were sometimes hard, but they needed to happen," he added. The tough talk came as Halliburton posted a fourth-quarter loss of $149 million, or 17 cents a share, compared with a year-earlier loss of $28 million, or 3 cents a share. While revenue also fell, the company said the market in North America was on the upswing. Echoing remarks Friday by Paal Kibsgaard , the chief executive of rival Schlumberger Ltd., Mr. Lesar said the energy market was in a "tale of two cycles". North America was largely positive, he said, but in the rest of the world, he doesn't expect to see improvements until the second half of 2017. U.S. oil producers, particularly shale drillers, have increased budgets for 2017 by an average of 60%, according to preliminary capital-spending plans released by more than a dozen U.S. shale drillers "The North America market appears to have rounded the corner, but the international downward cycle is still playing out," he said. In the North America region, the company's largest, revenue increased from the third quarter, and the company swung to an operating profit as better pricing and utilization combined with cost management boosted results. Mr. Lesar said customers should count on Halliburton's service prices increasing by more than the 10% rise some analysts have predicted over the next year. "I would be using something higher... I don't see how there is going to be the ability for the customers to hold prices down," he said. Still, total revenue fell 21% to $4.02 billion. During the latest quarter, Halliburton took a $53 million loss on the devaluation of the Egyptian pound and a separate $54 million charge to settle a 14-year-old securities fraud class action lawsuit that had gone to the U.S. Supreme Court. On an adjusted basis, which excludes the lawsuit and currency fluctuations, the company posted a 4 cent profit per share. Analysts polled by Thomson Reuters had projected a loss of 2 cents a share on $4.09 billion in revenue. Shares in the company, which have risen 17% in the past three months, fell 2.7% to $54.91 in recent trading. Write to Christopher M. Matthews at christopher.matthews@wsj.com and Austen Hufford at austen.hufford@wsj.com Related * Halliburton's Rebound Isn't Good Enough * Schlumberger Looks Towards Growth After Posting Another Quarterly Loss (Jan. 20) * For Shale Drillers, Rising Oil Prices Also Come With Rising Costs (Jan. 16) * Two Years Into Oil Slump, U.S. Shale Firms Are Ready to Pump More (Sept. 27) * As Oil Bust Recedes, Is a Barroom Brawl About to Break Out? (Oct. 21) Credit: By Christopher M. Matthews and Austen Hufford
Subject: Stock prices; Losses
Location: North America
People: Kibsgaard, Paal
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Supreme Court-US; NAICS: 922110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861640791
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861640791?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall on Signs of Rising U.S. Output; Bearish mood contrasts with OPEC's confidence that deal to reduce production is holding
Author: Puko, Timothy; Baxter, Kevin; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: Oil prices fell Monday on worries over a potential resurgence of U.S. shale production despite more confidence at OPEC that last year's agreement to lower production is holding. Light, sweet crude for March delivery settled down 47 cents, or 0.9%, at $52.75 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, lost 26 cents, or 0.5%, to $55.23 a barrel on ICE Futures Europe. The resurgence of shale oil comes after a long period of cutbacks and dozens of bankruptcies. But as oil prices moved toward $50 a barrel and have now held above it, many shale players are putting rigs back to work and increasing spending. Cuts promised by the Organization of the Petroleum Exporting Countries and other exporters have made prices high enough for U.S. drillers to be profitable. Many analysts expect U.S. producers to fill in at least some of the supply those exporters are cutting. That belief got a major boost late Friday by data from industry group Baker Hughes showing the number of working oil rigs in the U.S. climbed by 29 in the week ended Jan. 20 to a total of 551. That is the largest one-week increase in nearly four years, and puts the active oil rig count at its highest level in 14 months. "U.S. rig counts are exploding," Scott Shelton, broker at ICAP PLC, said in a note to clients. Société Générale SA analyst Michael Wittner told The Wall Street Journal it is "kind of an eye-popping number." Goldman Sachs said in a note released to the press Monday that the rig count at current levels would cause a year-over-year production increase of 315,000 a day for key western shale-drilling fields by the fourth quarter. It did, however, say that total U.S. production could still decline by then unless U.S. producers keep turning on backlogged wells that are sitting unfinished. Mr. Wittner also warned that a likely increase in oil is still months away and may be only half of what OPEC and its allies cut back. Saudi Arabia's energy minister, Khalid al-Falih, just announced that the 20 nations that have agreed to rein in output are showing "very good compliance." According to OPEC, the cartel's members and 11 non-OPEC producers have cut 1.5 million barrels a day from the global oil market, representing more than 80% of the amount pledged. The news was announced at a compliance meeting in Vienna that took place Sunday. Oil traders sold off despite the news. Germany's Commerzbank said that the production cuts had already been priced in by the market so there was no real chance of them providing any significant tailwind for markets. ICAP's Mr. Shelton also said Mr. al-Falih may have convinced traders to sell now that the bullish news of high initial compliance has passed. Investors have been widely speculating on rising prices. Money managers in the week ended Tuesday put on more bullish oil positions than any other week since 2006, and their bullish bets outnumbered their bearish ones by the widest margin since June 2014. That imbalance can often lead rallies to deflate as those investors cash out their bets or because there may be fewer traders left willing to buy. Some market observers have yet to be fully convinced that the cuts are happening as stated, skepticism that could be putting a cap on gains in crude prices. The cuts are no doubt positive, but a high level of caution is warranted until all of the data has been verified by independent third-party sources, with more production reports due in weeks to come, analysts said. Mr. al-Falih's data simply weren't that convincing for many traders, said Peter Donovan, broker for Liquidity Energy LLC in New York. Many expected leaders of OPEC to make these types of claims, and once they passed, they sold off hard on the prospects of new drilling and production in the U.S., he added. OPEC is "off to a gradual start," Mr. Donovan said, unimpressed. "It's nothing that was particularly bullish." Gasoline futures gained 0.04% to $1.5667 a gallon. Diesel futures fell 1.2% to $1.6265 a gallon, its fourth loss in six sessions. Write to Timothy Puko at tim.puko@wsj.com , Kevin Baxter at Kevin.Baxter@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Timothy Puko, Kevin Baxter and Jenny W. Hsu
Subject: Petroleum production; Crude oil prices; International markets
Location: United States--US Saudi Arabia Germany
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861641672
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861641672?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
As Oil Prices Climb, China and India Curb Their Enthusiasm for Reserves; Signs point to a slowdown in oil stockpiling in 2017
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: The world's oil producers are counting on a production cut to boost crude prices, but a slowdown in stockpiling by China's and India's governments could offer obstacles to that plan. For years, the governments of emerging oil consumers like China and India have been stockpiling crude, looking to build buffers like those long held by the U.S. and other developed countries. These stockpiling efforts have been important--if difficult to quantify--sources of demand throughout the oil-price downturn. Analysts say China in particular has been aggressive in exploiting low oil prices to boost stockpiling. India, too, has picked up its buying, while other Asian countries have signaled plans to build crude cushions. Yet threats to the buying spree are emerging. The pace of strategic reserve growth in China and India appears to be slowing as space becomes more scarce, analysts said. Rising oil prices could further cool enthusiasm for stockpiling, they said. "China has been very, very strategic in its purchase of crude," said Christopher Haines, oil analyst at BMI Research. "We've already started to see a marginal softening...It's something we're keeping a close eye on in 2017." The International Energy Agency requires members to hold 90 days' worth of net oil imports. The U.S. Strategic Petroleum Reserve is the world's largest at 695 million barrels, about 149 days of imports. China and India aren't IEA members, but they have sought to build reserves of their own as their oil needs have grown. Both are amassing stockpiles through several stages of storage building and filling. Analysts say the buying by China and India accounts for an underappreciated portion of global demand. BMI Research estimates that stockpiling by the two countries last year added an estimated 760,000 barrels a day to global oil demand last year, though it isn't clear how much went to strategic or commercial inventories. Still the figure amounts to about half of the IEA's estimate for last year's growth in oil demand , and more than half the amount of oil OPEC agreed to cut in November. "We don't expect China to completely stop increasing their stockpiles. But even if they reduce by 300,000 or 400,000 barrels a day, that's a pretty significant impact on global markets," Mr. Haines said. Further complicating OPEC's goals are plans by the U.S. to sell oil from its strategic reserves. Earlier this month the Department of Energy announced plans to sell 8 million barrels of crude from its stockpiles to raise funds to modernize the SPR. Last year the Japanese government said it was considering reducing its oil reserve stockpile amid slowing demand. Signs point to a slowdown in reserve building in 2017. China releases scant information on its reserve-building progress , but in its last update in September, it said it amassed 235 million barrels as of early 2016, exceeding official capacity and suggesting the country is storing oil in commercial sites, according to Energy Aspects. The research firm said it expects the country's strategic oil buying to slow to 250,000 barrels a day this year from 380,000 last year, with the bulk of this year's buying in the first half of the year. "China's SPR filling will ease," said Virendra Chauhan, an Energy Aspects analyst. "Price will be the most important factor." India, too, is expected to slow its stockpiling. The country has about 39 million barrels in which to store reserves, but India's oil ministry has said it plans to fill those sites by the end of March, and new storage facilities aren't due to be finished until 2020, according to the U.S. Energy Information Administration. Other countries have also voiced plans to build strategic reserves, which could help offset the slowdown in buying by Beijing and New Delhi. Indonesia is planning to build an oil buffer of 25 million barrels this year. Nepal's government also plans to build storage tanks to hold a buffer of refined fuels, according to Energy Aspects. Write to Dan Strumpf at daniel.strumpf@wsj.com Related * OPEC Takes Aim at Its Biggest Problem: Oil Storage (Jan. 12, 2017) * IEA Cuts Global Oil Demand Forecast Amid 'Wobbling' Asian Demand (Sept. 13, 2016) * How Much Oil Is in Storage Globally? Take a Guess (July 24, 2016) Credit: By Dan Strumpf
Subject: Strategic petroleum reserve; Cartels; Crude oil prices; Oil consumption
Location: China United States--US
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Department of Energy; NAICS: 926130; Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861641713
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861641713?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
BP's Thunder Horse South Expansion Launches Ahead of Schedule, Under Budget; Project expected to boost production by 50,000 gross barrels of oil equivalent per day
Author: Razak Musah Baba
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: LONDON--BP PLC (BP.LN) has launched the Thunder Horse South Expansion project in the deepwater Gulf of Mexico 11 months ahead of schedule and $150 million under budget. The energy giant said Monday the project was expected to boost production at the facility by an estimated 50,000 gross barrels of oil equivalent per day. BP shares at 1445 GMT were down 8 pence, or 1.5%, at 491 pence, valuing the company at 95.6 billion U.K. pounds ($118.3 billion). The Thunder Horse field was found in 1999 and is one of BP's largest discoveries in the Gulf of Mexico. Thunder Horse is operated by BP with a 75% working interest. Exxon Mobil Corp is a partner with a 25% stake. Write to Razak Musah Baba at Razak.Baba@wsj.com Credit: By Razak Musah Baba
Subject: Expansion; Offshore oil wells
Location: Gulf of Mexico
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861641715
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861641715?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Rex Tillerson Clears Another Hurdle for Secretary of State Position; Former Exxon CEO's nomination will be considered next by full the Senate
Author: Tau, Byron
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--Despite lingering concerns from some Republicans, secretary of state nominee Rex Tillerson cleared a key procedural hurdle on Monday, all but ensuring he will be approved as the nation's top diplomat. Mr. Tillerson, the former chief executive of Exxon Mobil Corp., won a favorable recommendation in an 11-to-10 vote along party lines from the Senate Committee on Foreign Relations on Monday afternoon. His nomination will be considered by the full Senate in the coming days, where he is expected to be confirmed. Overcoming a rocky confirmation hearing earlier this month
where he was grilled by members of both parties, Mr. Tillerson won the support of three leading foreign-policy voices within his party who had wavered for weeks on whether to support him over their concerns about his ties to the Russian government. As head of Exxon Mobil, Mr. Tillerson had cultivated deep business ties to senior figures in the Russia government
--prompting tough questions from both Democrats and Republicans during his confirmation hearing. His former company's lobbying on sanctions issues also came under scrutiny. But congressional resistance to Mr. Tillerson essentially evaporated over the weekend, as other Senate Republicans who had been undecided said they would support him--all but ensuring he will win enough votes in the Senate. Republicans Lindsey Graham of South Carolina and John McCain of Arizona both said on Sunday they would support Mr. Tillerson
. Sen. Marco Rubio of Florida also said he would support Mr. Tillerson
. No vote was more important to Mr. Tillerson's successful confirmation than that of Mr. Rubio, who occupies a key seat on the Senate Foreign Relations Committee that will vote Monday on the nomination. Republicans have a one-vote advantage on the panel, meaning that Mr. Rubio's support was seen as crucial to moving Mr. Tillerson's nomination to the floor with a recommendation that he be confirmed for the job. The full U.S. Senate still could have confirmed Mr. Tillerson without approval of a majority of the panel, but such a procedure is extremely rare. "Given the uncertainty that exists both at home and abroad about the direction of our foreign policy, it would be against our national interests to have this confirmation unnecessarily delayed or embroiled in controversy. Therefore, despite my reservations, I will support Mr. Tillerson's nomination in committee and in the full Senate," Mr. Rubio, a Florida Republican, said in a statement posted to Facebook on Monday. During the hearing, Mr. Rubio also expressed concern about whether Mr. Tillerson and the new Trump administration would take an aggressive enough line against Russia. President Donald Trump has indicated that he believes the U.S. should pursue improved relations with Moscow. No Democrats supported Mr. Tillerson in the committee vote, but he could win some Democratic support when the full Senate considers his nomination. Sen. Ben Cardin of Maryland, the senior Democrat on the panel, said in a statement Monday that he would oppose Mr. Tillerson over some of the former CEO's comments during his confirmation hearings. "After long and careful consideration, I believe Mr. Tillerson's demonstrated business orientation and his responses to questions during the confirmation hearing could compromise his ability as Secretary of State to forcefully promote the values and ideals that have defined our country and our leading role in the world for more than 200 years," Mr. Cardin said. Write to Byron Tau at byron.tau@wsj.com Credit: By Byron Tau
Subject: Nominations; Hearings & confirmations; Bills; International relations; Political appointments; Congressional committees
Location: South Carolina Russia Arizona Florida
People: McCain, John Graham, Lindsey
Company / organization: Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Senate; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861643707
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861643707?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Halliburton's Rebound Isn't Good Enough; Halliburton's results benefited from a sharp recovery in shale oil production, but it may have been too little for investors
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: "A tale of two cycles" is how Halliburton Chief Executive Dave Lesar described the oil-field-services market on Monday as full-year results were unveiled. Investors' response was more along the lines of "bah, humbug" as they sent the stock down in early trading. That wasn't a reaction to the headline numbers, per se. Though they fell short with a loss of 17 cents a share for the year's final quarter, profits were slightly stronger than expected once a lawsuit settlement and other nonrecurring items were stripped out. Instead, it was the color commentary from executives and the company's underwhelming rebound in North America. The good news was that Halliburton returned to operating profitability in North America during the quarter following a devastating drop in business. Mr. Lesar also said that the company gained market share. On the other hand, he noted that "the international downward cycle is still playing out." But hearing that the North American market "appears to have turned the corner" was no great surprise to anyone paying attention to the industry. A deal among big oil exporters in September helped to push up prices enough to spur a rebound in U.S. drilling activity and oil production. Rigs drilling for oil in the U.S. were up nearly 20% in the fourth quarter and another 5% so far this year, according to a count maintained by Baker Hughes. What disappointed investors was that Halliburton didn't benefit from the rebound as much as they thought. Quarterly revenue in North America rose by less than 9% sequentially and was more than 16% lower than a year earlier. There is more improvement in store for both revenue and profitability in North America, but investors appear to have gotten ahead of themselves. Further weakness overseas will limit Halliburton's gains in the first half of the year. Yet, as of last week, Halliburton's shares had more than doubled from their 52-week low. Larger competitor Schlumberger, which is less dependent on North America, also saw its shares fall Friday when it reported results and its management gave a similarly cautious international outlook. But its shares had rallied less than half as much as Halliburton's through last week. North America's shale deposits certainly are the place to be at the moment for oil-field-services companies as investors wait for the rest of the world to catch up. Unfortunately, the bonanza will take a little longer to play out than some expected. Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Petroleum production; Financial performance; Investments; Profitability; Executives
Location: United States--US North America
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861643767
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861643767?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Protesters, Oil Companies Gear Up for Next Round at Standing Rock; As hundreds of protesters arrive after inauguration of President Trump, oil companies look at use of private security
Author: Connors, Will
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.
Abstract: None available.
Full text: CHICAGO--Protesters opposed to the Dakota Access Pipeline are gearing up for a new round of clashes after the inauguration of President Donald Trump. So are oil companies--and the private security firms they have hired to police the protests. Several hundred additional protesters arrived at the main protest campsite in North Dakota this weekend, according to an official familiar with security preparations there. There were several clashes between law enforcement and protesters last week, including one Wednesday night that led to the arrest of 21 protesters . "There's a lot coming down for the camp these next few days," said Chase IronEyes, a member of the Standing Rock Sioux tribe, which has led the protests against the pipeline, in a Facebook post on Thursday. "This is a call out for self-sufficient, able-bodied, mobile protectors to come join the front line." In December, former President Barack Obama's administration denied the permit needed to complete the last leg of the $3.8 billion pipeline, but President Trump's team has said it supports the pipeline project and would revisit the permit decision after he takes office. When asked about the Dakota Access Pipeline and the Keystone XL pipeline, which the Obama administration rejected in 2015, White House spokesman Sean Spicer said Monday that he's "not gonna get in front of the president's executive actions." "The energy sector and our natural resources are an area where I think the president is very, very keen on making sure that we maximize our use of natural resources to America's benefit," Mr. Spicer said. Thousands of protesters have been gathering for months near Cannon Ball, N.D., and have argued that the pipeline endangers the tribe's water supply and sacred sites. The pipeline's builder, Dallas-based Energy Transfer Partners LP, has said it completed all necessary permitting requirements for the project and worked to minimize any damage to traditional sites and the risk of an oil spill. Standing Rock tribe leadership has asked protesters to leave by February 19, but many are determined to stay, convinced that the Trump administration will give the project the green light soon. When protests over the pipeline began this summer, Energy Transfer Partners did something rarely seen on U.S. soil: It hired several private security firms in an attempt to get control of the situation. The firms include North Carolina-based TigerSwan, which is made up primarily of former special forces soldiers who often provide security services in war-torn nations such as Iraq and Afghanistan. Oil companies usually coordinate with local law enforcement, hire off-duty law enforcement officers, and use their own internal security teams, according to industry experts. But the scale of the protests, and the relative inexperience of local law enforcement, led to an influx of private security firms to the site. Now, as protests kick back up in North Dakota and spread to other states--a small group of protesters inspired by the movement at Standing Rock recently set up camps near oil installations in western Texas--oil firms and industry trade groups are rethinking how they deal with protests. Many protesters during the Women's March in Washington, D.C. carried signs against the pipeline. "Obviously the rancor that has been going on lately has been a significant change," said Terry Boss, senior vice president of Interstate Natural Gas Association of America, a trade group. "That presents a challenge for everybody. A lot of that is new to us." Richard Powers, the president of Athos Group, a private security company based in Texas that works for several oil companies, said the use of a firm like TigerSwan is "very unusual," and that most oil companies are still mostly reliant on local law enforcement. But "other companies are watching how it's unfolding [in North Dakota] very carefully," Mr. Powers said. While most pipeline infrastructure is under ground, the rising threat to above ground facilities means "pipeline companies have been increasing outreach and coordination with local law enforcement and FBI to increase local vigilance," said spokesman for the American Gas Association, Jake Rubin, in a statement. "Companies are reviewing their security procedures not just to protect their pipeline infrastructure but to also mitigate injury to protesters brought upon themselves, threat to public safety, and potential for environmental damage." For protest organizers, one of the most troubling incidents happened in early September, when one of the private security companies working on behalf of Energy Transfer Partners used attack dogs in an attempt to deter a protest. The dogs bit several protesters, including children, according to protesters. The North Dakota state's attorney, the local sheriff's department, and a special investigative board working on behalf of the Governor's office all launched investigations into the incident, according to those bodies. The state's attorney's investigation didn't lead to any charges and the special investigative board's investigation is ongoing, according to a spokesman for the state's attorney's office and the head of the special investigation board. The Morton County Sheriff's Department concluded that "the dog handlers were not properly licensed to do security work in the State of North Dakota." No charges or fines have yet been levied against those companies. After the incident with the dogs, Energy Transfer Partners brought in TigerSwan to oversee its security operations. "The first thing we did was say, 'No dogs,'" said James Reese, the chief executive of TigerSwan. "Then, I said when protesters come I want a table set up with water, a medic, granola bars. If anyone sprains an ankle or something, we offer assistance. We're all Americans here. No one wants to get in a fight. No one wants someone to get hurt." Protesters and the Standing Rock Sioux tribe have raised concerns about the military-style tactics of the security forces--including buzzing helicopters, video surveillance, and armored vehicles. In November, law enforcement sprayed water on protesters, despite below freezing temperatures . More than 600 protesters have been arrested since August 10, mostly for trespassing. "We have repeatedly seen a disproportionate response from law enforcement to water protectors' nonviolent exercise of their constitutional rights," said Dave Archambault II, the Chairman of the Standing Rock Sioux Tribe, in October. Last week, protesters raised concerns about the North Dakota National Guard's use of an Avenger Air Defense System at the site. A spokesman for the National Guard said the avenger system was there for surveillance purposes only, wasn't armed with missiles, and "was not meant to intimidate anyone." It has since been removed. Mr. Reese of TigerSwan says he has just a handful of staff there now, overseeing operations. "We really just try to stop [protesters] from disrupting work," he said. "This is the new normal." Write to Will Connors at william.connors@wsj.com Credit: By Will Connors
Subject: Security services; Military reserves; Law enforcement; Security management; Presidents; Surveillance; Demonstrations & protests; Pipelines
Location: Texas North Dakota United States--US Iraq Afghanistan
People: Obama, Barack
Company / organization: Name: Energy Transfer Partners; NAICS: 486210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 23, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861643837
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861643837?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
An Engine for Oil Loses Steam --- China and India are purchasing less crude to store in reserves as space becomes tight
Author: Strumpf, Dan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]24 Jan 2017: B.11.
Abstract:
[...]the figure amounts to about half of the IEA's estimate for last year's growth in oil demand and more than half the amount of oil that the Organization of the Petroleum Exporting Countries agreed to cut in November.
Full text: The world's oil producers are counting on a production cut to boost crude prices, but a slowdown in stockpiling by China's and India's governments could offer obstacles to that plan. For years, the governments of emerging oil consumers like China and India have been stockpiling crude, looking to build buffers like those long held by the U.S. and other developed countries. These stockpiling efforts have been important, if difficult to quantify, sources of demand throughout the oil-price downturn. Analysts said China in particular has been aggressive in exploiting low oil prices to boost stockpiling. India, too, has picked up its buying, while other Asian countries have signaled plans to build crude cushions. Yet threats to the buying spree are emerging. The pace of strategic-reserve growth in China and India appears to be slowing as space becomes more scarce, analysts said. Rising oil prices could further cool enthusiasm for stockpiling, they said. "China has been very, very strategic in its purchase of crude," said Christopher Haines, oil analyst at BMI Research. "We've already started to see a marginal softening . . . It's something we're keeping a close eye on in 2017." The International Energy Agency requires members to hold 90 days of net oil imports. The U.S. Strategic Petroleum Reserve is the world's largest at 695 million barrels, about 149 days of imports. China and India aren't IEA members, but they have sought to build reserves of their own as their oil needs have increased. Both are amassing stockpiles through several stages of storage building and filling. Analysts said the buying by China and India accounts for an underappreciated portion of global demand. BMI Research estimates that stockpiling by the two countries added an estimated 760,000 barrels a day to global oil demand last year, though it isn't clear how much went to strategic or commercial inventories. Still, the figure amounts to about half of the IEA's estimate for last year's growth in oil demand and more than half the amount of oil that the Organization of the Petroleum Exporting Countries agreed to cut in November. "We don't expect China to completely stop increasing their stockpiles. But even if they reduce by 300,000 or 400,000 barrels a day, that's a pretty significant impact on global markets," Mr. Haines said. Further complicating OPEC's goals are plans by the U.S. to sell oil from its strategic reserves. This month, the Energy Department said it would sell eight million barrels of crude from its stockpiles to raise funds to modernize the strategic reserves. Last year, the Japanese government said it was considering reducing its oil-reserve stockpile amid slowing demand. Signs point to a slowdown in reserve building in 2017. China releases scant information on its reserve-building progress, but in its last update in September, it said it amassed 235 million barrels as of early 2016, exceeding official capacity and suggesting the country is storing oil in commercial sites, according to Energy Aspects, a research firm. The firm said it expects the country's strategic oil buying to slow to 250,000 barrels a day this year from 380,000 last year, with the bulk of this year's buying in the first half of the year. "China's [strategic reserves] filling will ease," said Virendra Chauhan, an Energy Aspects analyst. "Price will be the most important factor." India, too, is expected to slow its stockpiling. The country has about 39 million barrels of space in which to store reserves, but India's oil ministry has said it plans to fill those sites by the end of March, and new storage facilities aren't due to be finished until 2020, according to the U.S. Energy Information Administration. Other countries have also voiced plans to build strategic reserves, which could help offset the slowdown in buying by Beijing and New Delhi. Indonesia is planning to build an oil buffer of 25 million barrels this year. Nepal's government also plans to build storage tanks to hold a buffer of refined fuels, according to Energy Aspects.
Credit: By Dan Strumpf
Subject: Strategic petroleum reserve; Price increases; Oil consumption; Crude oil prices; Petroleum production
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Jan 24, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1860947542
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. News: Protesters, Oil Firms Prep for Next Round
Author: Connors, Will
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]24 Jan 2017: A.3.
Abstract:
[...]the rancor that has been going on lately has been a significant change," said Terry Boss, senior vice president of Interstate Natural Gas Association of America, a trade group.
Full text: CHICAGO -- Protesters opposed to the Dakota Access Pipeline are gearing up for a new round of clashes after the inauguration of President Donald Trump. So are oil companies -- and the private security firms they have hired to police the protests. Several hundred additional protesters arrived at the main protest campsite in North Dakota this weekend, according to an official familiar with security preparations there. There were several clashes between law enforcement and protesters last week, including one Wednesday night that led to the arrest of 21 protesters. "There's a lot coming down for the camp these next few days," said Chase Iron Eyes, a member of the Standing Rock Sioux tribe, which has led the protests against the pipeline, in a Facebook post. "This is a call out for self-sufficient, able-bodied, mobile protectors to come join the front line." In December, then-President Barack Obama's administration denied the permit needed to complete the last leg of the $3.8 billion pipeline, but Mr. Trump's team has said it supports the pipeline project and would revisit the permit decision after he takes office. When asked about the Dakota Access Pipeline and the Keystone XL pipeline, which the Obama administration rejected in 2015, White House spokesman Sean Spicer said Monday that he is "not gonna get in front of the president's executive actions." "The energy sector and our natural resources are an area where I think the president is very, very keen on making sure that we maximize our use of natural resources to America's benefit," Mr. Spicer said. Thousands of protesters have been gathering for months near Cannon Ball, N.D., and have argued that the pipeline endangers the tribe's water supply and sacred sites. The pipeline's builder, Dallas-based Energy Transfer Partners LP, has said it completed all necessary permitting requirements for the project and worked to minimize any damage to traditional sites and the risk of an oil spill. Standing Rock tribe leadership has asked protesters to leave by Feb. 19, but many are determined to stay, convinced that Mr. Trump's administration will give the project the green light soon. When protests over the pipeline began this summer, Energy Transfer Partners did something rarely seen on U.S. soil: It hired several private security firms in an attempt to get control of the situation. The firms include North Carolina-based TigerSwan, which is made up primarily of former special forces soldiers who often provide security services in war-torn nations, such as Iraq and Afghanistan. Oil companies usually coordinate with local law enforcement, hire off-duty law-enforcement officers and use their own internal security teams, according to industry experts. But the scale of the protests, and the relative inexperience of local law enforcement led to an influx of private-security firms to the site. Now, as protests kick back up in North Dakota and spread to other states -- a small group of protesters inspired by the movement at Standing Rock recently set up camps near oil installations in western Texas -- oil firms and industry trade groups are rethinking how they deal with protests. "Obviously the rancor that has been going on lately has been a significant change," said Terry Boss, senior vice president of Interstate Natural Gas Association of America, a trade group. "That presents a challenge for everybody. A lot of that is new to us." Richard Powers, the president of Athos Group, a private security company that works for several oil companies, said the use of TigerSwan is "very unusual," and that most oil companies are still mostly reliant on local law enforcement. But "other companies are watching how it's unfolding [in North Dakota] very carefully," Mr. Powers said. --- 'No Dogs,' Says Security Firm Organizers of protests against the Dakota Access Pipeline say one of the most troubling incidents happened in early September, when one of the private security companies working on behalf of Energy Transfer Partners, the pipeline's builder, used attack dogs in an attempt to deter a protest. The North Dakota state's attorney, the local sheriff's department and a special investigative board working on behalf of the governor's office all launched investigations into the incident, according to those agencies. The state's attorney's investigation didn't lead to any charges and the special investigative board's investigation is ongoing, according to a spokesman for the state's attorney's office and the head of the special investigation board. The Morton County Sheriff's Department concluded that "the dog handlers were not properly licensed to do security work in the state of North Dakota." No charges or fines have been levied against those companies. After the incident, Energy Transfer Partners brought in TigerSwan, a private security firm, to oversee its security operations. "The first thing we did was say, 'No dogs,'" said James Reese, the chief executive of TigerSwan. "Then, I said when protesters come, I want a table set up with water, a medic, granola bars." -- Will Connors Credit: By Will Connors
Subject: Security management; Pipelines; Demonstrations & protests; Energy industry
Location: North Dakota
Company / organization: Name: Energy Transfer Partners; NAICS: 486210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.3
Publication year: 2017
Publication date: Jan 24, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1860948047
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Halliburton Winds Down Discounts for Oil Producers
Author: Matthews, Christopher M; Hufford, Austen
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]24 Jan 2017: B.3.
Abstract:
U.S. oil producers, particularly shale drillers, have increased budgets for 2017 by an average of 60%, according to preliminary capital-spending plans released by more than a dozen U.S. shale drillers In the North America region, the company's largest, revenue increased from the third quarter, and the company swung to an operating profit as better pricing and utilization combined with cost management boosted results.
Full text: Halliburton Co. is taking a tough new line with its customers in the oil patch: pay us more or we will take our equipment elsewhere. Chief Executive Dave Lesar on Monday said the oil-field-services company has begun negotiating prices with customers after offering them steep discounts during a two-year oil downturn. "If a customer agreed to better pricing, we continued to work for them," Mr. Lesar said during the company's fourth-quarter earnings call. "If not, we took that equipment and used it to fill the incremental demand with a customer that shared our view on how to work together and make better wells." The tough talk came as Halliburton posted a fourth-quarter loss of $149 million, or 17 cents a share, compared with a year-earlier loss of $28 million, or 3 cents a share. While revenue also fell, the company said the market in North America was on the upswing. Echoing remarks Friday by Paal Kibsgaard, the chief executive of rival Schlumberger Ltd., Mr. Lesar said the market was in a "tale of two cycles." North America was largely positive, he said, but in the rest of the world, he doesn't expect to see improvements until the second half of 2017. U.S. oil producers, particularly shale drillers, have increased budgets for 2017 by an average of 60%, according to preliminary capital-spending plans released by more than a dozen U.S. shale drillers In the North America region, the company's largest, revenue increased from the third quarter, and the company swung to an operating profit as better pricing and utilization combined with cost management boosted results. Mr. Lesar said customers should count on Halliburton's service prices increasing by more than the 10% rise some analysts have predicted over the next year. "I would be using something higher . . . I don't see how there is going to be the ability for the customers to hold prices down," he said. Still, total revenue fell 21% to $4.02 billion in the fourth quarter. Halliburton also took a $53 million loss on the devaluation of the Egyptian pound and a separate $54 million charge to settle a lawsuit. Credit: By Christopher M. Matthews and Austen Hufford
Subject: Discounts; Oil fields
Location: United States--US
People: Kibsgaard, Paal
Company / organization: Name: Halliburton Co; NAICS: 213112, 237990
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Jan 24, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1860948176
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Crude-Oil Futures Eke Out Gains in Asia Trading; March Brent crude added 28 cents, or 0.5%, to $55.51
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.
Abstract: None available.
Full text: Oil futures edged higher in Asia trading Tuesday, rebounding from an overnight loss as traders continued to weigh the outlook for global oil production. Light, sweet crude for March delivery rose 24 cents, or 0.5%, to $52.99 in the Globex electronic session of the New York Mercantile Exchange. March Brent crude added 28 cents, or 0.5%, to $55.51. Futures have been trading in a narrow range around the low $50s over the past month as traders await updates on the progress in production cuts by the Organization of the Petroleum Exporting Countries. The cartel in November agreed to cut output amounting to about 1% of global production, but uncertainty remains over members' commitment to the pact. Meanwhile, U.S. oil production is showing signs of recovering following the cut agreement. And although production is falling in China, government data on Monday showed Chinese exports of refined fuels are at a record high, more than doubling to 15.4 million metric tons in 2016 from the previous year. A big increase in the number of working oil-drilling rigs in the U.S. "took the gloss off the better-than-expected adherence by OPEC to the agreed production cuts," according to Australian bank ANZ. On Friday, data from Baker Hughes showed the number of rigs in the U.S. rose by 29 to a total of 551 in the week ended Jan. 20. That was the biggest one-week increase in nearly four years. The report came as OPEC said it and other oil-exporting countries had succeeded in cutting 1.5 million barrels a day from the oil market, reflecting about 80% of the amount they pledged to cut. "The drop in prices due to the data will serve as a continuous thorn in the side of OPEC but at some point either the market will reach an equilibrium between what the world demands and what is produced," Stuart Ive, private client manager at OM Financial, wrote in a note to clients. "Chinese and Indian demand along with U.S. production will be key to how this seesaw plays out." Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 109 points to $1.5776 a gallon, while February diesel traded at $1.6328, 63 points higher. ICE gas oil for February changed hands at $486.50 a metric ton, up a dollar from Monday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Petroleum production; Crude oil; Supply & demand
Location: United States--US New York
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861643521
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861643521?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Increasing in DOE Data; Gasoline inventories are also expected to rise
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 10 analysts and traders surveyed showed U.S. oil inventories are projected to have increased by 2.1 million barrels, on average, in the week ended January 20. Eight analysts expect stockpiles to rise and two expect them to fall. Forecasts range from a decrease of 3 million barrels to an increase of 5.5 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show an increase of 300,000 barrels on average, according to analysts. Six analysts expect them to rise and four analysts expect them to fall. Estimates range from a fall of 2.5 million barrels to an increase of 2.7 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 1 million barrels. Two analysts expect an increase and eight expect a decrease. Forecasts range from a decline of 3 million barrels to an increase of 2 million barrels. Refinery use is seen falling 0.7 percentage point to 90% of capacity. Seven analysts expect a decrease, one expects no change and two didn't report expectations. Forecasts range from a decrease of 2 points to no change. Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Inventory; Price increases; Supply & demand
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861655337
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861655337?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Libya Says Oil Sector Open Again for Business; Libya froze new foreign investment in 2011 after the civil war that toppled Moammar Gadhafi
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.
Abstract: None available.
Full text: LONDON--Libya intends to reopen its oil sector to new foreign investments, its state-run oil company's chief said Tuesday, a move that would give oil companies the opportunity to develop the largest petroleum reserves in Africa for the first time in five years. Libya froze all new foreign investment in 2011 after the civil war that toppled strongman Moammar Gadhafi. International oil companies such as Total SA of France and ConocoPhillips have long had operations in Libya, and Eni SpA of Italy has found ways to keep pumping even as clashes among warring militias and Islamic State damaged the country's oil infrastructure. Libyan National Oil Co. Chairman, Mustafa Sanallah, told a London energy conference Tuesday that he had been waiting for a "legitimate government with a mandate from the people to come to power" before allowing foreign investment again. But that hasn't happened. "We cannot stand back and do nothing while the state disintegrates," Mr. Sanallah said in a speech at Chatham House, a think tank. Libya's U.N.-backed unity government in Tripoli has struggled to assert control over the sprawling North African country. Militias still control Libya's most important infrastructure, and a separate government claims power in the country's eastern regions. In an interview, Mr. Sanallah also said his company plans to bring its crude-oil output to 1 million barrels a day by April and to 1.25 million barrels a day at year end. If executed, that level of production would represent a remarkable turnaround in a place where violence and the lack of a working government resulted in output falling below 200,000 barrels a day in 2016. Libya has been on the cusp of an oil-production rebound before, only to have it fizzle . This time would be different, Mr. Sanallah said, because Libya's political factions have agreed that oil flows are necessary. The most recent ramp up has come after breakthroughs that included a U.S.-led route of Islamic State from its Libyan strongholds and the agreements among several militias to allow oil ports and fields to reopen. While new foreign investment likely won't come fast enough to help with the production ramp up this year, Mr. Sanallah said it would help revive the long-term future of the country's oil industry. Mr. Sanallah said he was in talks to rehabilitate a field partly owned by Total and a terminal where ConocoPhillips is a partner. He said U.S., Chinese and South Korean companies have also approached Libya to invest billions of dollars in new oil and gas fields, refineries and petrochemical plants. He said he would meet some of the companies, which he didn't name, on Thursday during a London summit to promote investment in Libya. Mr. Sanallah said studies before the civil war had estimated Libya's oil industry needed investment of $100 billion to $120 billion. He said he wants to return Libya to its prewar production level of 1.6 million barrels a day by 2022. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Petroleum production; Foreign investment; Petroleum industry; Militia groups
Location: Italy Africa United States--US Libya France
People: Qaddafi, Muammar El
Company / organization: Name: Total SA; NAICS: 211111, 324110, 447190; Name: Eni SpA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 24, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861661854
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861661854?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Edge Higher, Helped by Weaker Dollar; U.S. oil production is showing signs of recovering following rally in prices to $50 to $60 a barrel
Author: Baxter, Kevin; Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.
Abstract: None available.
Full text: Oil prices edged up Tuesday as a weaker dollar triggered by worries over U.S. protectionism gave some support to the market, despite an increase in U.S. production activity. The March contract for global crude benchmark Brent was up 0.67% to $55.61 while its U.S. counterpart West Texas Intermediate gained 0.7% to $53.10. Donald Trump's eagerness to quickly implement measures to protect the U.S. economy has put a brake on the dollar's gains . A weaker greenback generally supports dollar-priced commodities like oil because it makes them more attractive to holders of other currencies. Analysts from Germany's Commerzbank warned that protectionist support could soon extend to U.S. shale-oil producers, which could lead to the market again becoming oversupplied in the long-term, particularly if President Trump removes regulations from drilling. That, in turn, could weigh on prices. U.S. oil production is showing signs of recovering following the recent rally in prices to between $50 and $60 a barrel. The Organization of the Petroleum Exporting Countries has shown early signs of compliance with the deal it brokered to cut output and boost prices . A big increase in the number of working oil rigs in the U.S. "took the gloss off the better-than-expected adherence by OPEC to the agreed production cuts," said Australian bank ANZ. On Friday, data from Baker Hughes showed the number of rigs in the U.S. rose by 29 to a total of 551 in the week ended Jan. 20. That was the biggest one-week increase in nearly four years. The renewed focus on the U.S. followed several weeks in which OPEC dominated headlines with the pledge of its members and several other nations outside the cartel to reduce output. Most market observers now believe that the vast majority of these reductions are priced in to the petroleum market. Chinese government data released on Monday showed that China's oil demand was 8.59 million barrels a day in December, up 750,000 b/D year-over-year. Chinese exports of refined fuels were at a record high, more than doubling to 15.4 million metric tons in 2016 from the previous year. The Chinese market is a key battleground for most OPEC members as well as non-OPEC producers such as Russia and some observers remain cautious that demand can remain high when oil-products exports are growing so quickly. "The data will serve as a continuous thorn in the side of OPEC, but at some point either the market will reach an equilibrium between what the world demands and what is produced," Stuart Ive, private client manager at OMF, wrote in a note to clients. "Chinese and Indian demand along with U.S. production will be key to how this seesaw plays out." Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 0.71% to $1.58 a gallon, while February diesel traded at $1.66, 0.70% higher. ICE gasoil for February changed hands at $488.25 a metric ton, up 0.57% from Monday's settlement. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Dan Strumpf at daniel.strumpf@wsj.com Credit: By Kevin Baxter and Dan Strumpf
Subject: Petroleum production; Cartels; Crude oil prices; Supply & demand
Location: United States--US Iraq
People: Trump, Donald J
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861666606
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Rex Tillerson Clears Another Hurdle for Secretary of State Position; Former Exxon CEO's nomination will be considered next by the full Senate
Author: Tau, Byron
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--Despite lingering concerns from some Republicans, secretary of state nominee Rex Tillerson cleared a key procedural hurdle on Monday, all but ensuring he will be approved as the nation's top diplomat. Mr. Tillerson, the former chief executive of Exxon Mobil Corp., won a favorable recommendation in an 11-to-10 vote along party lines from the Senate Committee on Foreign Relations on Monday afternoon. His nomination will be considered by the full Senate in the coming days, where he is expected to be confirmed. Overcoming a rocky confirmation hearing earlier this month
where he was grilled by members of both parties, Mr. Tillerson won the support of three leading foreign-policy voices within his party who had wavered for weeks on whether to support him over their concerns about his ties to the Russian government. As head of Exxon Mobil, Mr. Tillerson had cultivated deep business ties to senior figures in the Russia government
--prompting tough questions from both Democrats and Republicans during his confirmation hearing. His former company's lobbying on sanctions issues also came under scrutiny. But congressional resistance to Mr. Tillerson essentially evaporated over the weekend, as other Senate Republicans who had been undecided said they would support him--all but ensuring he will win enough votes in the Senate. Republicans Lindsey Graham of South Carolina and John McCain of Arizona both said on Sunday they would support Mr. Tillerson
. Sen. Marco Rubio of Florida also said he would support Mr. Tillerson
. No vote was more important to Mr. Tillerson's successful confirmation than that of Mr. Rubio, who occupies a key seat on the Senate Foreign Relations Committee that will vote Monday on the nomination. Republicans have a one-vote advantage on the panel, meaning that Mr. Rubio's support was seen as crucial to moving Mr. Tillerson's nomination to the floor with a recommendation that he be confirmed for the job. The full U.S. Senate still could have confirmed Mr. Tillerson without approval of a majority of the panel, but such a procedure is extremely rare. "Given the uncertainty that exists both at home and abroad about the direction of our foreign policy, it would be against our national interests to have this confirmation unnecessarily delayed or embroiled in controversy. Therefore, despite my reservations, I will support Mr. Tillerson's nomination in committee and in the full Senate," Mr. Rubio, a Florida Republican, said in a statement posted to Facebook on Monday. During the hearing, Mr. Rubio also expressed concern about whether Mr. Tillerson and the new Trump administration would take an aggressive enough line against Russia. President Donald Trump has indicated that he believes the U.S. should pursue improved relations with Moscow. No Democrats supported Mr. Tillerson in the committee vote, but he could win some Democratic support when the full Senate considers his nomination. Sen. Ben Cardin of Maryland, the senior Democrat on the panel, said in a statement Monday that he would oppose Mr. Tillerson over some of the former CEO's comments during his confirmation hearings. "After long and careful consideration, I believe Mr. Tillerson's demonstrated business orientation and his responses to questions during the confirmation hearing could compromise his ability as Secretary of State to forcefully promote the values and ideals that have defined our country and our leading role in the world for more than 200 years," Mr. Cardin said. Write to Byron Tau at byron.tau@wsj.com Credit: By Byron Tau
Subject: Nominations; Hearings & confirmations; Bills; International relations; Political appointments; Congressional committees
Location: South Carolina Russia Arizona Florida
People: McCain, John Graham, Lindsey
Company / organization: Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Senate; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 24, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861666741
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861666741?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Gasoline Prices Push Mexico's Inflation Well Above Target; Mexican government raised gasoline prices on Jan. 1 to reflect higher oil prices and the depreciation of the Mexican peso
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexican consumer prices rose more than expected in the first half of January as a result of controversial gasoline price increases that caused inflation to move well above the central bank's target. The consumer price index rose 1.51% in the first two weeks of the year, with the annual rate accelerating to 4.78% from 3.36% at the end of December, the National Statistics Institute said Tuesday. The increase was above the 1.3% median estimate of economists polled by The Wall Street Journal. Energy prices contributed 1.24 percentage points to overall inflation, which was the most for a two-week period since January 1999. Regular gasoline prices rose 16.8% and premium gasoline prices were 21.7% higher, the statistics institute said. Propane gas used in most homes for heating and cooking rose 17.8%. Core CPI, which excludes energy and fresh fruit and vegetables, rose 0.37% in the first two weeks of the month, as expected, and was up an annual 3.72%. The government raised gasoline prices on Jan. 1 to reflect higher oil prices and the depreciation of the Mexican peso as the country moves from government-set prices to free market pricing for fuels. The increases prompted several weeks of protests that included blockades of roads and service stations, and looting of stores that led to hundreds of arrests. "While the fuel shock represents no more than a temporary shock and a needed transition cost as Mexico liberalizes prices over the course of the year--which is a positive for the medium-term inflation dynamics--higher gasoline in early 2017 comes at a challenging time when price pressures are broadening," Morgan Stanley said in a recent report. Annual inflation reached its highest level since September 2012, and was well above the Bank of Mexico's 2%-4% target band. The central bank raised interest rates five times in 2016 in response to a weakening peso and concerns about the currency impact on inflation, and it is widely expected to raise rates again at its February policy meeting. "Mexican consumers will respond to higher gas prices by reining in spending on other categories of goods and services, just as they would to a tax hike," PNC economist Bill Adams said in a note. "Weaker consumer spending will compound the headwinds to growth from trade-related uncertainties, public spending cuts, and higher interest rates." Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Subject: Consumer Price Index; Central banks; Interest rates; Price increases; Inflation; Gasoline prices
Company / organization: Name: Bank of Mexico; NAICS: 522110; Name: Morgan Stanley; NAICS: 523110, 523120, 523920
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 24, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861669778
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Trump Set to Take Action on Keystone, Dakota Pipelines; Trump administration begins process to reverse Obama on contentious oil pipelines
Author: Harder, Amy; Lee, Carol E
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--President Donald Trump is set to take action Tuesday to advance the Keystone XL and Dakota Access oil pipelines, according a senior administration official, beginning a process to reverse the Obama administration on the contentious projects. During the presidential campaign, Mr. Trump backed both projects. Former President Barack Obama in November 2015 denied a State Department permit Keystone needed to cross the border from Canada into the U.S. after a protracted review that took more than seven years. Spokesmen for the project developer, TransCanada Corp., have said the company still backs the pipeline. If completed, Keystone would send as many as 830,000 barrels of oil a day, mostly from Canada's oil sands to Steele City, Neb., where it would connect with existing pipelines to Gulf Coast refineries. In December, the U.S. Army Corps of Engineers, under the Obama administration, denied the permit needed to complete the last leg of the $3.8 billion Dakota Access pipeline, citing concerns by the Standing Rock Sioux tribe that it could pollute its water supplies and disrupt its sacred lands. This project would carry up to 570,000 barrels of oil a day from North Dakota to Illinois. Mr. Trump's team has said it supports the pipeline project and would revisit the permit decision after he takes office. Write to Amy Harder at amy.harder@wsj.com and Carol E. Lee at carol.lee@wsj.com Credit: By Amy Harder and Carol E. Lee
Subject: Political campaigns; Pipelines
Location: North Dakota United States--US Canada Illinois
People: Obama, Barack
Company / organization: Name: Army Corps of Engineers; NAICS: 928110; Name: TransCanada Corp; NAICS: 486210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 24, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862086491
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862086491?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Do We Still Need the Keystone Pipeline? Oil refiners and producers say yes, but other options have emerged over the years
Author: Matthews, Christopher M; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.
Abstract: None available.
Full text: Some oil refineries that had pinned their hopes on the Keystone XL pipeline for crude barrels have moved on. But energy firms still cheered news on Tuesday that President Donald Trump took actions to revive two stalled pipeline projects . They said Keystone, which was rejected under former President Barack Obama, still made economic sense and would provide the U.S. with more reliable supplies from Canada. Canadian crude has traded at a steep discount to American oil, as much as 29% recently, making it potentially lucrative to refineries. Large U.S. refiners like Valero Energy Corp. and Marathon Petroleum Corp. had invested in units to process the type of oil flowing out of western Canada. Those operators could quickly put that equipment to use if the pipeline is built, analysts say. "The stable and reliable long-term oil supplies from our Canadian neighbors is a compelling reason for approving Keystone XL," Marathon said. Valero didn't respond to requests for comment. Shares of TransCanada Corp., the company behind Keystone XL, rose 3.5% to $48.84 Tuesday. Energy Transfer Partners LP, the main company behind the other pipeline, called Dakota Access, was up 3.5%. A spokesman for TransCanada said the company is preparing to reapply for a needed permit for Keystone XL. Energy Transfer didn't respond to requests for comment. Whiting Petroleum Corp., a major oil producer in North Dakota, said completion of the Dakota Access Pipeline, which was designed to transport oil from that state, would boost activity in the Bakken region. That area experienced a decline in drilling as oil prices declined in the past two years. "It's going to make the Bakken a more competitive basin," said Eric Hagen, Whiting's vice president of investor relations. Because U.S. refiners have found other ways to access Canadian crude, Keystone supplies may not be needed until 2020, said John Auers, executive vice president of Turner, Mason & Co. "It's always good to have another option, but it's not needed and probably not even highly desired for a few years," he said. One question lingering over the deal is taxes, said Afolabi Ogunnaike, senior research analyst at Wood Mackenzie "Some border tax proposals could negatively impact the economics of these flows," he said. Canadian producers are also still supporting other pipeline proposals that would give them access to Canada's West Coast. Write to Christopher M. Matthews at christopher.matthews@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Christopher M. Matthews and Erin Ailworth
Subject: Petroleum refineries; Reformulated gasoline; Presidents
Location: North Dakota United States--US Canada
People: Trump, Donald J Obama, Barack
Company / organization: Name: Marathon Petroleum Corp; NAICS: 324110; Name: TransCanada Corp; NAICS: 486210; Name: Valero Energy Corp; NAICS: 211111, 324110, 486210; Name: Whiting Petroleum Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 24, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862087262
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862087262?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures a Bit Lower in Asia Trade; Nymex March oil is down 0.4% at $52.97/barrel and Brent slips 0.1% to $55.16/bbl.
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Jan 2017: n/a.
Abstract: None available.
Full text: 0110 GMT -- Oil eases in early Asia trading after further modest gains overnight. But futures have been around current levels for weeks now as traders weigh the outlook for OPEC production cuts against potential growth in U.S. shale production. Up ahead is weekly inventory data from the U.S.; oil supplies are seen having risen 2.1 million barrels last week. Nymex March oil is down 0.4% at $52.97/barrel and Brent slips 0.1% to $55.16. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Inventory; Supply & demand; Crude oil
Location: United States--US New York Saudi Arabia Iraq
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Citigroup Inc; NAICS: 551111; Name: Department of Energy; NAICS: 926130; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 25, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861655251
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docvie w/1861655251?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Slips Ahead of U.S. Stocks Data; U.S. figures are expected to show a sharp rise in oil inventories
Author: McFarlane, Sarah; Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Jan 2017: n/a.
Abstract: None available.
Full text: Oil prices eased on Wednesday as traders continued to weigh the prospect of production cuts by big oil-producing nations against a rise in U.S. drilling and inventories. Brent crude, the global oil benchmark, fell 0.5% to $55.13 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were down 0.6% at $52.88 a barrel. Oil has traded within a relatively tight range for most of January, compared with recent months, as investors have priced in production cuts planned by the Organization of the Petroleum Exporting Countries in November. The deal, along with additional cuts agreed by non-OPEC producers, has since lifted oil prices around 20%. "We've seen a lot less volatility in January than we did in the second half of last year, and I think that is due to there being a lot more certainty in the market, now the OPEC deal has been done and it looks like the cuts are happening," said Capital Economics analyst Tom Pugh. OPEC officials on Sunday estimated its compliance level at 80%, meaning about four-fifths of the 1.2 million barrels a day it pledged to cut starting this month has been slashed. That is a faster rate than in 2009, when the cartel had a compliance rate of about 57% a month after its agreement. Mr. Pugh said OPEC was likely being optimistic on the extent of cuts and he expected the cartel to initially meet around 60%-70% of targets, although this could improve in the coming months. "One upside would be if January and February production data shows that all of the production cuts are coming in or that they're larger than expected, but that's really the only short-term factor that you can see pushing up prices in the first quarter of this year," he added. Meanwhile, the rebound in prices appears to be spurring fresh drilling activity by shale producers in the U.S. with data due later Wednesday from the U.S. Department of Energy expected to show a sharp rise in oil inventories. Analysts in a Wall Street Journal survey expect a 2.1 million barrel rise in the week ended Jan. 20. The American Petroleum Institute, an industry group, said oil inventories for the week rose 2.9 million barrels. "A tighter market, improving productivity and a more accommodative policy from Saudi and [other Middle Eastern countries] should see U.S. crude production rebound strongly in 2017," analysts at Citigroup wrote in a research report. Libya, which is exempt from the OPEC deal, is also ramping up output. Libyan National Oil Co. plans to bring its crude-oil output to 1.25 million barrels a day by the year-end, the state-run oil company's chairman, Mustafa Sanallah, said at an event in London on Tuesday . This would mark a huge turnaround in a place where violence and the lack of a working government resulted in output falling below 200,000 barrels a day in 2016. "For this to happen, the security situation in the country would need to further stabilize, and the central bank and treasury would need to unlock funding," Commerzbank said, adding that output would still be below its level before the civil war broke out in 2011, when production was 1.6 million barrels a day. "In our opinion, a production level significantly above 1 million barrels per day is unrealistic this year." Nymex reformulated gasoline blendstock--the benchmark gasoline contract--fell 1.3% to $1.58 a gallon. ICE gasoil changed hands at $486.50 a metric ton, down $2.00 from the previous settlement. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Dan Strumpf at daniel.strumpf@wsj.com Credit: By Sarah McFarlane and Dan Strumpf
Subject: Dow Jones averages; Futures; Inventory; Investments; Crude oil prices; Stock exchanges; Crude oil; Supply & demand
Location: United States--US
People: Trump, Donald J
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 25, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861664684
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861664684?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohib ited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BP Warns Battle for Oil Market Share Could Return; Collaboration between producers could be short-lived
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Jan 2017: n/a.
Abstract: None available.
Full text: LONDON--The world's appetite for oil will slacken in the coming decades, but petroleum supplies will remain abundant, BP PLC said Wednesday, highlighting the possibility that big producers will renew their fight for market share. The trends forecast in BP's annual energy outlook suggest the collaboration between major oil-producing countries to reduce supply could be short-lived, as producers in the Middle East, Russia and U.S. shift strategies to cope with sputtering demand growth. BP economists declined to speculate on long-term oil prices Wednesday, but Chief Executive Bob Dudley coined the phrase "lower for longer" during the recent price slump. The subsequent uptick in oil prices was only possible because of the rare cooperation between the Organization of the Petroleum Exporting Countries and other producers to cut supply. However, BP sees oil-demand growth down by around 60% in 2035 from 2015. It says some oil barrels could be stranded in the ground, while producers who can survive at low prices will pump hard to keep or expand their market share. "In that world, if I can produce my oil at a fraction of the cost of somebody else, I would sort of want to try and impose my competitive advantage," BP's chief economist, Spencer Dale, said at a news conference. An all-out battle for market share waged by Saudi Arabia and other members of OPEC is blamed in part for a rout that caused a barrel of crude to trade in 2016 as low as $27 a barrel--a 12-year nadir. Prices have doubled to roughly $55 a barrel since OPEC said it would cut back production, but few see prices heading back to $100, where they hovered for almost three years until 2014. The main cause of the rout was vast new supplies of oil and that isn't likely to go away soon. The volume it is possible to extract with current technology is enough to meet demand until 2050 twice over, BP said Wednesday. "It is increasingly likely that there will be technically recoverable oil resources which will never be extracted," Mr. Dale said. That could change the way oil producers--particularly producers of low-cost oil--strategize, he added. Oil-demand growth is expected to gradually slow over the next 20 years, as improving fuel efficiency and increasing use of electricity, natural gas and biofuels in the transport sector challenge oil's core market. Other energy sources, like renewables, are also increasingly prevalent. Based on these trends, BP says oil demand could begin to decline in the mid-2040s. By 2035, BP forecasts Middle Eastern producers within OPEC, together with Russia and the U.S. , will account for 63% of global oil production, up from 56% in 2015. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Petroleum production; Collaboration; Trends; Crude oil prices
Location: Middle East Russia United States--US Saudi Arabia
People: Dudley, Bob
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 25, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publicationsubject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861666886
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861666886?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil, Fuel Inventories Rise More Than Expected
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Jan 2017: n/a.
Abstract: None available.
Full text: U.S. crude oil inventories rose more than expected for the week ended Jan. 20, while stockpiles of gasoline also saw a large increase, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles rose by 2.8 million barrels, to 488.3 million barrels, which is above the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 2.1 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, decreased by 284,000 barrels, to 65.4 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by 6.8 million barrels, to 253.2 million barrels. Analysts were expecting gasoline inventories to rise by just 300,000 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, unexpectedly rose by 76,000 barrels, to 169.1 million barrels, and are still above the upper limit of the average range, the EIA said. Analysts were forecasting supplies to decrease by 1 million barrels from a week earlier. Refining capacity utilization fell by 2.4 percentage points from the previous week, to 88.3%. Analysts were expecting utilization levels to decline by just 0.7 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Inventory; Price increases; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 25, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862087093
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862087093?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Wanted: Swing Producer; Volatility in the price of the world's most essential commodity--oil--is perilous. Buckle up for our new boom and bust era. R. Tyler Priest reviews "Crude Volatility" by Robert McNally.
Author: R. Tyler Priest
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Jan 2017: n/a.
Abstract: None available.
Full text: 'The problem of oil, it might be tersely said, is that there is always too much or too little." This 1937 observation by American economist Myron Watkins remains equally valid in today's topsy-turvy hydrocarbon world. Too little oil means rising prices and frantic new production, which leads to too much oil, falling prices and idled drilling rigs. This leads, again, to too little oil and restarts the cycle. Yet what is most striking in looking back at the history of oil prices is their relative stability during most of the 20th century. From 1880 to 1973, as Robert McNally explains in his splendid study "Crude Volatility: The History and the Future of Boom-Bust Oil Prices," large and powerful entities played the role of "swing producer," adjusting oil supply in response to changing market forces in order to stabilize prices. The salient feature of the global oil market over the past 40 years is that there has been no such producer, no one able and willing to reconcile supply and demand except for a brief moment in 1982-85 when Saudi Arabia assumed this responsibility. As a result, we have seen dramatic oil-price fluctuations, especially during the past 15 years. Volatility in the price of the world's most essential commodity is perilous. It whipsaws revenues for the more than 90 countries that rely heavily on petroleum taxes. It causes household budgets and employment rolls to swell and shrink unpredictably. It spreads uncertainty to every sector of the global economy that relies on affordable transportation. An energy consultant and former adviser to President George W. Bush, Mr. McNally is both a skillful historian and an astute analyst. He has compiled two novel data sets, one a continuous price series for U.S. crude going back to 1859 and another that tracks global spare production capacity since 1955. Reconstructing the relationship between the two, he compellingly shows that control over the bulk of low-cost production at the wellhead level has been the key to price stability. For readers who do not have the time to tackle Daniel Yergin's 900-page standard-bearer, "The Prize" (1990), "Crude Volatility" is a concise alternative for understanding the grand narrative of oil. Crude Volatility By Robert McNally Columbia, 315 pages, $35 Mr. McNally divides oil's history into five eras. The first lasted from 1859 to 1880 and witnessed severe price gyrations and vicious booms and busts. Notwithstanding the tremendous demand for cheap kerosene made from oil, too many drillers and refiners made it a precarious business. John D. Rockefeller and Standard Oil brought order out of chaos in the 1880s by creating a monopoly in refining and then integrating backward into oil production and transportation. Although Standard Oil's ability to dictate crude prices has been overstated, it did possess the power to move them. But Rockefeller, Mr. McNally emphasizes, was more interested in stable prices than high ones. "Consumers paid a higher price for oil than they would have under pure competition--but since oil prices fell on trend during the Rockefeller era, the public did not notice what it was missing." The government's dissolution of Standard Oil in 1911 broke up a business behemoth that many Americans viewed as corrupt and dangerous, but it also eliminated the stabilizing force in the oil market. Price volatility returned in the late 1920s after a surge of new production from huge fields in Texas, Oklahoma, California, Mexico and Venezuela proved more than ample to supply the growing fleets of ships and automobiles. The Great Depression amplified the new cycle of boom and bust by driving down the per barrel price of crude from $1 to 10 cents. Price stabilization returned in the mid-1930s thanks to an unlikely source--the state of Texas. "Of all the things Texans are famous for, limiting government and producing oil might be paramount," writes Mr. McNally. "Therefore, it is all the more remarkable that some eighty years ago Texan officials and oil drillers devised and imposed the most heavy-handed . . . quota regime the world has ever seen." Enforced by the Texas Railroad Commission (TRC), "prorationing" restricted production below demand, propped up prices and conserved "spare capacity," which could be called upon during emergencies, like the 1956 Suez Crisis and the Six-Day War in 1967. The "Texas Era of Price Stability," coordinated at home by the TRC and abroad by the interlocking concessions of the "Seven Sisters"--a group of the large oil companies that eventually became BP, Gulf, Chevron, Texaco, Royal Dutch Shell, Exxon and Mobil--lasted until March 1972, when the TRC allowed unrestricted production to meet rising demand and signaled the exhaustion of U.S. spare capacity. OPEC, founded in 1960 to emulate the TRC, supplanted it as the only entity capable of swinging the market. OPEC's 1973 production cuts and price increases affirmed the transfer of power. Despite its spare capacity, OPEC has never been able to act as a consistent price stabilizer. The expansion of production in places like Alaska, the North Sea and Mexico in the 1970s diminished its market dominance. The displacement of long-term contracts by spot and futures trading in the 1980s meant that prices were increasingly determined by the market rather than administered as they had been in the Texas Era. And the divisions within OPEC--particularly the cheating on production quotas by members--weakened the organization's ability to act in concert. The chapters in "Crude Volatility" covering the past 35 years are a foundation on which future oil historians will build. Mr. McNally narrates the price effects of wars in the Mideast, financial crises, speculative trading, the explosion of Chinese demand and the shale revolution and deftly brings us into today's new boom-and-bust era. "For the first time in over eighty years," he writes, "we appear to have what many have craved and clamored for: a genuinely free, unmanaged market for crude oil, the world's most strategic commodity." Far from something to celebrate, he sees this as guaranteeing that oil prices will oscillate between $30 and $100 per barrel for the foreseeable future. Volatility may be reduced by collecting better data on oil production, by coordinating strategic reserves to guard against disruptions, and by encouraging the traders and speculators who help to mute excessive price swings. But these will only partially quell the vigorous ups and downs of an open market. For now, we should all buckle up for the ride. Mr. Priest is associate professor of history at the University of Iowa. Credit: By R. Tyler Priest
Subject: Petroleum production; Commodities; Crude oil prices; Production capacity; Price increases; Energy economics; Volatility
Location: Mexico Texas United States--US Saudi Arabia California
People: Bush, George W
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 26, 2017
Section: Arts
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861720331
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861720331?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Futures Rebound in Asia as Inventories Remain in Focus; Brent crude for March delivery added 48 cents, or 0.9%, to $55.56/barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Jan 2017: n/a.
Abstract: None available.
Full text: Oil futures rose Thursday in Asia trading, rebounding from losses during the overnight session, as traders shrugged off another big jump in U.S. oil inventories. Light, sweet crude for March delivery rose 44 cents, or 0.8%, to $53.19 a barrel during the Globex electronic session of the New York Mercantile Exchange. Brent crude for March delivery added 48 cents, or 0.9%, to $55.56/barrel. The gains wiped out virtually all of the ground lost during the New York session, as prices continue to swing back and forth around the low $50-a-barrel level and traders continue to weigh the outlook for a production cut struck by major oil-producing nations against the sizable overhang in global oil stockpiles. The latest inventory numbers "are not really bullish, but it seems the market doesn't really care," said Nelson Wang, energy analyst at the investment bank CLSA. "The market is still dominated by the OPEC cut, and it seems they're on track to cut as they promised but we still don't have the data points to prove it." The U.S. Energy Information Administration said earlier that oil inventories rose 2.8 million barrels in the week ended Jan. 20. The figure exceeded an expected 2.1-million-barrel rise, and underscores the challenges facing the Organization of the Petroleum Exporting Countries in cutting supply and bringing global inventories in check. OPEC and its allies are looking to reduce global supplies by about 2% with an agreement struck late last year, and early indications have shown progress toward that goal. Meanwhile, a continued slide in oil production in China is leading to higher imports there, helping to offset rising production in the U.S. Oil imports to China hit a record high last month, according to BMI Research, with Russia offsetting Saudi Arabia as the country's biggest foreign supplier. "Our outlook for crude imports over subsequent quarters remain positive, though government efforts to impose stringent regulations and establish greater control over the nonstate owned players could adversely impact overall imports," the research firm wrote in a note to clients. Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--rose 129 points to $1.5367 a gallon, while February diesel traded at $1.6251, 137 points higher. ICE gas oil for February changed hands at $487.50 a metric ton, down 25 cents from Wednesday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Crude oil
Location: United States--US Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 26, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861724764
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861724764?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Climbs Despite Higher U.S. Inventories; Indications of strengthening demand in Asia is helping boost prices
Author: McFarlane, Sarah; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Jan 2017: n/a.
Abstract: None available.
Full text: Oil futures rose Thursday, as traders shrugged off another big jump in U.S. oil inventories and remained focused on promised production cuts. U.S. crude futures gained $1.03, or 1.95%, to settle at $53.78 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose $1.16, or 2.11%, to $56.24 on London's ICE Futures Exchange. The U.S. Energy Information Administration said Wednesday that oil inventories rose 2.8 million barrels in the week ended Jan. 20, marking the third consecutive weekly increase. The increase underscored the challenges facing the Organization of the Petroleum Exporting Countries in cutting supply and bringing global inventories in check. But analysts said prices remained relatively resilient despite the increase in U.S. petroleum supplies--a signal to buyers that helped reverse Wednesday's losses. "It didn't fall that much or that hard on bearish stats--there are still reasons to go out and buy it," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates. And indications that demand is strengthening in Asia and that major producers are complying with their promised cuts is helping boost prices, which have been range bound in recent days. "It's much more of an international story. If anything, the U.S. is probably the only thing holding crude back," said Mark Anderle, director of supply and trading at TAC Energy. "If supply in the rest of the world is tightening, we're probably just along for the ride." OPEC and its allies are looking to reduce global supplies by about 2% starting from January, after an agreement was struck late in 2016. Early indications have shown progress toward that goal . "Many preliminary data points are suggesting that the cut agreement between OPEC and 11 other states has largely been adhered to," analysts at Schneider Electric wrote in a client note, pointing to physical prices that indicate that supplies of Dubai crude and other regional crudes have fallen. Some skepticism remains as to whether the cuts will all materialize, given OPEC's patchy record on similar deals. The organization is due to publish January production data Feb. 13. "The market is still dominated by the OPEC cut and it seems they're on track to cut as they promised, but we still don't have the data points to prove it," Nelson Wang, energy analyst at investment bank, CLSA, said. Prices have risen by around 20% since the OPEC deal was struck. The uptick triggered a rush in U.S. producers hedging their oil to lock in prices for 2017 and 2018. "It seems the higher the price of WTI is pushed by speculators, the more oil producers are willing to hedge," brokerage PVM said regarding West Texas Intermediate crude. "In case of a renewed price fall they will be protected, at least to a great extent." But continued slide in oil production in China is leading to higher imports there, helping to offset rising production in the U.S. Oil imports to China hit a record in December, according to BMI Research. "Our outlook for crude imports (to China) over subsequent quarters remains positive, though government efforts to impose stringent regulations and establish greater control over the nonstate owned players could adversely impact overall imports," the company said in a note to clients. Gasoline futures rose 1.89 cents, or 1.24%, to $1.5427 a gallon. Diesel futures rose 2.95 cents, or 1.83%, to $1.6409 a gallon. Dan Strumpf contributed to this article. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Sarah McFarlane and Alison Sider
Subject: Petroleum production; Futures; Inventory; Supply & demand; Crude oil
Location: China United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 26, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861810874
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861810874?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Aramco Hires Firm to Assess Oil Reserves Before IPO; The audit will open a window onto a closely guarded secret ahead of the initial public offering
Author: Said, Summer; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Jan 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia's state oil company has hired an energy consultant to assess its reserves of crude oil, people familiar with the matter said, opening a window to a closely guarded secret ahead of its initial public offering. The audit, now complete, by Gaffney, Cline & Associates, a U.K.-based consultancy hired late last year, is a prerequisite for listing Saudi Arabian Oil Co., better known as Aramco . The listing could happen as soon as next year, and the size of Aramco's reserves will play a crucial role for investors to determine the worth of what some call the world's most valuable company. Saudi Deputy Crown Prince Mohammed bin Salman has said Aramco is worth between $2 trillion and $3 trillion. Analysts say a public listing of 5% of Aramco could fetch between $100 billion and $150 billion, the most ever for an IPO. Aramco also has asked Dallas-based energy consultants DeGolyer and MacNaughton for assistance on the audit due to their experience with U.S. Securities and Exchange Commission rules, two people familiar with the matter said. A Saudi Aramco spokesman and Mike Cline, a Gaffney Cline director, declined to comment. Degolyer and MacNaughton didn't respond to a request for comment. A spokeswoman for Baker Hughes Inc., which acquired Gaffney Cline in 2008, declined to comment. Saudi Aramco says it manages crude-oil reserves of about 261 billion barrels, a number that hasn't changed since the 1980s despite the kingdom pumping over 3 billion barrels a year without announcing new discoveries. The numbers have fueled skepticism about the actual size of the kingdom's reserves as the country embarks on a national plan to wean itself off oil dependence over the next decade. Gaffney Cline won't be allowed to reveal to investors the number of barrels the company manages, the people familiar with the matter said, but only how long its reserves would last under normal conditions. The most recent government assessment of Saudi Arabia's proved reserves --oil that is likely recoverable--came in October when the kingdom said its total reserves stood at 266.5 billion barrels in a prospectus for a $17 billion international bond. That number is 18% of the world's total and slightly higher than Aramco's because the company doesn't manage a small portion of Saudi Arabia's oil on the border with Kuwait. According to the bond prospectus, Saudi Arabia's crude reserves are likely to last another 70 years at average production levels of about 10.2 million barrels a day. The Saudi government said that estimate hadn't been checked by an independent audit and warned that energy reserves "cannot be measured in an exact manner." A Gaffney Cline confirmation of the kingdom's numbers could help investors feel more secure about Aramco's value. By comparison, Exxon Mobil Corp., the largest Western oil company, has reserves of about 25 billion barrels and a market value of about $350 billion. Details for the listing are still being hashed out, including where the company will be listed besides Riyadh. Sites discussed include New York, London, Hong Kong, Tokyo and Toronto. Saudi officials have said the IPO would bring a new level of transparency to a company known for its secrecy, including for the reserves it oversees for the kingdom. Robin Mills, a former BP PLC executive and now chief executive officer of Dubai-based consultant Qamar Energy, said audited reserves are a requirement for public energy companies listed in the U.S. and the U.K. He said Gaffney Cline was among several international consulting firms that assess reserves by examining technical data associated with oil wells, seismic records and production. The goal is "to determine how much oil can be economically extracted by current technology," Mr. Mills said. Technical information about Saudi Arabia's oil fields is a sensitive matter in the kingdom. In his autobiography, former Oil Minister Ali al-Naimi wrote indignantly about Exxon's attempts to learn "highly restricted information" about the kingdom's biggest oil field, Ghawar. "We managed to put an end to that," he wrote. Christopher M. Matthews contributed to this article. Write to Summer Said at summer.said@wsj.com and Bradley Olson at Bradley.Olson@wsj.com Credit: By Summer Said and Bradley Olson
Subject: Going public; Initial public offerings
Location: Saudi Arabia
People: Mohamed bin Salman, Prince of Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 26, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861815324
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861815324?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Baker Hughes Posts First Sequential Revenue Gain in Two Years; Continues to expect mid-2017 close to General Electric oil and gas deal
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Jan 2017: n/a.
Abstract: None available.
Full text: Baker Hughes Inc. said revenue rose sequentially in its latest quarter for the first time in two years, as energy prices stabilized. General Electric Co. is currently working to combine its oil-and-gas business with Baker Hughes to create a publicly traded energy powerhouse. Thursday, Baker Hughes said the regulatory review process is proceeding as planned and that it continues to expect a mid-2017 close. For Baker Hughes, the 2.4% third-quarter to fourth-quarter revenue gain was due to increased activity in North America, better-than-expected seasonal year-end product sales and pockets of growth internationally, mostly in the Middle East. Still, for the first half of 2017, Baker Hughes said it expects "more severe" activity declines in its offshore markets internationally, particularly deep water. It expects onshore revenue in North America to increase as customers increase activity. Energy companies have been hit in recent years by the decline in prices. Only in recent quarters have prices begun to stabilize. On a year-over-year basis, revenue declined across all of the company's units. The Organization of the Petroleum Exporting Countries and Russian officials said Sunday they were making good progress on their pledges to cut back crude-oil production and raise global prices. On Thursday, Baker Hughes Chief Executive Martin Craighead said on a call with analysts that he sees a "disconnect" between OPEC's production cut announcements and what his company is seeing on the ground in the Middle East. "We've seen no pullback that would, kind of correlate if you will, to the announcement on a production cut," he said, noting rising Middle East revenue and unchanged production goals from many customers. Still, on a year-over-year basis, revenue declined across all of the company's units. In all, Baker Hughes reported a loss of $417 million, or 98 cents a share, compared with a year-earlier loss of $1.03 billion, or $2.35 a share. The year-earlier quarter includes a large impairment and restructuring charge. Excluding that and other items, the adjusted per-share loss was 30 cents, compared with a year-earlier adjusted per-share loss of 21 cents. Revenue slumped 29% to $2.4 billion. Analysts expected an adjusted per-share loss of 11 cents and revenue of $2.37 billion, according to Thomson Reuters. Angie Sedita, an analyst at the investment bank UBS, said the profit miss was largely driven by tax rate fluctuations. Shares fell 0.9% in afternoon trading. Dan Molinski contributed to this article. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Financial performance; Losses; Oil service industry; Earnings; Energy industry
Location: Middle East North America
People: Craighead, Martin
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: General Electric Co; NAICS: 332510, 334290, 334512, 334519
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 26, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861825069
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861825069?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mexico Registered Small December Trade Surplus; Increase in shipments abroad of manufactured goods and higher oil prices enabled surplus
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Jan 2017: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexico chalked up a small trade surplus in December as growth in exports outpaced that of imports thanks to higher crude oil prices and an increase in shipments abroad of manufactured goods. December's $28 million trade surplus brought the trade deficit for the full-year to $13.13 billion, smaller than the $14.61 billion deficit in 2015, the National Statistics Institute said Thursday. Petroleum exports in the final month of the year rose almost 50% from December 2015 on a recovery in oil prices and higher volume of crude exports by state oil company Petróleos Mexicanos, which shipped out 1.115 million barrels a day of oil compared with around 1 million in the year-earlier month. Full-year petroleum exports fell 19% to $18.74 billion, while imports of natural gas, gasoline and other fuels were down 5.2% at $31.57 billion. The $12.82 billion deficit in petroleum products accounted for almost all of the overall trade gap in 2016. Exports of manufactured goods rose 4.6% in December from a year before to $29.62 billion, and were down 1.2% for the full year. The reliance on fuel imports, coupled with a sharp depreciation of the peso against the U.S. dollar, prompted the government to raise gasoline prices in January, which contributed to inflation reaching a four-year high mid-month. The weaker peso also had an impact on imports of non-oil consumer goods, which fell 12.7% in December and were down 6.6% in all of 2016. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Subject: International trade; Shipments; Trade surplus; Crude oil prices; Gasoline prices
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 26, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861831457
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861831457?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.K. Judge Blocks Nigeria Oil Spill Suits Against Shell; Ruling deals blow to efforts to seek damages for oil spills in the West African country
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Jan 2017: n/a.
Abstract: None available.
Full text: Royal Dutch Shell PLC can't be sued by two Nigerian communities in U.K. courts, a judge ruled Thursday, dealing a blow to efforts to seek damages in European courts for oil spills in the West African country. London's High Court ruled that Shell doesn't have legal responsibility for its subsidiary in Nigeria, a joint venture with the Nigerian government, which operates the British-Dutch company's assets there. Shell has pumped huge volumes of oil from Nigeria over decades, but its operations in the region have been plagued by sabotage , theft and oil spills that ravaged the local environment. Several communities are pursuing legal action against Shell in the U.K. and the Netherlands, claiming they can't get justice in Nigeria. Shell has said it cleans up all oil spills, regardless of the cause, but under Nigerian law it isn't required to pay compensation in spills caused by sabotage or theft. Shell welcomed Thursday's ruling, saying the cases should be heard in Nigeria. The Nigerian communities' law firm, Leigh Day, said it would appeal. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Oil spills
Location: Netherlands Nigeria United Kingdom--UK
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Leigh Day; NAICS: 541110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 26, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1861888982
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861888982?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Pause in Asia Following Big U.S. Rally; March Brent added a penny at $56.25 a barrel
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Jan 2017: n/a.
Abstract: None available.
Full text: Oil futures were little changed in Asia trading hours Friday, following a sharp rally in the New York session fueled by rising expectations of a production cut by big oil-producing countries. Light, sweet crude for March delivery gained seven cents, or 0.1%, to $53.85 a barrel in the Globex electronic session of the New York Mercantile Exchange. March Brent added a penny at $56.25 a barrel. Crude prices have been see-sawing between gains and losses in recent weeks, but pushed higher Thursday. Traders attributed the rally to technical buying, as well as mounting expectations that the Organization of the Petroleum Exporting Countries and its allies will follow through on their commitment to cut production. "The recent attempts to get prices below $50 have failed leaving the upside to be explored," said Stuart Ive, private client manager at OM Financial, adding: "Generally speaking you do not see U.S. stocks, the U.S. dollar and oil all increase in one day." Trading activity is likely to remain subdued in Asia in the coming days as financial institutions close down for the Chinese New Year holiday. Focus in the oil market has been largely elsewhere in recent months. Oil market action has been driven in large part by OPEC and its recent decision with its allies to cut a collective 2% of global crude supply, a move aimed at balancing the market following more than two years of low prices and excess inventories. Traders have been encouraged by promising signs of compliance with the November pact. Meantime, demand for oil imports in China remains resilient, and the U.S. is again ramping up production and rebuilding stubbornly high inventories. U.S. commercial crude inventories grew by 2.8 million-barrel in the week ended Jan. 20, the U.S. Energy Information Administration said Wednesday, exceeding a forecast by traders and analysts surveyed by The Wall Street Journal. In refined fuel markets, Nymex reformulated gasoline blendstock for February--the benchmark gasoline contract--fell 1 point to $1.5426 a gallon, while February diesel traded at $1.6450, 41 points higher. ICE gasoil for February changed hands at $492.50 a metric ton, down $1.50 from Thursday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Price increases; Crude oil
Location: United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862002846
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862002846?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Audit to Give Peek At Kingdom's Oil Reserves
Author: Said, Summer; Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 Jan 2017: B.10.
Abstract:
According to the bond prospectus, Saudi Arabia's crude reserves are likely to last another 70 years at average production levels of about 10.2 million barrels a day.
Full text: Saudi Arabia's state oil company has hired an energy consultant to assess its reserves of crude oil, people familiar with the matter said, opening a window to a closely guarded secret ahead of its initial public offering. The audit, now complete, by Gaffney, Cline & Associates, a U.K.-based consulting firm hired late last year, is a prerequisite for listing Saudi Arabian Oil Co., better known as Aramco. The listing could happen as soon as next year, and the size of Aramco's reserves will play a crucial role for investors to determine the worth of what some call the world's most valuable company. Saudi Deputy Crown Prince Mohammed bin Salman has said Aramco is valued at between $2 trillion and $3 trillion. Analysts said a public listing of 5% of Aramco could fetch between $100 billion and $150 billion, the most ever for an IPO. Aramco also has asked Dallas-based energy consultants DeGolyer & MacNaughton for assistance on the audit due to their experience with U.S. Securities and Exchange Commission rules, two people familiar with the matter said. A Saudi Aramco spokesman and Mike Cline, a Gaffney Cline director, declined to comment. DeGolyer & MacNaughton didn't respond to a request for comment. A spokeswoman for Baker Hughes Inc., which acquired Gaffney Cline in 2008, declined to comment. Saudi Aramco said it manages crude-oil reserves of about 261 billion barrels, a number that hasn't changed since the 1980s despite the kingdom pumping over three billion barrels a year without announcing new discoveries. The numbers have fueled skepticism about the actual size of the kingdom's reserves as the country embarks on a national plan to wean itself off oil dependence over the next decade. Gaffney Cline won't be allowed to disclose to investors the number of barrels the company manages, the people familiar with the matter said, but only how long its reserves would last under normal conditions. The most recent government assessment of Saudi Arabia's proven reserves -- oil that is likely recoverable -- came in October when the kingdom said its total reserves stood at 266.5 billion barrels in a prospectus for a $17 billion international bond. That number is 18% of the world's total and slightly higher than Aramco's because the company doesn't manage a small portion of Saudi Arabia's oil on the border with Kuwait. According to the bond prospectus, Saudi Arabia's crude reserves are likely to last another 70 years at average production levels of about 10.2 million barrels a day. The Saudi government said that estimate hadn't been checked by an independent audit and warned that energy reserves "cannot be measured in an exact manner." A Gaffney Cline confirmation of the kingdom's numbers could help investors feel more secure about Aramco's value. By comparison, Exxon Mobil Corp., the largest Western oil company, has reserves of about 25 billion barrels and a market value of about $350 billion. Details for the listing are still being hashed out, including where the company will be listed besides Riyadh. --- Christopher M. Matthews contributed to this article.
Credit: By Summer Said and Bradley Olson
Subject: Oil reserves
Location: Saudi Arabia
People: Mohamed bin Salman, Prince of Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Jan 27, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862034293
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862034293?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rises Despite Stockpile Jump
Author: McFarlane, Sarah; Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 Jan 2017: B.10.
Abstract:
"Many preliminary data points are suggesting that the cut agreement between OPEC and 11 other states has largely been adhered to," analysts at Schneider Electric wrote in a client note, pointing to physical prices that indicate that supplies of Dubai crude and other regional crudes have fallen.
Full text: Oil futures rose Thursday, as traders shrugged off another big jump in U.S. oil inventories and remained focused on promised production cuts. U.S. crude futures gained $1.03, or 1.95%, to settle at $53.78 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose $1.16, or 2.11%, to $56.24 on London's ICE Futures Exchange. The U.S. Energy Information Administration said Wednesday that oil inventories rose 2.8 million barrels in the week ended Jan. 20, marking the third consecutive weekly increase. The increase underscored the challenges facing the Organization of the Petroleum Exporting Countries in cutting supply and bringing global inventories in check. But analysts said prices remained relatively resilient despite the increase in U.S. petroleum supplies -- a signal to buyers that helped reverse Wednesday's losses. "It didn't fall that much or that hard on bearish stats -- there are still reasons to go out and buy it," said Ric Navy, senior vice president for energy futures at R.J. O'Brien & Associates. Indications that demand is strengthening in Asia and that major producers are complying with their promised cuts are helping to boost prices, which have been rangebound in recent days. "It's much more of an international story," said Mark Anderle, director of supply and trading at TAC Energy. "If anything, the U.S. is probably the only thing holding crude back." "If supply in the rest of the world is tightening, we're probably just along for the ride," he added. OPEC and its allies are looking to reduce global supplies by about 2% starting from January, after an agreement was struck late in 2016. Early indications have shown progress toward that goal. "Many preliminary data points are suggesting that the cut agreement between OPEC and 11 other states has largely been adhered to," analysts at Schneider Electric wrote in a client note, pointing to physical prices that indicate that supplies of Dubai crude and other regional crudes have fallen. Some skepticism remains whether the cuts will all materialize, given OPEC's patchy record on similar deals. The organization is due to publish January production data Feb. 13. --- Dan Strumpf contributed to this article. Credit: By Sarah McFarlane and Alison Sider
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Jan 27, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862034298
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862034298?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Fall as Production Increases; Strong drilling activity around the world weighs on market
Author: Puko, Timothy; McFarlane, Sarah; Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Jan 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications An earlier version of this article incorrectly stated said light, sweet crude settled down 0.6%. It settled down 1.1% (Jan. 27) Oil futures eased on Friday, with strong drilling activity around the world, especially in the U.S., weighing on the market. Light, sweet crude for March delivery settled down 61 cents, or 1.1%, at $53.17 a barrel on the New York Mercantile Exchange. It lost 5 cents, or 0.1%, for the week. Brent, the global benchmark, settled down 72 cents, or 1.3%, at $55.52 a barrel. It gained 3 cents, or 0.1%, for the week. Volatility was low, with many traders betting against prices in anticipation of the U.S. rig count data. Prior reports have shown sharp increases in recent weeks adding to a steady increase since the summer, suggesting U.S. production may begin to rise again soon. The number of rigs drilling for oil in the U.S. rose by 15 in the past week to 566 , according to oil-field services company Baker Hughes Inc. "Last week, the U.S. rig count had a much larger increase than expected; that data will be a weekend risk as another surge will negatively impact the start of next week," said Olivier Jakob, analyst at Petromatrix. Losses, however, didn't deepen on the news and the market rebounded slightly just before settlement. That could have been from traders who move based on momentum betting that prices would hold their recent path, said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. Oil has settled between about $50 and $54 a barrel since the beginning of December, and recently usually held above $52. "It's proven a trading range," Mr. Navy. A rally had pushed oil above $50 a barrel after the Organization of the Petroleum Exporting Countries and other exporters agreed to cut output by 1.8 million barrels a day under an agreement aimed at easing a glut. Public claims from the group last weekend that initial compliance with the deal has been high did little to keep the rally going. U.S. stockpiles are still growing, damping investor enthusiasm in recent weeks. The larger fear is that the higher prices may allow U.S. producers to drill profitably again and fill in a lot of what OPEC cuts. "We saw a pickup in the rig count and we see a pickup in oil production levels," said Hans van Cleef, analyst at ABN Amro. "That of course caps the upside in oil prices." Even within OPEC there are signs that the cuts may be ephemeral. Baker Hughes Inc. on Thursday reported rising revenue from the Middle East, and its chief executive said he has seen no pullback in activity, with their clients their sticking to long-term production goals. "This suggests two things: first, that the participating countries see the production decrease as temporary and are ready to increase flows quickly," analysts at Schneider Electric SA in Louisville, Ky., said in a note Friday. "Second, this activity may limit the market upside as the market in relatively short order could be flooded yet again." Gasoline futures lost 1% to $1.5271 a gallon. It finished the week down 2.5%, its fourth consecutive losing week, the longest such streak since June. Diesel futures fell 1.3% to $1.6189 a gallon. It finished the week down 1.6%, its fourth consecutive losing week, the longest such streak since July. Write to Timothy Puko at tim.puko@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Dan Strumpf at daniel.strumpf@wsj.com Credit: By Timothy Puko, Sarah McFarlane and Dan Strumpf
Subject: Currency; Petroleum production; Futures; Crude oil prices; Market shares; Supply & demand; American dollar
Location: China United States--US Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862099574
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862099574?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Shale Won't Pilfer OPEC, Russian Markets, Former Energy Minister Says; Russia's Igor Yusufov says global market can handle rising U.S. oil production
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Jan 2017: n/a.
Abstract: None available.
Full text: A former Russian energy minister on Friday dismissed concerns U.S. shale oil companies may try to use production cuts by Russia and nations in the Middle East to swoop in and steal market share, saying the Americans know there are some no-go zones. Igor Yusufov, Russia's energy minister from 2001 to 2004, said U.S. shale producers wouldn't attempt to enter core OPEC and Russia markets where prices are too low for them to compete. "The fact is that shale oil and gas are doing well in markets that start from a certain price," he said in an email exchange with The Wall Street Journal. The Organization of the Petroleum Exporting Countries, or OPEC, along with Russia and other non-OPEC producers, agreed late last year to reduce their oil production levels in an effort to cut excess crude oil supplies and boost global prices. The imbalance between supply and prices jolted markets in late 2014, sending prices plunging before stabilizing recently at around $53 a barrel, about half their 2013 levels. Some market observers worry that even if production levels are being reduced as promised by OPEC and Russia, free-market producers from the U.S. and Canada could seek to fill the gap, rendering useless the deal's aim of reducing overall supply. As evidence, they point to U.S. data that show a recent surge in oil and gas rig activity in places like Texas and Oklahoma, and U.S. production figures that reached nine million barrels a day last week, half a million barrels a day more than just three months ago. Mr. Yusufov, who was also a top official at state-controlled oil company Rosneft and who now heads Moscow-based investment company Fund Energy, said the global market can handle rising U.S. oil production. "The global demand for fuel will grow due to economic progress in Asia and partially in Europe," he said. "In my opinion there will be a place for all oil and gas producers in the market." Mr. Yusufov said investors will have to wait and see if the promised cuts by OPEC, Russia and others are realized, but he said he is optimistic. "Agreements of this kind are not binding for their participants, they merely indicate the readiness and the will of producers to stabilize the market," he said. "And we see this will happen." As energy minister in 2001, Mr. Yusufov said he worked for a similar agreement with OPEC at a meeting in Vienna in which Russia agreed to cut output by 140,000 barrels a day. "In 2001, the goal was achieved: The oil prices stabilized in the desired $20-$25 corridor we saw then as justified pricing." The current plan calls for Russia to cut output by 300,000 barrels a day. Mr. Yusufov, 60 years old, expressed support for U.S. President Donald Trump's nominee for secretary of state, former Exxon Chief Executive Rex Tillerson, who he said he has known since 2002 when the two worked together on oil projects in Russia. The former minister said he would like to see some type of Russian-U.S. energy summit, perhaps involving Mr. Tillerson, that could promote U.S. oil investment in Russia. The U.S. leveled sanctions on Russia following Moscow's annexation of the Black Sea peninsula of Crimea in 2014 and its backing of separatists in eastern Ukraine. Pointing to what he called record spending by the Chinese and others last year in Russia's energy sector, Mr. Yusufov said he hopes this "massive investment into Russian oil and gas sector without participation of American companies would make decision makers both in Moscow and Washington analyze the present situation." Mr. Trump may speak by phone Saturday with Russian President Vladimir Putin, according to Russian news agencies. It would mark their first conversation since Mr. Trump took office a week ago. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Petroleum production; Oil shale; Energy industry; Supply & demand
Location: Middle East Texas Russia United States--US Canada Asia Europe Oklahoma
Company / organization: Name: OAO Rosneft; NAICS: 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 27, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862136926
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862136926 ?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 15, Baker Hughes Says; Number of rigs drilling for oil in the U.S. rises to 566
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Jan 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by 15 in the past week to 566, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production, and the rig count receded. The rig count has generally been climbing since the summer. The nation's gas-rig count rose by 3 to 145 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell by 3 from last week to 21, which is 7 fewer than a year ago. On Friday, oil futures eased amid the backdrop of strong drilling activity around the world, especially in the U.S, as investors have been concerned about oversupply. U.S. crude-oil prices fell 1.8% to $52.82 a barrel. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862156831
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862156831?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Nigeria Court Orders Shell and Eni to Give Up Oil Field Amid Corruption Probe; Acquisition of block in 2011 being investigated by Italian prosecutors
Author: Kent, Sarah; Sylvers, Eric
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Jan 2017: n/a.
Abstract: None available.
Full text: A Nigerian court has ordered Royal Dutch Shell PLC and Eni SpA to give up control of a large offshore oil block amid an investigation into their acquisition of the asset for over $1 billion, Nigerian authorities said. The order is the latest development in a saga that has stretched for years across courtrooms in the U.K., Italy and Nigeria in an alleged corruption scandal involving the two oil giants and Nigerian officials and businessmen. Eni said it was aware of reports about the court order, but the company hadn't received notification to relinquish control of the oil field. It denied any wrongdoing in relation to the acquisition. A spokesperson for Shell said the company couldn't comment because it hasn't had a chance to review the order. "We are aware of the Italian Prosecutor's investigation and we hope to show that there is no basis to prosecute Shell," the spokesperson said. "Shell takes this matter seriously and is cooperating with the authorities." Italian prosecutors say in investigative records viewed by The Wall Street Journal that Eni executives and Shell were allegedly involved in a corrupt scheme to secure the oil block. No charges have been filed. Shell and Eni gained control of the block in 2011 after paying $1.3 billion, capping off roughly a decadelong ownership dispute between Nigeria's government, Shell and Malabu Oil and Gas, a Nigerian company owned by a former oil minister, Dan Etete. Malabu was assigned the block in the late 1990s when the country was under military dictatorship. Though the money Shell and Eni originally paid went to the Nigerian government, much of it was later allegedly transferred to Mr. Etete's company and used to pay kickbacks to executives and Nigerian officials, according to an Italian investigation. A lawyer for Mr. Etete wasn't immediately available to comment. Italian prosecutors aren't investigating Malabu, according to Italian court documents. Nigeria's financial-crime investigators, the Economic and Financial Crimes Commission, said the Nigerian Federal High Court ordered Shell and Eni's oil license to be turned over to the government "pending investigation and prosecution of suspects" in the inquiry, which it referred to as the "Malabu Oil scam." The commission sought Thursday's court order as part of its own investigation, according to court documents. Shell and Eni's Nigerian units could face charges of conspiracy, bribery, official corruption and money laundering, according to the commissions' affidavit. Nigeria's state oil company Nigerian National Petroleum Corp., or NNPC, would be responsible for managing the oil license, according to an oil ministry's spokesman. An NNPC spokesman said the company hadn't yet been served with the ruling and would study the necessary actions once it has been received. Write to Sarah Kent at sarah.kent@wsj.com and Eric Sylvers at eric.sylvers@wsj.com Credit: By Sarah Kent and Eric Sylvers
Subject: Criminal investigations; Studies; Corruption
Location: Italy Nigeria United Kingdom--UK
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Eni SpA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 27, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862176017
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862176017?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Wanted: Swing Producer; Volatility in the price of the world's most essential commodity--oil--is perilous. Buckle up for our new boom and bust era. R. Tyler Priest reviews "Crude Volatility" by Robert McNally.
Author: R. Tyler Priest
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Jan 2017: n/a.
Abstract: None available.
Full text: 'The problem of oil, it might be tersely said, is that there is always too much or too little." This 1937 observation by American economist Myron Watkins remains equally valid in today's topsy-turvy hydrocarbon world. Too little oil means rising prices and frantic new production, which leads to too much oil, falling prices and idled drilling rigs. This leads, again, to too little oil and restarts the cycle. Yet what is most striking in looking back at the history of oil prices is their relative stability during most of the 20th century. From 1880 to 1973, as Robert McNally explains in his splendid study "Crude Volatility: The History and the Future of Boom-Bust Oil Prices," large and powerful entities played the role of "swing producer," adjusting oil supply in response to changing market forces in order to stabilize prices. The salient feature of the global oil market over the past 40 years is that there has been no such producer, no one able and willing to reconcile supply and demand except for a brief moment in 1982-85 when Saudi Arabia assumed this responsibility. As a result, we have seen dramatic oil-price fluctuations, especially during the past 15 years. Volatility in the price of the world's most essential commodity is perilous. It whipsaws revenues for the more than 90 countries that rely heavily on petroleum taxes. It causes household budgets and employment rolls to swell and shrink unpredictably. It spreads uncertainty to every sector of the global economy that relies on affordable transportation. An energy consultant and former adviser to President George W. Bush, Mr. McNally is both a skillful historian and an astute analyst. He has compiled two novel data sets, one a continuous price series for U.S. crude going back to 1859 and another that tracks global spare production capacity since 1955. Reconstructing the relationship between the two, he compellingly shows that control over the bulk of low-cost production at the wellhead level has been the key to price stability. For readers who do not have the time to tackle Daniel Yergin's 900-page standard-bearer, "The Prize" (1990), "Crude Volatility" is a concise alternative for understanding the grand narrative of oil. Crude Volatility By Robert McNally Columbia, 315 pages, $35 What to Read This Week The naked Montaigne; sex and art in 1950s Manhattan; why flyover country is fated to lead; Lester Young and Jack Kerouac get high; the most progressive household in America; Paul Auster's big one; the chance to play God; the woman that wrote like a Colt .45; and much more. Mr. McNally divides oil's history into five eras. The first lasted from 1859 to 1880 and witnessed severe price gyrations and vicious booms and busts. Notwithstanding the tremendous demand for cheap kerosene made from oil, too many drillers and refiners made it a precarious business. John D. Rockefeller and Standard Oil brought order out of chaos in the 1880s by creating a monopoly in refining and then integrating backward into oil production and transportation. Although Standard Oil's ability to dictate crude prices has been overstated, it did possess the power to move them. But Rockefeller, Mr. McNally emphasizes, was more interested in stable prices than high ones. "Consumers paid a higher price for oil than they would have under pure competition--but since oil prices fell on trend during the Rockefeller era, the public did not notice what it was missing." The government's dissolution of Standard Oil in 1911 broke up a business behemoth that many Americans viewed as corrupt and dangerous, but it also eliminated the stabilizing force in the oil market. Price volatility returned in the late 1920s after a surge of new production from huge fields in Texas, Oklahoma, California, Mexico and Venezuela proved more than ample to supply the growing fleets of ships and automobiles. The Great Depression amplified the new cycle of boom and bust by driving down the per barrel price of crude from $1 to 10 cents. Price stabilization returned in the mid-1930s thanks to an unlikely source--the state of Texas. "Of all the things Texans are famous for, limiting government and producing oil might be paramount," writes Mr. McNally. "Therefore, it is all the more remarkable that some eighty years ago Texan officials and oil drillers devised and imposed the most heavy-handed . . . quota regime the world has ever seen." Enforced by the Texas Railroad Commission (TRC), "prorationing" restricted production below demand, propped up prices and conserved "spare capacity," which could be called upon during emergencies, like the 1956 Suez Crisis and the Six-Day War in 1967. The "Texas Era of Price Stability," coordinated at home by the TRC and abroad by the interlocking concessions of the "Seven Sisters"--a group of the large oil companies that eventually became BP, Gulf, Chevron, Texaco, Royal Dutch Shell, Exxon and Mobil--lasted until March 1972, when the TRC allowed unrestricted production to meet rising demand and signaled the exhaustion of U.S. spare capacity. OPEC, founded in 1960 to emulate the TRC, supplanted it as the only entity capable of swinging the market. OPEC's 1973 production cuts and price increases affirmed the transfer of power. Despite its spare capacity, OPEC has never been able to act as a consistent price stabilizer. The expansion of production in places like Alaska, the North Sea and Mexico in the 1970s diminished its market dominance. The displacement of long-term contracts by spot and futures trading in the 1980s meant that prices were increasingly determined by the market rather than administered as they had been in the Texas Era. And the divisions within OPEC--particularly the cheating on production quotas by members--weakened the organization's ability to act in concert. The chapters in "Crude Volatility" covering the past 35 years are a foundation on which future oil historians will build. Mr. McNally narrates the price effects of wars in the Mideast, financial crises, speculative trading, the explosion of Chinese demand and the shale revolution and deftly brings us into today's new boom-and-bust era. "For the first time in over eighty years," he writes, "we appear to have what many have craved and clamored for: a genuinely free, unmanaged market for crude oil, the world's most strategic commodity." Far from something to celebrate, he sees this as guaranteeing that oil prices will oscillate between $30 and $100 per barrel for the foreseeable future. Volatility may be reduced by collecting better data on oil production, by coordinating strategic reserves to guard against disruptions, and by encouraging the traders and speculators who help to mute excessive price swings. But these will only partially quell the vigorous ups and downs of an open market. For now, we should all buckle up for the ride. Mr. Priest is associate professor of history at the University of Iowa. Credit: By R. Tyler Priest
Subject: Petroleum production; Commodities; Crude oil prices; Production capacity; Price increases; Energy economics; Volatility
Location: Texas Mexico United States--US Saudi Arabia California
People: Bush, George W
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 27, 2017
Section: Arts
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862192342
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862192342?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Big Oil Firms Look to Save, While Smaller Upstarts Want to Spend; Shale oil drillers are boldly raising annual budgets for a quick recovery, but international rivals chart a more cautious course
Author: Olson, Bradley; Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Jan 2017: n/a.
Abstract: None available.
Full text: Big oil companies and smaller U.S. upstarts are plotting sharply divergent paths as they plan spending for 2017 after a modest recovery in crude prices. While shale-oil drillers are boldly raising annual budgets to come roaring back in Texas, New Mexico and North Dakota, international oil giants such as Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell PLC and BP PLC are planning to hold back spending, charting a cautious path to recovery. The widening gap in plans reflects the different expectations investors have for the companies, and the companies' separate business models, as much as their differing views on risk and the future price of oil. It could have broad implications for global markets, just as analysts expect crude prices to enter into a new, more stable era. Chevron, which reported fourth-quarter profits of $415 million on Friday, disclosed plans to slash spending by about 15% to about $20 billion. French giant Total SA in December told analysts it will spend between $15 billion and $17 billion this year, a slight decline from 2016. In all, spending at major oil companies is expected to decline by as much as 8% this year, according to consultancy Wood Mackenzie. A swift return to shale fields could yield enough crude to erase any benefit of an expected production cut agreed to late last year by the Organization of the Petroleum Exporting Countries. Rising costs brought about by a rush to drill would also imperil any recovery. The major oil companies' caution comes in part from skepticism that oil prices will rebound sufficiently, as well as a corporate structure focused on multibillion-dollar megaprojects that start and stop slowly, and need stability to resume, analysts said. The companies, which have deepened their borrowing to pay for operations and dividends, are also seeking to show investors that they can reduce debt levels at a price of $50 a barrel. Some believe the rest of the industry should follow suit. "Many of the biggest companies are recalibrating to live within their means," said Gianna Bern, a former trader for BP who teaches finance at the University of Notre Dame. "The sector became a victim of its own success, bringing about the crash in crude oil prices, so the big players want to avoid doing that again." So far, investors have responded positively. Big oil share prices are doing better than they have in years. Shell and BP are both trading near levels not seen since 2014, when oil began to plummet. Chevron has risen more than 40% from lows hit last January and Exxon is up about 15%. But investors have responded even more positively to shale companies. Continental Resources Inc., a company focused on drilling in North Dakota and Oklahoma, has nearly tripled in value over the past year and plans to boost drilling and increase spending by about 75% in 2017. A group of similar companies on the S&P 500 index is up 60% in the last 12 months. "We are entering a new chapter in oil prices," said John Hess, the chief executive of Hess Corp., which plans to add four rigs in North Dakota this year and sees prices rising due to reduced supply and strong demand. "Our company is extremely well positioned for this improving price environment." Investors in big oil companies generally look to them for stability and steady dividend payments, while they seek out shale producers for growth. Debt reduction is less of a strategic imperative for the smaller firms, given those different expectations. North American drilling companies have surged as they lay out plans to add drilling rigs, even though many have yet to show they can post consistent profits. In 2017, exploration and production companies will spend $43 billion more than they receive in cash from operations, according to consulting firm AlixPartners, a cash-flow gap that speaks to continued challenges of successful operations at today's oil prices. Overall, U.S. independent producers could increase investment by more than 25% this year if oil prices remain above $50 a barrel, according to Wood Mackenzie. That won't be true at Exxon, Chevron, BP and Shell. Exxon leaders, including Rex Tillerson, the former chief executive, have said for months that vast amounts of crude currently held in storage will have to run down before prices can rise sustainably. Other executives, such as Chevron Chief Executive John Watson, have pushed the company to spend a majority of its investments on developments that will produce cash flow within two years. BP Chief Executive Bob Dudley has said he is working to ensure his company can meet expenses and pay dividends with cash from operations at $50 to $55 a barrel. "We'll be very selective," Mr. Dudley said in an interview earlier this month in Davos, Switzerland. "What we don't want to do is lose the discipline we've built in." BP has said it expects spending to be between $15 billion and $17 billion this year, but leaning more toward the lower half of the range. That is a 30% to 40% drop compared with peak levels in 2013. Shell is planning to spend $25 billion to $30 billion each year until the end of the decade, but for 2017 it is likely to be closer to $25 billion. Exxon hasn't disclosed specific spending plans for 2017. A spokesman declined to comment in advance of its quarterly earnings Tuesday. Lower spending levels have sparked some fears among investors and oil analysts of supply shortages in coming years, although some executives have played down that possibility. Many investors expect the largest oil companies to use any excess cash to pay down debt levels that swelled after oil prices fell from more than $100 in 2014 to below $30 a barrel last year. Such borrowing was one of the reasons ratings firms moved to downgrade the credit of the companies in 2016. "The big firms will be judicious in making new investments, as they may have a different perspective on how OPEC will respond to the new surge in U.S. activity," said William Arnold, a former banker and Shell executive who teaches at Rice University. While Chevron has disclosed plans to ramp up drilling in Texas, and the other major oil companies continue to develop robust operations across U.S. shale fields, their predominant focus is in giant, multibillion-dollar projects. That makes it difficult for them to boost output and spending quickly. So their austerity strategy may be driven as much by necessity as a difference of views on how to respond to slightly higher prices, analysts said. "The volume of capital individual producers need to go back into a shale field is microscopic compared with what the biggest oil companies need for their large-scale projects," said Stephen Arbogast, director of the Energy Center at the University of North Carolina-Chapel Hill. "They will be less willing to assume the worst is over and that we're back to better days." Write to Sarah Kent at sarah.kent@wsj.com Credit: By Bradley Olson and Sarah Kent
Subject: Oil shale; Corporate profits; Investments; Budgets; Crude oil prices; Colleges & universities; Drilling; Debt management
Location: Texas North Dakota New Mexico United States--US
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: University of Notre Dame; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 29, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862476056
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862476056?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Big Oil Firms Look to Save, While Smaller Upstarts Want to Spend; Shale oil drillers are boldly raising annual budgets for a quick recovery, but international rivals chart a more cautious course
Author: Olson, Bradley; Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2017: n/a.
Abstract: None available.
Full text: Big oil companies and smaller U.S. upstarts are plotting sharply divergent paths as they plan spending for 2017 after a modest recovery in crude prices. While shale-oil drillers are boldly raising annual budgets to revive drilling in Texas, New Mexico and North Dakota, international oil giants such as Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell PLC and BP PLC are planning to hold back spending, charting a cautious path to recovery. One reason for tighter purse strings at the bigger companies is a concern that the recent rebound in oil prices has run out of steam or could even reverse if members of the Organization of the Petroleum Exporting Countries fail to follow through on promised output cuts. Another threat: Even if OPEC does make good on its pledge, the smaller firms focusing on U.S. wells could respond by replacing the barrels the cartel takes off the market, keeping a ceiling on oil prices over the longer term. The resilience of some shale-oil producers during the energy downturn--and their ability to once again tap capital markets as oil prices stabilize--has added complexity to the decision making at their bigger brethren, which traditionally have been focused on multibillion-dollar megaprojects that start and stop slowly. The big firms are catering to the demands of their largely conservative investor base. That forces the companies to focus on profits and debt reduction in order to maintain share-price stability and steady dividend payments. Investors in shale companies, meanwhile, are focused mainly on production growth. That gives these companies more flexibility to return to U.S. oil fields but it leaves the weakest vulnerable when oil prices drop, as the more than 100 bankruptcies during the past two years showed. "The volume of capital individual producers need to go back into a shale field is microscopic compared with what the biggest oil companies need for their large-scale projects," said Stephen Arbogast, director of the Energy Center at the University of North Carolina-Chapel Hill. "[Big oil companies] will be less willing to assume the worst is over and that we're back to better days." Chevron, which reported a fourth-quarter profit of $415 million on Friday, disclosed plans to slash spending by about 15% to about $20 billion. French giant Total SA in December told analysts it would spend between $15 billion and $17 billion this year, a slight decline from 2016. In all, spending at major oil companies is expected to decline by as much as 8% this year, according to consulting firm Wood Mackenzie. The companies, which have deepened their borrowing to pay for operations and dividends, also are seeking to show investors that they can reduce debt levels with oil prices above $50 a barrel. Some executives and analysts believe the rest of the industry should follow suit. The U.S. crude-oil benchmark contract closed at $53.17 a barrel Friday. "Many of the biggest companies are recalibrating to live within their means," said Gianna Bern, a former trader for BP who teaches finance at the University of Notre Dame. "The sector became a victim of its own success, bringing about the crash in crude oil prices, so the big players want to avoid doing that again." So far, investors have responded positively. Share prices of big oil firms are doing better than they have in years. Shell and BP are both trading near levels not seen since 2014, when oil began to plummet. Chevron has risen more than 40% from lows hit last January, and Exxon is up about 15%. But investors are even more bullish on shale companies. Continental Resources Inc., a company focused on drilling in North Dakota and Oklahoma, has nearly tripled in value during the past year and plans to boost drilling and increase spending by about 75% in 2017. A group of similar companies in the S&P 500 index is up 60% in the last 12 months. "We are entering a new chapter in oil prices," said John Hess, the chief executive of Hess Corp., which plans to add four rigs in North Dakota this year and expects prices to rise due to reduced supply and strong demand. "Our company is extremely well positioned for this improving price environment." North American drilling companies have surged as they lay out plans to add drilling rigs, even though many have yet to show they can post consistent profits. In 2017, big and small companies will spend $43 billion more in their production businesses than they receive in cash from operations, according to estimates by consulting firm AlixPartners. That cash-flow gap speaks to continued challenges of successful operations at today's oil prices. Overall, U.S. independent producers could increase investment by more than 25% this year if oil prices remain above $50 a barrel, according to Wood Mackenzie. That won't be true at Exxon, Chevron, BP and Shell. Exxon leaders, including Rex Tillerson, the former chief executive, have said for months that vast amounts of crude currently held in storage would have to run down before prices can rise sustainably. Chevron CEO John Watson has pushed the company to spend most of its investments on developments that will produce cash flow within two years. BP CEO Bob Dudley has said he is working to ensure his company can meet expenses and pay dividends with cash from operations at $50 to $55 a barrel. "We'll be very selective," Mr. Dudley said in an interview earlier this month in Davos, Switzerland. "What we don't want to do is lose the discipline we've built in." BP has said it expects spending to be between $15 billion and $17 billion this year, but is leaning toward the lower half of the range. That is a 30% to 40% drop compared with peak levels in 2013. Shell is planning to spend $25 billion to $30 billion each year until the end of the decade, but for 2017 it is likely to be closer to $25 billion. Exxon hasn't disclosed specific spending plans for 2017. A spokesman declined to comment in advance of its quarterly earnings Tuesday. Spokesmen for BP and Shell also declined to comment. Lower spending levels have sparked some fears among investors and oil analysts of supply shortages in coming years, although some executives have played down that possibility. Many investors expect the largest oil companies to use any excess cash to pay down debt levels that swelled after oil prices fell from more than $100 in 2014 to below $30 a barrel last year. Such borrowing was one of the reasons ratings firms moved to downgrade the credit of the companies in 2016. "The big firms will be judicious in making new investments, as they may have a different perspective on how OPEC will respond to the new surge in U.S. activity," said William Arnold, a former banker and Shell executive who teaches at Rice University. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Bradley Olson and Sarah Kent
Subject: Corporate profits; Colleges & universities; Investments; Budgets; Crude oil prices; Debt management; Consulting firms
Location: North Dakota Texas New Mexico United States--US
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 30, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862625542
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862625542?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Futures Extend Falls; Brent crude on London's ICE Futures exchange fell 29 cents to $55.23 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2017: n/a.
Abstract: None available.
Full text: Oil futures fell on Monday on rising U.S. oil output, extending a slide from the end of last week. On the New York Mercantile Exchange, light, sweet crude futures traded at $52.89 a barrel at 0400 GMT, down 28 cents in the Globex electronic session. Brent crude on London's ICE Futures exchange fell 29 cents to $55.23 a barrel. "The rise in U.S. output should not be unexpected; however we expect the reductions being made by OPEC [the Organization of the Petroleum Exporting Countries] will far exceed any rise in the U.S. and quickly reduce the global inventory that has been built up over the past two years," ANZ Bank said in a report. Oil-market action has largely been driven by OPEC and its recent decision with its allies to cut a collective 2% of global crude supply, a move aimed at balancing the market following more than two years of low prices and excess inventories. "Crude oil is stuck in a range. Even the triggers for moving crude prices are benign," says Gnanasekar Thiagarajan, director of Commtrendz Risk Management. Crude oil prices have been seesawing between gains and losses in recent weeks. "The rebalancing in the market will certainly happen, but with supplies increasing in the U.S., prices will move in a tight range," said Mr. Thiagarajan, adding that prices may move with a "bullish bias" through 2017 because of the OPEC pact on trimming output. Credit: By Biman Mukherji
Subject: Futures; Crude oil
Location: United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 30, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862632671
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862632671?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Small Oil Firms Spend As Titans Hold Back
Author: Olson, Bradley; Kent, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]30 Jan 2017: A.1.
Abstract:
While shale-oil drillers are boldly raising annual budgets to revive drilling in Texas, New Mexico and North Dakota, international oil giants such as Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell PLC and BP PLC are planning to hold back spending, charting a cautious path to recovery.
Full text: Big oil companies and smaller U.S. upstarts are plotting sharply divergent paths as they plan spending for 2017 after a modest recovery in crude prices. While shale-oil drillers are boldly raising annual budgets to revive drilling in Texas, New Mexico and North Dakota, international oil giants such as Exxon Mobil Corp., Chevron Corp., Royal Dutch Shell PLC and BP PLC are planning to hold back spending, charting a cautious path to recovery. One reason for tighter purse strings at the bigger companies is a concern that the recent rebound in oil prices has run out of steam or could even reverse if members of the Organization of the Petroleum Exporting Countries fail to follow through on promised output cuts. Another threat: Even if OPEC does make good on its pledge, the smaller firms focusing on U.S. wells could respond by replacing the barrels the cartel takes off the market, keeping a ceiling on oil prices over the longer term. The resilience of some shale-oil producers during the energy downturn -- and their ability to once again tap capital markets as oil prices stabilize -- has added complexity to the decision making at their bigger brethren, which traditionally have been focused on multibillion-dollar megaprojects that start and stop slowly. The big firms are catering to the demands of their largely conservative investor base. That forces the companies to focus on profits and debt reduction in order to maintain share-price stability and steady dividend payments. Investors in shale companies, meanwhile, are focused mainly on production growth. That gives these companies more flexibility to return to U.S. oil fields but it leaves the weakest vulnerable when oil prices drop, as the more than 100 bankruptcies during the past two years showed. "The volume of capital individual producers need to go back into a shale field is microscopic compared with what the biggest oil companies need for their large-scale projects," said Stephen Arbogast, director of the Energy Center at the University of North Carolina-Chapel Hill. "[Big oil companies] will be less willing to assume the worst is over and that we're back to better days." Chevron, which reported a fourth-quarter profit of $415 million on Friday, disclosed plans to slash spending by about 15% to about $20 billion. French giant Total SA in December told analysts it would spend between $15 billion and $17 billion this year, a slight decline from 2016. In all, spending at major oil companies is expected to decline by as much as 8% this year, according to consulting firm Wood Mackenzie. The companies, which have deepened their borrowing to pay for operations and dividends, also are seeking to show investors that they can reduce debt levels with oil prices above $50 a barrel. Some executives and analysts believe the rest of the industry should follow suit. The U.S. oil benchmark contract was $53.17 a barrel Friday. "Many of the biggest companies are recalibrating to live within their means," said Gianna Bern, a former trader for BP who teaches finance at the University of Notre Dame. "The sector became a victim of its own success, bringing about the crash in crude oil prices, so the big players want to avoid doing that again." So far, investors have responded positively. Share prices of big oil firms are doing better than they have in years. Shell and BP are both trading near levels not seen since 2014, when oil began to plummet. Chevron has risen more than 40% from lows hit last January, and Exxon is up about 15%. But investors are even more bullish on shale companies. Continental Resources Inc., a company focused on drilling in North Dakota and Oklahoma, has nearly tripled in value during the past year and plans to boost drilling and increase spending by about 75% in 2017. A group of similar companies in the S&P 500 index is up 60% in the last 12 months. "We are entering a new chapter in oil prices," said John Hess, the chief executive of Hess Corp., which plans to add four rigs in North Dakota this year and expects prices to rise due to reduced supply and strong demand. "Our company is extremely well positioned for this improving price environment." North American drilling firms have surged as they make plans to add rigs, though many have yet to show they can post consistent profits. In 2017, big and small companies will spend $43 billion more in their production businesses than they receive in cash from operations, according to estimates by consulting firm AlixPartners. That cash-flow gap speaks to continued challenges of successful operations at today's oil prices. Overall, U.S. independent producers could increase investment by more than 25% this year if oil prices remain above $50 a barrel, according to Wood Mackenzie. That won't be true at Exxon, Chevron, BP and Shell. Exxon leaders, including Rex Tillerson, the former chief executive, have said for months that vast amounts of crude currently held in storage would have to run down before prices can rise sustainably. Chevron CEO John Watson has pushed the company to spend most of its investments on developments that will produce cash flow within two years. BP CEO Bob Dudley has said he is working to ensure his company can meet expenses and pay dividends with cash from operations at $50 to $55 a barrel. "We'll be very selective,"Mr. Dudley said in an interview earlier this month in Davos, Switzerland. "What we don't want to do is lose the discipline we've built in." BP has said it expects spending to be between $15 billion and $17 billion this year, but is leaning toward the lower half of the range. That is a 30% to 40% drop compared with peak levels in 2013. Shell is planning to spend $25 billion to $30 billion each year until the end of the decade, but for 2017 it is likely to be closer to $25 billion. Exxon hasn't disclosed specific spending plans for 2017. A spokesman declined to comment in advance of its quarterly earnings Tuesday. Spokesmen for BP and Shell also declined to comment. Lower spending levels have sparked some fears among investors and oil analysts of supply shortages in coming years, although some executives have played down that possibility. Many investors expect the largest oil companies to use any excess cash to pay down debt levels that swelled after oil prices fell from more than $100 in 2014 to below $30 a barrel last year. Such borrowing was one of the reasons ratings firms moved to downgrade the credit of the companies in 2016. "The big firms will be judicious in making new investments, as they may have a different perspective on how OPEC will respond to the new surge in U.S. activity," said William Arnold, a former banker and Shell executive who teaches at Rice University. Credit: By Bradley Olson and Sarah Kent
Subject: Small business; Crude oil prices; Petroleum industry; Capital expenditures
Location: United States--US
Company / organization: Name: Total SA; NAICS: 447190, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Jan 30, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862642476
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862642476?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Crude Prices Slip as OPEC, U.S. Producers Diverge on Output; Competing forces keep oil between $50 and $54 a barrel
Author: Sider, Alison; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2017: n/a.
Abstract: None available.
Full text: Crude prices edged lower Monday as investors weighed growing U.S. output against cutbacks by major oil producers. U.S. crude for March delivery fell 54 cents, or 1%, to $52.63 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 29 cents, or 0.5%, to $55.23 a barrel on London's ICE Futures Exchange. In recent weeks, oil has been batted back and forth within a narrow range, as indications that members of the Organization of the Petroleum Exporting Countries and other major producers are complying with their promises to cut production have competed with signals that U.S. shale producers are preparing to ramp up production. The competing forces have kept oil between $50 a barrel and about $54 a barrel since early December. Market participants are becoming more confident that major producers are sticking to their deal to cut production. Tanker tracking firm Petro-Logistics said Friday that OPEC is on track to make 75% of its targeted cuts--a relatively high level of compliance for the group. But more will be needed to make a dent in global crude stockpiles, said Gene McGillian, research manager for Tradition Energy. "What the market is really missing to move higher are signs that the big overhang in global oil inventory is starting to move down," Mr. McGillian said. "You need to see not only implementation of the full cut, but it being sustained for a long period of time," he said. Meanwhile, indications that U.S. shale producers are ramping up have weighed on prices. Baker Hughes Inc. reported Friday another rise in shale-oil drilling rigs in the U.S. The fresh evidence that U.S. shale producers are taking advantage of higher oil prices unnerved some jittery investors Monday. "That's giving people the sense that some of the production cuts by OPEC and non-OPEC countries are going to be offset by U.S. production over the course of the year," said Andy Lipow, president of Lipow Oil Associates in Houston. U.S. oil production now stands at 8.96 million barrels a day, according to the U.S. Energy Information Administration. But some analysts counter that any increase in U.S. oil output would likely be easily absorbed by rising demand over the next two years. SEB bank's Bjarne Schieldrop said output is falling in other countries, partly because of reduced capital spending in the industry. "OPEC's decision to cut production has lifted prices since November 30, which will accelerate the revival of U.S. shale-oil production. We think this is good, because we think it will be needed," Mr. Schieldrop said. U.S. oil production now stands at 8.96 million barrels a day and is rising, according to the U.S. Energy Information Administration. ANZ Bank said U.S. production had long been expected to rise in 2017, after almost two years of shrinking output, so the impact on crude prices should be modest. Gasoline futures fell 2.16 cents, or 1.41%, to $1.5055 a gallon. Diesel futures were down 1.22 cents, or 0.75%, at $1.6067 a gallon. Write to Alison Sider at alison.sider@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Alison Sider and Kevin Baxter
Subject: Petroleum production; Crude oil prices; Energy industry; Price increases
Location: China United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 30, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862734808
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862734808?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permissio n.
Last updated: 2017-11-23
Database: The Wall Street Journal
Analysts See Oil Prices Rising as OPEC Production Cut Bears Fruit; While analysts say that the production cuts will help the market rebalance, a number of wild cards remain
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2017: n/a.
Abstract: None available.
Full text: Analysts are raising their oil-price forecasts for the first time in five months, even as they continue to see a plethora of risks for this market. Members of the Organization of the Petroleum Exporting Countries and other big producers said this month that they are abiding by their historic agreement last year to cut production. Oil prices have risen by about a fifth since that deal was struck. A survey of 15 investment banks by The Wall Street Journal predicts that Brent crude, the international oil-price benchmark, will average $56 a barrel this year. That prediction is up by about a dollar from last month's survey. The banks expect West Texas Intermediate, the U.S. oil benchmark, to average $55 a barrel this year, also up by a dollar. While analysts said the production cuts will help the market rebalance after more than two years of oversupply, a number of wild cards remain. Those include rising U.S. production and slowing demand growth. "The OPEC deal put a floor under prices. We were in a $40-to-$50-a-barrel world and now we are in a $50-to-$60 world," said Michael Wittner, chief oil analyst at Société Générale SA. "But how long that world lasts remains to be seen." On Monday, Brent dropped 0.5%, to settle at $55.23 a barrel, while U.S. crude fell 1%, to $52.63 a barrel. Though OPEC has said the production cuts are going ahead as agreed, analysts are looking to the first independent data to gauge compliance. These numbers will be available in early February. Saudi Energy Minister Khalid al-Falih said this month that OPEC's 13 nations and the 11 producers outside the group had made collective cuts totaling 1.5 million barrels a day. But OPEC and producers like Russia have a checkered history of sticking by supply agreements. "We have our doubts about how long OPEC compliance can last," Barclays PLC said in a report. "OPEC is convincing the market that the cuts are occurring and hopes that this buys time for a more constructive oil-market balance." The banks in the survey lowered their forecasts through much of 2016 as a price recovery in the first half of the year petered out. In the first upgrade to their forecasts since August, the banks now see the price of Brent crude rising to just under $60 a barrel by the end of this year. The price of Brent averaged at $45 a barrel last year. Bank analysts are more optimistic than several agencies and organizations that monitor oil. The U.S. Energy Information Administration predicts that Brent will average $53.50 a barrel this year, while the U.N.'s latest global economic outlook forecasts $52 a barrel. Such gains may be enough to encourage U.S. producers from North Dakota to Texas to turn the taps back on . There are 566 rigs drilling for crude in the U.S., according to Baker Hughes Inc., well above a trough of 316 in May of last year. If U.S. output rises too quickly, that could trip up the price rally, analysts said. "The number one wild card for oil this year is U.S. output," Mr. Wittner said. "The question is whether it will recover fast enough to offset the OPEC cuts." Citigroup Inc. estimates that if oil prices approach $60 a barrel, U.S. production will rise by over 800,000 barrels a day by the end of the year. U.S. production is running at just under nine million barrels a day, down from a peak of 9.6 million barrels in 2015. There are also risks on the demand side. Higher prices could limit purchases by motorists and businesses around the world. The International Energy Agency expects global oil-demand growth to slow to 1.3 million barrels a day in 2017 from 1.5 million barrels last year as prices rise. A stronger dollar has also made this greenback-denominated commodity more expensive for holders of other currencies. When the dollar gains, that typically weighs on the price of oil. The currency has strengthened by about 4% against a basket of other currencies since the U.S. presidential election in November. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Crude oil prices; Supply & demand; Crude oil; American dollar
Location: Russia United States--US
Company / organization: Name: Barclays PLC; NAICS: 522110, 523110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 30, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862739170
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862739170?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribut ion is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Government Bonds Edge Lower; Despite pullback in stocks and oil prices, demand for Treasury debt affected by factors including Microsoft's bond sale
Author: Zeng, Min
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2017: n/a.
Abstract: None available.
Full text: Prices of U.S. government bonds edged lower on Monday despite a pullback in stocks and crude oil prices. After sliding to 2.466% earlier in the morning, the yield on the benchmark 10-year Treasury note settled at 2.486%, compared with 2.480% Friday. Yields rise as bond prices fall. The volatility reflects crosscurrents that make investors hesitant to pile into Treasury debt, which usually gets a boost when riskier markets retreat. Among factors that offset haven demand: robust corporate bond issuance highlighted by $17 billion offerings from Microsoft Corp., the Federal Reserve's coming first policy meeting in 2017 and a key labor-market release later this week. All these occur at a time when President Donald Trump's policy mix on fiscal stimulus, trade protectionism and a curb on immigration has been generating swings in the bond market. Many investors find it challenging to place bets on bond yields amid the policy uncertainty. "Investors appear to be cautious in significantly changing their positioning in advance of these potentially market moving events,'' said James DeMasi, chief fixed-income strategist at Stifel Nicolaus. Microsoft's offerings include maturities from three years out to 40 years. It was the largest corporate bond sale so far this year. Sales of new corporate debt has been robust this month as firms lock in still historically low interest rates. Underwriters and firms typically sell Treasury debt to hedge unwanted volatility in interest rates, reflecting the Treasury market's important role as a bedrock for global finance. The impact was most pronounced Monday on the 30-year Treasury bond, whose yield rose to 3.081% from 3.059% Friday. The Fed is scheduled to start its two-day policy meeting Tuesday and release a policy statement Wednesday. The central bank is widely expected to stand pat after raising short-term interest rates in December for the second time since 2006. Investors will zero in on the Fed's assessment over the growth and inflation outlook in the policy statement, which will influence market expectation regarding the timing for the next rate increase. Interest rate futures suggest that many investors expect the Fed to wait until the summer to raise interest rates. Analysts say the Fed could act before that if economic releases show the economy is picking up speed and inflation pressure continues to increase. The 10-year Treasury yield reached a two-year high of 2.6% in mid-December from 1.867% on Nov. 8, Election Day. It fell to near 2.3% earlier this month. The prospect of large fiscal spending, tax cuts and less onerous regulation proposed by Mr. Trump has sent Treasury yields higher since the U.S. Election Day, reflecting investors' expectations toward a stronger growth, higher inflation and potentially a faster pace of rate increases. Keeping bond yields' climb in check is the concerns that Mr. Trump's protectionist stance could generate trade frictions and undercut the growth momentum in both the U.S. and its trading partners. Adding to the mix is his executive order last week to curb immigration. The bond market suggests "uncertainty regarding Trump's priorities" and how those may differ from the market's assumptions, said Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets. This week's data will also help shape the Fed's policy outlook. The key release--the nonfarm payrolls--is due on Friday. The labor market has been approaching its full employment, which has been among factors driving the Fed to tighten monetary policy after years of ultraloose stance. Barbara Reinhard, head of asset allocation at Voya Investment Management, said another risk for the U.S. growth is that "the Fed could engineer a recession by raising rates aggressively," such as four to five times a year. For now, Ms. Reinhard remains sanguine on the growth outlook, which supports her stance to favor stocks over Treasury debt. Write to Min Zeng at min.zeng@wsj.com Credit: By Min Zeng
Subject: Treasuries; Prices; Bond markets; Investments; Interest rates; Bond issues; Federal Reserve monetary policy; Corporate debt
Location: United States--US
People: Trump, Donald J
Company / organization: Name: Microsoft Corp; NAICS: 334614, 511210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 30, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862780615
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862780615?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. R eproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Tanker Owner Frontline Makes Hostile Bid for Rival DHT; Deal would create the world's biggest listed tanker company
Author: Paris, Costas
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2017: n/a.
Abstract: None available.
Full text: Norwegian shipping company Frontline Ltd. launched a $475 million takeover bid for rival DHT Holdings Ltd., seeking to expand its fleet of supersize oil tankers at a time that the industry is battling low rates. Frontline, which is controlled by shipping magnate John Fredriksen and has a market value of about $1.2 billion, disclosed it had also acquired a 16.4% stake in DHT, which is also based in Norway. DHT responded by adopting an antitakeover defense, which gives its board more time to review the unsolicited proposal. The so-called poison pill prevents Frontline from further boosting its existing stake in DHT or others from buying more than 10% of its shares. Shares of DHT jumped 9% to $4.66 in New York trading on Monday afternoon, while shares of Frontline inched up 2 cents to $7.04. Both companies are listed on the New York Stock Exchange and their share prices had fallen more than 25% over the past year through Friday's close, according to FactSet. Frontline "will knock on DHT's door for as long as it takes" to reach a deal, said a person familiar with the matter. Both companies are owners of supertankers that move the world's oil cargo, known as very large crude carriers, or VLCCs. Such fleets are mostly owned by national oil companies in the Middle East and Asian conglomerates. VLCCs often change hands among owners, but outright mergers or acquisitions are rare. Tankers have done better than other ship types over the past couple of years. They were increasingly used to move oil cargo to China and India as they boosted their strategic oil reserves in a low-price oil environment, or used as floating oil storage facilities. A merger between Frontline and DHT would create the world's biggest listed tanker company, with a total fleet of 72 tankers, including 40 VLCCs. Frontline also has another dozen vessels on order, including three VLCCs. For the first three quarters of 2016, DHT reported revenue that was flat at $271.1 million, as new additions to its fleet were offset by lower rates. It reported a net loss of $8.6 million, including nearly $85 million of impairment charges. Frontline is proposing to acquire DHT in a stock swap that would give shareholders 0.725 Frontline shares for each DHT share. Based on Friday's closing prices, Frontline's offer represents a 19% premium to DHT's closing price. A consolidation wave has been sweeping the containership sector for the past two years, with the world's 20 biggest players merging or swallowing up smaller rivals as they try to survive rock bottom freight rates in one of the industry's longest downturns. Write to Costas Paris at costas.paris@wsj.com Credit: By Costas Paris
Subject: Acquisitions & mergers; Tankers
Location: China Middle East New York India Norway
Company / organization: Name: New York Stock Exchange--NYSE; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 30, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862920187
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862920187?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Seen Rising; Analysts Cite Risks
Author: Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]31 Jan 2017: B.11.
Abstract:
Members of the Organization of the Petroleum Exporting Countries and other big producers said this month that they are abiding by their historic agreement last year to cut production.
Full text: Analysts are raising their oil-price forecasts for the first time in five months, even as they continue to see a plethora of risks for this market. Members of the Organization of the Petroleum Exporting Countries and other big producers said this month that they are abiding by their historic agreement last year to cut production. Oil prices have risen by about a fifth since that deal was struck. A survey of 15 investment banks by The Wall Street Journal predicts that Brent crude, the international oil-price benchmark, will average $56 a barrel this year. That prediction is up by about a dollar from last month's survey. The banks expect West Texas Intermediate, the U.S. oil benchmark, to average $55 a barrel this year, also up by a dollar. While analysts said the production cuts will help the market rebalance after more than two years of oversupply, a number of wild cards remain. Those include rising U.S. production and slowing demand growth. "The OPEC deal put a floor under prices. We were in a $40-to-$50-a-barrel world and now we are in a $50-to-$60 world," said Michael Wittner, chief oil analyst at Societe Generale SA. "But how long that world lasts remains to be seen." On Monday, Brent dropped 0.5%, to settle at $55.23 a barrel, while U.S. crude fell 1%, to $52.63 a barrel. Though OPEC has said the production cuts are going ahead as agreed, analysts are looking to the first independent data to gauge compliance. These numbers will be available in early February. OPEC and producers such as Russia have a checkered history of sticking by supply agreements. "We have our doubts about how long OPEC compliance can last," Barclays PLC said in a report. The banks in the survey lowered their forecasts through much of 2016 as a price recovery in the first half of the year petered out. In the first upgrade to their forecasts since August, the banks now see the price of Brent crude rising to just under $60 a barrel by the end of this year. The price of Brent averaged $45 a barrel last year. Bank analysts are more optimistic than several agencies and organizations that monitor oil. The U.S. Energy Information Administration predicts that Brent will average $53.50 a barrel this year, while the U.N.'s latest global economic outlook forecasts $52 a barrel. Such gains may be enough to encourage U.S. producers to turn the taps back on. There are 566 rigs drilling for crude in the U.S., according to Baker Hughes Inc., well above a trough of 316 in May of last year. If U.S. output rises too quickly, that could trip up the price rally, analysts said. Citigroup Inc. estimates that if oil prices approach $60 a barrel, U.S. production will rise by over 800,000 barrels a day by the end of the year. U.S. production is running at just under nine million barrels a day, down from a peak of 9.6 million barrels in 2015. There are also risks on the demand side. Higher prices could limit purchases by motorists and businesses around the world. The International Energy Agency expects global oil-demand growth to slow to 1.3 million barrels a day in 2017 from 1.5 million barrels last year as prices rise. A stronger dollar has also made this greenback-denominated commodity more expensive for holders of other currencies. When the dollar gains, that typically weighs on the price of oil.
Credit: By Georgi Kantchev
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Jan 31, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862838038
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862838038?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Slips Further as Rising U.S. Output Weighs; Brent crude fell 9 cents to $55.14 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: Oil futures fell further in Asian trade on Tuesday, as concerns about rising U.S. oil output and U.S. President Donald Trump's policies rattled investors. On the New York Mercantile Exchange, light, sweet crude futures traded at $52.41 a barrel at 0330 GMT, down 22 cents in the Globex electronic session. Brent crude on London's ICE Futures exchange fell 9 cents to $55.14 a barrel. "If oil prices stay at these levels, U.S. oil production could rise," says Gnanasekar Thiagarajan, director of Commtrendz Risk Management. Baker Hughes on Friday reported a weekly rise in U.S. oil drilling rigs by 15 to 566, and U.S. government data showed a rise of 17,000 barrels a day in total domestic crude production for the week ended Jan. 20. U.S. oil production now stands at 8.96 million barrels a day, according to the U.S. Energy Information Administration. "No new themes overnight saw oil prices inch lower as bears continue to point to increased U.S. oil rig activity," an OM Financial report said. According to a BMI Research report, North America, the Middle East and parts of Asia will lead the recovery in oil and gas spending over 2017. The reports said that spending on oil and gas exploration in North America is expected to increase by more than 17% this year. Even so, cost structures at many offshore projects remain uneconomical with oil prices hovering in the range of $50 per barrel, BMI said, adding that their efficiency needs to improve to support spending. Another factor weighing on oil prices is the uncertainty over U.S. policy following President Donald Trump's controversial curbs on immigration that have weakened market sentiment. The near-term direction of oil prices will depend on U.S. weekly crude oil inventories as well as Trump's policies. There are also concerns about whether the rising U.S. oil output would tempt member nations of the Organisation of the Petroleum Exporting Countries to shelve their output cuts. OPEC members and some other oil producing nations had last year decided to cut a collective 2% of global crude supply, a move aimed at balancing the market following more than two years of low prices and excess inventories. Write to Biman Mukherji at biman.mukherji@wsj.com Credit: By Biman Mukherji
Subject: Petroleum production; Futures; Crude oil prices; Energy economics; Crude oil
Location: Middle East United States--US Asia North America
People: Trump, Donald J
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862982360
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862982360?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rise on OPEC Cuts; OPEC's supply cut in January has turned out to be slightly above 1 million barrels
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: Oil prices rose Tuesday after data about OPEC production showed high compliance with its deal on production cuts aimed at raising prices. The Organization of the Petroleum Exporting Countries has trimmed output by just more than 1 million barrels a day, or 88% of what they agreed to in November, according to JBC Energy. Many analysts say traders need this type of confirmation that OPEC is following through on its deal because it has a history of failing to stick to output limits. The falling dollar also played a role. With the dollar at a new two-month low, dollar-traded oil is less expensive for foreign buyers, a scenario that often causes prices to rise. Light, sweet crude for March delivery settled up 18 cents, or 0.3%, at $52.81 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained 47 cents, or 0.9%, to $55.70 a barrel on ICE Futures Europe. On a month-to-month basis, Saudi Arabia decreased crude output below 10.1 million barrels a day, Iraq by 160,000 barrels a day, and Kuwait by 100,000 barrels a day, JBC said. However, three countries exempted from the deal are ramping up output. Nigeria and Libya increased output by 60,000 barrels a day, while Iran slightly rose production by 20,000 barrels a day. Those increases by other countries are not as relevant, said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. If Saudi Arabia is cutting even more than it promised, that shows its intent to make the deal work, he added. It is the largest producer in OPEC and one of the largest in the world, making it one of the few nations with the capacity to balance the world market on its own. It also has the relationships with other top OPEC producers to rally enough support for the deal even if more reluctant participants like Iraq and Iran don't comply. "It's really about what those key four or five countries do," Mr. Saucer said. "This has been one of the more interesting days" for a market that has been range-bound for weeks. The oil market has been divided between traders who expect the OPEC cuts to help ease a glut, and others concerned that OPEC's efforts to raise prices have just made it easier for U.S. drillers to ramp up their output again. U.S. production is on the rise after a long, but gradual decline, and is approaching nine million barrels a day and stockpiles near record highs have kept weighing on prices. Analysts are forecasting that U.S. crude-oil stocks grew again last week, confirmation of which could come in data due Wednesday from the Energy Department. A survey of analysts and traders by The Wall Street Journal puts the increase at 2.9 million barrels. They also forecast gasoline stockpiles, already near record highs, increased by 1.3 million barrels. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 5.8-million-barrel increase in crude supplies, a 2.9-million-barrel rise in gasoline stocks and a 2.3-million-barrel increase in distillate inventories, according to a market participant. U.S. crude lost 91 cents, or 1.7%, for the month, its largest monthly loss since October. Brent lost $1.12, or 2%, its largest monthly loss since July. Volatility has plummeted to a two-year low and U.S. prices have stayed within a $3 range throughout January. Some see the fact that prices haven't fallen as traders await confirmation from OPEC as a sign the market will eventually move higher. "We see this as a good indication that the market is becoming increasingly convinced that OPEC means business," Peter Cardillo, chief market economist at First Standard Financial in New York, said in a note. Analysts also said the dollar played a role in broad gains across commodities on Tuesday. The U.S. dollar slid to its lowest level since November amid weak U.S. data and new indications that the Trump administration would prefer a weaker dollar. The WSJ Dollar Index, which measures the U.S. currency against 16 others, was recently down 0.7%. "It's just knee-jerk," for oil to go higher on the dollar's losses, said Mark Waggoner, president of brokerage Excel Futures. Gasoline futures gained 2.01 cents, or 1.3%, to $1.5256. It lost 13.95 cents, or 8.4%, for the month. Diesel futures gained 0.3% to $1.6117 a gallon. It finished the month down 5.4%. Both gasoline and diesel had their biggest monthly losses since July. Kevin Baxter and Benoit Faucon contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Petroleum production; Compliance; Crude oil prices; Crude oil
Location: Iran Russia United States--US Germany Japan
People: Trump, Donald J
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1862991570
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1862991570?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell to Sell U.K. North Sea Oil Fields for $3.8 Billion; Sale to Chrysaor advances oil company's plan to offload $30 billion in assets
Author: Kent, Sarah; Walker, Ian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: LONDON--Royal Dutch Shell PLC is selling much of its British North Sea oil operations to a private-equity backed company for up to $3.8 billion, marking an important milestone in the oil giant's move to offload $30 billion in assets. The Anglo-Dutch oil giant is in the process of selling assets to help pay for its acquisition of smaller rival BG Group last year. It was a transformative deal that boosted Shell's dominant position in global gas markets and snagged it highly attractive deep water oil fields offshore Brazil, but also loaded the company with debt and a commitment to slim down. The assets-disposal program has proved challenging at a time of low oil prices that weighed on deal making across the sector. Last year, Shell announced details of asset sales amounting to over $5 billion, but still fell short of a previously stated goal of disposals worth $6 billion to $8 billion in 2016. The sale of the North Sea assets to Chrysaor Holdings Ltd. was widely expected to come early this year and marks the largest disposal yet in Shell's divestment program, but its structure illustrates how low oil prices are still affecting the value of deals and how they are structured. Chrysaor will pay $3 billion upfront and another $600 million between 2018-2021 subject to oil prices. If prices fall below a certain level in that period, Shell will repay up to $100 million to Chrysaor. An additional sum of up to $180 million will fall due to Shell if certain exploration milestones are hit. The deal will bring Chrysaor--an oil-and-gas company backed by EIG Global Energy Partners--production of 115,000 barrels of oil equivalent a day and interests in several North Sea blocks. The company is expected to take on around 400 Shell staff on completion of the deal. The deal is subject to partner and regulatory approvals, with completion expected in the second half of this year, Shell said. Write to Sarah Kent at sarah.kent@wsj.com and Ian Walker at ian.walker@wsj.com Related * Shell Seeks to Streamline in 2017 (Jan.3, 2017) * Shell Completes Acquisition of BG Group, Giving Energy Giant a Large Footprint in Brazil (Feb. 15, 2016) Credit: By Sarah Kent and Ian Walker
Subject: Acquisitions & mergers; Chemical industry; Oil fields
Location: Brazil
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: BG Group PLC; NAICS: 211111, 221210, 486 210; Name: EIG Global Energy Partners; NAICS: 523910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863025895
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863025895?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Profit Tumbles on Charge; Revenue Rises; Oil giant posts first increase in revenue after nine quarters of declines; accounting probe looms
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: Exxon Mobil Corp. said Tuesday it wrote down the value of more than $2 billion in U.S. assets, departing from decades-long practice amid an investigation by securities regulators, as the world's largest publicly traded oil company posted its lowest yearly earnings in 20 years. The move follows an investigation begun by the U.S. Securities and Exchange Commission in August over Exxon's accounting practices and how the company values its future oil and gas wells, or reserves. The probe also sought information about how Exxon weighs the potential impact that climate-change regulations could have on its business, The Wall Street Journal reported in October. An SEC spokesman declined to comment on Tuesday. Exxon has said it is cooperating with the probe and that its financial reporting meets all legal and accounting standards. Irving, Texas-based Exxon reported a 40% drop in fourth-quarter earnings, and annual 2016 profit of $7.8 billion--the company's lowest since 1996, three years before it grew immensely with an $82 billion deal to buy rival Mobil Corp. Irving, Texas-based Exxon reported a 40% drop in fourth-quarter earnings, as low oil and natural-gas prices also took a toll on the company. Annual 2016 profit totaled $7.8 billion--Exxon's lowest since 1996, three years before the company grew immensely with an $82 billion deal to buy rival Mobil Corp. Exxon was alone among major energy companies in not having recognized on its books any reduction in the value of its reserves, a development that had become fairly routine for peers as prices crashed in recent years. Since 2014, other U.S. companies have slashed the value of their assets by more than $200 billion, according to S&P Global Market Intelligence. "The impairment appears a bit light given the company's resources," said Brian Youngberg, an energy analyst with Edward Jones in St. Louis. Exxon shares fell 1.1% to $83.89 on Tuesday, while peers such as Royal Dutch Shell PLC either rose or held roughly flat. Exxon wrote down natural-gas assets in the Rocky Mountains. The company purchased shale producer XTO Energy for $31 billion in 2010 during the heart of a drilling boom that would send natural-gas prices careening downward within a few years. The price, which averaged $5.35 per million British thermal units when the deal was announced late in 2009, is now about $3.23. The SEC investigation initially sprung out of a separate examination begun in late 2015 by New York Attorney General Eric Schneiderman into Exxon's history of advocacy about global warming and how the company has communicated with its investors on the matter. Exxon, which has denied wrongdoing and characterized that probe as politically motivated, submitted more than one million pages of documents to the New York Democrat, most of which have been shared with the SEC, according to people familiar with the matter. Exxon hadn't booked a decline in the value of its assets since at least 1990. This is due in part to the company's practice of being more conservative when initially recognizing the value of new oil and gas that it discovers, according to analysts and people familiar with its accounting. It is also related to a management view that it is better to place a high burden on executives to ensure that projects can work at lower prices than to write down their value. The company's senior leaders wanted to avoid write-downs because in accounting terms, they have the effect of making the company's investments appear more profitable, according to people familiar with Exxon's practices. "We don't do write-downs," former Chief Executive Rex Tillerson told trade publication Energy Intelligence in 2015. "We are not going to bail you out by writing it down. That is the message to our organization." For the October-to-December period, profit fell to $1.68 billion, or 41 cents a share, from $2.78 billion. Analysts polled by Thomson Reuters were expecting 70 cents a share. Revenue increased for the first time in more than two years, rising 2% to $61 billion. Debt levels surged to the highest point in company history at the end of last year as Exxon's operations failed to generate enough cash to pay for new investments and dividends. Although Exxon carries relatively low debt relative to its size, the increase in borrowing prompted Standard & Poor's last year to strip the company of the perfect triple-A credit rating it had held since the Great Depression. Exxon also signaled Tuesday that it is likely to recognize that as much as 4.6 billion barrels of its reserves, predominantly in Canada's oil sands, aren't profitable to produce, according to SEC rules. The reserve losses might be offset somewhat by the company's new finds last year, Jeff Woodbury, Exxon's vice president of investor relations, told analysts Tuesday. Those figures would be finalized and released in the coming weeks, he said. Although Exxon might no longer qualify those reserves as "proved" based on SEC rules, Mr. Woodbury said the company wouldn't alter its operations or change how it manages those assets. There are separate processes and rules that govern how oil-and-gas companies book reserves to assure investors that they are finding new sources of future production and how they value them on company financial statements. The SEC requires companies to evaluate their future prospects based on the average price of the previous year, in this case about $43 a barrel. That is a 15% drop from 2015. Recognizing how much those reserves are worth is separately overseen by the Financial Accounting Standards Board, an independent group that sets accounting standards for U.S. public companies. As oil and gas producers spend money drilling new wells, those expenses can be capitalized as an asset. But when expected future cash flow from the reserves is no longer greater than their so-called carrying value, which relates to the amount that was capitalized, the rules indicate that a write-down is needed. Thus, while the Canadian reserve losses didn't result in a write-down immediately, there is still a chance that could happen next year. According to the accounting rules, such a determination would depend in part on Exxon's view of future prices in coming decades. Last year, the company reduced its reserves by the equivalent of more than 800 million barrels, most of which stemmed from U.S. natural-gas assets. The $2 billion impairment this year was also tied to U.S. natural-gas wells. Imperial Oil, an Exxon-controlled company that operates in Canada, reported that its oil-production business posted a profit of about $80 million. If the company's oil-sands business continues to operate profitably, a write-down might not be needed. Exxon Chief Executive Darren Woods also plans a spending increase this year, making the company an anomaly among major oil firms that mostly plan to continue making cuts. Exxon plans to spend about $22 billion in 2017, about a 15% increase from last year. Other companies such as Chevron Corp. are continuing to reduce their investment levels even amid a modest oil-price rebound. Mr. Woods, who took the helm in January from Mr. Tillerson after the longtime Exxon leader was nominated by President Donald Trump to serve as U.S. secretary of state, pointed to the prolonged downturn in commodity prices as well as the impairment charge for the decline in earnings. Anne Steele contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com Related Coverage * Shell to Sell U.K. North Sea Oil Fields for $3.8 Billion Credit: By Bradley Olson
Subject: Writedowns; Financial performance; Corporate profits; Stock prices; Natural gas prices; Energy industry; Executives; Accounting
Location: United States--US Rocky Mountains
People: Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863063875
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863063875?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Increasing in DOE Data
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 12 analysts and traders surveyed showed U.S. oil inventories are projected to have increased by 2.9 million barrels, on average, in the week ended Jan. 27. Eleven analysts expect stockpiles to rise and one expects them to fall. Forecasts range from a decrease of 600,000 barrels to an increase of 4.5 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show an increase of 1.3 million barrels on average, according to analysts. Ten analysts expect them to rise and two analysts expect them to fall. Estimates range from a fall of 1 million barrels to an increase of 2.7 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 600,000 barrels. Two analysts expect an increase and ten expect a decrease. Forecasts range from a decline of 1.5 million barrels to an increase of 2 million barrels. Refinery use is seen falling 0.3 percentage point to 88% of capacity. Eight analysts expect a decrease, one expects no change and one expects an increase. Two didn't report expectations. Forecasts range from a decrease of 1 point to an increase in 1.5 points. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 5.8-million-barrel increase in crude supplies, a 2.9-million-barrel rise in gasoline stocks and a 2.3-million-barrel increase in distillate inventories, according to a market participant. Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Financial performance
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863073484
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863073484?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shutdown of Texas Pipeline Boosting Oil Prices; The S-1 Pipeline was punctured Monday afternoon by road construction crew
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: The rupture and closure of a major crude oil pipeline in Texas jointly-owned by Enterprise Products Partners and Enbridge Inc. helped to push oil prices higher Tuesday as crews worked to clean up the spill. The 30-inch diameter Seaway S-1 pipeline pumps up to 400,000 barrels a day of crude oil from a commercial hub in Cushing, Okla. to refineries 500 miles away near the Gulf Coast. A road crew working with the Texas Department of Transportation punctured the high-pressure line Monday afternoon northeast of Dallas, creating a gusher that sprayed oil all over a highway. Rick Rainey, a spokesman for Enterprise, said Tuesday the cleanup process has begun. Two nearby businesses, a gun shop and a gas station, have re-opened after being evacuated Monday, he said. It is unclear how much oil was spilled, or when pumping may resume, Mr. Rainey said. Oil traders in New York said the pipeline's closure created some supply concerns, helping to push oil prices 2% higher in early trading to nearly $54 a barrel. State Highway 121 is likely to remain closed in both directions until Tuesday afternoon as crews wipe up the oil-caked roadway, said a dispatcher with the Collin County Sheriff's Department. The incident happened near the town of Trenton. The pipeline is operated by Seaway Crude Pipeline Company, a 50/50 joint venture between Houston-based Enterprise and Canadian firm Enbridge. Mr. Rainey said there are certain barriers and other safeguards in place that aim to prevent third-party workers and others from rupturing the pipeline, and said an investigation into the incident has begun. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Crude oil prices; Pipelines; Crude oil
Location: Texas New York Collin County Texas
Company / organization: Name: Enbridge Inc; NAICS: 486110; Name: Department of Transportation-Texas; NAICS: 926120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863081649
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863081649?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Texas Pipeline, Highway Remain Shut After Rupture; S-1 Pipeline ruptured Monday afternoon by road construction crews, spraying oil several stories into air
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: A major crude oil pipeline owned by Enterprise Products Partners and Enbridge Inc. remained shut Tuesday after road construction crews ruptured it northeast of Dallas, causing a gusher that sprayed oil all over a highway. The 30-inch diameter Seaway S-1 pipeline pumps oil 500 miles from the commercial hub in Cushing, Okla. to refineries near Houston and elsewhere along the Gulf Coast. Pipeline representatives weren't immediately available to indicate how much oil was spilled or when the line may reopen. The Collin County Sheriff's Department said a contracted road crew working with the Texas Department of Transportation punctured the high-pressure pipeline Monday afternoon, sending oil gushing several stories into the air and onto State Highway 121 near the tiny town of Trenton. The highway was shut in both directions to prevent accidents on the oil-caked roadway, and a dispatcher from the sheriff's office said Tuesday the highway is likely to stay shut until Tuesday afternoon as cleanup continues. The pipeline is operated by Seaway Crude Pipeline Company, a 50/50 joint venture between Houston-based Enterprise and Canadian firm Enbridge. "The pipeline has been shut down and isolated," it said in its most recent statement Monday, adding it is developing "a plan to resume operations as quickly and safely as possible." Seaway said the incident didn't result in any fire or injuries. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Sheriffs; Roads & highways; Pipelines
Location: Collin County Texas
Company / organization: Name: Enbridge Inc; NAICS: 486110; Name: Department of Transportation-Texas; NAICS: 926120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863140559
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863140559?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Record Bullish Bets on Oil Raise Hopes--and Fears; Traders are betting that OPEC will stick with its output cuts, but they are also wary of a sharp reversal of crude's rally
Author: Sider, Alison; Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: Bullish bets on oil rose to a record in January, reflecting widespread optimism that crude prices are poised to move higher as OPEC starts cutting production in a bid to ease a global supply glut. Wagers on rising U.S. oil prices have more than doubled in less than three months. Investors have turned more bullish since the Organization of the Petroleum Exporting Countries in late November reached a deal to cut output . Long, or bullish, positions last week exceeded short, or bearish, positions by 370,939, marking the largest net bullish position in 10 years of data from the Commodity Futures Trading Commission. That compares with a net bullish position of 159,415 contracts in early November. To put the size of the bullish position in context: The more than 420,000 bets on rising oil prices in place last week represented nearly all the crude held in U.S. commercial storage tanks. That is a sign of faith that the nearly yearlong oil rally has more room to run. But the bullish slant to the market is a concern for traders, who worry that a dimming of the market's view on oil could prompt a rush for the exits and intensify any selloff. The last time speculative investors were close to this bullish on oil was in June 2014--when Islamic State militants began threatening major cities in Iraq. That was a few weeks before the market began a 20-month-long slide. The historic selloff sent oil from above $100 a barrel to a decade low around $26. Investors continue to pile into long positions even though the oil rally has been on pause in the past seven weeks. Volatility has plummeted to a two-year low. U.S. prices stayed within a $3 range throughout January as traders awaited confirmation that promised cutbacks from members of OPEC would materialize. Data on OPEC's compliance recently has started to trickle in. The cartel is on track to meet 75% of its promised cuts, according to tanker tracker Petro-Logistics. Other firms have put the rate even higher. Those levels are well above the producing group's typical compliance with quotas, analysts say, which helps explain why so many investors are bullish. Oil prices rose 18 cents to $52.81 a barrel Tuesday after OPEC production data lent further support to the belief that the group was abiding by its pledge to cut output. Will Riley, a portfolio manager with Guinness Atkinson Asset Management, said he expects crude prices to rise because he thinks OPEC members are likely to keep complying. "I don't think they are satisfied with the current [oil-price] level," Mr. Riley said. "It leaves almost all member countries running a significant fiscal deficit." OPEC's agreement runs through June. The prospect of an extension of the curbs in May is another reason investors are reluctant to bet on lower prices, said Nick Koutsoftas, a portfolio manager with Cohen & Steers. Mr. Koutsoftas has placed bullish bets on oil in recent weeks. If OPEC prolongs output cuts, that could cause stockpiles to decline and send oil toward $65 by year-end, he said. But some traders say the lopsided market raises the likelihood of a sharp reversal. Cascading sell orders could quickly sink prices, they say. "It's going to be harder and harder to get the market higher when the market is already so long," said Kathleen Kelley, chief executive of Queen Anne's Gate Capital Management, a commodities consulting firm. "The market is really vulnerable here." The possibility of a sudden selloff and high inventory levels point to a modest risk of price declines for oil and put limits on the upside, analysts at Goldman Sachs Group Inc. wrote in a research note Sunday. The firm predicted that recent choppy price action around $55 will continue. There is an expectation that OPEC will continue to abide by its agreement, said John Pickart, a commodity fund manager with Franklin Templeton Investments. "But if there's any whiff of it not happening, there's a lot of positions there that can get unwound." Other forces could keep oil prices in check. U.S. crude producers are looking to lock in prices in an effort to ramp up production, which could exert downward pressure on prices. The number of short positions held by producers, which use the contracts to hedge, is near decade-high levels, according to CFTC data. Stockpiles are still near record levels world-wide. In the U.S., inventories have been growing. They likely have to fall before oil prices move significantly higher, traders said. Mr. Koutsoftas at Cohen & Steers said a negative headline could weigh on crude prices, but he isn't planning to bail out quickly. "If that were to happen, I would see it as a buying opportunity," he said. Write to Alison Sider at alison.sider@wsj.com and Timothy Puko at tim.puko@wsj.com Read More * Analysts See Oil Rising as OPEC Output Cut Bears Fruit (Jan. 30) * Oil Surges on OPEC Deal to Cut Production (Nov. 30, 2016) * U.S. Crude Closes Above $50 (Oct. 6, 2016) Credit: By Alison Sider and Timothy Puko
Subject: Cartels; Crude oil prices
Location: United States--US Iraq
Company / organization: Name: Commodity Futures Trading Commission; NAICS: 926140, 926150
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863216067
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863216067?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Anadarko Petroleum Narrows Loss; Its oil sales climbed 25% in fourth quarter
Author: Minaya, Ezequiel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.
Abstract: None available.
Full text: Anadarko Petroleum Corp. said oil sales climbed 25% in its fourth quarter to help it narrow its losses, but results still fell short of profit projections. The latest results come amid stirring hopes for downtrodden energy markets. Analysts are raising their oil-price forecasts for the first time in five months, even as they continue to see plentiful risks. The Organization of the Petroleum Exporting Countries has trimmed output by slightly more than 1 million barrels a day, or 88% of what they agreed to in November, according to JBC Energy. Anadarko, based in The Woodlands, Texas, reported a loss of $515 million, narrower than that in the same period last year, when it lost $1.25 billion. On a per-share basis, the company booked a loss of 94 cents compared with a loss of $2.45 a year ago. Excluding certain items, the company's loss per share was 50 cents versus a loss of 57 cents per share a year ago. Revenue rose 16.3% to $2.39 billion, with oil sales jumping to $1.45 billion from $1.16 billion. Analysts surveyed by Thomson Reuters projected an adjusted loss of 45 cents a share on $2.38 billion in revenue. Earlier this month, Anadarko agreed to sell its South Texas oil-and-gas assets to Sanchez Energy Corp. and Blackstone Group LP for $2.3 billion. Anadarko has been selling assets aggressively, going well over its sales target last year, as it shifts its drilling focus to Texas and Colorado. Shares, up 75% over the past year, were inactive after hours. Credit: By Ezequiel Minaya
Subject: Stock prices; Energy industry
Location: Colorado Texas
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Anadarko Petroleum Corp; NAICS: 211111; Name: Blackstone Group LP; NAICS: 523110; Name: Sanchez Energy Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Jan 31, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863354812
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863354812?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Furth er reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Bullish Oil Bets Climb to Record --- Optimism abounds that OPEC production curbs will firm prices, but risks are growing
Author: Sider, Alison; Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Feb 2017: B.16.
Abstract:
Will Riley, a portfolio manager with Guinness Atkinson Asset Management, said he expects crude prices to rise because he thinks OPEC members are likely to keep complying.
Full text: Bullish bets on oil rose to a record in January, reflecting widespread optimism that crude prices are poised to move higher as OPEC starts cutting production in a bid to ease a global supply glut. Wagers on rising U.S. oil prices have more than doubled in less than three months. Investors have turned more bullish since the Organization of the Petroleum Exporting Countries in late November reached a deal to cut output. Long, or bullish, positions last week exceeded short, or bearish, positions by 370,939, marking the largest net bullish position in 10 years of data from the Commodity Futures Trading Commission. That compares with a net bullish position of 159,415 contracts in early November. To put the size of the bullish position in context: The more than 420,000 bets on rising oil prices in place last week represented nearly all of the crude held in U.S. commercial storage tanks. That is a sign of faith that the nearly yearlong oil rally has more room to run. But the bullish slant to the market is a concern for traders, who worry that a dimming of the market's view on oil could prompt a rush for the exits and intensify any selloff. The last time speculative investors were this bullish on oil was in June 2014 -- when Islamic State militants began threatening major cities in Iraq. That was a few weeks before the market began a 20-month-long slide. The historic selloff sent oil from above $100 a barrel to a decade low around $26. Investors continue to pile into long positions even though the oil rally has been on pause in the past seven weeks. Oil volatility has plummeted to a two-year low. U.S. prices stayed within a roughly $3 range throughout January as traders awaited confirmation that promised cutbacks from members of OPEC would materialize. Data on OPEC's compliance recently have started to trickle in. The cartel is on track to meet 75% of its promised cuts, according to tanker tracker Petro-Logistics. Other firms have put the rate even higher. Those levels are well above the producing group's typical compliance with quotas, analysts say, which helps explain why so many investors are bullish. Oil prices rose 18 cents to $52.81 a barrel Tuesday after data on OPEC production lent further support to the belief that the group was abiding by its pledge to cut output. Will Riley, a portfolio manager with Guinness Atkinson Asset Management, said he expects crude prices to rise because he thinks OPEC members are likely to keep complying. "I don't think they are satisfied with the current [oil-price] level," Mr. Riley said. OPEC's agreement runs through June. The prospect of an extension of the curbs in May is another reason investors are reluctant to bet on lower prices, said Nick Koutsoftas, a portfolio manager with Cohen & Steers. Mr. Koutsoftas has placed bullish bets on oil in recent weeks. If OPEC prolongs output cuts, that could cause stockpiles to decline and send oil toward $65 by year-end, he said. But some traders say the lopsided market raises the likelihood of a sharp reversal. Cascading sell orders could quickly sink prices, they say. "It's going to be harder and harder to get the market higher when the market is already so long," said Kathleen Kelley, chief executive of Queen Anne's Gate Capital Management, a commodities consulting firm. "The market is really vulnerable here." There is an expectation that OPEC will continue to abide by its agreement, said John Pickart, a commodity-fund manager with Franklin Templeton Investments. "But if there's any whiff of it not happening, there's a lot of positions there that can get unwound."
Credit: By Alison Sider and Timothy Puko
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.16
Publication year: 2017
Publication date: Feb 1, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863132901
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863132901?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Takes a $2 Billion Charge --- Oil slump results in lowest annual profit in 20 years; company dogged by SEC Probe
Author: Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Feb 2017: B.1.
Abstract:
Exxon's lowest since 1996, three years before the company grew immensely with an $82 billion deal to buy rival Mobil Corp. Exxon was alone among major energy companies in not having recognized on its books any reduction in the value of its reserves, a development that had become fairly routine for peers as prices crashed in recent years. Since 2014, other U.S. companies have slashed the value of their assets by more than $200 billion, according to S&P Global Market Intelligence.
Full text: Exxon Mobil Corp. said Tuesday it wrote down the value of more than $2 billion in U.S. assets, departing from decadeslong practice amid an investigation by securities regulators, as the world's largest publicly traded oil company posted its lowest yearly earnings in 20 years. The move follows an investigation begun by the U.S. Securities and Exchange Commission in August over Exxon's accounting practices and how the company values its future oil and gas wells, or reserves. The probe also sought information about how Exxon weighs the potential impact that climate-change regulations could have on its business, The Wall Street Journal reported in October. An SEC spokesman declined to comment Tuesday. Exxon has said it is cooperating with the probe and that its financial reporting meets all legal and accounting standards. Irving, Texas-based Exxon reported a 40% drop in fourth-quarter earnings, as low oil and natural-gas prices also took a toll. Annual 2016 profit totaled $7.8 billion -- Exxon's lowest since 1996, three years before the company grew immensely with an $82 billion deal to buy rival Mobil Corp. Exxon was alone among major energy companies in not having recognized on its books any reduction in the value of its reserves, a development that had become fairly routine for peers as prices crashed in recent years. Since 2014, other U.S. companies have slashed the value of their assets by more than $200 billion, according to S&P Global Market Intelligence. "The impairment appears a bit light given the company's resources," said Brian Youngberg, an energy analyst with Edward Jones in St. Louis. Exxon shares fell 1.1% to $83.89 on Tuesday, while peers such as Royal Dutch Shell PLC either rose or held roughly flat. Exxon wrote down natural-gas assets in the Rocky Mountains. The company purchased shale producer XTO Energy for $31 billion in 2010 during the heart of a drilling boom that would send natural-gas prices careening downward within a few years. The price, which averaged $5.35 per million British thermal units when the deal was announced late in 2009, is now about $3.23. The SEC investigation initially sprung out of a separate examination begun in late 2015 by New York Attorney General Eric Schneiderman into Exxon's history of advocacy about global warming and how the company has communicated with its investors on the matter. Exxon, which has denied wrongdoing and characterized that probe as politically motivated, submitted more than 1 million pages of documents to the New York Democrat, most of which have been shared with the SEC, according to people familiar with the matter. Exxon hadn't booked a decline in the value of its assets since at least 1990. This is due in part to the company's practice of being more conservative when initially recognizing the value of new oil and gas that it discovers, according to analysts and people familiar with its accounting. It is also related to a management view that it is better to place a high burden on executives to ensure that projects can work at lower prices than to write down their value. The company's senior leaders wanted to avoid write-downs because in accounting terms, they have the effect of making the company's investments appear more profitable, according to people familiar with Exxon's practices. "We don't do write-downs," former Chief Executive Rex Tillerson told trade publication Energy Intelligence in 2015. "We are not going to bail you out by writing it down. That is the message to our organization." For the October-to-December period, profit fell to $1.68 billion, or 41 cents a share, from $2.78 billion. Analysts polled by Thomson Reuters were expecting 70 cents a share. Revenue increased for the first time in over two years, rising 2% to $61 billion. Exxon also signaled Tuesday that it is likely to recognize that as much as 4.6 billion barrels of its reserves, mostly in Canada's oil sands, aren't profitable to produce, according to SEC rules. The reserve losses might be offset somewhat by new finds last year, Jeff Woodbury, Exxon's vice president of investor relations, told analysts Tuesday. Although Exxon might no longer qualify those reserves as "proved" based on SEC rules, Mr. Woodbury said the company wouldn't alter its operations or change how it manages those assets. There are separate processes and rules that govern how oil-and-gas companies book reserves to assure investors that they are finding new sources of future production and how they value them. The SEC requires companies to evaluate their future prospects based on the average price of the previous year, in this case about $43 a barrel. That is a 15% drop from 2015. Recognizing how much those reserves are worth is separately overseen by the Financial Accounting Standards Board, an independent group that sets accounting standards for U.S. public companies. As oil and gas producers spend money drilling new wells, those expenses can be capitalized as an asset. But when expected future cash flow from the reserves is no longer greater than their so-called carrying value, which relates to the amount that was capitalized, the rules indicate that a write-down is needed. Thus, while the Canadian reserve losses didn't result in a write-down immediately, there is still a chance that could happen next year. According to the accounting rules, such a determination would depend in part on Exxon's view of future prices. Exxon Chief Executive Darren Woods also plans a spending increase this year, making the company an anomaly among major oil firms that mostly plan to continue making cuts. Exxon plans to spend about $22 billion in 2017, up about 15% from last year. Other companies such as Chevron Corp. are continuing to reduce their investment levels even amid a modest oil-price rebound. --- Anne Steele contributed to this article.
Credit: By Bradley Olson
Subject: Financial performance; Energy industry; Writedowns; Company reports
Location: United States--US
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Feb 1, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863137661
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863137661?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Take Breather in Asia; Nymex eases 4c to $55.77
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: 0106 GMT - Crude futures pause in Asia following modest gains overnight. With all eyes on OPEC, prices have been in a tight range for a while. But Citi says that could change soon. "Implied volatility has come off hard" of late, "but a multitude of factors could see oil-price volatility return, especially with investor length at an all-time high." March Brent is down 2c at $55.68/barrel and Nymex eases 4c to $55.77. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Volatility
Location: Asia
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863330291
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863330291?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Canada Rates Won't Move in Lockstep With Fed, Says Bank of Canada's Poloz; Canada economy "some ways behind" U.S. performance; oil-price shock set Canada back
Author: Vieira, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: The Canadian economy is "some ways behind" the performance in the U.S., so the two countries' rate policies will continue to diverge for the foreseeable future, Bank of Canada Gov. Stephen Poloz said Tuesday. "Do not expect to see Canada following the U.S. at this stage in terms" of rate increases, Mr. Poloz said at a press conference, following a speech in Edmonton, Alberta, that focused on economic modeling. The remarks reinforce a belief in the forecasting community that the Bank of Canada will be on hold through this year and possibly well into 2018, as the economy gradually recovers from the income shock fueled by the commodity-price slump. In contrast, the Federal Reserve anticipates three increases in its benchmark policy rate this year. Mr. Poloz said the Canadian economy was on track toward hitting full capacity "and then the oil shock came along. That set us back for two, three years." That prompted the Bank of Canada to cut rates twice in 2015, down to 0.5%. The central bank could cut rates again, Mr. Poloz said, if there's "a significant delay in getting the economy back to full capacity and inflation on target." The Bank of Canada forecasts a return to full capacity in mid-2018. The key takeaway from Mr. Poloz's post-speech remarks is that higher rates "are not warranted," said Brian DePratto, economist at TD Bank. "Ultimately, Poloz's messaging continues to reinforce the risk of further monetary easing in Canada." Earlier in January, the head of Canada's central bank said further easing is an option amid uncertainty over U.S. trade policy under President Donald Trump. Mr. Trump has vowed to renegotiate the terms under North American Free Trade Agreement, which he said has been a "disaster" for the U.S. Skittishness over trade policy means economic uncertainty has climbed, Mr. Poloz told the Edmonton audience, and that could ultimately affect companies' capital-spending plans. A recent survey of Canadian firms indicated increased enthusiasm toward capital spending. But given the possibility of trade-policy changes under Mr. Trump, "we are not sure if that means companies are ready to invest, or invest in Canada or invest in the U.S. It's very unclear," Mr. Poloz said. He added the strength in the U.S. dollar has proved to be an "important headwind" to Canadian growth. Other countries' currencies have weakened against U.S. currency, whereas the Canadian dollar has remained steady--putting Canadian exporters at a disadvantage versus other trading-nation rivals, like Mexico. In his speech, he said the 2008-09 financial crisis exposed flaws in economic models--such as an inability to capture links between the financial system and economy--and these need to be corrected in building the next generation of forecasting tools. Write to Paul Vieira at paul.vieira@wsj.com Credit: By Paul Vieira
Subject: Central banks; Canadian dollar; Capital expenditures
Location: United States--US Canada Edmonton Alberta Canada
Company / organization: Name: TD Bank NA; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863353723
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863353723?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Army Corps Given Go-Ahead for Final Permit on Dakota Pipeline, Senator Says; Tribe vows to continue battle in court over $3.8 billion oil pipeline halted by Obama administration
Author: Connors, Will
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: The U.S. Army Corps of Engineers has been given the green light to proceed with the final permit necessary to finish the Dakota Access Pipeline, according to North Dakota Sen. John Hoeven. But a local tribe opposed to the pipeline vowed to continue to fight the project in court. The Republican senator said in a statement late Tuesday that during a meeting with Vice President Mike Pence and Acting Secretary of the Army Robert Speer, Mr. Speer said he directed the Army Corps "to proceed with the easement needed to complete the Dakota Access Pipeline." A representative from the Army Corps didn't immediately respond to a request for comment. In December, under the directive of the Obama administration , the Army Corps denied the permit needed to complete the last leg of the $3.8 billion oil pipeline being built by Energy Transfer Partners. "This will enable the company to complete the project, which can and will be built with the necessary safety features to protect the Standing Rock Sioux Tribe and others downstream," Mr. Hoeven said in his statement. "This has been a difficult issue for all involved, particularly those who live and work in the area of the protest site, and we need to bring it to a peaceful resolution." Last week, President Donald Trump signed an executive action that reopened the door for the Dakota Access Pipeline and the Keystone XL pipeline . The Standing Rock Sioux Tribe, the main group opposing the pipeline, says the project could pollute its water supplies and disrupt its sacred lands. On Tuesday, the Standing Rock Sioux said in a statement that while Mr. Speer had directed the Army Corps to proceed, it wasn't a formal approval, and that they haven't received formal notice that a planned environmental-impact assessment had been suspended or withdrawn. The tribe said it "will vigorously pursue legal action to ensure the environmental impact statement order issued late last year is followed so the pipeline process is legal, fair and accurate." "We are not surprised to see North Dakota's U.S. Sen. John Hoeven issued a statement prematurely championing Trump directives to grant an easement for illegal construction," the Standing Rock Sioux said. "We stand ready to fight this battle against corporate interest superseding government procedure and the health and well-being of millions of Americans." Write to Will Connors at william.connors@wsj.com Credit: By Will Connors
Subject: Pipelines
Location: North Dakota United States--US
People: Trump, Donald J Hoeven, John Pence, Mike
Company / organization: Name: Army Corps of Engineers; NAICS: 928110; Name: Standing Rock Sioux Tribe; NAICS: 921150; Name: Energy Transfer Partners; NAICS: 486210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863370542
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863370542?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Rex Tillerson Wins Senate Confirmation to Be Secretary of State; Former Exxon Mobil chief overcame concerns about close ties with Russia's Putin
Author: Schwartz, Felicia
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--The U.S. Senate on Wednesday confirmed former Exxon Mobil Corp. CEO Rex Tillerson to be secretary of state, sending him to the State Department as career officials mount a formal protest against President Donald Trump's immigration initiative and as the U.S. faces a complex set of foreign-policy challenges. Mr. Tillerson won over skeptical Republicans, including Sens. John McCain of Arizona and Marco Rubio of Florida, but continued to face Democratic opposition. He was confirmed on a 56-43 vote. Senators had voiced concern about the close relationship Mr. Tillerson forged with Russian President Vladimir Putin while he was at Exxon, and his unwillingness in testimony to recommit the U.S. to Russia sanctions
. Democrats also were critical of his views on climate change. Mr. Tillerson's confirmation was the most contentious in at least 50 years, coming with the support of only three Democrats--Sens. Heidi Heitkamp (D., N.D.), Joe Manchin (D., W.Va.), Mark Warner (D., Va.)--and Angus King, a Maine independent who caucuses with the Democrats. The second closest vote in recent memory, by comparison, was for Condoleezza Rice, who won confirmation 85-13 in 2005. Now, the former business executive, 64 years old, will have to move quickly to get senior staff in place, calm hundreds of career officials who have formally registered their concerns
about Mr. Trump's immigration and refugee policies and carve out a place for himself
in the Trump administration's foreign-policy apparatus, which so far has been dominated by White House aides Steve Bannon and Jared Kushner. The immediate challenges Mr. Tillerson will confront when he enters office, said current and former U.S. officials working on foreign policy, include addressing the rift with Mexico over Mr. Trump's plans to build a border wall
; implementing and dealing with a temporary immigration ban
on seven Muslim-majority countries intended to protect against terrorism; and possibly implementing Mr. Trump's suggestion to relocate the U.S. embassy in Israel to Jerusalem from Tel Aviv. In the longer term, Mr. Tillerson will be asked to make good on Mr. Trump's pledge to drastically recast U.S. relations with major global powers Russia and China, to help intensify the war against the terrorist organization Islamic State and revisit the landmark nuclear agreement the Obama administration forged with Iran in 2015. Mr. Tillerson has begun the process of setting up his own State Department team. He is expected to name Margaret Peterlin, a former Navy officer and senior official at the Patent and Trademark Office during the Bush administration, as his chief of staff, according to people familiar with the deliberations. Paula Dobriansky, a former senior State Department official in the George W. Bush administration, and Elliott Abrams, a former National Security Council aide to Mr. Bush, are among candidates to be deputy secretary of state. Michael Dougherty, who has worked at Raytheon Co. and at the Department of Homeland Security, is expected to be nominated to take the helm of the Consular Affairs Bureau. Rob Wasinger, a former Republican Virginia congressional candidate in 2014, is expected to take on a senior role, the people familiar with the deliberations said. Jennifer Hazelton, who led Mr. Trump's campaign communications in Georgia and had previously worked at CNN and Fox before moving to politics, is expected to be Mr. Tillerson's press secretary. The staffing decisions aren't yet final and could change, the people familiar with the deliberations said. The 40-year Exxon veteran has been at the State Department several times for briefings over the past two weeks and had lunch with Mr. Trump on Wednesday. Republicans welcomed Mr. Tillerson's confirmation and said they looked forward to working with him. "Mr. Tillerson led a global enterprise with 75,000 employees, possesses deep relationships around the world and understands the critical role of U.S. leadership. He has expressed a commitment to defend American values and to restore U.S. credibility by strengthening old alliances and building new ones," said Sen. Bob Corker (R., Tenn.), chairman of the Senate Foreign Relations Committee. Most Democrats said they remained unconvinced Mr. Tillerson was right for the job, citing concerns about his record at Exxon and his ties to Russia. "Mr. Tillerson's lack of transparency, history of working against our national interests, close ties to Russia and indifference to Israel's future make him unfit to serve as the secretary of state," said Sen. Dianne Feinstein (D., Calif.). Differences between career State Department employees and the White House over national policies isn't new, said current and former U.S. officials. A number of American diplomats quit their posts following the U.S. invasion of Iraq in 2003 to protest the George W. Bush administration's Middle East policy. But the numbers were low, the officials said, and overall morale at the State Department eventually rebounded. Former officials said Mr. Tillerson must demonstrate that he speaks for Mr. Trump if he is going to successfully navigate the State Department and dealings with foreign officials, a complicated task given Mr. Trump's skepticism toward U.S. foreign-policy norms. "If he wants to succeed at State, he's got to be White House man at the State Department," said Aaron David Miller, a long time State Department official who advised Republicans and Democrats and is now at the Wilson Center. Jay Solomon contributed to this article. Write to Felicia Schwartz at Felicia.Schwartz@wsj.com More U.S. News * Trump Urges Senate to Scrap 60-Vote Rule for Court Pick
* Sessions, Mnuchin, Price Advance in Senate Panel Votes
* Two GOP Senators Say They Will Oppose Education Nominee DeVos
* Senate Democrats Boycott Planned Committee Vote on Trump EPA Pick
* Democratic Lawmakers Seek Pentagon Probe of Flynn's Russia Today Ties
Credit: By Felicia Schwartz
Subject: Political campaigns; Political appointments; Immigration; Foreign policy
Location: Mexico Russia United States--US Arizona Israel Jerusalem Israel Iran China Florida Tel Aviv Israel
People: Trump, Donald J McCain, John Bush, George W Putin, Vladimir Rubio, Marco Bannon, Stephen K
Company / organization: Name: Senate; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863631015
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863631015?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Donald Trump Inauguration Drew More Than 18 Corporate Donors; Exxon gave $500,000 to inauguration fund; Pfizer and Dow Chemical gave $1 million each
Author: Ballhaus, Rebecca
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: At least 18 major corporations gave more than $5 million to fund President Donald Trump's inauguration festivities, according to new disclosures, including several companies whose executives are now serving in the new administration and whose business will be affected by Mr. Trump's policies. Among the top donors to Mr. Trump's inauguration fund was Exxon Mobil, whose former chief executive, Rex Tillerson, the president has tapped to serve as secretary of state . Exxon donated $500,000 to the fund on Dec. 19--less than a week after Mr. Trump officially named Mr. Tillerson as his pick. In 2013, the company gave half that amount to former President Barack Obama's inauguration fund. Two corporations--Pfizer Inc. and the Dow Chemical Co.--each gave $1 million to the inaugural fund. Dow Chemical's donation came about two weeks after Mr. Trump tapped the company's CEO, Andrew Liveris, to head a manufacturing council . Neither company gave to Mr. Obama's inauguration in 2013. Mr. Trump's inaugural committee, which raised more than $90 million, doesn't have to report its donors until April. But corporations that lobby the federal government are required to biannually disclose contributions to inaugural committees. The new reports only cover donations made in the final six months of 2016. Corporate donations to inauguration funds aren't unusual. Mr. Obama also drew millions from corporations in 2013, though he banned such contributions to his inaugural fund four years earlier. But corporate donations to Mr. Trump's inauguration have come under scrutiny as the president has singled out several corporations in recent months for criticism or praise. The donations also follow a campaign in which corporations were wary of linking themselves to the Republican candidate. At least four corporations that declined to support or reduced their donations to the Republican convention in July subsequently gave to Mr. Trump's inauguration . At least three other corporations each gave $500,000 to the fund: Altria Client Services LLC, Amgen Inc. and Florida Crystals Corp. Donors who gave $500,000 or more to the inaugural fund were invited to a "candlelight dinner" during inauguration weekend with Mr. Trump and his wife, Melania, and Vice President Mike Pence and his wife, Karen. They could also attend a separate "intimate dinner" with the Pences and lunch alongside "select cabinet appointees." Microsoft Corp. donated $250,000 to the inaugural fund--down from $2 million to Mr. Obama in 2013, including in-kind contributions--and General Motors Co. donated $200,000. General Motors has since found itself the target of Mr. Trump's Twitter account. About 10 days after the company's donation, Mr. Trump tweeted at General Motors warning it to make its Chevy Cruze model in the U.S. rather than in Mexico. The auto maker's chief executive, Mary Barra, said days later that the company wouldn't move small-car production to the U.S. Companies who gave $100,000 each to the inaugural fund included Aetna Inc., Anthem Inc., Clean Energy Fuels Corp., MetLife Group, Southern Company and Verizon Inc. The agriculture company Monsanto Co. also donated $25,000 to the inaugural fund. About a month later, its chief executive met with Mr. Trump to pitch the benefits of its planned deal with Bayer AG. Write to Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com Credit: By Rebecca Ballhaus
Subject: Donations; Political campaigns; Presidents; Chemical industry; Inaugurations
Location: Mexico
People: Trump, Donald J Pence, Mike Tillerson, Rex W Liveris, Andrew N Obama, Barack
Company / organization: Name: Amgen Inc; NAICS: 325412, 541711; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Dow Chemical Co; NAICS: 325180, 325199, 325211; Name: Microsoft Corp; NAICS: 334614, 511210; Name: General Motors Corp; NAICS: 333415, 336111, 336390; Name: Pfizer Inc; NAICS: 325412, 339113
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863644724
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863644724?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rises After First Month of OPEC Cuts; Market looks past rise in U.S. stockpiles to focus on OPEC's efforts to reduce output
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: Oil futures rose to their highest level in nearly a month Wednesday amid signs that major oil exporters are cutting production and federal data showing that U.S. crude output edged lower last week. U.S. crude future rose $1.07, or 2.03%, to $53.88 a barrel on the New York Mercantile Exchange--the highest settlement price since Jan. 6. Brent, the global benchmark, rose $1.22, or 2.2%, to $56.80 on London's ICE Futures Exchange. Oil futures have traded in a tight range in recent weeks, as traders weighed planned output cuts by major exporters against the possibility of a rebound in U.S. drilling by shale oil producers. The decline in the U.S. dollar helped lift the market Wednesday. Oil prices rose after a statement by the Federal Reserve offered little hint as to when the next interest-rate increase could come. The dollar's move lower makes oil less expensive for foreign buyers, a scenario that often causes prices to rise. Market participants have been closely watching data on production by members of the Organization of the Petroleum Exporting Countries and other major exporters. Indications that the major producers are on track to meet most of their commitment to reduce daily oil output by 1.2 million barrels in the first six months of 2017 have bolstered prices this week. The effort has been led by Saudi Arabia, where the deepest cuts were made. JBC Energy said OPEC has reduced output by just over one million barrels a day, or 88% of the pledged cuts, in a sign that the cartel is following through on its plans. Reports that Russia, which joined with OPEC to cut production, decreased its output by 100,000 barrels a day last month, have also bolstered oil prices. "The market is tilted long and it continues to give all that the benefit of the doubt," said John Kilduff, founding partner of Again Capital. Oil prices briefly pulled back earlier in the day after the federal data showed that commercial crude stockpiles increased by 6.5 million barrels last week, as imports rose and refiners slowed down. The increase was sharply higher than the 2.9 million barrel build expected by analysts and traders surveyed by The Wall Street Journal. But prices began to rally again as investors focused on a 46,000 barrel-a-day decline in U.S. crude production reported by the U.S. Energy Information Administration. Higher oil prices have spurred U.S. drillers to put rigs back to work, and the prospect of rising U.S. output offsetting some of the supply being taken off the market by OPEC has limited crude's rise in recent weeks. "It just tells you more about the character of the market--it's fairly receptive to bullish news and fairly immune to negative signals," said John Saucer, vice president of research and analysis at Mobius Risk Group. Gasoline futures gained 2.9 cents, or 1.87%, to $1.5791 a gallon. Diesel futures rose 4.32 cents, or 2.65%, to $1.6740 a gallon. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Prices; Inventory; Investments; Crude oil
Location: United States--US Libya Saudi Arabia Nigeria
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863653645
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863653645?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil, Fuel Inventories Climb Sharply
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. crude oil inventories rose by more than double what analysts expected for the week ended Jan. 27, while gasoline stockpiles also increased sharply, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles rose by 6.5 million barrels to 494.8 million barrels, which is near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 2.9 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, decreased by 1.2 million barrels to 64.1 million barrels, the EIA said in its weekly report. Gasoline stockpiles increased by 3.9 million barrels to 257.1 million barrels. Analysts were expecting gasoline inventories to rise by just 1.3 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, unexpectedly rose by 1.6 million barrels to 170.7 million barrels, and are well above the upper limit of the average range, the EIA said. Analysts were forecasting supplies to decrease by 600,000 barrels from a week earlier. Refining capacity utilization slipped by 0.1 percentage point from the previous week to 88.2%. Analysts were expecting utilization levels to decline by 0.3 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Price increases; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863657772
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863657772?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Acing a Challenging Oil Market Test So Far; OPEC is cheating on oil quotas much less than is typical, helping crude hang on to recent gains
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: With the first month of the Organization of the Petroleum Exporting Countries' deal now behind us, official production and export numbers are hard to find. The early results , though, are encouraging for oil bulls. Industry-watcher JBC Energy estimates that compliance within OPEC itself is around 88% on a net basis. The cartel is infamous for cheating on production quotas, making even 50% to 60% compliance in the past a passing grade. The estimated 1 million barrels actually curtailed would be enough for an A-plus if Russia weren't copying off OPEC's paper and implementing its own 300,000 barrel a day cut slowly. One might argue that the only way to measure the deal is by the price of oil . On that metric, the slight drop in benchmark Brent futures in January is unimpressive. Recall, though, that crude already rallied by $10 a barrel since a late September summit in Algeria that set the stage for the cuts. Even though output continued to rise , the fact that these gains have held up is impressive. So what is happening under the surface? The futures curve for Brent is nearly flat going out several months after being sharply upward-sloping or in contango months ago. That signifies a greater preference for physical barrels. Refinery customers also seem to be craving the sorts of barrels many OPEC producers pump--sour, high-sulfur grades--boosting their per-barrel revenue and lending credence to the notion they really have cut exports. In the futures and swaps markets, investors are betting prices will rise. It is early in the semester, but OPEC may be headed for the dean's list if it maintains its current pace. Write to Spencer Jakab at spencer.jakab@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Futures
Location: Algeria Russia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863657971
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863657971?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Oil Minister Praises Trump's Energy Policy, Welcomes Increased U.S. Production; Minister says Saudi Arabia could increase its U.S. oil-industry investments
Author: Faucon, Benoit; Amon, Michael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia's oil minister on Wednesday praised President Donald Trump's energy policies and said he welcomed an increase in American oil production "as long as they grow in line with global energy demand." "President Trump has policies which are good for the oil industry, and I think we have to acknowledge it," said Saudi Arabia's top oil official Khalid al-Falih in an interview with the BBC aired on Wednesday. He said Saudi Arabia could increase its U.S. oil-industry investments "on the back of pro-industry, pro-oil-and-gas policies ." Mr. Falih said he wasn't concerned about Mr. Trump's campaign rhetoric about cutting off imports of Saudi Arabian oil or taxing foreign oil. He pointed to the White House's recent statement on energy policy, titled "An America First Energy Plan," in which the administration said it is committed to working "with our Gulf allies to develop a positive energy relationship as part of our anti-terrorism strategy." "Saudi Arabia is the leader of that group [Persian Gulf oil producers] on energy policies," Mr. Falih said, adding: "There are huge areas of alignment." The White House policy statement also said: "President Trump is committed to achieving energy independence from the OPEC cartel and any nations hostile to our interests." Saudi Arabia is the largest producer within the Organization of the Petroleum Exporting Countries and its de facto leader. Mr. Falih dismissed any suggestion that OPEC was a "foe" of U.S. energy interests. "We're not the foes," he said. "People are recognizing that OPEC is a force for good." Saudi Arabia and Mr. Falih steered OPEC toward its recent decision to ally with non-member oil producers like Russia and strike a grand agreement to cut back petroleum supplies this year in a bid to raise crude prices. The plan has worked so far, with oil prices rising from the mid-$40s a barrel last year to the mid-$50s this year. The oil rally has been capped by rising American oil production from companies that drill in shale rock formations. A boom in American energy production helped cause the long price skid that OPEC is trying to end. Mr. Falih said he welcomed new American production, though with a significant caveat: "As long as they grow in line with global energy demand." It isn't clear if U.S. oil production will follow such a trajectory. Its growth pattern from 2008 to 2015 represented a flood of new supplies that swamped demand and sparked a response from Saudi Arabia to produce even more to keep its market share. Mr. Falih praised Mr. Trump's cabinet nominees, including former Exxon Mobil Corp. chief executive Rex Tillerson as secretary of state, who he described as "a statesmen by nature," and former Texas Gov. Rick Perry for energy secretary, who he said was "pro-oil and gas." Write to Benoit Faucon at benoit.faucon@wsj.com and Michael Amon at michael.amon@wsj.com Credit: By Benoit Faucon and Michael Amon
Subject: Petroleum production; Political campaigns; Petroleum industry; Energy policy
Location: Russia United States--US Saudi Arabia
People: Trump, Donald J
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863660400
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863660400?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Ruptured U.S. Oil Pipeline May Restart In 'A Few' Days
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.
Abstract: None available.
Full text: An important U.S. oil pipeline owned by Enterprise Products Partners and Enbridge Inc. that ruptured Monday in Texas may resume pumping in a few days, a spokesman said Wednesday. "We don't have an estimate as to when the pipeline will be back in service but expect it will be a few more days barring any unforeseen delays," Enterprise's Rick Rainey said in an email. The 30-inch diameter Seaway S-1 pipeline normally pumps 400,000 barrels of crude oil each day from a hub in Cushing, Okla. to refineries 500 miles away near Houston. It was punctured Monday northeast of Dallas by a road crew working nearby for the Texas Department of Transportation, Mr. Rainey said. The rupture of the high-pressure line caused oil to spray several stories into the air, caking a nearby highway with crude oil, forcing it and a nearby gun shop and gas station to be closed. The highway and businesses have since reopened. Enterprise hasn't provided an estimate of how much oil was spilled. There were no injuries related to the incident. An oil spill from the same pipeline in October kept the line shut for a full week while cleanup and repairs were done. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Oil spills; Pipelines
Location: Texas United States--US
Company / organization: Name: Enbridge Inc; NAICS: 486110; Name: Department of Transportation-Texas; NAICS: 926120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 18637737 61
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863773761?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Rex Tillerson Wins Senate Confirmation to Be Secretary of State; Former Exxon Mobil chief overcame concerns about close ties with Russia's Putin
Author: Schwartz, Felicia
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--The Senate on Wednesday confirmed former Exxon Mobil Corp. CEO Rex Tillerson as secretary of state, sending him to the State Department as career officials mount a formal protest against President Donald Trump's immigration initiative and the U.S. faces a complex set of foreign-policy challenges. Mr. Tillerson won over skeptical Republicans, including Sens. John McCain of Arizona and Marco Rubio of Florida, but continued to face Democratic opposition. He was confirmed on a 56-43 vote. Senators had voiced concern about the close relationship Mr. Tillerson forged with Russian President Vladimir Putin while he was at Exxon and his unwillingness in testimony to recommit the U.S. to Russia sanctions
. Democrats also were critical of his views on climate change. Mr. Tillerson's confirmation was the most contentious for secretary of state in at least 50 years, coming with the support of only three Democrats--Sens. Heidi Heitkamp (D., N.D.), Joe Manchin (D., W.Va.), Mark Warner (D., Va.)--and Angus King, a Maine independent who caucuses with the Democrats. The second closest vote in recent memory, by comparison, was for Condoleezza Rice, who won confirmation 85-13 in 2005. Now, the former business executive, 64 years old, will have to move quickly to get senior staff in place, calm hundreds of officials who have registered concerns
about Mr. Trump's immigration and refugee policies, and carve out a place for himself
in the Trump administration's foreign-policy apparatus, which so far has been dominated by White House aides Steve Bannon and Jared Kushner. The immediate challenges Mr. Tillerson will confrontwhen he enters office, according to current and former U.S. officials working on foreign policy, include addressing the rift with Mexico over Mr. Trump's plans to build a border wall
; implementing and dealing with a temporary immigration ban
on seven Muslim-majority countries intended to protect against terrorism; and possibly implementing Mr. Trump's suggestion to relocate the U.S. embassy in Israel to Jerusalem from Tel Aviv. In the longer term, Mr. Tillerson will be asked to make good on Mr. Trump's pledge to recast U.S. relations with major global powers Russia and China, to help intensify the war against the terrorist organization Islamic State, and revisit the nuclear agreement that the Obama administration forged with Iran in 2015. Mr. Tillerson was sworn in by Vice President Mike Pence at a White House ceremony Wednesday evening and was expected to go to the State Department on Thursday. He will go straight to work, meeting Thursday with Jordan's King Abdullah II and German Vice Chancellor Sigmar Gabriel. Mr. Tillerson has begun the process of setting up his own State Department team. He is expected to name Margaret Peterlin, a former Navy officer and senior official at the Patent and Trademark Office during the Bush administration, as his chief of staff, according to people familiar with the deliberations. Paula Dobriansky, a former senior State Department official in the George W. Bush administration, and Elliott Abrams, a former National Security Council aide to Mr. Bush, are among candidates to be deputy secretary of state. Michael Dougherty, who has worked at Raytheon Co. and at the Department of Homeland Security, is expected to be nominated to take the helm of the Consular Affairs Bureau. Rob Wasinger, a former Republican Virginia congressional candidate in 2014, is expected to take on a senior role, the people familiar with the deliberations said. Jennifer Hazelton, who led Mr. Trump's campaign communications in Georgia and had previously worked at CNN and Fox before moving to politics, is expected to be Mr. Tillerson's press secretary. The staffing decisions aren't yet final and could change, the people familiar with the deliberations said. The 40-year Exxon veteran has been at the State Department several times for briefings over the past two weeks and had lunch with Mr. Trump on Wednesday. Republicans welcomed Mr. Tillerson's confirmation and said they looked forward to working with him. "Mr. Tillerson led a global enterprise with 75,000 employees, possesses deep relationships around the world and understands the critical role of U.S. leadership. He has expressed a commitment to defend American values and to restore U.S. credibility by strengthening old alliances and building new ones," said Sen. Bob Corker (R., Tenn.), chairman of the Senate Foreign Relations Committee. Most Democrats said they remained unconvinced Mr. Tillerson was right for the job, citing concerns over his record at Exxon and his ties to Russia. "Mr. Tillerson's lack of transparency, history of working against our national interests, close ties to Russia and indifference to Israel's future make him unfit to serve as the secretary of state," said Sen. Dianne Feinstein (D., Calif.). Differences between career State Department employees and the White House over national policies isn't new, said current and former U.S. officials. A number of American diplomats quit their posts following the U.S. invasion of Iraq in 2003 to protest the George W. Bush administration's Middle East policy. But the numbers were low, the officials said, and overall morale at the State Department eventually rebounded. Former officials said Mr. Tillerson must demonstrate that he speaks for Mr. Trump if he is going to successfully navigate the State Department and dealings with foreign officials, a complicated task given Mr. Trump's skepticism toward U.S. foreign-policy norms. "If he wants to succeed at State, he's got to be White House man at the State Department," said Aaron David Miller, a long time State Department official who advised Republicans and Democrats and is now at the Wilson Center. Jay Solomon contributed to this article. Write to Felicia Schwartz at Felicia.Schwartz@wsj.com More U.S. News * Trump Urges Senate to Scrap 60-Vote Rule for Court Pick
* Sessions, Mnuchin, Price Advance in Senate Panel Votes
* Two GOP Senators Say They Will Oppose Education Nominee DeVos
* Senate Democrats Boycott Planned Committee Vote on Trump EPA Pick
* Democratic Lawmakers Seek Pentagon Probe of Flynn's Russia Today Ties
Credit: By Felicia Schwartz
Subject: International relations; Political campaigns; Immigration; Foreign policy; Congressional committees
Location: Mexico Russia United States--US Israel Maine Arizona Jerusalem Israel Iran China Florida Tel Aviv Israel
People: Trump, Donald J Rice, Condoleezza McCain, John Pence, Mike Bush, George W Rubio, Marco Putin, Vladimir Bannon, Stephen K
Company / organization: Name: Islamic State of Iraq & the Levant--ISIS; NAICS: 813940; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 2, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863783405
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863783405?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Oil Futures Pull Back in Asia After Overnight Rally; Brent crude for April lost 18 cents, or 0.3%, to $56.62
Author: Strumpf, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2017: n/a.
Abstract: None available.
Full text: Crude-oil futures fell in Asia trading hours on Thursday, as traders pared bullish bets after prices rallied overnight to their highest level in nearly a month. Light, sweet crude for March delivery fell 26 cents, or 0.5%, to $53.62 a barrel in the Globex electronic session of the New York Mercantile Exchange. Brent crude for April lost 18 cents, or 0.3%, to $56.62. Futures eased in after-hours trading following a surge of more than 2% for both benchmarks during the New York session. Prices soared following a report from the U.S. Energy Information Administration showing a decline in domestic production, even as oil inventories rose by more than expected in the week ended Jan. 27. Still, many market watchers said prices are likely to stay in a narrow range for the time being, with prices caught between the production cut by major oil-producing nations and the prospect for renewed U.S. oil drilling. "Price action remains contained in a $50 [to] $55 range for now," wrote Stuart Ive of OM Financial. Prices have stayed in that range for weeks as traders await additional signs of compliance with the agreed cuts by the Organization of the Petroleum Exporting Countries. Some indications of follow-through have emerged in recent weeks, with JBC Energy saying OPEC has reduced output by just over one million barrels a day, or 88% of the pledged cuts. Meanwhile, U.S. oil output remains on an uncertain course. EIA data Wednesday showed a 46,000-barrel-a-day fall in U.S. oil output, belying expectations that higher oil prices would be met with a sharp jump in shale output. In recent weeks, data has showed more drilling rigs being put back to work in the wake of OPEC's stated cuts. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 2 points to $1.5793 a gallon, while March diesel traded at $1.6707, 33 points lower. ICE gas oil for February changed hands at $499.50 a metric ton, up $1.25 from Wednesday's settlement. Write to Dan Strumpf at daniel.strumpf@wsj.com Credit: By Dan Strumpf
Subject: Futures; Price increases; Crude oil
Location: United States--US Asia
Company / organization: Name: Federal Open Market Committee--FOMC; NAICS: 921130; Name: Societe Generale; NAICS: 522110, 522120, 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863826556
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863826556?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Profit Slips to Lowest Level in More Than a Decade; Earnings reflect difficult year for energy giant, with oil prices still under pressure
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2017: n/a.
Abstract: None available.
Full text: LONDON--Royal Dutch Shell PLC's annual profit tumbled in 2016 to its lowest level in over a decade, but the oil giant said it had turned an important corner, reporting a surge in cash despite low crude prices. The British-Dutch firm said Thursday its profit for 2016 on current cost-of-supplies basis--a measure similar to the net income that U.S. oil companies report--was $3.5 billion, down from $3.8 billion a year earlier. Profit for the fourth quarter fell to $1 billion from $1.8 billion a year earlier. The results reflected a tough year for the industry during which oil prices sank as low as $27 a barrel and remained mired in the mid-$40s for months. American energy-industry rivals Exxon Mobil Corp. and Chevron Corp. posted disappointing earnings this week and last . But there were also signs that Shell, the world's second largest oil company, was starting to find its footing as the benefits from its roughly $50 billion acquisition of BG Group PLC last year kicked into gear. "We are really making good progress in reshaping Shell to a world class investment case," CEO Ben van Beurden said in a media briefing. "2016 has been a transition year for us; 2017 will be the year that we follow through on the strategy." Cash flow from operations jumped nearly 70% in the fourth quarter compared with a year earlier, rising to $9.2 billion--enough to cover Shell's cash dividend payments for the period. Its debt levels also came down record amounts earlier in the year, when the company turned to financing to pay for the BG deal and maintain hefty investor payouts. The company said that bet on BG is already paying off. Oil and gas production rose 28% in the fourth quarter compared with a year earlier, with BG assets adding 824,000 barrels of oil equivalent a day. By 2018, new projects from BG and Shell's existing portfolio are expected to add 1 million barrels a day of new production compared with 2014, or $10 billion of cash generation with oil prices at around $60 a barrel, Shell's Chief Financial Officer Simon Henry said. Cash-flow generation in the fourth quarter already came in well above analysts expectations, buoying Shell's share price despite the dismal profit numbers. Shell's share price went up 1.7% in London trading on Thursday morning. "We emerged clearly stronger by the end of 2016," Mr. Henry said, hitting back at critics who early on in the oil price downturn complained that the company wasn't vocal enough in setting out a strategy. "The next couple of days will indicate who really got it and who acted most efficiently," Mr. Henry said. "You should just go compare." Shell rival BP PLC is set to report its quarterly and annual financial results on Tuesday. Like many of its peers, Shell has responded to the challenging operating environment with tough measures, and is continuing to trim costs and spending as it pursues more progress in efforts to rebalance its finances. It has already laid off thousands of workers, slashed costs and spending, and embarked on a $30 billion divestment plan to pay down debt and enable it to finance its spending and dividend payments from free cash flow. Last month, it announced asset sales in the North Sea, Thailand and Saudi Arabia amounting to close to $6 billion. Mr. van Beurden said in Shell's results announcement that the company had completed, announced or was progressing divestments worth $15 billion. Shell said it is planning its business around oil prices at $50 a barrel this year and expects capital spending to $25 billion or lower, at the bottom range of its guidance for spending of $25-$30 billion a year out to 2020. The company's net debt fell to $73 billion at the end of the fourth quarter, down from $78 billion in September, and operating costs declined $10 billion from Shell and BG's combined level two years ago. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Corporate profits; Financial performance
Location: United States--US
People: van Beurden, Ben
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: BG Group PLC; NAICS: 211111, 221210, 486210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 2, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863835521
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863835521?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Aramco Approves Rare Increase in Oil Price; Effort to decrease outflows will cost customers globally as part of OPEC's plan to cut production
Author: Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia's state-owned oil company said Thursday it was raising prices across the world, signaling that the kingdom its commitment to trimming its production along with other big petroleum producers. Raising prices for refineries and other buyers of crude oil will help naturally lower demand and reduce outflows from Saudi Arabia, the world's largest exporter of crude. The kingdom had vowed to lower its output by about 4% from record high levels of 10.6 million barrels a day as part of a production-cutting deal with members of the Organization of the Petroleum Exporting Countries and other large producers like Russia. One of the biggest price increases was for Asian refiners and other crude buyers, who will have to pay as much as $1 barrel more for some grades of crude produced by the Saudi Arabian Oil Co., better known as Saudi Aramco. China, India and other Asian countries are seen as the growth centers for Saudi Arabia's crude. Aramco also modestly raised prices for American buyers, while European customers were given the biggest increases of up to $1.35 per barrel. Across-the-board price moves are relatively rare for Aramco, which generally tailors its prices to the differing market conditions in the regions where it sells oil. The prices are set as premiums or discounts to regional benchmarks such as Brent, which fluctuate independently of Aramco. Setting prices is typically a technical move with little impact on the broader market. But in the past two years, amid a steep drop in global crude prices, the settings have been closely followed by market watchers looking for clues as to the intended direction of Saudi oil policy. Aramco, which produces almost all of Saudi Arabia's oil for export, is responsible for a major piece of OPEC's plan to cut of 1.2 million barrels a day. Saudi oil officials say the kingdom has cut oil production below 10 million barrels a day, pushing it farther down than it promised. OPEC has a notoriously poor record of complying with its own promises to cut, but this time, analysts say there are indications that the cartel is keeping its vows. Last week tanker tracking firm Petro-Logistics said OPEC supply is on track to decrease by 900,000 barrels a day in January, or around 75% of its commitment to cut. Credit: By Kevin Baxter
Subject: Petroleum production; Energy economics; International markets
Location: China Russia Saudi Arabia India
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863860083
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863860083?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall; Investors consider signs of falling production and rising inventories
Author: Puko, Timothy; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2017: n/a.
Abstract: None available.
Full text: Crude-oil futures fell Thursday, as investors weighed signs of falling production and rising inventories. Light, sweet crude for March delivery fell 34 cents, or 0.63%, to $53.54 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 24 cents, or 0.42%, to $56.56 a barrel on ICE Futures Europe. The market traded in positive territory for most of the morning, extending gains from Wednesday. New data has suggested the Organization of the Petroleum Exporting Countries made significant progress in January toward meeting a target for production cuts of 1.2 million barrels a day in the first half of 2017. Indications of escalating tension between the U.S. and Iran also helped lift prices after National Security Adviser Mike Flynn and President Donald Trump said Iran was "on notice" following its ballistic missile test. But prices eased as traders grew less concerned. "Traders seem to have concluded that the dispute between the U.S. and Iran over a recent missile test represents more of a war of words than the start of a military confrontation that would put supplies from the wider Persian Gulf region at risk," Citi Futures analyst Tim Evans wrote in a research note Thursday morning. Typically the signs of mounting conflict with a major oil producer would have sparked more of a response in oil markets, said Mark Waggoner, president of Excel Futures. "Usually when there's a bump in rhetoric you'll see a bump in prices," he said. But high levels of inventories and expectations that U.S. production will soon increase could have mitigated some of the impact. Data Wednesday from the U.S. Energy Information Administration showed U.S. inventories oil and fuel grew by more than expected last week. "We'd need to see material headline draws in net inventories" for prices to advance, said Chris Kettenmann, chief energy strategist at Macro Risk Advisors. "Until then we'll probably churn around this trading range." Crude prices have traded within a tight range in recent weeks, despite a record high bullish position from money managers, who had more than eight bets on rising oil prices for every one on falling oil prices as of Jan. 24, according to regulatory data. If they haven't been able to push the market higher, many could sell out, triggering a cascade of sales and a sharp retreat for prices. The market pared gains as soon as it hit an intraday high dating back to the first session of January. Producers are also selling heavily, capping gains, said Scott Shelton, broker at ICAP PLC. "The ranges have gotten a lot stronger," he added. "We're in a consolidation pattern and the path of least resistance is lower." Gasoline futures fell 4.62 cents, or 2.93%, to $1.5329 a gallon. Diesel futures fell $2.22 cents, or 1.33%, to $1.6518 a gallon. Sarah McFarlane and Dan Strumpf contributed to this article. Write to Timothy Puko at tim.puko@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Timothy Puko and Alison Sider
Subject: Futures; Compliance; Crude oil
Location: Brazil United States--US Canada Libya Nigeria
People: Trump, Donald J
Company / organization: Name: BNP Paribas; NAICS: 522110; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863907273
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863907273?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rises on Production Cuts; Geopolitical Risks Remain; April Brent crude rose $0.17 to $56.73 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Feb 2017: n/a.
Abstract: None available.
Full text: Crude futures clawed back some gains in Asia trade Friday on hopes the continuing output cuts by major producers is chipping away at global oversupply. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.73 a barrel at 0330 GMT, up $0.19 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.17 to $56.73 a barrel. Data from the Russian Energy Ministry Thursday showed the country's production of oil and condensate dropped by around 100,000 barrels a day in January from the previous mouth, giving oil players reason to believe that oil-producing nations, including those from the Organization of the Petroleum Exporting Countries, are adhering to a deal that calls for a collective reduction in output of 1.8 million barrels a day, or roughly 2% of the world's daily production. "There is anecdotal evidence to suggest that the collective agreed cuts are progressing according to schedule," said analysts at National Australia Bank, noting that oil prices have risen around 15% above pre-deal levels. Data on OPEC's January production will be released in mid-February. OPEC is scheduled to meet in June to review the effectiveness of the pact and the cartel could suggest extending the deal for more months. A fully implemented deal could swing the oil market to a 900,000-barrel a day deficit by the third quarter, said Citi Futures analyst Tim Evans. "But, of course, that assumes the production limits are extended beyond the initial six-month period, which can't be taken for granted," he said. Offsetting positive sentiment are production gains in the U.S., where inventories of crude and gasoline grew much more than anticipated last week. Analysts say the uptrend will likely remain in tandem with the rising prices. Increased supplies coming from the U.S. run the risk of undercutting OPEC's effort to dry out the market. Moreover, non-U.S. oil nations may be enticed to crank up their operations in defense of their market share. According to the Energy Information Administration's latest forecast, U.S. crude-oil production will expand from an average of 8.9 million barrels a day in 2016 to 9.3 million barrels a day in 2018, "primarily as a result of gains in the major U.S. tight-oil producing states." Oil players are also watching U.S. President Donald Trump's energy policies as well as his attitude toward Iran. Earlier this week, the administration publicly condemned Tehran for conducting a ballistic missile test, fueling speculation that the U.S. may toughen its stance and reinstate sanctions, including oil trading, against Iran. "For now, most people are expecting the tension between U.S. and Iran to be mainly verbal but it is hard to predict what Mr. Trump would do next. His main interest is to enlarge U.S. market shares," said a Singapore-based fuel trader for a Chinese private refinery. Another area of concerns is President Trump's eagerness to revamp the 23-year old North America Free Trade Agreement. "The oil markets will be keeping a close eye on Trump as news overnight that he has serious concerns regarding the Nafta could have implications for imports from Canada and Mexico to the U.S.," said Stuart Ive, a client manager at OM Financial. Nymex reformulated gasoline blendstock for March-the benchmark gasoline contract-rose 38 points to $1.5367 a gallon, while March diesel traded at $1.6570, 52 points higher. ICE gasoil for February changed hands at $497.75 a metric ton, down $3.00 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Demand
Location: Iran Middle East Russia United States--US
People: Trump, Donald J
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1863973405
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863973405?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited with out permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Steady on Expectation for Lower Output; Analysts expect OPEC is complying with more than 80% of its targeted production cuts
Author: McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Feb 2017: n/a.
Abstract: None available.
Full text: Oil prices fluctuated between gains and losses on Friday, as investors hoped that the output cuts by major producers would continue to chip away at global oversupply. Light, sweet crude for March delivery was recently up 3 cents, or 0.1%, at $53.57 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, was down 6 cents, or 0.1%, at $56.50 a barrel. The rally in oil has stalled this year as the market has weighed declining output from the world's biggest producers against signs of rising production and inventories in the U.S. "You have opposing forces" that have kept oil trading in a range, said Jim Ritterbusch, president of Ritterbusch & Associates. "We're still trapped." Analysts expect the Organization of the Petroleum Exporting Countries is complying with more than 80% of its targeted production cuts, in place since the start of the year, in an effort to address a global glut in supply. Data from the Russian Energy Ministry Thursday showed the country's production of oil and condensate dropped by around 100,000 barrels a day in January from the previous month. The report raised hope that oil-producing nations beyond OPEC are adhering to a deal that calls for a collective reduction in output of 1.8 million barrels a day, or roughly 2% of the world's daily production. "There's very high confidence in the market that OPEC is going to help drive inventories gradually lower through the first half of the year," said Bjarne Schieldrop, chief commodities analyst at Norwegian bank SEB. Data on OPEC's January production will be released in mid-February. OPEC is scheduled to meet in June to review the effectiveness of the pact and the cartel could suggest extending the deal for more months. A fully implemented deal could swing the oil market to a 900,000-barrel-a-day deficit by the third quarter, said Citi analyst Tim Evans. "Of course, that assumes the production limits are extended beyond the initial six-month period, which can't be taken for granted," he said. Offsetting positive sentiment are production gains in the U.S., where inventories of crude and gasoline grew much more than anticipated last week. Analysts say the growth trend will likely remain in tandem with rising oil prices. Increased supplies from the U.S. risk undercutting OPEC's effort to remove oversupply. Moreover, non-U.S. oil nations may be enticed to crank up their operations in defense of their market share. According to the Energy Information Administration's latest forecast, U.S. crude-oil production will expand from an average of 8.9 million barrels a day in 2016 to 9.3 million barrels a day in 2018. Oil players are also watching U.S. President Donald Trump's energy policies and his attitude toward Iran. This week, the administration condemned Tehran for conducting a ballistic missile test, fueling speculation that the U.S. may toughen its stance and reinstate sanctions against Iran, including those for oil trading. "The last two or three years we've had so much oil in the market, so geopolitical risks haven't mattered so much but now that we move into a more balanced market, suddenly these geopolitical risks--with Iran definitely being one of them--are much more important," said Mr. Schieldrop. Another area of concern is President Trump's eagerness to revamp the 23-year-old North American Free Trade Agreement. "The oil markets will be keeping a close eye on Trump as news overnight that he has serious concerns regarding the Nafta could have implications for imports from Canada and Mexico to the U.S.," said Stuart Ive, a client manager at OM Financial. Gasoline futures were recently down 0.9% at $1.5195 a gallon and diesel futures were down 0.2% at $1.6485 a gallon. Stephanie Yang contributed to this article. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Sarah McFarlane and Jenny W. Hsu
Subject: Petroleum production; Futures; Inventory; Geopolitics
Location: Iran United States--US
People: Trump, Donald J
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1864058122
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1864058122?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Mexico Keeps Gasoline Prices Unchanged After Riots; Decision follows slight drop in international oil prices, peso appreciation
Author: Montes, Juan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Feb 2017: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexico's government kept gasoline prices unchanged Friday after a big jump in prices in early January prompted protests, riots and looting across the country. The decision to leave prices unchanged in the first weeks of February followed a slight decline in international oil prices and an appreciation of the peso in recent weeks. A senior official at the Finance Ministry said no subsidies or tax breaks will be needed to keep prices unchanged. But the move also had political implications, analysts said. A second jump in gasoline prices could have reignited protests at a moment when President Enrique Peña Nieto is enjoying broad support after canceling last week his planned visit to the U.S. to meet President Donald Trump, who is widely unpopular in Mexico. In early January, Mexicans took to the streets to protest the higher fuel prices. Scenes of looting at supermarkets and chaos in the streets spread in a country where such incidents are uncommon. Riots left six people dead and around 1,500 people were arrested. "There was a real concern that social unrest could get out of control," said Gerardo Esquivel, an economist at El Colegio de México university. Mr. Peña Nieto's approval rating fell to 12% last month, the lowest of any recent president's, and a fresh increase in fuel prices would likely have had a further negative impact. The January increase proved a hard blow for consumers, as inflation in the first half of the month was the most for a two-week period since 1999. As a result, most economists expect inflation to end the year above 5%, compared with 3.36% in 2016. Mexico's central bank is widely expected to keep raising interest rates this year to tame inflation and support a weak peso. Most analysts see the overnight rate at 7.5% at the end of the year, up from the current 5.75%. Gasoline prices are already higher than in the U.S., as Mexico imports most of its gasoline and has insufficient infrastructure for refining, transportation and service stations, which raises the cost of supplying fuel. The Finance Ministry said prices for regular gasoline will stay on average at 15.99 pesos per liter, about $2.98 per gallon, compared with around $2.30 in the U.S. Premium gasoline will be at 17.79 pesos, or $3.31 per gallon. In January, the government raised maximum prices for regular gasoline on average 14%, while premium gasoline was up 20%--the biggest one-time increases on record. The move incorporated costs into the price ahead of the liberalization of prices scheduled for this year. Mexico has had government-controlled and often subsidized gasoline prices for the past eight decades. Price caps will coexist with free prices this year as the liberalization is gradually rolled out across the country, beginning in March. Price caps will be set daily from Feb. 18. Write to Juan Montes at juan.montes@wsj.com Credit: By Juan Montes
Subject: Looting; Riots; Liberalization; Gasoline prices
Location: United States--US
People: Trump, Donald J
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 3, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1864610739
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1864610739?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Iran Plans to Increase Oil Output Amid U.S. Tensions; Chairman of state-run oil company reported as saying country's production would surpass 4 million barrels a day by end of March
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Feb 2017: n/a.
Abstract: None available.
Full text: Iran is set to boost its crude output next month and a deadline to bid for oil and gas fields has been pushed back, a top Iranian oil official was reported as saying Saturday, amid fears a recent missile test could lead to new U.S. measures that would deter foreign companies from investing in the nation's petroleum. Despite the tensions, Iran's oil-ministry news agency Shana reported Ali Kardor, chairman of state-run National Iranian Oil Co., as saying on Saturday that the country's production would surpass 4 million barrels a day by the end of March. Iran is exempt from supply cuts agreed to on Nov. 30 by the Organization of the Petroleum Exporting Countries. Iranian production stagnated to about 3.7 million barrels a day in the last quarter of 2016, according to independent sources used by OPEC. Nonetheless, Iran increased its supplies by shipping oil that had been unsold during the round of sanctions that ended in January 2016. Mr. Kardor was reported as saying the amount of condensates kept afloat had fallen to 25 million barrels--compared with 75 million during the sanctions era. The information is consistent with data from Israeli shipping-tracking company Windward, which says stored Iranian oil had fallen to 24.9 million barrels as on January 9. All remaining quantities would be sold by the end of April, Mr. Kardor was reported as saying. The oil official also was reported as saying the deadline for international companies to bid for oil and gas fields under new contracts had been delayed by a month to Feb 15. While France's Total SA is in talks to enter new projects in Iran, the U.K.'s BP PLC has yet to make a proposal, Mr. Kardor was reported as saying. Tensions between Iran and the U.S. ratcheted up last week after Tehran carried out a missile test, leading U.S. President Donald Trump to put the country "on notice," while the U.S. Treasury Department sanctioned 25 new individuals and companies involved in Iran's military program. During his campaign, Mr. Trump had vowed to tear up the nuclear agreement that lifted international sanctions against Iran. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Political campaigns; Sanctions; Oil fields
Location: Iran United States--US France United Kingdom--UK
People: Trump, Donald J
Company / organization: Name: Department of the Treasury; NAICS: 921130; Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: National Iranian Oil Co; NAICS: 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1864977423
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1864977423?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Signs of Shift in Oil Balance Draw Investors Back In; The oil market signals the supply glut may be easing, which analysts say could push current prices above future prices as soon as the second quarter
Author: Yang, Stephanie; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Feb 2017: n/a.
Abstract: None available.
Full text: A closely watched indicator in the oil market is signaling that a supply glut may be easing, a development that could help boost crude prices. This market gauge refers to the relationship between current and future oil prices. For more than two years, the price of oil delivered in the future has been higher than the spot price--a market condition known as contango. That has made it more profitable to store oil rather than sell it right away, and is one reason for a buildup in supply that has weighed on the market. But now this crucial price relationship may be changing. After the Organization of the Petroleum Exporting Countries and other major producers in late November agreed to cut output by 1.8 million barrels a day for the next six months, near-term crude prices have moved higher. Bank of America Merrill Lynch and Goldman Sachs are forecasting that, as a result of this deal, current prices could begin to exceed future prices as early as the second quarter of 2017. That situation is known as backwardation. The price difference between contracts for delivery late this year and early next year has been fluctuating, a signal that closer-dated oil futures could move into backwardation in the next few months, according to Société Générale Commodities Research. That shift would be good news for crude prices because it would make oil more attractive to investors. "It's what causes investors or market participants to take a bullish stance," said Ebele Kemery, head of energy investing at J.P. Morgan Asset Management. If the oil price curve returned to backwardation, she added, "I would expect the market would jump on it." While U.S. oil prices have bounced off their lows of about year ago, trading in recent weeks between $50 and $55 a barrel, they are at roughly half their level of mid-2014. This extended period of relatively depressed oil prices coincides with the second-longest period of contango, according to S&P Dow Jones Indices data going back to 1987. Only the period from November 2008 to October 2011, when demand plummeted amid the financial crisis, lasted longer. Even if OPEC follows through on its pledged cuts, analysts say there are plenty of reasons why the supply glut may not ease so quickly and backwardation could remain elusive or short-lived. Some analysts say that this time backwardation might indicate a flurry of speculative activity, rather than a tightening oil market. They say the lower future prices signal a sharp uptick in hedging by U.S. drillers, who are entering into futures contracts to sell oil in late 2017 and 2018 to lock in prices and ramp up production. This increase in U.S. shale production could also become a major hurdle in forcing down inventory levels, preventing contango from ending. But hedge funds and other speculative investors are already betting that oil prices will rise on the theory that supply and demand come into balance. Last week, net bullish positions reached their highest levels in the 10 years of records kept by the Commodity Futures Trading Commission. And if future oil prices do flip to become less expensive than near-term prices, the futures market could also attract money by offering investors a short-term profit boost. Since funds tend to hold the nearest-month oil contracts, rolling contracts over to the next month requires paying the difference. In contango, the following futures contract is more expensive than the current one, creating a "roll cost" that eats into any profits. But in backwardation, that difference becomes positive, boosting returns for commodity investors even when oil prices are relatively flat. Goldman Sachs analysts expect that to become "an increasingly important driver of total return" in commodities in the next 12 months. "It would be great for investors. I'd like to see it because it's a tailwind to your positions," said John Love, chief executive of USCF Investments, which runs the U.S. Oil Fund, an ETF that buys near-dated oil futures and rolls them forward to the next closest month. Easier returns in oil futures would also make the commodity a more attractive investment compared with related, or "proxy," bets that aim to gain exposure to oil without the drag from contango, analysts said. Shawn Reynolds, a portfolio manager of VanEck Global Hard Assets Fund, said, "You have commodity traders out there that have made their living off" roll yield. "They've had a really rough go of it for a number of years." To avoid costs from contango, Nicolas Robin, who helps manage $1.3 billion in commodities at Columbia Threadneedle Investments, has exposure to energy through gasoline futures, and has bought further-dated contracts in oil where the price difference is less steep. He said the return of backwardation would prompt him to put more money in near-term oil futures. "It's going to be easier for investors to make money being long commodities," he said. Write to Stephanie Yang at stephanie.yang@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Stephanie Yang and Alison Sider
Subject: Crude oil prices; Commodity futures; Crude oil
Location: United States--US
Company / organization: Name: JPMorgan Asset Management; NAICS: 523920; Name: Bank of America Merrill Lynch; NAICS: 522110, 551111; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865006481
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865006481?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Seen Edging Higher on Dodd-Frank Rollback; April Brent crude on London's ICE Futures exchange rose $0.06 to $56.87 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Feb 2017: n/a.
Abstract: None available.
Full text: Crude futures rose slightly in Asia on Monday as the U.S. government was poised to scrap a rule that calls for transparency on payments by energy and metals firms to foreign governments. If approved, the change would mean fewer restrictions on American energy companies investing in foreign countries. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.89 a barrel at 0233 GMT, up $0.06 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.06 to $56.87 a barrel. Over the weekend, crude oil pivoted higher as energy investors digested the news that the Trump administration is prepared to roll back the Dodd-Frank Act, including nullifying the requirement for extractive-industry corporations, such as oil and gas companies, to disclose their payments to foreign governments, said the Singapore-based Oversea-Chinese Banking Corp. in a note. The Security and Exchange Commission's transparency rule went into effect in 2010. The intention was to reduce corruption in resource-rich countries by requiring energy and mining companies to account for the royalties and payments they make to those foreign governments. The White House said the SEC rule "would impose unreasonable compliance costs on American energy companies that are not justified by quantifiable benefits." "Moreover, American businesses could face a competitive disadvantage in cases where their foreign competitors are not subject to similar rules," the White House said. Analysts say tension between the U.S. and Iran is also keeping prices on the rise. "While the move by the U.S. to impose new restrictions on Iran for testing a ballistic missile, it does raise the risk of further tensions disrupting supply," said a report by ANZ Research. Iran, which produces around 3.7 million barrels a day, was welcomed back to the global oil markets in January last year after the U.S. lifted the sanctions against its oil exports. Even though the country is a participant in a production-cutback deal spearheaded by the Organization of the Petroleum Exporting Countries, Tehran is said to be aggressively seeking fresh investment to help jumpstart its antiquated petroleum industry. A reinstatement of sanctions would derail its plan. Along with the geopolitical and policy upsides, analysts say the apparent success of the output-cut agreement forged late last year is also fueling optimism that oil-producing nations are serious about slowing down their production to boost global oil prices. "The steadier tone in oil we are calling for is partly attributable to the fact that OPEC seems to have pulled a rather respectable production deal so far," said financial-service company INTL FCstone, suggesting the cartel and the 11 other non-OPEC producers have reached a 75% compliance level. OPEC's January production data will be released on Monday. A downside, however, is the steady improvement in U.S. oil drilling. Data from oilfield-service firm Baker Hughes showed American oil operators added 17 active oil rigs there last week, bringing the total to 583. Analysts warn that as U.S. oil companies are returning to oil patches, OPEC's effort to push prices higher by reducing the global supply could be undermined. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 132 points to $1.5669 a gallon, while March diesel traded at $1.6706, 55 points higher. ICE gasoil for February changed hands at $0.00 a metric ton, unchanged from Friday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Foreign investment; Presidents; Energy industry
Location: Iran United States--US
Company / organization: Name: Oversea-Chinese Banking Corp; NAICS: 522110; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865121441
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865121441?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Gauge Signals Glut Is Abating
Author: Yang, Stephanie; Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Feb 2017: B.9.
Abstract:
[...]if future oil prices do flip to become less expensive than near-term prices, the futures market could also attract money by offering investors a short-term profit boost. Since funds tend to hold the nearest-month oil contracts, rolling contracts over to the next month requires paying the difference.
Full text: A closely watched indicator in the oil market is signaling that a glut may be easing, a development that could help boost crude prices. This market gauge refers to the relationship between current and future oil prices. For more than two years, the price of oil delivered in the future has been higher than the spot price -- a market condition known as contango. That has made it more profitable to store oil rather than sell it right away and is one reason for a supply buildup that has weighed on the market. But now this crucial price relationship may be changing. After the Organization of the Petroleum Exporting Countries and other major producers in late November agreed to cut output by 1.8 million barrels a day for the next six months, near-term crude prices have moved higher. Bank of America Merrill Lynch and Goldman Sachs project that as a result of this deal, current prices could begin to exceed future prices as early as the second quarter of 2017. That situation is known as backwardation. The price difference between contracts for delivery late this year and early next year has been fluctuating, a signal that closer-dated oil futures could move into backwardation in the next few months, according to Societe Generale Commodities Research. That shift would be good news for crude prices because it would make oil more attractive to investors. "It's what causes investors or market participants to take a bullish stance," said Ebele Kemery, head of energy investing at J.P. Morgan Asset Management. If the oil-price curve returns to backwardation, she added, "I would expect the market would jump on it." While U.S. oil prices have bounced off their lows of about a year ago, trading in recent weeks between $50 and $55 a barrel, they are at roughly half their level of mid-2014. This extended period of relatively depressed oil prices coincides with the second-longest period of contango, according to S&P Dow Jones Indices data going back to 1987. Only the period from November 2008 to October 2011, when demand plummeted amid the financial crisis, lasted longer. Even if OPEC follows through on its pledged cuts, analysts say there are plenty of reasons why the supply glut may not ease so quickly and backwardation could remain elusive or short-lived. Some analysts say that this time backwardation might indicate a flurry of speculative activity, rather than a tightening oil market. They say the lower future prices signal a sharp uptick in hedging by U.S. drillers, which are entering into futures contracts to sell oil in late 2017 and 2018 to lock in prices and ramp up production. The increase in U.S. shale production could also become a major hurdle in forcing down inventory levels, preventing contango from ending. But hedge funds and other speculative investors are already betting that oil prices will rise on the theory that supply and demand come into balance. Last week, net bullish positions reached their highest levels in the 10 years of records kept by the Commodity Futures Trading Commission. And if future oil prices do flip to become less expensive than near-term prices, the futures market could also attract money by offering investors a short-term profit boost. Since funds tend to hold the nearest-month oil contracts, rolling contracts over to the next month requires paying the difference. In contango, the following futures contract is more expensive than the current one, creating a "roll cost" that eats into any profits. But in backwardation, that difference becomes positive, boosting returns for commodity investors even when oil prices are relatively flat. Goldman Sachs analysts expect that to become "an increasingly important driver of total return" in commodities in the next 12 months.
Credit: By Stephanie Yang and Alison Sider
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.9
Publication year: 2017
Publication date: Feb 6, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865155207
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865155207?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Slides on Strong Dollar, Storage Hub Data; Selloff is largest single-day decline in more than two weeks
Author: Sider, Alison; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Feb 2017: n/a.
Abstract: None available.
Full text: Oil prices fell Monday on the back of a stronger dollar and data that suggest an increase in crude at the central U.S. storage hub. U.S. light sweet crude for March delivery settled down 82 cents, or 1.5%, at $53.01 a barrel on the New York Mercantile Exchange. The April contract for global crude benchmark Brent ended $1.09, or 1.9%, lower at $55.72 on London's ICE Futures Exchange. Oil prices have traded in a tight range since the start of the year. Reports of increased drilling in the U.S. have weighed on prices, but early data has shown that the Organization of the Petroleum Exporting Countries and other major producers are sticking to their pledges to cut output . "There's a battle under way between OPEC supply cuts and U.S. shale producers," said Bob Yawger, director of the futures division of Mizuho Securities USA. "The market seems to have found a nice equilibrium between $52 and $54." While Monday's selloff was the largest single day decline in more than two weeks, prices stayed within that range. The strengthening dollar weighed on oil markets. Oil is priced in dollars, so it becomes more expensive for holders of foreign currencies as the dollar appreciates. Prices tumbled after a report from data provider Genscape Inc. showed a nearly 1 million barrel increase in stockpiles at Cushing, Okla., according to a broker who viewed the report. That increase may have been due to the six-day shutdown of a pipeline that carries oil from Cushing to refineries on the Gulf Coast. But it raises the prospect that federal data due to be released later in the week could show that U.S. crude and fuel supplies have continued to build--something that could spark a selloff, said Tariq Zahir, managing member of Tyche Capital Advisors. "We haven't seen a build that size in some time," Mr. Zahir said. "If we break into the lower part of the range you could see further selling." Hedge funds and other speculative investors have piled into bets on rising oil prices in recent weeks, building the largest net bullish position in 10 years of data from the Commodity Futures Trading Commission. That could leave the market vulnerable to a snowballing selloff if prices begin to move lower, analysts said. Signs that U.S. producers are preparing to ramp up production have capped the rise in oil prices. Higher U.S. output could undermine the effect of the cuts from OPEC and major producers, particularly if the exports from the world's largest consumer start to have an impact on key markets in Asia. U.S. drillers put 17 more oil rigs to work last week, according to oil-field services company Baker Hughes Inc., bringing the total to 583. This led many analysts and market observers to predict that 2017 will be the comeback year for shale oil after two years of cost-cutting and bankruptcies. "We expect a strong revival in U.S. shale oil production and expect yet more rigs to be added to the market," said Bjarne Schieldrop, an analyst with Stockholm-based SEB bank. Mr. Schieldrop said he believed that spending on U.S. onshore oil exploration and production will rise by 30% to 40% in 2017 and the rig count could be higher than 1,000 by 2019. Gasoline futures fell 4.34 cents, or 2.79%, to $1.5103 a gallon. Diesel futures slid 2.99 cents, or 1.8%, to $1.6352 a gallon. Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Alison Sider and Kevin Baxter
Subject: Petroleum production; Acquisitions & mergers; Oil shale; Crude oil prices; International markets
Location: Iran United States--US Asia Germany
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865217242
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865217242?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Flying in Europe? Airline Investors Should Stay Away; Oil hedges are keeping fuel prices low for Europe's big airlines, including Ryanair. But that saving is going to passengers, not investors
Author: Wilmot, Stephen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Feb 2017: n/a.
Abstract: None available.
Full text: Even as the oil price climbs, jet fuel keeps getting cheaper for Europe's airlines. But consumers and not investors are the beneficiaries. Unlike their U.S. peers, European airlines typically hedge their fuel costs 12 months to 18 months ahead of time. The budget carriers, led by Ryanair, are particularly active--the result of their sharper focus on costs and stronger balance sheets, which allow better terms with banks. A year into the oil-price recovery, they should now be reaping the benefits . Ryanair, whose cut-price business model was inspired by Southwest Airlines, said Monday its fuel costs would fall by about [euro]65 million during the year through March 2018, even on top of [euro]160 million in savings during the current fiscal year. That is based on 87% of its expected fuel costs being hedged at an average price equivalent to about $50 a barrel; Brent crude currently fetches $57 a barrel. The problem is that these benefits are being given away--and more--to consumers in an environment of feverish competition. In the quarter through December, Ryanair's fares fell 17% year over year, further even than analysts feared. Costs, led by fuel, only fell 12%, so profits were 8% lower . Michael O'Leary, the company's outspoken chief executive, expects fares to continue falling, albeit more gently, next fiscal year. Ryanair shares slipped 3% in morning trading as analysts adjusted their models. The irony is, of all airlines, Ryanair may benefit the most in the long run as it has the longest hedge book and is expert in using low fares to sweep up market share. Meanwhile, though, operating conditions remain tough. With fuel costs still falling in Europe, competition won't let up any time soon. Write to Stephen Wilmot at stephen.wilmot@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Stephen Wilmot
Subject: Airlines; Air fares; Airline industry
Location: United States--US Europe
Company / organization: Name: Ryanair Holdings PLC; NAICS: 481111, 492110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 6, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865267401
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865267401?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright o wner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Falls on Stronger Dollar, Storage Report
Author: Sider, Alison; Baxter, Kevin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Feb 2017: B.11.
Abstract:
Hedge funds and other speculative investors have piled into bets on rising oil prices in recent weeks, building the largest net bullish position in 10 years of data from the Commodity Futures Trading Commission.
Full text: Oil prices fell on the back of a stronger dollar and data that suggest an increase in crude at the central U.S. storage hub. U.S. light, sweet crude for March delivery settled down 82 cents, or 1.5%, at $53.01 a barrel on the New York Mercantile Exchange. The April contract for global crude benchmark Brent dropped $1.09, or 1.9%, to $55.72, on ICE Futures Europe. Reports of increased drilling in the U.S. have weighed on prices, but early data have shown that the Organization of the Petroleum Exporting Countries and other major producers are sticking to their pledges to cut output. "There's a battle under way between OPEC supply cuts and U.S. shale producers," said Bob Yawger, director of the futures division of Mizuho Securities USA. "The market seems to have found a nice equilibrium between $52 and $54." While Monday's drop was the largest single-day decline in more than two weeks, prices stayed within that range. The strengthening dollar weighed on oil markets. Oil is priced in dollars, so it becomes more expensive for holders of foreign currencies as the dollar appreciates. Prices declined after a report from data provider Genscape Inc. showed a nearly one-million-barrel increase in stockpiles at Cushing, Okla., according to a broker who viewed the report. That increase may have been due to the six-day shutdown of a pipeline that carries oil from Cushing to refineries on the Gulf Coast. But it raises the prospect that federal data due to be released later in the week could show that U.S. crude and fuel supplies have continued to build, something that could spark a selloff, said Tariq Zahir, managing member of Tyche Capital Advisors. "We haven't seen a build that size in some time," Mr. Zahir said. "If we break into the lower part of the range you could see further selling." Hedge funds and other speculative investors have piled into bets on rising oil prices in recent weeks, building the largest net bullish position in 10 years of data from the Commodity Futures Trading Commission. That could leave the market vulnerable to a snowballing selloff if prices begin to move lower, analysts said. Credit: By Alison Sider and Kevin Baxter
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Feb 7, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865360436
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865360436?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BP Needs Oil to Rise to $60 to Break Even; BP posts second consecutive annual loss as Deepwater Horizon disaster continues to weigh on British oil giant
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Feb 2017: n/a.
Abstract: None available.
Full text: LONDON--BP PLC said it needs oil prices to rise to $60 a barrel in order to break even, as the British oil giant ramped up debt levels last year to fund spending, maintain its dividend and cope with costs associated with the 2010 Deepwater Horizon disaster. The company said Tuesday the blowout in the Gulf of Mexico cost it another $7.1 billion in pretax payments last year. The total pretax bill has now reached $62.6 billion for a disaster that killed 11 rig workers and spilled millions of barrels of oil into the Gulf, BP said. The company expects spill-related cash payouts of between $4.5 billion and $5.5 billion this year, and sees them falling sharply to around $2 billion in 2018 and a little over $1 billion in 2019. The spill costs contributed to BP's second consecutive annual loss, the company said, though it eked out a profit in the final quarter of 2016. BP shares fell 4.1% in London Tuesday. "In the current uncertain environment, increasing the portfolio's 2017 break-even seems a step too far," said Rohan Murphy, energy analyst at Allianz Global Investors, which holds shares in BP. The results "are weak whichever way we cut them." BP had previously said it needed Brent crude to trade around $50 to $55 a barrel to cover its capital spending and dividend payouts from cash flow. But executives said hitting that target late last year gave them the confidence to make a number of acquisitions that increased its planned investment for 2017. Brent crude prices fell 1.6% to $54.81 on Tuesday. Rival Royal Dutch Shell PLC said it was generating enough cash flow from operations in the past two quarters to cover its dividend and capital spending. Exxon Mobil Corp. has said it is also covering its costs, with the help of proceeds from asset sales, and Chevron Corp. has said it expects to be cash-flow positive this year. Norway's state-owned oil company, Statoil ASA, on Tuesday decreased its break-even oil price to $50 a barrel from $60 a barrel. Oil companies have spent much of the past three years scrambling to bring their spending in line with cash generation as oil prices plummeted and investors worried about the sustainability of their sizable dividend programs. BP on Tuesday said its replacement-cost loss--a number similar to net loss in the U.S.--was $999 million in 2016, compared with a loss of $5.2 billion a year earlier. The company reported a profit in the fourth quarter of $72 million, compared with a loss of $2.2 billion in the same period of 2015. BP caps off a poor set of results after Chevron and Exxon posted disappointing earnings and Shell said profit fell to its lowest level in more than a decade . Statoil on Tuesday reported a net loss of nearly $2.8 billion in the fourth quarter. BP executives still struck a confident tone. They said the company had completed a number of acquisitions late last year, giving it access to new production to capitalize on oil prices that have been buoyed by the Organization of the Petroleum Exporting Countries decision to cut output. "I think this period '15, '16 and '17 may prove to be the trough for us," said BP Chief Executive Bob Dudley, highlighting growth prospects in 2017 and beyond that are expected to bring online 800,000 barrels a day of new production by 2020. After years of cost-cutting, BP upgraded its spending plans for 2017 to invest in its new fields. Its capital expenditure is expected to be between $16 billion and $17 billion this year, similar to 2016, but up from previous guidance of $15 billion to $17 billion for the year. Those higher-spending plans are the core reason BP said it now needs oil prices of $60 a barrel to balance its spending. The company's chief financial officer, Brian Gilvary, said he sees oil prices staying comfortably above $50 a barrel this year and cash flow reaching between $21 billion and $22 billion, enough to cover spending and dividend payouts. Even if Brent prices don't hit $60 a barrel--a level not seen since June 2015--he said the company's all-important dividend wouldn't be affected. The company took on $35.5 billion in debt in 2016, up from $27.2 billion at the end of 2015, in part to keep paying the dividend. "It's probably the most secure it's looked in years," Mr. Gilvary said of the dividend. Write to Sarah Kent at sarah.kent@wsj.com Related * Analysts See Oil Prices Rising as OPEC Production Cut Bears Fruit (Jan. 30) * BP Posts Sharp Rise in Profit as Cost Cuts Offset Weak Oil Prices (Nov. 1) * Higher Oil Prices Put Smiles on the Faces of Energy Executives at Davos (Jan. 20) Credit: By Sarah Kent
Subject: Financial performance; Price increases
Location: United States--US
People: Gilvary, Brian
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 7, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865435640
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865435640?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Lower on Stronger Dollar and Supply Concerns; Investors remain wary of rising output from countries outside OPEC deal, including the U.S
Author: Sider, Alison; Salvaterra, Neanda; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Feb 2017: n/a.
Abstract: None available.
Full text: Crude prices sold off for a second day Tuesday, weighed down by an appreciating dollar and concerns that U.S. government data due out Wednesday will show that oil and fuel inventories are still growing. U.S. crude futures fell 84 cents, or 1.58%, to $52.17 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 67 cents, or 1.2%, on ICE Futures Europe. The Wall Street Journal Dollar Index, which tracks the dollar against a basket of other currencies, was recently up 0.44%. Oil is priced in dollars and it becomes more expensive for holders of other currencies as the greenback appreciates. Oil investors are still weighing the likelihood that the Organization of the Petroleum Exporting Countries will bring supply and demand into balance against the prospects for increased production elsewhere and persistently high crude inventories in the U.S. Oil prices rose sharply after OPEC and other major producers agreed to cut output by almost 2% last November, but have rarely broken out of a narrow $52-to-$54 range since the start of the year. "To some extent the bull case for oil is already priced to perfection," said Bill O'Grady, chief market strategist at Confluence Investment Management. "You're kind of assuming OPEC is going to do what it's supposed to do and demand will hold up and you'll be able to justify these prices." Still, many investors are wagering that the rally isn't over. They have piled into bets on rising oil prices in recent weeks, building record-high net bullish positions in Brent and U.S. crude futures. Some analysts have suggested that the big bets by speculative investors could make the market vulnerable to a cascading selloff. "Traders are betting on prices going up but they are impatient," said Amrita Sen, the chief oil analyst at Energy Aspects. "They need to see the proof in the data, which might be a few months away." If fully implemented, the deal could wipe out about 1.8 million barrels a day from the global daily supply and push the market into a supply shortage as early as the third quarter of 2017. So far, some early data has indicated that OPEC members have stuck more closely to their output quotas than many had anticipated. The U.S. Energy Information Administration said Tuesday that "global oil markets appear closer to balance than at any time in the recent past." But investors remain wary of rising output from countries outside the deal, including the U.S., which could wipe out the gains made by OPEC's supply action. U.S. drillers put 17 more oil rigs to work last week, according to oil-field services company Baker Hughes Inc., bringing the total to 583. In the short term, traders and analysts are eyeing the uptrend in U.S. oil drilling and stockpiling of crude and petroleum products. Analysts and traders surveyed by The Wall Street Journal forecast U.S. crude inventories rose by 2.5 million barrels in the most recent week, while gasoline stocks rose by 1.1 million barrels. "We're coming to this reality that there's a lot of oil supply in the U.S. and we're heading into refining and maintenance season," said Carl Larry, director of oil and gas at Frost & Sullivan. "We're figuring out that regardless of what OPEC does, it's not going to change the fact that we're going to continue to build stocks here." Analysts at Rittberbusch & Associates cited "a vastly oversupplied gasoline market as providing major downward pull on crude values." Gasoline futures hit their lowest level in two months, falling 2.28 cents to $1.4875 a gallon. Diesel futures fell 1.31 cents, or 0.8%, to $1.6221 a gallon. Official data from the Energy Information Administration is slated for release on Wednesday. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 14.2-million-barrel increase in crude supplies, a 2.9-million-barrel rise in gasoline stocks and a 1.4-million-barrel increase in distillate inventories, according to a market participant. Write to Alison Sider at alison.sider@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Neanda Salvaterra, and Jenny W. Hsu
Subject: Petroleum production; Futures; Crude oil prices; American dollar
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865500147
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865500147?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Government Bonds Strengthen on Oil's Slide; Crude prices fall 1.6%, extending losses; three-year note auction draws buyers
Author: Zeng, Min
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Feb 2017: n/a.
Abstract: None available.
Full text: Prices of U.S. government bonds got a boost Tuesday from weaker crude-oil prices and a strong three-year note auction, with the yield on the benchmark 10-year Treasury note falling to a three-week low. The yield on the 10-year Treasury note settled at 2.389%, compared with 2.413% on Monday. It was the yield's lowest close since Jan 17. Yields fall as bond prices rise. U.S. crude-oil prices fell by 1.6%, extending a year-to-date slide to 2.9%. Lower oil prices tend to deflate inflation concerns. Inflation chips away bonds' fixed returns over time and is a big threat to long-term government bonds. Investors pared bets on inflation by selling Treasury inflation-protected securities to buy Treasury bonds. The 10-year break-even rate, the yield premium investors demand to hold the benchmark 10-year Treasury note relative to the 10-year TIPS, fell to 1.991 percentage points late Tuesday, according to Tradeweb. The break-even rate was the lowest since Jan. 17 and signaled investors' expectation of a 1.991% annual inflation rate over the next 10 years. The rate was 2.069% on Jan. 27, the highest since September 2014. The 10-year Treasury yield had risen to near 2.44% earlier Tuesday as investors girded for this week's sales of $62 billion in new Treasury debt. Belgium and the Netherlands sold longer-dated bonds, adding to supply pressure in the global bond market. The latest swing in the Treasury bond market came as investors grapple with political risks in Europe, uncertain fiscal policy outlook in the U.S. and its potential impact on growth and inflation. Selling Treasury bonds had been a popular trade since the U.S. election as the prospect of expansive fiscal policy in the U.S. boost expectations toward stronger economic growth and higher inflation. The 10-year yield has been pulling back after rising to a two-year high of 2.6% in mid-December, reflecting investors' uneasiness with President Donald Trump's protectionist stance on trade and his action to curb immigration. The uncertainty regarding his fiscal policy details and efficacy also makes some investors cautious to bet on higher yields. Adding to the appeal of U.S. government bonds lately is renewed concerns over geopolitical risk in Europe at a time when the growing tide of populism has been shaping up the political landscape. The 10-year Treasury yield posted the biggest one-day slide since June on Monday as government bonds in France sold off. Marine Le Pen, a far right leader, has threatened to pull France out of the eurozone where the euro is a common currency for the bloc. "In a world of rising uncertainty, you don't short risk-free assets," said Jason Evans, co-founder of hedge fund NineAlpha Capital LP. A short bet wagers on bond prices to fall and their yields to rise. Mr. Evans said he has pared back shorts on Treasury debt recently. The $24 billion sale of three-year Treasury notes Tuesday afternoon drew 57.2% indirect bidding. A proxy of foreign demand, it was the highest since May 2016. "Political uncertainty manifests itself very quickly in the fixed-income markets, especially when there are populist candidates," said Barbara Reinhard, head of asset allocation at Voya Investment Management. U.S. bonds continue to offer higher yields compared with their peers in Germany, Japan and the U.K., making them appealing to investors looking at relative value in a still-low-yield world. A $23 billion sale of 10-year notes is due Wednesday, followed by a $15 billion sale of 30-year bonds on Thursday. The 10-year Treasury yield has been gyrating largely between 2.3% and 2.6% over the past weeks. For the 10-year yield to break out of this range, there needs to be clarity on the U.S. fiscal stimulus, said Mark Cabana, interest-rate strategist at Bank of America Merrill Lynch. If fiscal stimulus looks likely by the summer, yields would rise, said Mr. Cabana. Yields would decline if stimulus is pushed to 2018, or concerns over European elections, in particular the French election, escalate, he said. The share of investors expecting Treasury bond yields to rise was 23% for the week that ended Monday, down from 27% a week ago, according to the weekly Treasury client survey from J.P. Morgan Chase & Co. released on Tuesday. The share of investors expecting lower bond yields was 16%, up from 14%. Write to Min Zeng at min.zeng@wsj.com Credit: By Min Zeng
Subject: Bond markets; Interest rates; Bond issues; Eurozone
Location: Netherlands Belgium United States--US France Germany Europe
People: Trump, Donald J
Company / organization: Name: Voya Investment Management LLC; NAICS: 523920; Name: Bank of America Merrill Lynch; NAICS: 522110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865583437
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865583437?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Big Oil Loses Its Mojo; If integrated energy companies make fewer bets on megaprojects then their earnings may be less volatile but also less valuable
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Feb 2017: n/a.
Abstract: None available.
Full text: The oil bust is over and producers are spending again to boost output, but the industry's giants are changing how they replenish their reserves. That might make Big Oil less attractive to investors in the long run. The price of crude has doubled since its cyclical nadir a year ago and world's two largest oil-field services companies, Schlumberger and Halliburton, both have called the bottom in exploration activity. The turnaround is especially evident in the U.S. where the oil-rig count measure reported by Baker-Hughes is now at its highest since October 2015. But that can't be seen in the spending plans of large, integrated oil companies. The combined capital expenditure plans of Exxon Mobil Corp, Chevron Corp, Royal Dutch Shell PLC, BP PLC, ENI SpA and Total SA are just over $100 billion in 2017, down by almost 7% compared with 2016 and just half of what those companies spent in 2013. That comes despite a 67%, or $60 billion, rise in projected cash flow from operations at those companies this year, according to FactSet. That makes sense. Many fields now coming on stream were already well along when prices began falling 32 months ago. Those sunk costs meant that even though companies probably assumed higher energy prices when on the drawing board, it made sense to continue. Projects that didn't make the cut include BP's deep water project in the Australian Bight and Shell's ambitious plans in the Arctic. But that is just part of the story. The world's largest and most financially stable listed energy companies are lowering their sights . That may mean spending just as much but targeting less ambitious projects with shorter time horizons. Shell, for example, stressed the "economic resilience of projects" in its recent earnings call and Exxon highlighted its big investment in the Permian Basin where spending can turn on a dime. Even so, the price of oil is now very close to and, in the case of BP, according to their results call Monday, below the price needed to cover spending plus shareholder distributions . Given shareholders' pain of the past few years--Big Oil's combined dividends and stock buybacks went from $79 billion in 2013 to $45 billion in 2016--more modest bets might seem prudent. But by de-emphasizing megaprojects, Big Oil is retreating from the area where it enjoys a competitive advantage. While they may be able to compete with small fry in energy's unconventional frontier, committing less capital to the monster fields where only they can play risks lowering long-term returns. Investors should be asking themselves whether shares of less ambitious oil majors are still worth owning. Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Acquisitions & mergers; Investments; Energy industry
Location: Permian Basin United States--US Arctic region
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 7, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865638969
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865638969?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil Inventories Seen Rising
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the U.S. Energy Department, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 11 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 2.5 million barrels, on average, in the week ended Feb. 3. All 11 analysts expect stockpiles to grow. Forecasts range from an increase of 1 million barrels to an increase of 3.5 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show an increase of 1.1 million barrels on average, according to analysts. Nine expect them to rise and two expect them to fall. Estimates range from a decrease of 1 million barrels to an increase of 2.5 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to grow by 300,000 barrels. Seven analysts expect an increase and four expect a decrease. Forecasts range from a decline of 1 million barrels to an increase of 2 million barrels. Refinery use is seen falling 0.4 percentage point to 87.8% of capacity, based on EIA data. Eight analysts expect an increase, two expect no change and one did not report expectations. Forecasts range from a decrease of 0.8 percentage point to flat. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Financial performance
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865648265
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865648265?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Fall Further in Asia Trade; April Brent crude fell $0.52 to $54.53 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Feb 2017: n/a.
Abstract: None available.
Full text: Crude prices fell further in Asia trade on Wednesday as a larger-than-expected increase in U.S. crude stocks reinforced views that American oil producers could thwart efforts reduce global oversupply. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $51.53 a barrel at 0144 GMT, down $0.64 in the Globex electronic session. April Brent crude on London's ICE Futures exchange fell $0.52 to $54.53 a barrel. Oil prices tumbled overnight after American Petroleum Institute data showed U.S. crude stockpiles rose by 14.2 million barrels last week. If confirmed by the U.S. Energy Information Administration later today, it would be the largest weekly gain since October. Analysts and traders surveyed by The Wall Street Journal forecast that U.S. crude inventories rose by 2.5 million barrels in the most recent week, while gasoline stocks rose by 1.1 million barrels. "We'd rate any increase more than the 1.7 million barrels [of crude] five-year average again as bearish on a seasonally adjusted basis," said Tim Evans, a Citi Futures analyst. Many market participants say the growth in U.S. production could easily reverse any price gains from the production-cut effort spearheaded by the Organization of the Petroleum Exporting Countries. According to the EIA's latest forecast, U.S. crude oil production will rise to 9 million barrels a day this year from a year earlier, with another 500,000-barrel-a-day increase in 2018. This view is reinforced by data showing that the U.S. oil rig count is rising, said Platts RigData. This rig count includes U.S. onshore, U.S. inland waters and U.S. offshore Gulf of Mexico drilling. Oil prices rose sharply after OPEC and other major producers agreed to cut output by almost 2% in November, but they have rarely broken out of a narrow $52 to $54 a barrel range since the start of the year. Dutch bank ING said so far seven out of the 13 OPEC members have reached their output targets, roughly equivalent to a 70% compliance rate, with Saudi Arabia taking the lead by cutting its production to 9.98 million barrels a day, a steeper cut than it originally pledged. "However, it is also important to remember that at least for now, production cuts are immaterial unless they translate into lower exports as well," the bank said in a note. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--fell 136 points to $1.4739 a gallon, while March diesel traded at $1.6112, 109 points lower. ICE gasoil for February changed hands at $483.00 a metric ton, down $2.75 from Tuesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Petroleum production; Futures; Crude oil prices; Supply & demand
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865657611
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865657611?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Investors Warm to Russia, With Toy-Store Owner Set to Be First Big IPO Since 2014; IPO comes as Russia's economy begins to recover from economic sanctions and the slump in oil prices
Author: Razumovskaya, Olga; Marson, James
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Feb 2017: n/a.
Abstract: None available.
Full text: MOSCOW--Russia's top children's goods retailer held the first major initial public offering in the country since the annexation of Crimea , as investors cautiously return amid a nascent economic recovery and the possibility of better diplomatic relations with Washington. The owners of PAO Detsky Mir raised $355 million in the sale on Wednesday, which priced shares at the bottom end of the expected range at 85 rubles ($1.43) a share, valuing the company at around $1 billion. The stock begins trading on Friday. Russia's economy is emerging from a two-year recession tied to Western sanctions over its military interventions in Ukraine and a plunge in the price of crude oil, its main export. The Russian stock market has rebounded in recent months after oil prices regained some ground and U.S. President Donald Trump indicated he wants to improve relations, which have been at their worst since the end of the Cold War. The main owner of Detsky Mir, conglomerate AFK Sistema, put off plans for an IPO in 2014, and there hasn't been a major initial stock sale in the country since then. Analysts said the placement would open the door for other companies to list shares. "Global investors are showing appetite for Russian assets," said Jacob Grapengiesser, a partner at investment fund East Capital. He said he expects a couple of placements each month this spring. The Russian Direct Investment Fund, a state fund that partners with foreign investors, said late Wednesday that it had formed a consortium including six leading sovereign-wealth funds from Asia and the Middle East to take part in a secondary public offering of shares in PAO PhosAgro, the country's top fertilizer producer. PhosAgro is expected to go to the market this week. Fewer than 10% of the bids for Detsky Mir stock came from Russian investors, with the rest coming from foreign funds in Europe, the Middle East and Asia, a person familiar with the placement said. More than 30% of the bids came from U.S. investors, the person said. Several Detsky Mir shareholders are selling some of their stock via the IPO, including Sistema and the Russia-China Investment Fund, in addition to executives at Sistema and Detsky Mir itself. Sistema will retain a majority stake in Detsky Mir. The interest from investors will be a boon for Russian President Vladimir Putin, who faces a presidential election next year. He has built sky-high approval ratings since he came to power in 2000 on the back of economic growth. But more recently Mr. Putin has relied on a patriotic wave from the Crimea annexation and confrontation with the West, pollsters say. Forty-four percent of Russians expect the economic crisis to last at least two more years, according to a January survey by pollster Levada-Center. Detsky Mir, Russian for Children's World, traces its history to a store opened two years after the end of World War II near Lubyanka, the KGB's headquarters in central Moscow. As Russian salaries shot up in the 2000s amid a boom in Russia's crude production and the price of oil, Detsky Mir grew into a chain that now operates 525 stores in Russia and Kazakhstan and controls 13% of the children's goods market. (Detsky Mir no longer owns the central Moscow store.) Chief Executive Vladimir Chirakhov said the company plans to open around 250 new stores by 2020. The company expects 2016 revenue of at least 79.2 billion rubles, or about $1.3 billion, up roughly 30% from 2015. Russian consumers have been battered by the recession, bearing the brunt as the central bank let the national currency, the ruble, trade freely and lose about half its value against the dollar, sending inflation soaring. Wages, which had flourished in the last decade-and-a-half, dropped by 9% in terms of buying power in 2015, sending retail sales plunging. Real wages crept up 0.6% last year, but retail sales were down 5.2%, though the ruble has strengthened in recent months and inflation has hit historic lows. Analysts say consumers are reluctant to spend after the damage wreaked on household finances by the currency crisis and inflation spike. Russia's Federal State Statistics Service said last week that the economy contracted 0.2% last year, less than the government had forecast. "Industry has driven the recovery, while consumer-facing sectors remain weak," said William Jackson, senior emerging markets economist at Capital Economics, a London-based research firm. Sales of cars and light commercial vehicles fell 5% in January compared with the same period last year, the Association of European Businesses said Wednesday. Still, Detsky Mir has been shielded by the fact that people prefer not to scrimp on items for their children, analysts said. "There are things one simply cannot cut back on: like diapers and certain children's goods," said Marat Ibragimov, an analyst at BCS Global Markets. Russia's birthrate has also recovered in the last decade after a slump in the 1990s, aided by a state program that pays women as much as 453,000 rubles ($7,650) for having a second child. "I know that the wages may be declining, but there's still a list of things I need to buy," said Olga, a shopper at a downtown store who is 33 weeks pregnant and declined to provide her last name. "I'm operating on a budget now and am looking for cheaper goods but I still have this list. A baby still needs a crib and a stroller." Write to Olga Razumovskaya at olga.razumovskaya@wsj.com and James Marson at james.marson@wsj.com Credit: By Olga Razumovskaya and James Marson
Subject: Stockholders; Investments; Sanctions; Stock exchanges
Location: Middle East Russia United States--US Crimea Asia Ukraine Europe
People: Trump, Donald J Putin, Vladimir
Company / organization: Name: Moscow Stock Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865745390
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865745390?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Edges Higher on Signs of Gasoline Demand; The EIA reported an unexpected decline in weekly gasoline inventories
Author: Yang, Stephanie; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Feb 2017: n/a.
Abstract: None available.
Full text: Oil prices closed higher Wednesday as signs of rising gasoline demand negated a larger-than-expected build in inventory levels. Light, sweet crude for March delivery settled up 17 cents, or 0.3%, to $52.34 a barrel on the New York Mercantile Exchange, after trading as low as $51.50 a barrel earlier in the session. Brent, the global benchmark, settled up 7 cents, or 0.1%, at $55.12 a barrel. Prices reversed course after the U.S. Energy Information Administration Wednesday reported an unexpected decline of 0.9 million barrels in gasoline inventories for the week ended Feb. 3, helping boost gasoline futures more than 4% and lifting oil prices as well. "It's all about gasoline," said Bob Yawger, director of the futures division of Mizuho Securities USA. "That's dragging [up] the rest of the market along with it." Analysts and traders surveyed by The Wall Street Journal had expected gasoline stockpiles to rise by 1.1 million barrels on average, building on a surplus that has concerned many in the oil market this year. "One of the more worrying aspects of recent reports was the weak implied demand numbers, though those concerns were alleviated somewhat this week," said Anthony Starkey, manager of energy analysis at Platts Analytics, in a Wednesday email. "Demand rebounded across the board," improving the outlook for distillates and gasoline. Mr. Yawger said oil prices also experienced some relief after EIA data showed a 13.8-million-barrel build in crude oil inventories last week. While The Wall Street Journal survey forecast a rise of 2.5 million barrels on average, the official data fell short of the 14.2-million-barrel increase reported by the American Petroleum Institute, an industry group. The API numbers sent prices lower Tuesday afternoon and early Wednesday. Still, analysts had plenty of reasons to be concerned about the growing amount of oil in storage. "I'd think that this is a lot of knee-jerk, yo-yo reaction," said Donald Morton, senior vice president at Herbert J. Sims Co., who runs an energy trading desk. "I don't think that this data is enough to move us out of the recent trends." Market observers are growing more bearish than the previous months when prices were supported by production cuts from the Organization of the Petroleum Exporting Countries and several countries outside the cartel. Fears over growing U.S. stock levels and shale oil production are starting to overtake optimism from the OPEC deal, analysts said. Norbert Ruecker, head of commodities research at the Zurich-based Julius Baer, said that the compliance level of between 80%-90% from OPEC is impressive. But he said the deal merely cancels out last year's supply excesses and needs to go deeper to make any significant impact. According to the EIA's latest forecast, U.S. crude oil production will rise to 9 million barrels a day this year, with another 500,000-barrel-a-day increase in 2018. This view is reinforced by data showing the U.S. oil rig count is rising, said Platts RigData. This rig count includes U.S. onshore, U.S. inland waters and U.S. offshore Gulf of Mexico drilling. The numbers are debated by Germany's Commerzbank, with analysts saying in a note that the U.S. is producing almost 9 million barrels a day already. It is likely that the figure will be higher and that next year's EIA U.S. production forecast of 9.53 million barrels a day could be higher still. Gasoline futures settled up 4.4% at $1.5527 a gallon, their biggest one-day gain since Nov. 30. Diesel futures settled up 0.9% at $1.6360 a gallon. Jenny W. Hsu contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Stephanie Yang and Kevin Baxter
Subject: Petroleum production; Crude oil prices; Crude oil; Supply & demand
Location: Germany Gulf of Mexico
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865813376
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865813376?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil Inventories Explode Higher
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. crude oil inventories rose much higher than expected for the week ended Feb. 3, while gasoline stockpiles decreased, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles jumped by 13.8 million barrels to 508.6 million barrels, which is above the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 2.5 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 1.1 million barrels to 65.3 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 869,000 barrels to 256.2 million barrels. Analysts were expecting gasoline inventories to rise by 1.1 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, remained virtually unchanged at 170.7 million barrels, keeping them above the upper limit of the average range, the EIA said. Earlier in the week, analysts forecast supplies would increase by 300,000 barrels from a week earlier. Refining capacity utilization fell by 0.5 percentage point from the previous week to 87.7%. Analysts were expecting utilization levels to decline by 0.4 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Petroleum products; Price increases; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865849225
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865849225?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil Inventories Seen Rising
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the U.S. Energy Department, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 11 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 2.5 million barrels, on average, in the week ended Feb. 3. All 11 analysts expect stockpiles to grow. Forecasts range from an increase of 1 million barrels to an increase of 3.5 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show an increase of 1.1 million barrels on average, according to analysts. Nine expect them to rise and two expect them to fall. Estimates range from a decrease of 1 million barrels to an increase of 2.5 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to grow by 300,000 barrels. Seven analysts expect an increase and four expect a decrease. Forecasts range from a decline of 1 million barrels to an increase of 2 million barrels. Refinery use is seen falling 0.4 percentage point to 87.8% of capacity, based on EIA data. Eight analysts expect an increase, two expect no change and one did not report expectations. Forecasts range from a decrease of 0.8 percentage point to flat. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 14.2 million-barrel increase in crude supplies, a 2.9 million-barrel rise in gasoline stocks and a 1.4 million-barrel increase in distillate inventories, according to a market participant. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Price increases; Supply & demand
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865874428
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865874428?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Italian Prosecutors Request Eni CEO, Shell Stand Trial; Corruption alleged over Nigerian oil deal
Author: Sylvers, Eric; Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Feb 2017: n/a.
Abstract: None available.
Full text: MILAN--Italian prosecutors are pursuing a criminal trial for Royal Dutch Shell PLC and the chief executive of Italian oil company Eni SpA on charges of corruption tied to a controversial Nigerian deal, according to a person familiar with the matter. The prosecutors' request--if granted by a judge over the next several months--could lay bare the operations of Shell and the actions of Eni executives in pursuit of a potentially giant Atlantic Ocean oil discovery that has come to symbolize pervasive graft in Nigeria's energy industry. The investigation targets 11 individuals, including Eni's current CEO, Claudio Descalzi and his predecessor Paolo Scaroni. Charges are being pursued against Shell as a corporation, though no executives are named, the person familiar with the matter said. Eni's board on Wednesday expressed support for Mr. Descalzi, saying he was innocent. A spokeswoman for Shell declined to comment. Messrs. Descalzi and Scaroni didn't immediately respond to requests for comment. The move to prosecute the two companies is the latest twist in a decadeslong saga involving allegations that their 2011 deal to buy the oil block for over $1 billion amounted to an enormous bribe. The block, known as OPL 245, is believed to hold 9 billion barrels of crude oil. Shell--long the dominant Western oil company in Nigeria--had been pursuing the right to develop the block for years, fighting over ownership with successive Nigerian governments and a former Nigerian oil minister, Dan Etete, whose company claimed ownership. Shell made headway in 2011 when it teamed up with Eni to buy the block from the Nigerian government, according to court records viewed by The Wall Street Journal. Days after Eni paid a $1.1 billion sum to the Nigerian government for the block, the money was transferred to bank accounts held by Mr. Etete, according to the documents. From there the money filtered down to numerous companies associated with Nigerian government officials, the court records show. Mr. Etete and his lawyers were unable to be reached for comment. Italian prosecutors have maintained that Messrs. Scaroni and Descalzi, then a top Eni executive, knew the government escrow account was a stopover for the money before it moved onto an account controlled by Mr. Etete and was eventually paid as kickbacks. Mr. Descalzi and Eni have denied wrongdoing. The company has maintained that it doesn't use middlemen and that its executives only dealt with the Nigerian government in the deal for the offshore block. Eni has said that it bears no responsibility for where the money subsequently went. The Nigerian case has proved embarrassing not only for Eni, which has long been dogged by corruption allegations, but also the Italian government that owns 30% of the company and appoints the top management. The accusations have been a distraction for Mr. Descalzi as he tries to right Eni's finances during a tumultuous term as CEO. Since he took over in 2014, oil prices nose-dived, and the company was forced to cut its dividend amid heavy losses. Mr. Descalzi's three-year term is set to expire in April and his renewal could be complicated by the court case. A trial and eventual appeals could drag on for more than five years. The request for indictments comes after a Nigerian court ordered Eni and Shell to give up control of OPL 245. Indictments in Italy could further embolden Nigerian officials to take on the two oil companies, according to analysts. Shell said in its fourth quarter results earlier this month that it is appealing the Nigerian court order. Manuela Mesco contributed to this article. Write to Eric Sylvers at eric.sylvers@wsj.com and Sarah Kent at sarah.kent@wsj.com Credit: By Eric Sylvers and Sarah Kent
Subject: Corruption
Location: Italy Nigeria United Kingdom--UK
People: Descalzi, Claudio
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Eni SpA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 8, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1865886101
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865886101?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Gets A Boost from Bullish U.S. Gasoline Demand; April Brent crude on London's ICE Futures exchange rose $0.15 to $55.27 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Feb 2017: n/a.
Abstract: None available.
Full text: Crude futures rose higher in Asia thanks to better-than-expected gasoline demand in the U.S., but strong growth in crude inventories will likely keep gains limited. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $52.49 a barrel at 0137 GMT, up $0.15 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.15 to $55.27 a barrel. A decline in oil prices reversed overnight after the Energy Information Administration data showed gasoline inventories in the U.S. fell by 0.9 million barrels in the most recent week, upending an expectation of a growth. "The fall in gasoline stocks eased concerns among traders that had been growing over recent weeks," said ANZ Research. According to Platts Analytics, the figure shows that gasoline implied demand rebounded last week, up 631,000 barrels a day to 8.941 million barrels a day. Crude inventories, however, was more bearish. The data showed that while the latest growth in U.S. crude inventories came below market expectations, it still expanded by 13.8 million barrels or up 3.8% on a yearly basis. "Crude imports have risen sharply over the last two weeks, and this coupled with recovering U.S. production contributed to the build," said Société Générale in a note. U.S. crude imports rose by 1.1 million barrels a day from the previous week. Over the past four weeks, imports averaged about 8.5 million barrels a day, 10% above the same four-week period a year ago, the agency said. The latest EIA data also showed U.S. crude production increased by 63,000 barrels a day last week to 8.98 million barrels. The uptrend in U.S. crude production is one of the most pressing threats to a multicountry effort to reduce global supply. The Organization of the Petroleum Exporting Countries and 11 other heavyweight producers, such as Russia, late last year pledged to trim down production by 1.8 million barrels a day to support prices. To be sure, global oil supply could still shrink and possibly move into a deficit later this year despite an increase from the U.S.--as long as the non-U.S. producers adhere to their production cut-back plan, said Grace Liu, the head of research at brokerage firm Guotai Junan. The EIA predicts U.S. production will likely grow by 100,000 barrels a day this year from 2016 and another 500,000 barrels a day by 2018. "Longer-term, slowing fuels consumption growth in emerging markets, growth in U.S. shale and Saudi Arabia's substantial spare capacity will weigh on the price recovery," said BMI Research. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 27 points to $1.5554 a gallon, while March diesel traded at $1.6406, 46 points higher. ICE gas oil for March changed hands at $495.00 a metric ton, up $0.75 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Price increases; Supply & demand
Location: China United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 9, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuestdocument ID: 1865956033
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1865956033?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Total Changes Tack With New Projects, Higher Dividend; French oil major posts better-than-expected fourth-quarter profit
Author: Landauro, Inti
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Feb 2017: n/a.
Abstract: None available.
Full text: PARIS--France's Total SA signaled that it has entered a new phase in the oil-industry cycle by raising its dividend slightly and saying it is ready for new projects and acquisitions, after cost cuts, increased output and higher crude prices contributed to better-than-expected fourth-quarter profit. Total said it is sufficiently confident about the outlook for the oil market that it could give the green light to as many as 10 new projects within the next 18 months. "After two years of being defensive, we are offensive now," Total Chief Executive Patrick Pouyanne said. "Our financial balance is more solid, we are ready to launch new projects and make acquisitions." Among the ventures Total highlighted are a deep-offshore project in Brazil, its recent agreement to invest in Iran, and other large oil and gas projects in Argentina, Nigeria and Uganda. Total declared a full-year dividend of [euro]2.45 ($2.62) a share, a euro cent higher than a year earlier. Shares were up nearly 1% in early trading in Paris. Like its rivals in the U.S . and Europe, Total spent much of the past three years scrambling to bring their spending in line with cash generation as oil prices plummeted and investors worried about the sustainability of their sizable dividend programs. The French company has succeeded in battering down expenses better than some of its European rivals , saying it could cover its costs including capital spending, though excluding the dividend, with oil prices of $40 a barrel. BP PLC of the U.K. said earlier this week that it requires an oil price of $60 dollar a barrel--above the recent $50 to $55 trading range for crude--to cover costs including capital expenditure and the dividend. Statoil ASA of Norway put its break-even price at $50 a barrel, down from $60 a barrel the previous year. Total's cost control was visible in its fourth-quarter results. The company posted net profit of $548 million in the three months to end-December, a swing from a net loss of $1.63 billion in the same period a year earlier, on a 12% jump in revenue to $42.28 billion. When adjusted to exclude changes in inventories and other nonrecurring items, profit rose to 16% to $2.41 billion from $2.08 billion, ahead of the average analysts' forecast of $2.26 billion. Total booked a $1.86 billion depreciation charge mainly on gas assets in the quarter. Net profit rose 22% in the year to Dec. 31 to $6.20 billion. To offset the effects of falling oil and gas prices on its balance sheet, Total has carried out a widespread program to cut costs at all its units and scrambled to extract more oil from existing fields, accelerated new field developments and cut capital investment. Unlike some major oil companies such as BP, the company managed to stay profitable through the market downturn, posting net profit above $1 billion in 2014 and in 2015. Total said it raised output by 4.5% to 2.45 million barrels of oil equivalent a day in 2016 after a 14% increase in 2015. Write to Inti Landauro at inti.landauro@wsj.com Credit: By Inti Landauro
Subject: Financial performance; Corporate profits; Crude oil prices; Net losses; Costs
Location: Nigeria United Kingdom--UK Iran Argentina Brazil France Norway Uganda Europe
People: Pouyanne, Patrick
Company / organization: Name: Total SA; NAICS: 211111, 324110, 447190; Name: Statoil ASA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 9, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place ofpublication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1866052631
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1866052631?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rise Slightly in Asia Trading; April Brent crude rose $0.08 to $55.71 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Feb 2017: n/a.
Abstract: None available.
Full text: Crude-oil futures moved in a narrow range in Asia trading as optimism about a global supply reduction was offset by burgeoning production in the U.S. and Africa. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.11 a barrel at 0138 GMT, up $0.11 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.08 to $55.71 a barrel. Week-to-date, U.S.-traded oil fell about 1% while Brent was nearly unchanged. "Oil prices continue to struggle to break out of the current range," ANZ bank said Friday. Analysts say the market doesn't have a lot of news to trade on and most market participants are waiting for the Organization of the Petroleum Exporting Countries' January production data, which is expected Monday. Late last year, 20 oil producing nations, including those inside OPEC and Russia, agreed cut their cumulative daily production by 1.8 million barrels in stages starting last month. The plan was first viewed with strong skepticism given the group's record of ignoring quotas. A number of banks and consultancy firms now put the cartel's adherence rate at above 70%. Speculative investors are so confident in the compliance level that many have been selling short-dated puts and buy calls, Societe Generale said in a note. Another reason behind the buying is the expectation of a supply disruption if tension between the U.S. and Iran intensifies, the bank added. The Trump administration recently imposed sanctions on some Iranian firms and individuals after the Middle Eastern producer of 3.7 million barrels a day launched a ballistic missile test less than two weeks after Mr. Trump took office. Despite the OPEC-led cutback plan, some market participants say the market isn't tightening as fast as expected, largely due to the additional supplies coming from the U.S. and Africa. In the most recent week, U.S. production rose again to 8.98 million barrels a day, the highest level since April. The uptrend in U.S. crude output is in tandem with the increasing drilling activity there. In Africa, production from Nigeria and Libya grew a combined 200,000 barrels a day in January, with an additional 500,000 barrels a day capacity that could be brought online over the next six months, according to BMI Research. "Longer-term, slowing fuels consumption growth in emerging markets, growth in U.S. shale and Saudi Arabia's substantial spare capacity will weigh on the price recovery, with Brent averaging below $70 barrels until the 2020s," the firm added. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 36 points to $1.5738 a gallon, while March diesel traded at $1.6418, 3 points higher. ICE gasoil for March changed hands at $494.75 a metric ton, up $0.25 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil
Location: United States--US Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210; Name: Societe Generale; NAICS: 522110, 522120, 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1866401087
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1866401087?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rise as OPEC Complies With Production Cuts; IEA says cartel's production fell by 1 million barrels a day in January
Author: Puko, Timothy; Faucon, Benoit; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Feb 2017: n/a.
Abstract: None available.
Full text: Oil prices rose Friday after a top energy watchdog said exporters are following through on promises to cut oil production to end a longstanding glut in the market. The International Energy Agency reported Friday that production from the Organization of the Petroleum Exporting Countries fell to 32.06 million b/d in January, a decline of about 1 million b/d compared with OPEC's October baseline. The cut "is certainly one of the deepest in the history of OPEC," the agency said, with the countries that agreed to it reaching a record compliance of 90% . Light, sweet crude for March delivery gained 86 cents, or 1.6%, to $53.86 a barrel on the New York Mercantile Exchange. Most of the price gains came overnight after the IEA released its report during European trading, and then prices stayed mostly flat during traditional U.S. trading hours. The gains pushed oil to its ninth winning week in the last 13, up 3 cents, or 0.1%. Brent, the global benchmark, settled up $1.07, or 1.9%, at $56.70 a barrel. It still ended the week down 11 cents, or 0.2%, snapping a three-week winning streak. OPEC's early compliance rate came in beyond what many, even some of the most bullish analysts and traders, had expected. OPEC has a history of falling short of the cutbacks it promised in past deals, but analysts Friday said that IEA report undermined any predictions that OPEC members might fall short again. "OPEC cuts are real," analysts at energy investment bank Tudor, Pickering, Holt & Co. in Houston said about the report in their morning note to clients. "The 'OPEC always cheats' crowd can take a seat." OPEC on Nov. 30 agreed to cut production in January by 1.2 million barrels a day, aiming to limit supply and raise prices. In December, Russia and other producers outside the group committed to take 558,000 b/d out of the market. Overall global oil supplies plunged nearly 1.5 million b/d in January, the IEA said. Saudi Arabia, Qatar and Angola cut more than they had pledged. Saudi Arabia, the world's largest oil exporter, reduced production by 560,000 b/d day from October, about 70,000 b/d above its targeted cut. That made up for several other countries that fell far from their compliance targets. These cutbacks are likely to take enough oil off the market that suppliers end up selling oil that has been socked away in storage at record-high levels, analysts said. U.S. stockpiles have been rising in recent weeks, but that is likely from heavy production in the weeks before the cutbacks took place, said Scott Shelton, broker at ICAP PLC. OPEC's cuts will eventually cause U.S. storage levels to decline, probably by the end of March, he added. "It looks like a desert when you go out to March. There's not much for sale," he said. But some analysts did point to rising output from OPEC members that were exempted from the deal as a risk going forward. In Africa, production from Nigeria and Libya grew a combined 200,000 b/d in January, with an additional 500,000 b/d capacity that could be brought online over the next six months, according to BMI Research. Russia, the largest non-OPEC producer in the deal, cut production by just 100,000 b/d, one-third of its commitment, the IEA said. "The OPEC cuts are largely being implemented," said Georgi Slavov, the global head of energy research at Marex Spectron. "More importantly Russia is complying but I am starting to see signs that it may push more oil onto the market." The agency also warned of continued high stock levels and uncertainty about future output. Following OPEC's supply action, oil prices have risen and are hovering around the mid $50s a barrel. Investors are concerned that elevated prices may lure new production onto the market. In the most recent week, U.S. production rose again to 8.98 million b/d, the highest level since April. The uptrend in U.S. crude output is in tandem with the increasing drilling activity there. The number of rigs drilling for oil in the U.S. rose by 8 in the past week to 591, according to oil-field services company Baker Hughes Inc. That is the largest working fleet since October 2015 and 87% larger than it was at its low point in May. Changes in the U.S. oil-rig count are often viewed as a predictor of future output, though its influence is often changing and can take months to show up if it does at all. Gasoline futures gained 1.2% to $1.5896 a gallon. Diesel futures gained 1.5% to $1.6659 a gallon, its fourth loss in six sessions. Write to Timothy Puko at tim.puko@wsj.com , Benoit Faucon at benoit.faucon@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Timothy Puko, Benoit Faucon and Neanda Salvaterra
Subject: Investments; Crude oil prices; Supply & demand; Cartels
Location: Russia United States--US Libya Nigeria Africa
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: ICE Futures; NAICS: 523210; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210; Name: Marex Spectron; NAICS: 523140
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1866660379
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1866660379?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil Exports Are Rising; Higher prices for comparative foreign oil and lower shipping rates help
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. oil exports are on the rise, fueled by comparatively higher prices for foreign oil they compete with and lower shipping rates. But analysts say any further increases in exports will be slow and the prospect of American energy independence remains a lofty goal. Crude-oil sales abroad were prohibited for decades until the government lifted the export ban 14 months ago in the hopes of reducing a bulging oversupply that had helped send an oil boom into a bust in late 2014. Now, after a slow start, exports are starting to gain traction. The U.S. has exported an average of 623,000 barrels a day of crude oil so far in 2017, 42% more than the same period of 2016. That figure still pales in comparison to the 8.6 million barrels the U.S. imports every day from places like the Middle East. Matt Smith, director of commodity research at ClipperData, a firm that tracks the global movement of crude oil, said estimates by some traders that exports could soon reach 900,000 barrels a day "seems somewhat optimistic," adding "U.S. oil exports will only play a bit-part in the import-export scenario." That is not to say the U.S. isn't making inroads and taking advantage of shifting dynamics to secure a toehold in the export market. One factor encouraging U.S. oil companies and traders to sell their oil overseas is a growing discount on typical U.S. crude oil, known as West Texas Intermediate, or WTI, compared to its widely traded competitor overseas, known as Brent. WTI is normally priced at a slight discount to Brent. But while a year ago that discount per barrel was less than a dollar, it is now approaching $3, with WTI trading above $53 a barrel, versus $56 for Brent. This difference can make up for some the added expense of moving crude oil produced in places like Texas or Oklahoma to seaports, loading it onto a tanker and shipping it overseas. The hope for U.S. exporters is that the price gap becomes even larger. Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates, says chart indicators suggest it can widen in the short term. "We may not get to $3 for now, but may get into the $2.80 zone for April." What's more, oil exporters can take advantage of declining shipping rates over the past year due to overcapacity that has prompted price wars among shipping firms. VesselsValue, a London-based shipping data and research firm, said the so-called journey cost for chartering an oil tanker from the U.S. Gulf Coast to a port in Asia has fallen to around $347,000 last year versus $473,000 in 2015. Afolabi Ogunnaike, a senior analyst at Wood Mackenzie in Houston, said the WTI-Brent spread and shipping rates are just some of "many factors that have an impact and undulate throughout the year." Mr. Ogunnaike said his firm is consulting with many U.S. oil exporters and would-be exporters, showing them who their main competitors are, as well as introducing them to refineries in Asia and elsewhere that could become their customers. Much of the crude oil exported from the Gulf Coast region, including oil from drilling hot spots like the Permian basin in west Texas, is known as light, sweet crude. Its competition in export markets comes from places like Nigeria that produce similar types of crude oil and are also located in the Atlantic basin. While oil from other parts of the world often beat the U.S. oil in terms of lower production costs, analysts say the U.S. has advantages of its own, including the ability to provide global refineries with a steady and stable product. Oil coming from Nigeria, for example, can sometimes be unreliable amid militant attacks on that country's oil pipelines. "Refiners want stability on the front end [the final, fuel product], and to achieve that often means having stability on the back end [the raw material, or crude oil]," said Mr. Ogunnaike. But Bill Edwards of Edwards Energy Consultants, based in Katy, Texas, said refiners won't pay much of a premium for U.S. oil, no matter how reliable it is. "And those other countries would keep lowering their price to secure their markets," he said. As for American energy independence, Mr. Edwards said a key problem with such a plan is that it would have to be long-term--for many years, even decades--and U.S. consumption rates could eventually overwhelm U.S. reserves still in the ground. "We use it up in a hurry," he said. "We'd be producing at a high rate from a small pool, while the oil we're importing now is being produced at a relatively low rate from a large pool." Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Petroleum refineries; Exports; Crude oil prices; Advantages; Energy economics; Competition; Crude oil
Location: Texas Middle East Asia Nigeria Oklahoma
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1866685695
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1866685695?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Mexico's Industrial Production Down in December, Flat in 2016; Country's oil industry struggling amid financial woes and low oil prices
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Feb 2017: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexican industrial production fell in December and closed 2016 flat as lower oil and gas production offset modest gains in manufacturing and construction, the National Statistics Institute said Friday. The sluggish industrial sector held back last year's economic growth, which slowed to 2.3% from 2.6% in 2015, according a preliminary reading by the institute in late January. December's industrial production fell 0.6% from the year-earlier month and was down 0.1% seasonally adjusted from November. Full-year output was unchanged from 2015, with a 5.9% drop in oil and gas production, a 1.3% gain in manufacturing and a 1.8% increase in construction. State oil company Petróleos Mexicanos, which has been struggling with lower oil prices and financial difficulties that led to budget cuts, saw average crude oil production fall 5% last year to 2.154 million barrels a day. In December, Pemex's crude production was down 10.5% on the year at 2.035 million barrels per day. Factory output showed signs of strength at the end of the year, rising 0.6% from November for a third consecutive monthly increase. Mexico produced a record 3.5 million cars and light trucks last year, a 2% rise from 2015. Output also rose in the food and beverages industries, textiles and in electronic goods. As industry lagged, private consumption was the main engine of Mexico's economic expansion last year, supported by wage and employment growth, low inflation and record remittances from Mexicans living abroad. The country's economy is expected to slow this year amid uncertainty over trade and investment relations with the U.S. under the administration of President Donald Trump. Investment is seen stalling, while the weaker Mexican peso has helped to push inflation to a four-year high, denting consumer confidence. Banks polled this week by Citibanamex estimated that economic growth this year will slow to 1.5%. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Subject: Petroleum production; Industrial production; Economic growth
Location: United States--US
People: Trump, Donald J
Company / organization: Name: Petroleos Mexicanos; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 10, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1866982981
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1866982981?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 8; Gas-rig count up by 4, Baker Hughes reports
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Feb 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by 8 in the past week to 591, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. The rig count has generally be rising since the summer. The nation's gas-rig count rose by 4 to 149 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell by 1 from last week to 21, which is 4 fewer than a year ago. On Friday, oil prices rose after the International Energy Agency reported that production from the Organization of the Petroleum Exporting Countries fell in January. Investors have been concerned about continued oversupply. U.S. crude-oil prices rose 1.8% to $53.95 a barrel Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 10, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867018992
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867018992?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Energy Shares: Last Year's Winners, This Year's Laggards; Overly optimistic expectations for oil prices, earnings among reasons cited for stock declines
Author: Otani, Akane; Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Feb 2017: n/a.
Abstract: None available.
Full text: Energy shares have cooled in 2017 following a market-beating performance last year, wrong-footing many investors who bet the sector would benefit from oil-price stability. Energy was the best-performing sector in the S&P 500 last year, rising 24% as oil prices rebounded from multiyear lows reached last Feb. 11. A year later, crude prices are holding their gains, with New York crude rising Friday to close at $53.86 a barrel. But the S&P energy sector is down 3.6% in 2017, trailing the 3.5% gain in the S&P 500 index and putting energy shares near the bottom of the sector list. The reversal in energy shares, according to analysts and investors, reflects overly optimistic expectations for crude prices, the realization that it may take a few quarters before higher energy prices translate into improved earnings and signs that the stocks are already overvalued. "People just seem a little fatigued at this point," said Bill Costello, a portfolio manager and energy analyst at Westwood Holdings Group. "After we built all that momentum last year, we've just fallen flat." The slide is the latest example of a sudden reversal in a popular trade. The utilities sector of the S&P 500 increased 21% in the first half of last year as investors sought safety, before the gains were nearly halved by the end of the year as the rest of the market improved. U.S. gold prices climbed to a two-year high in 2016 but erased most of those gains by year's end. Despite the sliding energy stocks, investors expect oil prices to rise. Net bullish bets by speculative investors on oil reached a record high in January, according to Commodity Futures Trading Commission data going back to 2006, though those net bets pulled back slightly in the week ended Tuesday. The U.S. oil price has been flat this year, after doubling off its lows in 2016. Meanwhile, energy stocks remain pricey, notes Scott Wren, senior global equity strategist at Wells Fargo Investment Institute. The sector trades at 32 times the profits analysts expect them to earn over the next 12 months, while the broader S&P 500 trades at 18 times earnings estimates, according to FactSet. Earnings are expected to recover, but the rebound hasn't yet begun. Analysts expect energy companies to return to earnings growth in the first quarter of 2017. The energy sector has been the biggest drag on the broader S&P 500's earnings growth for eight consecutive quarters, according to FactSet. The sector is expected to report earnings contraction again in the fourth quarter, with analysts projecting around a 5% earnings decline from the year-earlier period. Last month, energy stocks closed out the strongest 12-month outperformance compared with the recovery in oil prices since at least the 1980s, according to Goldman Sachs. The relative strength of shares across oil companies puts equities "now at risk of disappointment," the bank said in a February note. Shares of Exxon Mobil Corp., the world's largest publicly traded oil company, have fallen 8.6% this year after gaining 16% in 2016. The company posted its lowest yearly earnings in 20 years in January, citing the downturn in commodity prices and a $2 billion impairment charge. Chevron Corp. shares, which gained 31% last year, are down 4% in 2017. While the company posted its second consecutive quarterly profit January, its financial results came in sharply below estimates. A Chevron spokesman said the company expects earnings to improve this year as it tightens spending and potentially pulls in more revenue from production growth. A drop in natural gas prices also has weighed on some firms. Southwestern Energy is down 17% this year, in line with natural gas prices, which are down 19%. Rob Thummel, portfolio manager at Tortoise Capital Advisors, who helps to manage more than $16 billion in energy holdings, has been buying stocks of energy infrastructure companies that he thinks could benefit from a looser regulatory environment. Pipeline company Kinder Morgan Inc., the largest energy infrastructure company in North America, is the best-performing stock in the S&P 500 energy sector, up 8.5% this year. Write to Akane Otani at akane.otani@wsj.com and Stephanie Yang at stephanie.yang@wsj.com Credit: By Akane Otani and Stephanie Yang
Subject: Stocks; Financial performance; Investments; Natural gas prices; Earnings; Crude oil prices; Energy industry
Location: New York United States--US
Company / organization: Name: Commodity Futures Trading Commission; NAICS: 926140, 926150
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867143075
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867143075?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner . Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Border Tax Could Upend Global Markets, but Investors Shy Away From Any Bets; Dollar could rise by 25% and oil to $65, economists say, under President Trump's proposed policy
Author: Dulaney, Chelsey
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Feb 2017: n/a.
Abstract: None available.
Full text: A Republican tax plan has analysts predicting seismic shifts in global markets, from a double-digit surge in U.S. oil prices to the strongest dollar since the 1980s. But so far, few investors are willing to bet on it. Markets are struggling to size up the far-reaching impact of the so-called border adjustment, which would tax imports at a rate of 20% while exempting exports. The aim is to make the U.S. a more attractive place for businesses to invest, while also raising $1 trillion to offset Republicans' proposed tax-cut plans. Markets face big changes if the proposal becomes law. The dollar could rally by 25% to levels not seen since the 1980s, according to economists including Harvard University's Martin Feldstein. U.S. oil prices could surge to $65 a barrel from a recent $54, Goldman Sachs analysts project, reflecting a sharp tightening in the supply-demand balance in the U.S. market. The Federal Reserve's preferred inflation gauge, the personal-consumption-expenditures price index, could jump to 2.4% or higher from a recent 1.6%, by Goldman's estimate. "The border tax is the biggest policy story in years," said Greg Anderson, global head of foreign-exchange strategy at BMO Capital Markets. Yet investors have been hesitant to bet on these moves, in part reflecting significant uncertainty
over whether a border adjustment will become law or what form it might take. The proposal has faced criticism from both U.S. companies and politicians in recent weeks. Republican lawmaker Kevin Brady, one of the architects of the proposal, has said he is listening to objections and looking at ways to smooth the transition for taxpayers. Goldman Sachs analysts said last month that pricing in global oil markets reflected just a 9% chance of the border adjustment becoming law. President Donald Trump has expressed concern about the tax plan, calling it "too complicated" in an interview with The Wall Street Journal in January. The administration has since said a border adjustment is one option for paying for Mr. Trump's proposed wall on the U.S.-Mexico border, but skepticism remains on Wall Street. "The tax doesn't seem to be on the first round of the administration's priorities," said Alvise Marino, a foreign-exchange strategist at Credit Suisse. On Thursday, Mr. Trump said he would make an announcement that would be "phenomenal in terms of tax" within the next three weeks. Still, uncertainty over tax policy has weighed on the dollar, which has fallen 2% this year against a basket of major peers, relinquishing roughly half its postelection rally. The border tax is expected to boost the dollar because U.S. companies, now exempt from taxes on their exports, would be able to sell more products abroad. When foreigners buy U.S. exports, they must buy the U.S. dollar and sell their local currency, driving the U.S. currency's value. At the same time, the tax could reduce U.S. appetite for foreign goods, which would curtail demand for foreign currencies and boost the dollar. Advocates say the dollar would likely rise enough to offset the proposed tax, citing how currencies responded to similar tax systems abroad, so consumer prices would remain steady. For example: a 20% import tax on car parts made in Mexico would be met with a similar depreciation in the Mexican peso, so prices would remain stable for both importers and consumers. But many analysts warn that these projections are based on economic theory. In the real world, the dollar likely wouldn't rise quickly or high enough to offset negative impacts. Daragh Maher, head of U.S. foreign-exchange strategy for HSBC Holdings, said the value of the dollar and other foreign currencies is driven mostly by demand for assets such as stocks and bonds. Trade makes up only 1.4% of daily trading in the U.S. dollar, according to HSBC. Analysts say some companies could choose to move jobs and production back to the U.S., as the import tax would temper the cost savings from outsourcing. "These firms moved their operations to a place like Mexico because it was cheaper to build things there," said Mr. Marino. "The tax is supposed to make these firms indifferent between using their Mexico facilities and making things in the U.S." A tax would be especially painful for emerging-market nations such as China, the U.S.'s biggest trading partner. In addition to diminished demand for its exports, the dollar's strength would add to downward pressure on the Chinese currency, the yuan. Credit Suisse estimates that a border adjustment would reduce merchandise exports from Asia by 3% to 4%, denting the region's growth by around 0.5 percentage point. "Less global trade, whether through a border tax adjustment or something else, is bad for Asia," said Eric Stein, co-director of global income at Eaton Vance. A border adjustment would likely benefit Mr. Stein's bets against the Singapore dollar and Chinese yuan, as well as his positions in a type of Treasury bond that protects against U.S. inflation. "Lots of the policies of the Trump administration are inflationary, and this is one of them," said Mr. Stein. U.S. corporations that depend on imported products say the plan will force them to raise prices and lay off workers. A group of over 100 companies including Wal-Mart Stores Inc., Target Corp., Nike Inc. and Gap Inc., launched a group called Americans for Affordable Products to lobby against the tax. The plan could also face challenges under World Trade Organization rules, analysts say. In a statement, Nike said it plans to work with the Trump administration and with Congress "to explore alternatives to meet the goal of growing the U.S. economy and employment without the complexity and negative impacts of a border adjustment tax." U.S. exporters, including Dow Chemical Co. and Lockheed Martin Co., have praised the plan, which would likely bolster their overseas sales. "The border adjustment tax...will be, for us, a big positive," said Dow Chemical CEO Andrew Liveris on an earnings call. Richard Rubin and Sara Germano contributed to this article. Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com Border Bets A look at how Mexico is becoming a shifting landscape for investors * Peso's Allure as a Hedge Dims
* Trump's Trade Policies Worry U.S. Cotton Farmers
Credit: By Chelsey Dulaney
Subject: Currency; International trade; Prices; US exports; Renminbi; American dollar
Location: Mexico United States--US
People: Brady, Kevin
Company / organization: Name: Harvard University; NAICS: 611310; Name: Credit Suisse Group; NAICS: 522110; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: Republican Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 12, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867359100
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867359100?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Oil Prices Fall on Profit Taking; April Brent crude fell $0.01 to $56.69 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Feb 2017: n/a.
Abstract: None available.
Full text: Crude futures slipped in Asia on Monday as investors booked profits ahead of a key data that would indicate the progress of an ongoing multicountry effort to cut back oil production. "Traders will be keenly awaiting the release today of the Organization of the Petroleum Exporting Countries monthly report. If production cuts are coming through as suggested, we should see oil prices push higher," said ANZ Research. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.82 a barrel at 0247 GMT, down $0.04 in the Globex electronic session. April Brent crude on London's ICE Futures exchange fell $0.01 to $56.69 a barrel. Oil prices rose nearly 2% over the weekend after the Paris-based International Energy Agency said global crude supply dropped nearly 1.5 million barrels a day in January, and 730,000 barrels a day less from same month last year, with both OPEC and non-OPEC countries producing less. The nearly one million-barrel decline by OPEC, if confirmed later today by the cartel, would mean a 90% compliance to the production cut pact, IEA said, estimating the cartel's last month production fell to 32.06 million barrels a day. OPEC on Nov. 30 had agreed to cut production from January by 1.2 million barrels a day to end a persistent oil glut. Later in December, Russia and other producers outside the group committed to take 558,000 barrels a day out of the market. The combined cuts would wipe out around 2% of the world's daily production. "We estimate there could be over 400,000 barrels of inventory draws in 2017 if agreed cuts are complied with during first half of 2017, draining excess inventories back to normalized levels," Bernstein Research said in a note. However, burgeoning production from other non-cartel players could impede the rate of decline. Collective production from Brazil, Canada, and U.S. is expected to grow by 750,000 barrels a day in 2017 and the net change for non-OPEC producers next year is close to a growth of 400,000 barrel a day, the IEA said. Analysts said that even though the pace of growth in U.S. production is currently not fast enough to offset the decline rate elsewhere, a rapid improvement in drilling technology and increased investment in innovation means production from the U.S. remains a threat that could derail OPEC's plan to move the market into a deficit. American oil drillers activated eight more oil rigs in the week ended February 10, bringing the total U.S. count to 591, the highest number since October 2015, oilfield service company Baker Hughes said on Friday. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--fell 60 points to $1.5836 a gallon, while March diesel traded at $1.6691, 32 points higher. ICE gasoil for March changed hands at $503.25 a metric ton, down $0.25 from Friday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Crude oil
Location: United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867393821
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil's Hottest Market Adds to Fuel Glut; Energy firms are investing billions in Asian refineries, but their plans are butting up against an oversized supply of refined fuels
Author: Strumpf, Dan; Ngui, Yantoultra
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Feb 2017: n/a.
Abstract: None available.
Full text: Oil companies' big bet on demand in their fastest-growing market is getting less lucrative. Energy companies are investing billions of dollars over the next several years in new and existing refineries across Asia, where consumption of refined fuels like gasoline, jet fuel and petrochemicals has been increasing more rapidly than in any other region. But those plans are butting up against a glut in refined fuels that analysts say could last for years--a side effect of slowing demand in China and a surfeit of refining capacity. This year, production of gasoline and diesel in the region will exceed demand by about 750,000 barrels, or 5% of annual Asian consumption, according to a forecast by BMI Research. The imbalance, which began to balloon in 2008, is set to persist until at least 2021, BMI says. That overhang is a hurdle for refiners, whose biggest markets are in Asia. Roughly one out of every three barrels of oil is refined in Asia, and the global refining sector produced an estimated 42.5% of its revenue in the region last year, according to FactSet, down from 46.5% the year before. Late last year, Nomura cut its forecast for Asian refining margins--the amount of profit that refiners squeeze out of a barrel of oil--by 17% to $6.50 a barrel. Margins have shrunk world-wide in recent months as oil prices have risen. The latest sign of the tougher landscape: Saudi Aramco's abandonment of a joint venture with Malaysia's Petroliam Nasional Bhd, or Petronas, for a $20 billion refining and chemical complex in the Malaysian state of Johor. Saudi Arabia's national oil company decided against the project after concluding it wouldn't generate sufficient returns, people familiar with the matter told The Wall Street Journal. "We really don't need one more giant refining complex" in the region, said Nelson Wang, energy analyst at CLSA in Hong Kong. "Many of these projects were proposed four or five years ago. That's a lot of lead time, and the oil market is really different from five years ago." State-owned Petronas now plans to forge ahead with the project alone, after unsuccessfully approaching other potential partners, according to a person familiar with the matter. The project, which is set to refine 300,000 barrels of oil a day, could take 10 to 20 years to become profitable, the person said. Aramco declined to comment. Petronas didn't respond to a request for comment. For years, Asia has been the center of global oil demand growth, led by China. From 2008 to 2016, Chinese oil demand rose an average of 5.1% a year, while U.S. oil demand was virtually flat, said Sushant Gupta, a research director at energy consulting firm Wood Mackenzie. But Chinese demand has slowed as the country's economic growth lags behind, and as policy makers seek to move China away from dependence on infrastructure spending, which tends to employ diesel-hungry equipment and plants. Wood Mackenzie expects China's demand growth to slow to an average 1.7% a year through the next eight years. Demand in India and Southeast Asia is picking up, but those markets are a fraction of China's. Meanwhile, refiners are planning a number of new Asian projects in the next several years. Saudi Aramco has held talks with state-owned China National Petroleum Corp. to build a refinery in China's Yunnan province. That would join a 260,000-barrel-a-day CNPC refinery slated for Kunming province. A consortium of firms is set to open a 200,000-barrel-a-day refinery in Vietnam later this year, and India's Bharat Petroleum Corp. is expanding a refinery in Kerala province to more than 300,000 barrels a day. Altogether, refiners are set to add 932,000 barrels a day in new refining capacity across six countries in Asia this year, according to research firm Energy Aspects, roughly equivalent to Australia's daily oil use. China has become a major fuel exporter for the region, thanks to rising output by independent refiners, known as "teapots," which took advantage of looser oil-import rules to churn out more fuel. China's fuel exports soared 34% last year to 973,000 barrels a day. "There's already a lot of competition in the Asian refined-fuels market," said Peter Lee, a BMI Research analyst. To be sure, fuel demand elsewhere in the region is still growing quickly. Wood Mackenzie estimates Indian demand will rise an average of 2.8% a year through 2025. Once-bloated fuel inventories have begun to fall in many countries. In China, gasoline and diesel stockpiles have fallen by more than one fifth from highs reached in early 2016, according to data compiled by BMI. Analysts say they expect more delays or cancellations of projects in the works. China Petrochemical Corp. and CNPC--the country's two biggest energy companies--have delayed plans to build or expand 10 refineries, according to CLSA. Mr. Wang, the bank's energy analyst, says he doesn't expect the facilities to ultimately be built. Sinopec said it plans to "streamline its business operations, which will include the development of four integrated petrochemical and refining zones in China." CNPC didn't respond to a request to comment. Write to Dan Strumpf at daniel.strumpf@wsj.com and Yantoultra Ngui at yantoultra.ngui@wsj.com Related * Oil Prices Rise as OPEC Complies With Production Cuts * IEA Says OPEC Reaches Record Compliance With Agreed Cuts * U.S. Oil Exports Are Rising, but Face Hurdles Credit: By Dan Strumpf and Yantoultra Ngui
Subject: Demand; Petroleum refineries; Crude oil prices; Energy industry
Location: Southeast Asia Malaysia China Hong Kong United States--US India Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111; Name: Petronas; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867403838
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867403838?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Gain as OPEC Complies
Author: Puko, Timothy; Faucon, Benoit
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Feb 2017: B.10.
Abstract:
The International Energy Agency reported Friday that production from the Organization of the Petroleum Exporting Countries fell to 32.06 million barrels a day in January, a decline of about 1 million barrels compared with OPEC's October baseline.
Full text: Oil prices rose Friday after a top energy watchdog said exporters are following through on promises to cut oil production to end a longstanding glut in the market. The International Energy Agency reported Friday that production from the Organization of the Petroleum Exporting Countries fell to 32.06 million barrels a day in January, a decline of about 1 million barrels compared with OPEC's October baseline. The cut "is certainly one of the deepest in the history of OPEC," the agency said, with the countries that agreed to it reaching a record compliance of 90%. Light, sweet crude for March delivery gained 86 cents, or 1.6%, to $53.86 a barrel on the New York Mercantile Exchange. Most of the price gains came overnight after the IEA released its report during European trading, and then prices stayed mostly flat during traditional U.S. trading hours. The gains pushed oil to its ninth winning week in the last 13, up 3 cents, or 0.1%. Brent, the global benchmark, settled up $1.07, or 1.9%, at $56.70 a barrel. It still ended the week down 11 cents, or 0.2%, snapping a three-week winning streak. OPEC's early compliance rate came in beyond what even some of the most bullish analysts and traders had expected. Credit: By Timothy Puko and Benoit Faucon
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Feb 13, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867453074
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867453074?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Companies' Most Lucrative Market Is Low on Fuel
Author: Strumpf, Dan; Ngui, Yantoultra
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Feb 2017: B.8.
Abstract:
Energy companies are investing billions of dollars over the next several years in new and existing refineries across Asia, where consumption of refined fuels like gasoline, jet fuel and petrochemicals has been increasing more rapidly than in any other region.
Full text: Oil companies' big bet on demand in their fastest-growing market is getting less lucrative. Energy companies are investing billions of dollars over the next several years in new and existing refineries across Asia, where consumption of refined fuels like gasoline, jet fuel and petrochemicals has been increasing more rapidly than in any other region. But those plans are butting up against a glut in refined fuels that analysts say could last for years -- a side effect of slowing demand in China and a surfeit of refining capacity. This year, production of gasoline and diesel in the region will exceed demand by about 750,000 barrels, or 5% of annual Asian consumption, according to a forecast by BMI Research. The imbalance, which began to balloon in 2008, is set to persist until at least 2021, BMI says. That overhang is a hurdle for refiners, whose biggest markets are in Asia. Roughly one out of every three barrels of oil is refined in Asia, and the global refining sector produced an estimated 42.5% of its revenue in the region last year, according to FactSet, down from 46.5% the year before. Late last year, Nomura cut its forecast for Asian refining margins -- the amount of profit that refiners squeeze out of a barrel of oil -- by 17% to $6.50 a barrel. Margins have shrunk world-wide in recent months as oil prices have risen. The latest sign of the tougher landscape: Saudi Aramco's abandonment of a joint venture with Malaysia's Petroliam Nasional Bhd, or Petronas, for a $20 billion refining and chemical complex in the Malaysian state of Johor. Saudi Arabia's national oil company decided against the project after concluding it wouldn't generate sufficient returns, people familiar with the matter told The Wall Street Journal. "We really don't need one more giant refining complex" in the region, said Nelson Wang, energy analyst at CLSA in Hong Kong. "Many of these projects were proposed four or five years ago. That's a lot of lead time, and the oil market is really different from five years ago." State-owned Petronas now plans to forge ahead with the project alone, after unsuccessfully approaching other potential partners, according to a person familiar with the matter. The project, which is set to refine 300,000 barrels of oil a day, could take 10 to 20 years to become profitable, the person said. Aramco declined to comment. Petronas didn't respond to a request for comment. For years, Asia has been the center of global oil demand growth, led by China. From 2008 to 2016, Chinese oil demand rose an average of 5.1% a year, while U.S. oil demand was virtually flat, said Sushant Gupta, a research director at energy consulting firm Wood Mackenzie. But Chinese demand has slowed as the country's economic growth lags behind, and as policy makers seek to move China away from dependence on infrastructure spending, which tends to employ diesel-hungry equipment and plants. Wood Mackenzie expects China's demand growth to slow to an average 1.7% a year through the next eight years. Demand in India and Southeast Asia is picking up, but those markets are a fraction of China's. Meanwhile, refiners are planning a number of new Asian projects in the next several years. Saudi Aramco has held talks with state-owned China National Petroleum Corp. to build a refinery in China's Yunnan province. That would join a 260,000-barrel-a-day CNPC refinery slated for Kunming province. A consortium of firms is set to open a 200,000-barrel-a-day refinery in Vietnam later this year, and India's Bharat Petroleum Corp. is expanding a refinery in Kerala province to more than 300,000 barrels a day. Altogether, refiners are set to add 932,000 barrels a day in new refining capacity across six countries in Asia this year, according to research firm Energy Aspects, roughly equivalent to Australia's daily oil use. China has become a major fuel exporter for the region, thanks to rising output by independent refiners, known as "teapots," which took advantage of looser oil-import rules to churn out more fuel. China's fuel exports soared 34% last year to 973,000 barrels a day. "There's already a lot of competition in the Asian refined-fuels market," said Peter Lee, a BMI Research analyst. Analysts say they expect more delays or cancellations of projects in the works. China Petrochemical Corp. and CNPC -- the country's two biggest energy companies -- have delayed plans to build or expand 10 refineries, according to CLSA. Mr. Wang, the bank's energy analyst, says those facilities likely won't be built. Credit: By Dan Strumpf and Yantoultra Ngui
Subject: International markets; Energy industry; Gasoline; Diesel fuels; Supply & demand; Petroleum refineries
Location: Southeast Asia China
Company / organization: Name: Petronas; NAICS: 211111; Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.8
Publication year: 2017
Publication date: Feb 13, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867453313
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867453313?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Slip Despite OPEC Cuts; Libya, Nigeria lifted production in January, raising concerns about attempts to curb global supply
Author: Yang, Stephanie; Hsu, Jenny W; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Feb 2017: n/a.
Abstract: None available.
Full text: Oil prices fell on Monday, as the market shifted its focus from output cuts among some OPEC members to other major producers. Light, sweet crude for March delivery settled down 93 cents, or 1.7%, to $52.93 a barrel on the New York Mercantile Exchange, breaking a three-day winning streak. Brent, the global benchmark, fell $1.11, or 2%, to $55.59 a barrel. On Monday, the Organization of the Petroleum Exporting Countries said January's oil production fell by 890,000 barrels a day compared with December, putting the compliance rate among participating members at about 90%. The numbers were largely in line with a Friday report from the International Energy Agency, which helped boost prices last week. However, investors remain concerned about individual nations that could threaten the attempt to limit global supply, analysts said. "The OPEC report was a bit of a mixed bag," said John Kilduff, founding partner of Again Capital. "It's being really carried by Saudi Arabia cutting more than they said they were going to. The cartel and the non-OPEC producers have a lot more work to do." Libya and Nigeria, which are exempt from the OPEC deal reached in November to limit output by 1.2 million barrels a day, increased production in January. Iran was the only participating OPEC member that failed to cut production. "Although OPEC has cut production by more than expected we would not be surprised to see supply edge up over the next few months as compliance falls off a little and output in Iran, Libya and Nigeria continues to rise," said Tom Pugh, commodities economist at Capital Economics, in a Monday note. Rising production in the U.S. has also put pressure on oil prices in recent weeks. American oil drillers activated eight more oil rigs in the week ended Feb. 10, bringing the total U.S. count to 591, the highest number since October 2015, oil-field services company Baker Hughes Inc. said on Friday. "The U.S. producer is certainly responding in a favorable way," said Tony Headrick, energy analyst at CHS Hedging. "I think there's an element of surprise that we could be in for [with] U.S. production moving forward. That really negates some of the impact of the OPEC cuts." A stronger U.S. dollar weighed on oil prices Monday, analysts said, since it makes dollar-denominated commodities such as oil more expensive to other currency holders. The WSJ Dollar Index was recently up 0.2% at 91.13. High stockpiles of crude oil and refined products in the U.S. have also raised concerns among market participants, leading to weakness across the energy sector, Mr. Headrick said. Gasoline futures closed down 2.8% to $1.5446 a gallon, and diesel futures fell 2.3% to $1.6273 a gallon. Write to Stephanie Yang at stephanie.yang@wsj.com , Jenny W. Hsu at jenny.hsu@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Related * OPEC Data Show Members Complying With Output Cuts Credit: By Stephanie Yang, Jenny W. Hsu and Kevin Baxter
Subject: Crude oil prices; International markets; Supply & demand; Crude oil
Location: Brazil United States--US Canada
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867485197
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867485197?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Data Show Members Complying With Pledged Oil-Production Cuts; Cartel's data matches Friday's IEA report showing compliance rate is around 90%
Author: Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Feb 2017: n/a.
Abstract: None available.
Full text: LONDON--OPEC's January oil production fell by 890,000 barrels a day compared with December, the cartel said Monday, confirming that its members have so far largely complied with an agreement to slash output . Data from secondary sources showed that the cuts agreed on Nov. 30 by the Organization of the Petroleum Exporting Countries have been implemented. Production from OPEC members in January was 32.139 million barrels a day compared with 33.029 million b/d in December. Brent was down 0.56% at $56.38 following the data release. However, Libya and Nigeria--which are exempt from the cuts--both increased production last month so production from participating members actually fell by 1.032 million b/d in January, from 30.945 million b/d to 29.913 million b/d. The largest contributor to the output reduction was Saudi Arabia with data showing that it trimmed a hefty 496,200 b/d of production in January. Iraq, the UAE and Kuwait all made significant cuts, data showed output from the three Gulf states fell by 165,700 b/d, 159,300 b/d and 141,200 b/d respectively. Out of the remaining participating members, only Iran failed to cut output. Production in the Islamic Republic showing an uptick of 50,200 b/d for January. Russia, the largest participating producer outside OPEC, cut production by 60,000 b/d to 11.03 million b/d, the report said. The OPEC data corresponds closely with Friday's monthly report from the Paris-based International Energy Agency, demonstrating that the compliance rate of the participating members is around 90% . The difference in production levels from OPEC members participating in the cuts was only 17,000 b/d in the two reports, with the IEA reporting 29.93 million b/d on Friday. The average price paid for OPEC's crude, known as the OPEC Reference Basket or ORB, was $52.40 a barrel in January, representing a month-on-month rise of 1.4%. However the real difference is in the year-on-year figure, with January's ORB over twice as high as the $25 a barrel paid for OPEC's crude in January 2016. "For most of January, global oil prices were range-bound, buoyed by expected OPEC production adjustments, while pressured by US output growth and crude oil stock builds," the report stated. OPEC and the IEA corresponded closely in terms of OPEC's January production, but there was a growing disparity between the two agencies in terms of global oil demand growth. The IEA revised its 2016 global oil demand-growth figure in its February report to 1.6 million b/d. This is about 280,000 b/d higher than OPEC's own revised number of 1.32 million b/d. For 2017, OPEC forecast that oil demand would grow by 1.19 million b/d, while the IEA upgraded its forecast to 1.4 million b/d. Write to Kevin Baxter at Kevin.Baxter@wsj.com Related * IEA Says OPEC Reaches Record Compliance With Agreed Cuts * Oil Soars as OPEC Agrees to Cut Output (Nov. 30) * Oil-Producing Countries Agree to Cut Output Along With OPEC (Dec. 10) Credit: By Kevin Baxter
Subject: Petroleum production; Compliance; Cartels; Supply & demand
Location: Iran Kuwait Russia United States--US Libya Saudi Arabia Nigeria Iraq
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867517394
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867517394?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil's Hottest Market Adds to Fuel Glut; Energy firms are investing billions in Asian refineries, but their plans are butting up against an oversized supply of refined fuels
Author: Strumpf, Dan; Ngui, Yantoultra
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Feb 2017: n/a.
Abstract: None available.
Full text: Oil companies' big bet on demand in their fastest-growing market is getting less lucrative. Energy companies are investing billions of dollars over the next several years in new and existing refineries across Asia, where consumption of refined fuels like gasoline, jet fuel and petrochemicals has been increasing more rapidly than in any other region. But those plans are butting up against a glut in refined fuels that analysts say could last for years--a side effect of slowing demand in China and a surfeit of refining capacity. This year, production of gasoline and diesel in the region will exceed demand by about 750,000 barrels, or 5% of annual Asian consumption, according to a forecast by BMI Research. The imbalance, which began to balloon in 2008, is set to persist until at least 2021, BMI says. That overhang is a hurdle for refiners, whose biggest markets are in Asia. Roughly one out of every three barrels of oil is refined in Asia, and the global refining sector produced an estimated 42.5% of its revenue in the region last year, according to FactSet, down from 46.5% the year before. Late last year, Nomura cut its forecast for Asian refining margins--the amount of profit that refiners squeeze out of a barrel of oil--by 17% to $6.50 a barrel. Margins have shrunk world-wide in recent months as oil prices have risen. The latest sign of the tougher landscape: Saudi Aramco's abandonment of a joint venture with Malaysia's Petroliam Nasional Bhd, or Petronas, for a $20 billion refining and chemical complex in the Malaysian state of Johor. Saudi Arabia's national oil company decided against the project after concluding it wouldn't generate sufficient returns, people familiar with the matter told The Wall Street Journal. "We really don't need one more giant refining complex" in the region, said Nelson Wang, energy analyst at CLSA in Hong Kong. "Many of these projects were proposed four or five years ago. That's a lot of lead time, and the oil market is really different from five years ago." State-owned Petronas now plans to forge ahead with the project alone, after unsuccessfully approaching other potential partners, according to a person familiar with the matter. The project, which is set to refine 300,000 barrels of oil a day, could take 10 to 20 years to become profitable, the person said. Aramco declined to comment. Petronas didn't respond to a request for comment. For years, Asia has been the center of global oil demand growth, led by China. From 2008 to 2016, Chinese oil demand rose an average of 5.1% a year, while U.S. oil demand was virtually flat, said Sushant Gupta, a research director at energy consulting firm Wood Mackenzie. But Chinese demand has slowed as the country's economic growth lags behind, and as policy makers seek to move China away from dependence on infrastructure spending, which tends to employ diesel-hungry equipment and plants. Wood Mackenzie expects China's demand growth to slow to an average 1.7% a year through the next eight years. Demand in India and Southeast Asia is picking up, but those markets are a fraction of China's. Meanwhile, refiners are planning a number of new Asian projects in the next several years. Saudi Aramco has held talks with state-owned China National Petroleum Corp. to build a refinery in China's Yunnan province. That would join a 260,000-barrel-a-day CNPC refinery slated for Kunming province. A consortium of firms is set to open a 200,000-barrel-a-day refinery in Vietnam later this year, and India's Bharat Petroleum Corp. is expanding a refinery in Kerala province to more than 300,000 barrels a day. Altogether, refiners are set to add 932,000 barrels a day in new refining capacity across six countries in Asia this year, according to research firm Energy Aspects, roughly equivalent to Australia's daily oil use. China has become a major fuel exporter for the region, thanks to rising output by independent refiners, known as "teapots," which took advantage of looser oil-import rules to churn out more fuel. China's fuel exports soared 34% last year to 973,000 barrels a day. "There's already a lot of competition in the Asian refined-fuels market," said Peter Lee, a BMI Research analyst. To be sure, fuel demand elsewhere in the region is still growing quickly. Wood Mackenzie estimates Indian demand will rise an average of 2.8% a year through 2025. Once-bloated fuel inventories have begun to fall in many countries. In China, gasoline and diesel stockpiles have fallen by more than one fifth from highs reached in early 2016, according to data compiled by BMI. Analysts say they expect more delays or cancellations of projects in the works. China Petrochemical Corp. and CNPC--the country's two biggest energy companies--have delayed plans to build or expand 10 refineries, according to CLSA. Mr. Wang, the bank's energy analyst, says he doesn't expect the facilities to ultimately be built. Sinopec said it plans to "streamline its business operations, which will include the development of four integrated petrochemical and refining zones in China." CNPC didn't respond to a request to comment. Write to Dan Strumpf at daniel.strumpf@wsj.com and Yantoultra Ngui at yantoultra.ngui@wsj.com Related * Oil Prices Rise as OPEC Complies With Production Cuts * IEA Says OPEC Reaches Record Compliance With Agreed Cuts * U.S. Oil Exports Are Rising, but Face Hurdles Credit: By Dan Strumpf and Yantoultra Ngui
Subject: Petroleum refineries; Demand; Crude oil prices; Supply & demand; Energy industry
Location: Southeast Asia United States--US Saudi Arabia India Malaysia China Hong Kong
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111; Name: Petronas; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867755464
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867755464?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Edge Higher on OPEC Production Cuts; April Brent crude rose $0.23 to $55.82 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Feb 2017: n/a.
Abstract: None available.
Full text: Crude prices moved higher in Asian trade Tuesday on evidence that major oil producers fulfilled their pledge to hold back production in January, but rising output elsewhere capped the gains. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.12 a barrel at 0309 GMT, up $0.19 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.23 to $55.82 a barrel. Latest data from the Organization of the Petroleum Exporting Countries showed the group's production in January declined by 890,000 barrels a day from the previous month to 32.14 million barrels a day. The drop indicates a 90% compliance level so far by producers who had agreed to curtail their output. If the rate of cut continues in the same pace for the next six months, the global oil market could cross to a deficit by the second half of the year when the demand is stronger, said Tim Evans, a Citi Futures analyst. OPEC predicts global demand to grow by 1.3 million barrels a day this year, with China being Asian biggest guzzler as the country's vehicle sales continue to surge. "Stable economic activity in China coupled with a steady stock market were additional elements that caused sales of trucks, buses and passenger cars to increase by close to 14% on-year in 2016, with the total number of units sold during the year close to 28 million," the cartel's report said. China's overall oil demand, which includes fuels and crude, is estimated to rise by 2.4% on-year to 11.64 million barrels a day in 2017, OPEC said. However, growing production from the U.S. could end up foiling the cartel's effort. Data from the U.S. energy department showed that crude production in the U.S. rose to 8.98 million barrels in the week ended Feb. 3, the highest level since April last year. The next data set on U.S. crude production and stockpiles is expected to be released on Wednesday. Analysts surveyed by S&P Global Platts said U.S. crude stocks likely to expanded by 3.25 million barrels last week, while gasoline stocks fell by 500,000 barrels. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 39 points to $1.5485 a gallon, while March diesel traded at $1.6320, 47 points higher. ICE gasoil for March changed hands at $492.50 a metric ton, up $1.50 from Monday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Futures; Crude oil prices; Stock exchanges; Crude oil
Location: Africa United States--US North America
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867758709
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867758709?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Are OPEC's Cuts Adding Up to Lower Oil Prices? Traders look beyond group's compliance numbers to measure impact of output pledge
Author: Kantchev, Georgi; Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Feb 2017: n/a.
Abstract: None available.
Full text: Measuring the success of OPEC's production cuts has never been harder. Oil traders say they aren't just looking at the most recent numbers from the Organization of the Petroleum Exporting Countries showing it is complying with its pledge to cut almost 1.2 million barrels a day from the global market. Instead, they are watching for signs that U.S. oil output is growing, that oil storage is falling and that other big producers like Russia are curtailing their flows of petroleum. The complicated math has helped put a cap on oil prices and kept crude trading in a roughly $5 band between $51 and $56 a barrel, following a 20% surge in prices after the Nov. 30 OPEC deal. The latest evidence of this came Monday, when OPEC--notorious for not following through on its own agreements--delivered an optimistic report with numbers showing almost full compliance with its pledge . Oil prices fell anyway, with Brent dropping 2% to $55.59 a barrel. The main reason for the fall in prices, traders and analysts say, is that production increases were baked into OPEC's agreement, blunting the cartel's ability to force traders to draw down the vast supplies of oil stored in tanks across the world. In 2009, when OPEC said it would cut more than 4 million barrels a day to stabilize prices during the financial crisis, there was only one exception: Iraq. This time, the cartel's agreement exempted two big producers, Nigeria and Libya, and allowed Iran to increase a bit, too. Including Nigerian and Libyan output, BNP Paribas put OPEC's compliance rate at 77%, and if Nigerian output keeps growing, that could fall to 63%, BNP said--about the same level as in 2009. U.S. Energy Information Administration numbers suggest OPEC cuts, including Nigeria and Libya, amount to about 75% of what it promised. Another wild card is non-OPEC production. Russia and 10 other countries said they would cut a total of 558,000 barrels a day this year, but the deal was light on details, making it difficult to judge compliance, traders said. Russia, the world's largest producer, cut 100,000 barrels a day in January, the International Energy Agency said last week, but that was down from post-Soviet records and less than the 300,000 barrels a day it agreed to cut. Goldman Sachs estimates total compliance by OPEC and 11 non-OPEC countries, which agreed to jointly cut output in December, at around 85%. "It is a numbers game," said Doug King, chief investment officer at RCMA Asset Management and manager of that firm's $230 million Merchant Commodity hedge fund. "Despite good noises from OPEC, there are important exemptions and we don't really know what's going on in Russia," he added. Another wrinkle for the deal is U.S. shale producers, which are using the bump in prices over the past two months to jump-start output. OPEC on Monday doubled its estimate of non-OPEC production growth in 2017, blaming "a pick up in drilling activities and investment in the U.S." "The panic is that [the OPEC cuts] are giving a lifeline to shale production," said Helima Croft, chief commodities strategist at Canadian bank RBC Capital Markets. Increased U.S. production has some market participants questioning whether inventories will decrease much this year. OPEC's goal was to draw down more than 300 million barrels from storage to bring supply back into balance with demand and spark a sustainable price rally. The compliance mathematics matters for investors who have amassed a record number of bullish bets on oil prices after OPEC clinched the production deal. Wagers on rising U.S. oil prices by hedge funds and other big money managers are near their highest point in more than 10 years of record-keeping by the Commodity Futures Trading Commission. That carries risks for prices, Mr. King said. "There's a lot of complacency out there. If these bets start to unwind, it will be a bloodbath." To be sure, OPEC's swiftly executed production cut has helped the group's credibility. For years, it had been considered all but dead, incapable of putting aside its internal disputes and geopolitics. Jim Krane, an energy studies fellow at Rice University's Baker Institute in Houston, said the agreement showed that "archenemies" such as Saudi Arabia and Iran could make a deal. Also, new satellite technologies mean oil shipments are now "very transparent," he said, adding, "Cheating is very easy to detect." But there are also concerns that the current levels of compliance with the cuts won't last. Saudi Arabia says it has cut almost 800,000 barrels a day by itself, far more than the 486,000 barrels a day it agreed to and carrying the load for countries that have fallen short of their goals, such as Algeria, Iraq and the United Arab Emirates. The kingdom often reduces output in the winter anyway for maintenance, and it isn't clear how long it will maintain low production levels. Meanwhile, Iraq and Libya could boost production even more, says Olivier Jakob, head of Swiss consultancy Petromatrix. Iraq's largest field is undergoing maintenance, while Libya has said it could increase output by a further 200,000 barrels a day. Write to Georgi Kantchev at georgi.kantchev@wsj.com and Benoit Faucon at benoit.faucon@wsj.com Related * Oil Prices Slip Despite OPEC Cuts * OPEC Data Show Members Complying With Pledged Production Cuts * IEA Says OPEC Reaches Record Compliance With Agreed Cuts Credit: By Georgi Kantchev and Benoit Faucon
Subject: Agreements; Cartels; Crude oil; Supply & demand
Location: Iran Russia United States--US Libya Nigeria Iraq
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: BNP Paribas; NAICS: 522110; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867896401
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867896401?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Inches Higher on OPEC Supply Cuts; Data indicate 90% compliance level so far by producers who had agreed to curtail output
Author: Sider, Alison; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Feb 2017: n/a.
Abstract: None available.
Full text: Oil prices rose Tuesday on the back of data indicating that OPEC's deal to cut production is holding. U.S. crude futures settled up 27 cents, or 0.51%, at $53.20 a barrel on the New York Mercantile Exchange. The April contract for the global crude benchmark, Brent, gained 38 cents, or 0.68%, to $55.97 a barrel. The cuts from the Organization of the Petroleum Exporting Countries are providing a tailwind, but most observers believe that it is going to take something extra to push prices out of the current range and toward $60 a barrel. Prices pared gains from earlier trading. "The market can't really muster enough strength to rally," said Donald Morton, senior vice president at Herbert J. Sims Co., who runs an energy trading desk. "Here we are just sitting parked." The OPEC data released Monday showed a month-on-month decline of 890,000 barrels a day in January from the previous month to 32.1 million b/d. The drop indicates a 90% compliance level so far by producers who had agreed to curtail their output--in line with figures reported by the International Energy Agency last week, and well above what many market participants were expecting. "That's pretty compelling stuff," John Saucer, vice president of research and analysis at Mobius Risk Group in Houston said of the figures, pointing to the IEA's upgrade of its global demand forecast for the year. "It seems like this market is just biding its time before it works its way higher." If the rate of output reduction continues at the same pace for the next six months, the global oil market could cross to a deficit by the second half of the year when the demand is stronger, said Tim Evans, a Citi Futures analyst. Still, analysts noted that Iran, Libya and Nigeria continued to ramp up output--something that could undermine OPEC's efforts. "None of those countries are necessarily stable in any terms, but if they are able to continue ramping up production, they have the capacity to offset all of the other OPEC cuts," analysts at TAC Energy wrote in a note Tuesday. Market participants are also awaiting the next set of data on U.S. inventories of crude and fuel, expected to be released Wednesday. Analysts and traders surveyed by The Wall Street Journal expect that crude stockpiles grew by 2.9 million barrels last week. However, some analysts have said that the large inventory builds in the U.S. have been seasonal and that the extra barrels exported by many OPEC members before the start date of the cuts are now starting to show. "We have little reason not to believe that the huge increases in inventories seen over the past month will soon level off," analysts at First Standard Financial wrote in a research note. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 9.9-million-barrel increase in crude supplies, a 717,000-barrel rise in gasoline stocks and a 1.5-million-barrel increase in distillate inventories, according to a market participant. Gasoline futures gained 0.21 cent, or 0.14%, to $1.5467 a gallon. Diesel futures rose 1.09 cents, or 1.06%, to $1.6382 a gallon. Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Alison Sider and Kevin Baxter
Subject: Price increases; Stock exchanges; International markets; Crude oil
Location: China United States--US Asia Germany
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAI CS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1867915617
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1867915617?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Nigeria Plans Investment to End Militancy Hurting Oil Production; The initiative is designed to end armed militancy that has disrupted oil operations for several years
Author: Oredein, Obafemi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Feb 2017: n/a.
Abstract: None available.
Full text: IBADAN, Nigeria--Nigeria's Ministry of Petroleum Resources has drawn up initiatives and investment plans that it hopes will finally end armed militancy in the Niger Delta, the West African state's main oil-producing region , according to the country's oil minister. In a video posted on his verified Facebook account, Emmanuel Ibe Kachikwu said that steps were being taken to end the militancy that has disrupted oil operations for several years. Citing official data, Mr. Kachikwu said at the time of greatest disruption last year, Nigeria was producing 1 million barrels a day less of oil than its usual 2.2 million b/d capacity, equating to between $50 billion and $100 billion of lost income. To combat the problems a 20-point action plan will be implemented to foster more productive relations and end militant attacks on oil and gas infrastructure. Regular engagement between all parties, including oil companies, government officials and local community representatives would be the first initiative. Other strategies include the building of small modular oil refineries in each state region, the greater provision of utilities such as power and water, and investment capital to create manufacturing jobs for local people. Huge investments in infrastructure would underpin the whole process. Investment in education would also be prioritized and an amnesty program for militants would be continued at state and federal levels. Armed militancy has already cost Nigeria tens of billions of dollars of lost revenue and caused significant environmental damage in the country. Oil revenue makes up about 70% of Nigeria's government income and 90% of foreign exchange earnings. Credit: By Obafemi Oredein
Subject: Petroleum production; Militancy; Initiatives
Location: Nigeria Niger Delta
People: Kachikwu, Emmanuel Ibe
Company / organization: Name: Facebook Inc; NAICS: 518210, 519130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 14, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868007208
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868007208?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction o r distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude-Oil Supplies Seen Increasing
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 11 analysts and traders surveyed showed U.S. oil inventories are projected to have increased by 2.9 million barrels, on average, in the week ended Feb. 10. Ten analysts expect stockpiles to rise and one expects them to fall. Forecasts range from a decrease of 2.6 million barrels to an increase of 5.2 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show a decrease of 0.7 million barrels on average, according to analysts. Two analysts expect them to rise and nine analysts expect them to fall. Estimates range from a fall of 2.6 million barrels to an increase of 1.5 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 500,000 barrels. Four analysts expect an increase and seven expect a decrease. Forecasts range from a decline of 2 million barrels to an increase of 1.4 million barrels. Refinery use is seen falling 0.3 percentage point to 87.4% of capacity. Four analysts expect an increase, six expect a decrease and one didn't report expectations. Forecasts range from a decrease of 1 point to an increase of 0.5 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 9.9-million-barrel increase in crude supplies, a 717,000-barrel rise in gasoline stocks and a 1.5-million-barrel increase in distillate inventories, according to a market participant. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Financial performance
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868034956
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868034956?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Trump Signs Measure Curbing Dodd-Frank Rules on Energy and Mining Companies; The rules would have required companies to report payments to governments for commercial development of oil, natural gas or minerals
Author: Ackerman, Andrew; Radnofsky, Louise
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Feb 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--President Donald Trump accelerated his ambitious bid to roll back financial regulation Tuesday, signing into law a measure killing a Securities and Exchange Commission rule aimed at weeding out corruption in the energy industry. The rule in question is a requirement of the 2010 Dodd-Frank financial overhaul
, and was completed in the final months of former President Barack Obama's administration. It requires energy companies to disclose publicly
their payments to governments for the rights to extract oil, gas and minerals. Tuesday's move is a significant victory for industry groups like the American Petroleum Institute, which have fought the SEC rule for years, arguing it makes it harder for U.S. to compete against oil companies from other countries that aren't subject to the regulation. Supporters said the rule is designed to address the "resource curse," in which oil and mineral wealth in resource-rich developing countries flows to government officials and the upper classes rather than to the poor. Advocates said making the payments transparent would make those governments more accountable to their own populations and cut back on corruption. Mr. Trump said overturning the regulation would create American jobs. "It's a big deal," Mr. Trump said in an Oval Office signing ceremony. "The energy jobs are coming back. Lots of people going back to work now." Jack Gerard, the president and chief executive of the American Petroleum Institute, said the Trump administration move is a "welcome step forward for American competitiveness and jobs." Democrats attacked the move. "By signing this measure - the first significant bill he has signed into law - President Trump just gave a Valentine to kleptocrats from resource-rich countries and the companies that bankroll them under the table," Sen. Sherrod Brown (D., Ohio), said in a statement. Mr. Trump has blasted Dodd-Frank
, passed in the wake of the financial crisis, as regulatory overreach stifling growth. He has ordered his administration to conduct a thorough review of the law, looking for areas to scale back, and has encouraged Republicans controlling Congress to do the same. The law he signed Tuesday was the first step in that campaign. To eliminate the SEC regulation, Congress acted under the Congressional Review Act, which lets lawmakers overturn recent agency rules. The law had previously been used successfully just once since it was passed in 1996: In 2001, Congress wielded it to scrap ergonomics rules
finalized at the end of the Clinton administration that were aimed at preventing carpal tunnel syndrome and similar maladies. Under the act, the House and Senate can vote by a simple majority to overturn agency rules passed in the last 60 legislative working days, a period that started in June. That is a lower-than-usual threshold for legislation in the Senate, where 60 votes are often needed. The House, led by Majority Leader Kevin McCarthy (R., Calif.) is looking at about 200 regulations that fit the time frame. Several more are on the agenda this week, including two-labor related regulations and one tied to Planned Parenthood funding. In addition the SEC energy rule, lawmakers have already this year used the congressional review powers to pass another measure that is likely set for Mr. Trump's signature soon. That one would overturn an Interior Department rule, completed in December, which requires tougher standards for coal mining near streams. While Tuesday's move kills an SEC rule that U.S. companies were set to begin complying with in late 2018, it doesn't override the underlying requirement of the Dodd-Frank law. As a result, the SEC is still required by law to take another crack at it, though the new version of the rule can't be "substantially" the same as the measure Congress killed. By law, the SEC will also need to act within the next year to craft the new rule -- an ambitious timetable for the short-handed commission in the midst of a leadership change
. In a Feb. 1 policy statement critical of the SEC's rule, the administration said the measure as written would require U.S. companies in some cases to disclose information that the host nation of their project requires be kept confidential, or that is "commercially sensitive." "The rule would impose unreasonable compliance costs on American energy companies that aren't justified by quantifiable benefits. Moreover, American businesses could face a competitive disadvantage in cases where their foreign competitors aren't subject to similar rules," the administration said. A federal judge in 2013 threw out a previous SEC attempt at the "resource curse" regulation, saying Congress didn't require companies to make the payment data public. To ease implementation burdens when finalizing a second iteration of the rule last summer, the SEC said companies could apply for reporting exemptions on a case-by-case basis to keep private certain payments. The agency also allowed companies to meet the new requirements by using the same reports many firms already file to meet similar disclosure requirements in Europe and Canada. A federal judge in Massachusetts required the SEC in 2015 to complete the resource-payments rules on an "expedited schedule," after Oxfam America, an international relief and development organization, sued the agency over delays to the measure. Amy Harder and Natalie Andrews contributed to this article Write to Andrew Ackerman at andrew.ackerman@wsj.com and Louise Radnofsky at louise.radnofsky@wsj.com
Credit: By Andrew Ackerman and Louise Radnofsky
Subject: Industrial development; Bills; Energy industry
Location: Texas
People: Hensarling, Jeb Trump, Donald J Pence, Mike Ryan, Paul
Company / organization: Name: Congress; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 14, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868050370
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868050370?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Oil Futures Reverse Gains on Increased U.S. Oil Rig Activity; April Brent crude fell $0.29 to $55.68 a barrel
Author: Craymer, Lucy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Feb 2017: n/a.
Abstract: None available.
Full text: Crude oil prices pulled back during early Asia trading on Wednesday reversing gains made in the New York session. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $52.88 a barrel at 0308 GMT, down $0.32 in the Globex electronic session. April Brent crude on London's ICE Futures exchange fell $0.29 to $55.68 a barrel. Bears continue to point to increased U.S. oil rig activity, Trump immigration actions and potential issues with Mexico as a reason to nudge prices lower, said Stuart Ive, a private client advisor at OM Financial. "News that hedge funds are net long 160 million barrels in calendar spread options on the New York Mercantile Exchange (Nymex) shows how the fund managers are expecting the price curve to switch to backwardation as the physical market rebalances itself from the excessive supply," Mr. Ive noted. Prices have been wavering for many weeks in the low $50s as traders awaited data on OPEC's compliance with recently agreed cuts. The OPEC data released Monday showed a month-on-month decline of 890,000 barrels a day in January from the previous month to 32.1 million b/d. The drop indicates a 90% compliance level so far by producers who had agreed to curtail their output--in line with figures reported by the International Energy Agency last week, and well above what many market participants were expecting. "OPEC has set itself a high benchmark given its high January compliance, applying pressure to keep this record up in order to not disappoint the market," BMI Research said in a note. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--fell 84 points to $1.5383 a gallon, while March diesel traded at $1.6277, 105 points lower. ICE gasoil for March changed hands at $492.75 a metric ton, down $4.50 from Tuesday's settlement. Write to Lucy Craymer at Lucy.Craymer@wsj.com Credit: By Lucy Craymer
Subject: Crude oil prices
Location: New York Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 15, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868089731
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868089731?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Fall Slightly as U.S. Stockpiles Surge; U.S. Energy Information Administration said crude stockpiles rose by 9.5 million barrels, reaching the highest level in data going back to 1982
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Feb 2017: n/a.
Abstract: None available.
Full text: Oil prices edged lower Wednesday after federal data showed that stockpiles of U.S. crude and gasoline surged to record levels last week. But the figures, which analysts described as decidedly bearish, didn't shake crude from the tight range it has traded in since the start of the year. The U.S. Energy Information Administration said Wednesday that crude stockpiles rose by 9.5 million barrels in the week ended Friday, reaching 518 million barrels -- the highest level in data going back to 1982. Analysts surveyed by The Wall Street Journal had expected an increase of 2.9 million barrels. U.S. crude futures settled down 9 cents, or 0.17%, at $53.11 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 22 cents, or 0.39%, to $55.75 a barrel on ICE Futures Europe. Expectations that cutbacks by the Organization of the Petroleum Exporting Countries and other producers will materialize may have helped prevent prices from dropping further. OPEC members reported 90% compliance with production quotas earlier this week, with Saudi Arabia taking the lead. "You don't fight the Fed in the bond market, and you don't fight the Saudis in the oil market," said John Kilduff, founding partner of Again Capital. Investors have piled into bets on rising oil prices this year, and may still be holding out hope that the string of increases in U.S. stockpiles will soon come to an end, said Gene McGillian, research manager for Tradition Energy. "The market being almost unchanged--it seems as if it's giving us evidence that the market is focused more on the forward picture regarding the effects of production cuts starting to work their way through the system," Mr. McGillian said. The increase in U.S. oil supplies came as refiners pulled back sharply on the amount of crude they process as they head into a typical period of seasonal maintenance work. Refinery utilization dropped to 85.4% of capacity, down from 87.7% the previous week. But the refining slowdown didn't cause gasoline supplies to shrink. The EIA also reported Wednesday that gasoline stocks rose by more than 2.8 million barrels last week to a record high of 259.1 million barrels, while analysts were anticipating that supplies would drop. That could signal weakening demand. "We're starting to see a significant trend of gasoline demand being lower than 2016. It's quite concerning for the market here," said Andy Lipow, president of Lipow Oil Associates in Houston. Gasoline futures gained 0.12 cent, or 0.08%, to $1.5479 a barrel. Diesel futures fell 0.77 cent, or 0.47%, to $1.6305. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Crude oil prices; Supply & demand
Location: Russia United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 15, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868277217
Document URL: https://login.e zproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868277217?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil Inventories Surge as Refinery Runs Fall
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. crude oil inventories rose by more than three times expectations for the week ended Feb. 10, while refinery activity declined sharply, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles jumped by 9.5 million barrels to 518.1 million barrels, which is above the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 2.9 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, decreased by 702,000 barrels to 64.6 million barrels, the EIA said in its weekly report. Gasoline stockpiles unexpectedly increased by 2.8 million barrels to 259.1 million barrels. Analysts were expecting gasoline inventories to fall by 700,000 barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 689,000 barrels to 170.1 million barrels, but are still above the upper limit of the average range, the EIA said. Earlier in the week, analysts forecast supplies would decrease by 500,000 barrels from a week earlier. Refining capacity utilization slid by 2.3 percentage points from the previous week to 85.4%. Analysts were expecting utilization levels to decline by 0.3 percentage point. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Price increases; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 15, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868369803
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868369803?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Global Risks Begin to Recede; It isn't just the Trump effect; from oil prices to Chinese outflows, the world is looking up
Author: Ip, Greg
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Feb 2017: n/a.
Abstract: None available.
Full text: It's tempting to see surging U.S. stock prices and business confidence as all coming in response to President Donald Trump's election. But the upswing is global: In Europe, Japan, China and elsewhere, business surveys and markets have turned markedly more optimistic. This is partly because investors hope that any fiscal stimulus Mr. Trump enacts will spill over to other countries. Yet a confluence of other factors is also at work: Oil prices are on an upswing thanks to production cuts by the Organization of the Petroleum Exporting Countries. Chinese and European economic activity picked up in the second half of last year. And, economically speaking, populism has so far been a wet firecracker. "It's a mosaic," said Ed Hyman, chairman and economist at Evercore ISI, a brokerage firm. "Trump is the most discussed part of the mosaic but not necessarily the most important part." A few weeks after Mr. Trump's election, OPEC agreed to cut production and its member countries have largely abided by their pledges. Oil prices, which fell below $30 a barrel a year ago, have remained above $50 since the agreement. As a result, the number of oil and gas drilling rigs operating in the U.S. has jumped 80% since June, according to Baker Hughes, an oil field services company. Oil and gas field machinery production is up 10% since August. Firmer energy prices have pushed actual and expected inflation higher. U.S. inflation hit a five-year high in January. Ordinarily that's bad, but it is now welcomed by central bankers who worried that too-low inflation can easily become destructive deflation. In mid-July bond markets expected inflation in five to 10 years' time to average 1.2% in the U.S., 1.4% in the eurozone, and 0.1% in Japan. Those figures have since jumped roughly half a percentage point. Mohamed El-Erian, an adviser to the German insurance company Allianz, thinks the OPEC agreement will likely keep oil between $50 and $60 a barrel. He said that plus hopes for fiscal stimulus under Mr. Trump and a Federal Reserve continuing to err on the side of raising rates too slowly, rather than too quickly, are why expected inflation has risen. Global growth is also on a firmer footing. A year ago, as China struggled to stem surging capital outflows and a weakening currency, an index of economic activity compiled by IHS Markit slipped into contractionary territory. Then Chinese authorities encouraged banks to crank up lending and clamped new controls on capital outflows. By December, the borrowing boom had driven the index to nearly a four-year high. Evercore ISI projects annual growth in nominal Chinese gross domestic product--economic growth plus inflation--will reach 11% in the current quarter, up from below 7% a year earlier. This growth traditionally has correlated closely with oil and industrial prices. Even Europe shows signs of shaking off its torpor. "Relative to expectations in October, Europe is much stronger both in terms of real business volumes and upside surprises on inflation than the U.S.," said Jason Thomas, director of economic research at Carlyle Group, a private-equity manager. From 2009 to 2014, all of Europe's growth came from exports. In 2015, the commodity price plunge battered exports and domestic spending carried growth. "You finally have the domestic economy holding its own at the same time you've seen a rebound in orders from emerging markets and the globe more broadly," he said. The improved outlook for inflation and growth has taken the pressure off central banks in Europe and Japan to lower interest rates further or increase bond buying, and this week Fed Chairwoman Janet Yellen said the bank could raise rates again in coming months. This comes as a relief to commercial banks, whose lending margins have been squeezed by zero to negative rates. Finally, political uncertainty hasn't been the confidence killer that many feared. Britain's vote to leave the European Union has damped business investment plans but consumers have shrugged off the uncertainty. Mr. Trump has prioritized rolling back regulations; he has yet to act on his harsh protectionist rhetoric. In meetings with the prime ministers of Japan and Canada this week, Mr. Trump praised economic ties with the two. His administration is exploring alternatives to branding China a currency manipulator. Whether the world can sustain this increased confidence remains to be seen. The global economy is still likely to grow just 3.4% this year, according to J.P. Morgan, better than last year but in line with the sluggish trend of the prior five years. While political uncertainty hasn't hurt much yet, that could change if the anti-euro National Front wins France's presidential election this spring. China may owe its growth rebound to a debt bubble that could soon burst. Mr. Trump's tumultuous presidency could make tax cuts harder to pass while providing ample opportunity for geopolitical shocks. Still, after a year when worst-case scenarios seemed all too plausible, a return to a modest normal is cause for relief. Write to Greg Ip at greg.ip@wsj.com Read more * Economy Picks Up Momentum * Yellen Defends Fed in Face of Criticism * U.S. Consumer Prices Up 0.6% in January * U.S. Retail Sales in January Rose More Than Expected * Heard on the Street: Stronger Growth Could Set Fed Against Trump Credit: By Greg Ip
Subject: Interest rates; Crude oil prices; Economic activity; Economic growth; Inflation; Gross Domestic Product--GDP
Location: China United States--US Japan Europe
People: Trump, Donald J
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 15, 2017
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868401263
Document URL: https://login.ezproxy.uta.edu/login?url=https://search.pr oquest.com/docview/1868401263?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Air France-KLM Profit Climbs on Fuel-Cost Drop; Franco-Dutch airline group's fuel bill falls dramatically on low oil prices
Author: Wall, Robert
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Feb 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Air France-KLM's net profit for 2016 was [euro]792 million ($839.8 million). An earlier version of this article misstated the net profit figure. (Feb. 16, 2017) LONDON--Air France-KLM SA said its profit surged last year on sharply lower fuel costs. Net profit for 2016 was [euro]792 million ($839.8 million), compared with [euro]118 million a year earlier, the Paris-based carrier said Thursday. Its closely watched operating income advanced 34% to [euro]1.05 billion from [euro]780 million. Without currency headwinds, the operating result would have tacked on another [euro]558 million. A sharp drop in oil prices, which started in mid-2014 , has helped Air France-KLM deliver two years of healthy profits after the carrier spent years in the red. The company, Europe's largest airline group by traffic, said its fuel bill declined [euro]1.5 billion last year. Passenger numbers rose 4% to 93.4 million in 2016, though sales slipped 3.3% to [euro]24.84 billion, reflecting ticket-price pressure across Europe. The outlook for this year is mixed. Air France-KLM warned that fuel costs are poised to rise and overcapacity in key markets is depressing airfares. Still, January bookings were strong and ticket prices at its main airlines have fallen only 0.7% at constant currency and 0.6% for budget unit Transavia. Ticket prices last year declined around 5%. But Chief Financial Officer Frédéric Gagey said pricing could deteriorate in coming months. The airline group remained under pressure to improve its operating performance, he said, and would continue to pursue cost cuts. Despite the jump in earnings, Air France-KLM continues to struggle to close a profitability gap with its main rivals. Even with a 1% decline last year in nonfuel unit costs at constant currency, the carrier's operating margin remained relatively weak at 4.2%. That is expected to trail the performance at British Airways parent International Consolidated Airlines Group SA, which reports full-year results next week. Air France-KLM has been pushing for labor concessions to bolster returns and deal with fierce competition. Its long-haul business has been under attack from Middle East airlines offering cheap fares on Asia routes, while its short-haul business is contending with a flood of capacity on intra-European routes from airlines such as budget carrier easyJet PLC. It has pursued several restructuring programs , but the results of those initiatives have been mixed amid strong opposition from French labor unions . Pilot and cabin crew strikes last year took a [euro]130 million bite out of earnings, the airline said. The airline said it is targeting more than 1.5% in unit cost reductions excluding fuel, currency and pension effects. It plans to increase capacity 3% to 3.5%. Fuel costs for Air France-KLM are set to rise $100 million this year and more than that in 2018, the airline said. The group's Dutch arm KLM outperformed its French rival, where earnings were also hampered by booking weakness in the wake of terrorist attacks in France in 2015 and 2016. Write to Robert Wall at robert.wall@wsj.com Related Reading * Air France Workers Sentenced to Suspended Jail Terms in Torn-Shirt Case * Air France-KLM Picks New CEO * Air France Sets Course for New Budget Long-Haul Service Credit: By Robert Wall
Subject: Aircraft accidents & safety; Profits; Airlines; Airline industry; Alliances
Location: Middle East Asia Europe
Company / organization: Name: Air France; NAICS: 481111; Name: easyJet Airline Co Ltd; NAICS: 481111; Name: International Consolidated Airlines Group SA; NAICS: 481112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 15, 2017
Section: Business
Publisher: Dow Jon es & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868535078
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868535078?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Futures Edge Lower as Higher U.S. Inventories Weigh; Nymex traded at $53.54 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Feb 2017: n/a.
Abstract: None available.
Full text: Crude oil futures edged lower in Asian trading on Thursday as higher U.S. oil inventories outweighed recent production cuts by Saudi Arabia and member nations of the Organization of the Petroleum Exporting Countries. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $53.54 a barrel at 0355 GMT, down 6 cents in the Globex electronic session. Brent crude on London's ICE Futures exchange fell 3 cents to $56.07 a barrel. The U.S. Energy Information Administration said Wednesday that crude stockpiles rose by 9.5 million barrels in the week ended Friday, reaching 518 million barrels -- the highest level in data going back to 1982. Analysts surveyed by The Wall Street Journal had expected an increase of 2.9 million barrels. "Oil prices are caught in a range. You have factors influencing oil prices in both directions," said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. "There is a production spree in the U.S. Going forward, prices will depend on how far who is willing to give up output," Mr Thiagarajan said. Any further significant price drops is likely to trigger further production cuts by OPEC members, he added. Saudi Arabia told OPEC last month that it had reduced output the most in eight years, notes ANZ Bank. Prices have been hovering in the range of low $50s for many weeks now. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract rose 64 points to $1.6369 a gallon. ICE gasoil for March changed hands at $494.25 a metric ton, up $0.25 from Wednesday's settlement. Write to Biman Mukherji at biman.mukherji@wsj.com Credit: By Biman Mukherji
Subject: Price increases
Location: United States--US New York Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868452102
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868452102?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Gains on Possible Extension to Production Cuts; OPEC could extend the deal to cut supply, or make more severe cuts if oil stocks don't drop by around 300 million barrels
Author: Puko, Timothy; McFarlane, Sarah; Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. oil prices edged higher Thursday as growing U.S. inventories were offset by reports that the Organization of the Petroleum Exporting Countries was prepared to consider extending supply cuts. Light, sweet crude for March delivery settled up 25 cents, or 0.5%, at $53.36 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost 10 cents, or 0.2%, to $55.65 a barrel on ICE Futures Europe. On Thursday, Reuters reported that OPEC sources said the cartel could extend the six-month deal to cut supply, or make more severe cuts, if oil stocks don't drop by around 300 million barrels. "It's not something totally new but it's a headline and the market reacts to headlines," said Olivier Jakob, managing director of consultancy Petromatrix, adding that investors had expected OPEC might consider further action. OPEC, along with other key oil producing countries including Russia, agreed late last year to cut output by around 1.8 million barrels a day, equivalent to around 2% of global production. The possibility extending the deal another six months has been discussed from its earliest days. A person close to Saudi Arabia's oil ministry said the kingdom was taking a wait and see approach to whether OPEC should extend the deal. It is too soon to tell whether the cartel will extend its agreement at its next meeting in May, the person said. Saudi Arabia, as the world's largest exporter of crude, will play an important role in determining OPEC's next move. Even just the six-month plan had already triggered oil prices to rally around 20%. But the market has largely settled in place since New Year's. After briefly touching a 19-month intraday high above $55 a barrel on Jan. 3, U.S. oil hasn't traded outside of a range tighter than $4. Volatility is at lows unseen since mid-2014 when oil was about to end a four-year, complacent stretch hovering near $100 a barrel. That range has started to reinforce itself and technical trading is starting to dominate the market, an analyst and broker said. It could be weeks, maybe months, before it becomes clear OPEC's output cuts are having the intended effect, and many traders have already priced them in anyway, analysts have said. "We're kind of resigned to the fact that the price is at about the right level," said Tim Evans, a Citi Futures analyst. He added that it may take some type of geopolitical crisis that cuts supply, or at least threatens it, to jolt prices out of their current range. Even some very bearish figures coming out about U.S. storage levels are being discounted because traders expect them to be the last impacted by OPEC's cuts, Mr. Evans said. The U.S. Energy Information Administration said Wednesday that crude stockpiles rose by 9.5 million barrels in the week ended Friday, reaching 518 million barrels--the highest level in data going back to 1982. Analysts surveyed by The Wall Street Journal had expected an increase of 2.9 million barrels. Gasoline stockpiles also rose to a record high in EIA data that goes back to 1990. "If U.S. oil inventories are indicative of OECD and therefore global stocks the chances for rebalancing any time soon do not look good," said brokerage PVM. "Under these circumstances the most logical fundamental explanation for the oil price resilience is the unbroken and continuous faith in the OPEC/non-OPEC supply accord." Gasoline futures lost 1.5% to $1.5247 a gallon. Diesel futures lost 0.1% to $1.6291 a gallon, its third loss in four sessions. Benoit Faucon contributed to this article. Write to Timothy Puko at tim.puko@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Biman Mukherji at biman.mukherji@wsj.com Credit: By Timothy Puko, Sarah McFarlane and Biman Mukherji
Subject: Stocks; Supply & demand; Crude oil
Location: Russia United States--US Saudi Arabia
Company / organization: Name: Organization for Economic Cooperation & Development; NAICS: 928120; Name: New York Mercantile Exchange; NAICS: 523210; Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868601069
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868601069?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Cenovus Energy Posts Surprise Quarterly Profit; Total oil production up 10% and Canadian company cuts oil sands operating costs by 12%
Author: Minaya, Ezequiel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Feb 2017: n/a.
Abstract: None available.
Full text: Cenovus Energy Inc. swung to a profit in the latest quarter, boosted by increased oil production. Total oil production climbed 10% to 291,551 barrels a day compared with the same period a year ago. The company also trimmed costs, cutting oil sands operating costs by 12% to C$8.91 per barrel. The Calgary, Alberta-based oil producer earned $91 million Canadian dollars ($69.8 million), or 11 Canadian cents a share, in its latest quarter. That compares with a loss of C$641 million, or C77 cents, a year earlier. Analysts surveyed by Thomson Reuters had expected an adjusted loss on a per-share basis of 5 cents on revenue of C$3.09 billion. Oil-sands production rose 18% to 164,396 barrels a day, the company said. Natural-gas production was down 11%. Like its oil-patch peers, Cenovus has been stung by low oil prices and has taken steps to cut costs , including head-count reductions and the deferral of some projects. Write to Ezequiel Minaya at ezequiel.minaya@wsj.com Credit: By Ezequiel Minaya
Subject: Petroleum production; Financial performance; Corporate profits; Operating costs; Oil sands; Energy economics
Location: Calgary Alberta Canada
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Cenovus Energy Inc; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 16, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868628313
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868628313?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
How Saudis Cut Oil Output Without Really Cutting; Saudi oil output has been cut but so has consumption, making their cuts less costly
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Feb 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia has led the way among major energy exporters in cutting oil production. At the same time, the kingdom is adding to global supply in a surprising way. The deal to cut oil output has been a success, at least for its first month, largely because there was little cheating and because Saudi Arabia cut production by 500,000 barrels a day. Don't ignore the other side of the ledger, though: the Saudis, huge consumers of energy themselves, are economizing. That could allow them to export more. In 2015, the average Saudi resident used 50 barrels of crude or some five times more than a slightly wealthier Swiss. Oil consumption jumped 77% for Saudi Arabia in the 10 years through 2015, topping even China, which grew 72%, according to data from BP. Saudi Arabia is far less populous but, even in absolute terms, those incremental barrels were the equivalent of adding another France's worth of oil demand. Per capita oil consumption is a function not only of wealth but also local incentives. Petrostates have some of the lowest pump prices in the world because local populations view cheap fuel as a birthright. As a result, Kuwait, which is about as wealthy as South Korea, uses nearly four times as much oil per capita. Gasoline retail prices are just a fourth as high. But, in the case of Saudi Arabia, it goes beyond motor fuels. For example, the country has long flared off huge quantities of gas and left untouched reserves that could more easily be used to generate electricity. The Saudi Energy Efficiency Center says fuel consumed for power has grown by 135 million barrels of oil equivalent annually over the past eight years. The latter is changing as part of the country's "Vision 2030" initiative. One big gas and power project that came online in 2016 helped reduce demand for oil to generate electricity last summer by the equivalent to Ireland's daily crude demand. Solar projects are also taking off in the sunny country with the goal of meeting 20% of power needs in 15 years. Local demand for motor fuel may moderate following a 50% gasoline price increase, freeing up more Saudi crude and crude products for export. Add it all up and in the first 11 months of 2016 Saudi Arabia's actual domestic consumption of unrefined crude oil and its increase in production left a combined 3.5 million additional barrels available for refining or export compared with 2015, according to data from the Joint Organisations Data Initiative. No wonder the Saudis are so enthusiastic about cutting output to support prices. Write to Spencer Jakab at spencer.jakab@wsj.com Credit: By Spencer Jakab
Subject: Petroleum production; Prices; Cartels; Oil consumption; Supply & demand
Location: Kuwait China Ireland France South Korea
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 16, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868715883
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868715883?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Makes Modest Gains But Remains in a Tight Range; April Brent crude rose $0.13 to $55.78 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2017: n/a.
Abstract: None available.
Full text: Crude futures made moderate gains in Asia on Friday as larger-than-expected growth in U.S. crude stocks and production were overshadowed by news that the Organization of the Petroleum Exporting Countries could consider extending its production cuts for more months. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.48 a barrel at 0202 GMT, up $0.12 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.13 to $55.78 a barrel. On Thursday, Reuters reported that OPEC sources said the cartel could extend the six-month deal to cut supply, or make more severe cuts, if oil stocks don't drop by around 300 million barrels. According to the OPEC's latest oil report, commercial oil stocks of the Organization for Economic Cooperation and Development countries fell by 33.8 million barrels in December for the fifth consecutive month, but at 2.9 billion barrels, it is still around 13 million barrels above the level a year ago and 299 million barrels above the latest five-year average. OPEC, along with other key oil producing countries including Russia, agreed late last year to cut output by around 1.8 million barrels a day, equivalent to around 2% of global production. The agreement included the possibility to extend the cuts by another six months. The January data showed OPEC crude supply decreased by 890,000 barrels a day to average 32.14 million barrels a day, indicating a 90% compliance rate by the participating countries. A person close to Saudi Arabia's oil ministry said the kingdom, the world's largest oil exporter, was taking a wait and see approach to whether OPEC should extend the deal. It is too soon to tell whether the cartel will extend its agreement at its next meeting in May, the person said. "This is not deemed sufficiently surprising," said Tim Evans, a Citi Futures analyst, who said more clarity should ensue after the monitoring committee meets again in late March. Talks of possibly extending the supply cut time frame come at time when the U.S. production is showing a strong revival. U.S. production is predicted to average 9.0 million barrels a day this year and grow another 500,000 barrels a day next year. However, some analysts such as Vyanne Lai at National Australia Bank are forecasting a much faster growth rate, putting this year's production at 9.3 to 9.4 million barrels a day. She said the price collapse in the past two and a half years have prompted U.S. oil producers to invest more money on innovation and efficiency. Currently, some big U.S. oil companies have reduced their break-even cost at $30 per barrel, while average-sized oil companies can profit when oil prices sustain at around the $50 level. "U.S. shale producers have a tendency of responding quickly to a period of sustained stability in prices," she said. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 1 points to $1.5248 a gallon, while March diesel traded at $1.6287, 4 points lower. ICE gasoil for March changed hands at $493.00 a metric ton, up $2.00 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Petroleum production; Price increases; Supply & demand
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868853967
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868853967?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Singapore 4th Quarter GDP Comes in Stronger than Estimated; Domestic exports excluding oil rises at a slower-than-expected pace in January
Author: Chaturvedi, Saurabh
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2017: n/a.
Abstract: None available.
Full text: SINGAPORE--Singapore's economic growth in the fourth quarter was sharper than first estimated, powered by an upswing in manufacturing, a robust service sector and stronger external demand. The economy expanded 12.3% from the previous quarter on a seasonally adjusted and annualized basis in the October-to-December period, the Ministry of Trade and Industry said in a statement Friday. That was a faster pace of expansion than an initial estimate of 9.1%, helping push growth for the year to 2.0%, well above the 1.5% upper range of a government forecast for 2016. However, a separate set of data showed that Singapore's domestic exports excluding oil rose at a slower-than-expected pace in January, due mainly to a contraction in pharmaceuticals shipments. Exports of goods made in Singapore rose 8.6% in January compared with a year earlier, a third straight month of gains, according to the trade promotion agency International Enterprise Singapore. The figure compared with a revised 9.1% increase in December from a year earlier. Economists surveyed by The Wall Street Journal had forecast January exports to expand 9.5% from a year earlier. Compared with a year earlier, the island nation's economy grew 2.9% in the fourth quarter, compared with a prior growth estimate of 1.8%. Despite the encouraging sign of recent strength in the economy, the government is sticking to a relatively cautious forecast of 1% to 3% growth in 2017 as uncertainties continue to cloud the economic outlook. Like many export-dependent nations in Asia, Singapore is closely monitoring the policy direction of U.S. President Donald Trump. While a stronger U.S. economy should fuel global demand, a protectionist stance could stunt international trade just as it starts to show signs of improvement. The revised data showed that a surge in manufacturing was among the main factors lifting the pace of growth, helped by strength in electronics and the volatile pharmaceutical sector. Manufacturing expanded a revised 39.8% from the previous quarter, compared with an earlier estimate of 14.6%, the data showed. The services sector, accounting for more than two-thirds of Singapore's GDP, grew a revised 8.4% in the quarter from an advance estimate of 9.4% growth. The revised data indicated that the construction sector grew 0.8% over the fourth quarter compared with an initial reading of a 4.7% fall. Write to Saurabh Chaturvedi at Saurabh.Chaturvedi@wsj.com Credit: By Saurabh Chaturvedi
Subject: Manufacturing; Economic growth; Gross Domestic Product--GDP
Location: United States--US Asia
People: Trump, Donald J
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 17, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868854022
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868854022?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Basketball Legend's Son Slam Dunks an Oil Deal; Nate Walton orchestrated what has turned out to be a lucrative investment for Ares Management
Author: Dezember, Ryan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2017: n/a.
Abstract:
Ares's shares jumped 11%--the stock's second biggest one-day gain ever--after The Wall Street Journal in January reported its expected profits from the sale of Texas oil producer Clayton Williams Energy Inc., in which Mr. Walton had led Ares to invest during the depths of the recent oil-price slump. "Rather than try to buy assets, we're providing capital to companies that already have assets with real competitive advantages and strong management teams," Mr. Walton said in an interview. Mr. Walton enrolled at the Stanford Graduate School of Business that year and joined Ares in 2006 on the credit desk. Ares bought Halcón Resources Corp.'s deeply discounted debt and emerged with a 20% stake in the company after the oil explorer exited from bankruptcy protection last year. Ares also bought shares in the company, on the open market and directly from Clayton Williams, which used the cash to prove its drilling properties...Full text: Nate Walton, the 6-foot 7-inch son of basketball great Bill Walton and older brother of Los Angeles Lakers coach Luke Walton, was born to star on the hardwood. Instead, the former Princeton University basketball captain is winning in high finance. A partner in the private-equity group at Ares Management LP, Mr. Walton orchestrated one of the most successful shale deals in recent years, expected to net more than a $1 billion within a year. Ares's shares jumped 11%--the stock's second biggest one-day gain ever--after The Wall Street Journal in January reported its expected profits from the sale of Texas oil producer Clayton Williams Energy Inc., in which Mr. Walton had led Ares to invest during the depths of the recent oil-price slump. The sale of Clayton Williams was part of a run that has lifted Ares shares 80% over the last year. That is tops among its rivals, including Blackstone Group LP and KKR & Co. Nate Walton said Ares's flexibility to buy corporate debt, equity or sometimes both has enabled the firm to tailor deals to entice energy executives into partnerships and boost returns. At a time when many financiers have aimed to acquire drilling fields on the cheap from beleaguered oil producers, Ares opted to invest directly in such companies. "Rather than try to buy assets, we're providing capital to companies that already have assets with real competitive advantages and strong management teams," Mr. Walton said in an interview. Some Walton family members have confessed that they don't fully understand what Nate does for a living, and his emergence as a financier contrasts with his father's hippie demeanor. Bill Walton wears tie-dyed shirts, even when announcing basketball games on ESPN, and he loves the Grateful Dead. As a star for UCLA and in the NBA in the 1970s, he became known for anti-establishment and environmental activism that some may find hard to square with his son's oil deals. "I'm a solar guy," said the elder Walton, leaving it at that. Nathan Whitecloud Walton was born in 1978, the year after his 6-foot-11-inch father led the Portland Trail Blazers to their only NBA championship. The second of four boys who grew up mostly in Southern California, Nate was the most scholarly of the bunch. As a 6-year-old, his mother recalls, he begged for a computer years before many people knew what a PC was. "He was the smartest of all the brothers, by far," said Luke Walton, who won two championships with the Lakers before becoming the team's coach this season. "We had classes together. I'd get a B- and he'd get like a 98%." Nate's parents, who are divorced, said their son soaked up the experiences afforded to the child of a star athlete. There were driveway shootarounds with basketball legend Larry Bird and banter with best-selling author David Halberstam over dinner. Susie Walton, his mother, recalled a teenage Nate hitting it off with his father's friend Timothy Leary and asking if the psychologist known for advocating psychedelic-drug use could become his godfather. Nate Walton was wooed by big-time basketball programs but opted instead for the Ivy League. At Princeton, Mr. Walton was an undersize center and team captain his senior year. The team's famed offense of constant motion and back-door cuts flowed through him. "He was an exquisite passer just like his pop," said Bill Carmody, one of Nate's coaches at Princeton. He had brief spell at a hedge fund in New York, where he lived with his college buddy, Brett Icahn, son of billionaire investor Carl Icahn, and another with the Boston Celtics front office. He returned to California and on a lark ran for governor in 2003 to replace Gov. Gray Davis, who had been recalled. Campaigning in the family uniform of tie-dyed T-shirt, Mr. Walton finished 47th out of about 135 candidates, well behind the winner, Arnold Schwarzenegger. Mr. Walton enrolled at the Stanford Graduate School of Business that year and joined Ares in 2006 on the credit desk. He was soon noticed by two of the firm's founders, Bennett Rosenthal and David Kaplan, who moved him to the private-equity team and assigned him to the oil-and-gas sector. Over two years, his group studied some 200 oil companies for investment opportunities. Ares made only one investment in a closely held Texas oil company, though. When oil prices collapsed in late 2014, distressed opportunities emerged, and Mr. Walton pounced. Ares bought Halcón Resources Corp.'s deeply discounted debt and emerged with a 20% stake in the company after the oil explorer exited from bankruptcy protection last year. This year, Ares launched a firm that helps oil producers pay for drilling projects. In the case of Clayton Williams, a company with prolific oil fields in West Texas but little cash, Ares made a $350 million loan last March, not long after oil prices had slumped to about $26 a barrel. Ares also bought shares in the company, on the open market and directly from Clayton Williams, which used the cash to prove its drilling properties were in a sweet spot. With energy prices stabilizing at around $50 a barrel, Noble Energy Inc. agreed in January to buy Clayton Williams. Under the terms of the deal, Ares is due to triple its roughly $515 million investment. Mr. Kaplan said Mr. Walton convinced Clayton Williams that Ares could get it through a tough period. "He said, 'Let's fix your balance sheet and go on offense''' Mr. Kaplan said. Credit: By Ryan Dezember
Subject: Appointments & personnel changes; Corporate profiles; Investments; Private equity; Tournaments & championships; Families & family life; Prices; Equity stake; Equity; College basketball
Location: Southern California California West Texas
People: Bird, Larry Leary, Timothy Halberstam, David
Company / organization: Name: Portland Trail Blazers; NAICS: 711211; Name: Clayton Williams Energy Inc; NAICS: 211111, 237210; Name: Princeton University; NAICS: 611310; Name: National Basketball Association; NAICS: 813990; Name: Kohlberg Kravis Roberts & Co LP; NAICS: 523920; Name: Blackstone Group LP; NAICS: 523110; Name: Grateful Dead; NAICS: 711130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868985133
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868985133?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Worst Gasoline Glut in 27 Years Could Be Oil Rally's Nemesis; Storage levels swelled last week to 259 million barrels, the highest in EIA records dating to 1990
Author: Puko, Timothy; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2017: n/a.
Abstract:
A gasoline glut brought on by drivers buying less at filling stations is emerging as one of the biggest threats to the yearlong oil-price rally. January sales at the pump fell 4.4% from a year ago, according to data from the Oil Price Information Service. Refiners had been running hard to take advantage of rising prices for gasoline futures, which rose 32% from mid-November to late December. The government's estimate "is perhaps a little too large to be fully credible and flies in the face of other indicators," said Paul Horsnell, head of commodity research at Standard Chartered PLC. Robert Merriam, director of EIA's Office of Petroleum and Biofuels Statistics, said much of the data in question is an estimate based on figures from gasoline suppliers, which are a proxy for actual drivers and retailers. Write to Timothy Puko at tim.puko@wsj.com and Alison Sider at alison.sider@wsj.com Related * Energy's Crude...Full text: A gasoline glut brought on by drivers buying less at filling stations is emerging as one of the biggest threats to the yearlong oil-price rally. U.S. gasoline consumption plummeted last month, nearly matching a 15-year low, government estimates show. It fell to as low as 8.2 million barrels a day, averaged over the four-week period ended Jan. 27. January sales at the pump fell 4.4% from a year ago, according to data from the Oil Price Information Service. That has led to a record amount of surplus gasoline, the U.S. Energy Information Administration said Wednesday. Storage levels swelled last week to 259 million barrels, the highest in EIA records dating to 1990. "It was a poor January by any stretch of the imagination for gasoline," said Tom Kloza, the Oil Price Information Service's global head of energy analysis. This drop-off in demand would be unlike any other outside of a recession, according to Goldman Sachs Group Inc. It is leaving many analysts befuddled. Some question the data. Others attribute the decline to storms and poor weather. Drivers may be put off by pump prices 31% higher than a year ago, according to the EIA. Many analysts expect demand to rebound in coming weeks. The country's cost of living did increase in January by the most in four years in big part from rising gasoline prices, the Labor Department said Wednesday. Its data showed pump prices up 7.8% from December to January. Those prices may have to fall to boost consumption. Otherwise oil markets may be faced with budget-conscious consumers leaving a glut lingering for months, maybe until the late spring or summer when driving peaks. "It kind of ruins your whole year potentially," said Sam Margolin, an analyst at Cowen. "Demand growth appears to be the riskiest element of the oil equation in 2017, and the rally could pause until driving season." Money managers have been betting on rising oil prices at a record rate. They held 10 bullish bets for every one bearish bet as of Feb. 14, according to Commodity Futures Trading Commission data released Friday. That puts the market in a risky spot because traders may feel compelled to sell quickly on any sign that oil's oversupply isn't ending. U.S. drivers account for 9% of total global oil demand, according to Cowen. They helped steady the crude market a year ago when they took advantage of lower prices to drive at record lengths. Motorists drove an additional 85 billion miles in the first 11 months of last year, compared with 2015, according to federal data. But with gasoline consumption now down to levels rarely seen since the early 2000s, a glut has been building. There is enough gasoline in storage to cover 31 days of U.S. driver demand--the most in 22 years, according to the EIA. A similar situation played out a year ago and left a glut lingering for months, weighing on crude prices. Refiners had been running hard to take advantage of rising prices for gasoline futures, which rose 32% from mid-November to late December. That activity may be slowing. Valero Energy Corp., the largest U.S. refiner, said last month that there is a glut of winter-grade gasoline that will have to be sold off before summer. "We're producing more diesel and gasoline than the market can absorb," said Gary Simmons, Valero's senior vice president of supply. Refineries have already slowed their utilization rate to 85.4% from 93.6% in about a month for maintenance they typically do in the winter. The amount of gasoline in storage has continued to rise anyway, another possible indication of weak demand. Some analysts question whether the fall in gasoline consumption is as bad as some data indicate. The U.S. is near full employment, and consumer confidence was at a 15-year high going into January. These factors usually mean more people are driving to work and shops. Economic activity was so strong that gasoline demand likely fell by somewhere between 30,000 and 150,000 barrels a day last month compared with January 2016, according to Goldman Sachs estimates. EIA data, by contrast, put that drop-off at about 450,000 barrels a day. The government's estimate "is perhaps a little too large to be fully credible and flies in the face of other indicators," said Paul Horsnell, head of commodity research at Standard Chartered PLC. Robert Merriam, director of EIA's Office of Petroleum and Biofuels Statistics, said much of the data in question is an estimate based on figures from gasoline suppliers, which are a proxy for actual drivers and retailers. Even so, others anticipate long-term problems. BNP Paribas said it is hard to imagine where additional annual increases in demand could come from. Refiners could eventually cut the amount of oil they buy if consumers don't increase consumption by a million barrels of gasoline a day, said Donald Morton, who runs an energy trading desk at HJ Sims. "If we don't see gasoline demand pick up to those levels, we're going to have issues," he said. Write to Timothy Puko at tim.puko@wsj.com and Alison Sider at alison.sider@wsj.com Related * Energy's Crude Reality: Better to Leave It in the Ground * Hurdles Mount for Saudi Aramco's IPO * Oil Slips as U.S. Crude Stocks Rise Credit: By Timothy Puko and Alison Sider
Subject: Consumption; Information services; Price increases; Consumers; Gasoline prices
Location: United States--US
Company / organization: Name: Commodity Futures Trading Commission; NAICS: 926140, 926150; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868986986
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868986986?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Held Back by Gasoline Glut; Gasoline futures weighed especially heavy on the markets, posting their biggest weekly losses since early November
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2017: n/a.
Abstract:
Tepid seasonal demand and high activity by refiners has led to a record amount of surplus gasoline, the U.S. Energy Information Administration said Wednesday. Many expect a deal from global exporters to cut output will help end a glut of oil, but they are also waiting for that to show up in falling stockpiles around the world, which is likely still weeks or months away in the U.S. "The bottom line is we have a...Full text: Crude futures posted their largest weekly losses in a month as record-high stockpiles drew some caution from traders who had been encouraged by cutbacks from the world's largest exporters. Light, sweet crude for March delivery settled down 46 cents, or 0.9%, at $53.40 a barrel on the New York Mercantile Exchange for the week. Brent crude, the global benchmark, lost 89 cents, or 1.6%, to $55.81 a barrel on ICE Futures Europe. Both had their largest losses since the week ended Jan. 13, despite a swift rally just before Friday's settlement that helped prices flip from losses to gains of a few cents. Gasoline futures weighed especially heavy on the markets, posting their biggest weekly losses since early November with five losses in the last seven sessions. They lost 4.6% for the week to $1.5667 a gallon. Gasoline turned down almost from the start Friday--with crude following most of the day, brokers and analysts said--and finished the session down 0.81 cent, or 0.5%. Tepid seasonal demand and high activity by refiners has led to a record amount of surplus gasoline, the U.S. Energy Information Administration said Wednesday. Storage levels swelled last week to 259 million barrels, the highest in EIA records dating to 1990. Crude stockpiles also rose to 518 million barrels--the highest level in data going back to 1982. That glut is still weighing on the market, analysts and traders said. Many expect a deal from global exporters to cut output will help end a glut of oil, but they are also waiting for that to show up in falling stockpiles around the world, which is likely still weeks or months away in the U.S. "The bottom line is we have a huge glut of gasoline right now. And that's why prices are down," said Mark Waggoner, president of brokerage Excel Futures. Without some sort of major change, it will be hard for prices to reach back up to $56 a barrel, he added. Money managers have already piled into bullish bets on oil, leaving many worry there are few left to keep buying and send prices higher, and a growing risk or a sharp selloff if any of those traders need to close out. A year-long rally has stalled in recent weeks and volatility has fallen to lows unseen since mid-2014 when oil was about to end a four-year stretch hovering near $100 a barrel. After briefly touching a 19-month intraday high above $55 a barrel on Jan. 3, U.S. oil hasn't traded outside of a range tighter than $4. Friday's trading has been within a 65-cent range. That was likely one of the reasons the market rebounded back to unchanged at the end of the day, brokers said. Traders who move based on price momentum have become a dominant force in oil recently, making range-bound prices a self-fulfilling prophecy. Bargain hunters have shown a propensity to jump in as prices fall, betting that they'll stay stable, which likely happened with gasoline, causing the late rally, said Scott Shelton, broker at ICAP PLC. "The U.S. gasoline market has become very cheap compared to everything else," he added. "We're not going anywhere." Many are still awaiting more fallout from the international agreement to cut production, led by the Organization of the Petroleum Exporting Countries. The cartel, along with other key producers including Russia, agreed last year to cut around 1.8 million barrels a day of oil output starting in January. But some countries even within OPEC were exempted from the deal. And others, primarily the U.S., are poised to increase output because of the higher prices that followed the deal. "OPEC really ought to be concerned about Libyan production increasing," and production from other countries, too, said Kyle Cooper, a consultant for Ion Energy Group in Houston. "OPEC has a real quandary." Diesel futures lost 0.4% to $1.6364 a gallon. They finished the week down 1.8%. Sarah McFarlane and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Futures; Stocks; Cartels; Price increases; Supply & demand
Location: Russia United States--US
Company / organization: Name: BNP Paribas; NAICS: 522110; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868987198
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1868987198?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Energy Companies Face Crude Reality: Better to Leave It in the Ground; High costs, low prices and tough new environmental rules forcing companies to cancel plans to produce oil
Author: Kent, Sarah; Olson, Bradley; Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2017: n/a.
Abstract:
A new era of low crude prices and stricter regulations on climate change is pushing energy companies and resource-rich governments to confront the possibility that some fossil-fuel resources are likely to be left in the ground. First production came online in 2013 and was expanded significantly two years later. The lost reserves are a casualty of the price collapse that has led more than 17 oil sands projects, representing about 2.5 million barrels a day of production, to be canceled or delayed, according to ARC Financial Corp. Global companies such as Statoil ASA and Royal Dutch Shell PLC that raced to build massive industrial projects in Canada have been forced to write down the value of oil sands investments. Since 2012, the write-downs from those companies and Canadian producers have exceed $20 billion. According to the Canadian Association of Petroleum Producers, capital investment in the oil sands tumbled around 30% in both 2015 and 2016 and is expected to slide another 11% this year. Write to Sarah Kent at sarah.kent@wsj.com , Bradley Olson at Bradley.Olson@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com Related * Worst Gas Glut in 27 Years Could Be Oil Rally's Nemesis * Hurdles Mount for Saudi Aramco's IPO...Full text: A new era of low crude prices and stricter regulations on climate change is pushing energy companies and resource-rich governments to confront the possibility that some fossil-fuel resources are likely to be left in the ground. In a signal that the threat is growing more serious, Exxon Mobil Corp. is expected in the coming week to disclose that as much as 3.6 billion barrels of oil that it planned to produce in Canada in the next few decades is no longer profitable to extract. The acknowledgment by Exxon, after the company spent about $20 billion to put the oil sands at the center of its growth plans , highlights how dramatically expectations have changed about the future prospects of the region. Once considered a safe bet, Canada's vast deposits are emerging as among the first and most visible reserves at risk of being stranded by a combination of high costs, low prices and tough new environmental rules. "For a lot of reasons the oil sands look like a prime candidate for eventual abandonment," said Jim Krane, an energy fellow at Rice University's Baker Institute. "One problem is that costs are persistently higher. The high carbon content only makes it worse." During most of the past decade, Exxon and other giant oil companies spent billions of dollars in Canada as part of a global quest for new sources of supply, as analysts cautioned about "peak oil," or the risk of running out of the resource. Prices surged to $140 a barrel. Companies were driven in part by the need to replenish their reserves of oil and gas, since investors have traditionally looked at such numbers as an important barometer for a resource company's future. But now, the worry is more about "peak demand." Amid a glut of supply that led to a price collapse in 2014 and a tepid recovery, investors and executives at some of the world's biggest energy producers are considering the possibility that oil demand could peak and then slow in the coming decades. The shift from a preoccupation with insufficient supply to worries about demand has altered investment priorities away from high-cost opportunities in the Arctic, ultra-deep waters and the oil sands. Such projects can require billions of dollars in upfront investment and seven to 10 years, or more, to bring returns. Instead, companies are increasingly focusing on new sources of crude oil, such as shale, that don't require the same massive investment and that can get from development to production much more quickly. "Barring some geopolitical catastrophe that really changes the outlook...all these other projects are going to take the wind out of the oil sands," said Amy Myers Jaffe, executive director for Energy and Sustainability at University of California, Davis. Canada was once thought to hold the world's third-largest trove of crude, enough to meet U.S. demand for almost 30 years, largely due to the oil sands in northern Alberta--giant deposits of crude with the consistency of a hockey puck. Today, only about 20% of those reserves, or about 36.5 billion barrels, are capable of being profitable, according to energy consultancy Wood Mackenzie. In the decade leading up to the 2014 price collapse, companies spent as much as $200 billion building megaprojects to extract heavy oil in Alberta's boreal forest. Canada, despite its high costs, was attractive to companies like Exxon for its stability and proximity to the U.S. To build its Kearl oil sands project in Alberta, Exxon invested more than $20 billion, designing a less carbon-intensive process by which the oil could be extracted without use of a high-emitting plant called an upgrader. The project was supposed to unlock 4.6 billion barrels of crude over 40 years. First production came online in 2013 and was expanded significantly two years later. The plant produced an average of about 169,000 barrels a day last year, according to an Exxon subsidiary. The plant now produces approximately 300,000 barrels a day, according to Exxon. The lost reserves are a casualty of the price collapse that has led more than 17 oil sands projects, representing about 2.5 million barrels a day of production, to be canceled or delayed, according to ARC Financial Corp. Global companies such as Statoil ASA and Royal Dutch Shell PLC that raced to build massive industrial projects in Canada have been forced to write down the value of oil sands investments. Since 2012, the write-downs from those companies and Canadian producers have exceed $20 billion. Exxon is expected to drastically reduce its oil sands reserve tally, but has stopped short of taking any financial write-down on its Canadian assets. The company has said it continues to expect that the reserves will be developed. Exxon also doesn't foresee an oil demand peak in its forecasts through 2040. "Even though we make that transfer, there is no change to our operations or how we manage the business, those assets going forward," Jeff Woodbury, Exxon's vice president of investor relations, told investors last month. U.S. Securities and Exchange Commission rules require companies to evaluate their future prospects based on the average oil price in the previous year--about $43 a barrel in the U.S. for 2016. Exxon has said it may take as much as 3.6 billion barrels off its books because they lose money at low prices. The reserves may be added again if prices rise, costs fall or operations become more efficient, Exxon has said. Exxon isn't the only company taking steps that underscore the new realities and threats to future oil reserves. In its annual energy outlook published earlier this year, BP warned that an abundance of already-discovered oil resources and a slowdown in the pace of demand growth will likely mean some barrels are never recovered. Exxon, along with Chevron Corp., is pouring billions into expanding their footprint in shale oil, turning to projects that can ramp up quickly to fill the void left by a lack of larger, costlier developments. Many of Canada's biggest producers are planning to spend less or keep expenditures roughly flat this year compared with 2016, even as spending in parts of the U.S. is starting to rise. According to the Canadian Association of Petroleum Producers, capital investment in the oil sands tumbled around 30% in both 2015 and 2016 and is expected to slide another 11% this year. To be sure, oil output isn't expected to fall in Canada as it has in the U.S., and some projects for which money has already been spent may go forward, a sign of the resilience of oil sands investments once money has been spent. That is because the cash cost of producing barrels once projects are up and running is low. In addition to the oil sands' high costs, extracting and refining the region's heavy oil or bitumen is on average a more carbon-intensive process than almost any other type of extraction. The Alberta and Canadian governments have introduced new rules, including a cap on emissions and a carbon tax. Write to Sarah Kent at sarah.kent@wsj.com , Bradley Olson at Bradley.Olson@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com Related * Worst Gas Glut in 27 Years Could Be Oil Rally's Nemesis * Hurdles Mount for Saudi Aramco's IPO * Oil Slips as U.S. Crude Stocks Rise Related * Canada's Oil-Sands Industry Girds for Leaner Times (July 10, 2016) * Statoil Exits Production in Canadian Oil Sands (Dec. 14, 2016) * Royal Dutch Shell to Abandon Oil-Sands Project (Oct. 27, 2015) Credit: By Sarah Kent, Bradley Olson and Georgi Kantchev
Subject: Writedowns; Prices; Costs; Carbon; Energy industry; Oil sands
Location: United States--US Arctic region Canada
Company / organization: Name: Rice University; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1868987392
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by Six; Oil-field services firm Baker Hughes says number rose to 597 in past week
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by six in the past week to 597, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. The rig count has generally been rising since last summer. The nation's gas-rig count rose by four to 153 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell by three from last week to 18, which is seven fewer than a year ago. Crude futures eased on Friday, caught between larger-than-expected growth in U.S. crude stocks and reports that the Organization of the Petroleum Exporting Countries could consider extending its production cuts beyond the six-month deal. Crude-oil prices fell 0.4% to $53.56 a barrel. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1869336976
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1869336976?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Hurdles Mount for Saudi Aramco's IPO; Basic elements of oil giant's governance, structure and financial disclosures remain unresolved
Author: Said, Summer; Farrell, Maureen; Scheck, Justin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2017: n/a.
Abstract:
Complications restructuring Saudi Arabia's state-owned oil company and disentangling its finances from those of the government are slowing the march toward what is expected to be the biggest initial public offering in history. While some Saudi officials are pushing for a fast IPO, others are more focused on following the advice of bankers to get a structure in place that will convince shareholders that Aramco is more akin to some of the world's most valuable oil companies, such as Exxon Mobil Corp. or Royal Dutch Shell PLC, than it is to other state-owned oil companies that tend to carry a lower valuation. To advise on issues like oil-reserves accounting, financial disclosure and how to disentangle Aramco's finances from those of the kingdom, the government and Aramco have brought in a host of foreign advisers, including banks; accounting firms PricewaterhouseCoopers LLP and Ernst & Young LLP; and law firms, among others, say people familiar with the matter. Prince Mohammed last month received a report from Aramco executives containing financial information, including material on the number of shares that might be offered and potential exchanges for the IPO, say two people familiar with the matter. Write to Summer Said at summer.said@wsj.com ,...Full text: Complications restructuring Saudi Arabia's state-owned oil company and disentangling its finances from those of the government are slowing the march toward what is expected to be the biggest initial public offering in history. The hotly anticipated listing of a minority stake in Saudi Arabian Oil Co., the kingdom's corporate crown jewel, is now unlikely to happen until late 2018 at the earliest, and if foreign advisers have their way, won't happen until 2019, according to more than a half-dozen people involved in the process. The country's deputy crown prince first said early last year that the initial public offering would happen in 2017 or 2018. More recently, Saudi officials have said 2018 will be the year. The difficulty of quickly turning a behemoth that functions largely to support the Saudi budget into a company accountable to shareholders has crystallized over the past couple of months. While some Saudi officials are pushing for a fast IPO, others are more focused on following the advice of bankers to get a structure in place that will convince shareholders that Aramco is more akin to some of the world's most valuable oil companies, such as Exxon Mobil Corp. or Royal Dutch Shell PLC, than it is to other state-owned oil companies that tend to carry a lower valuation. The prince has said the company could be valued at more than $2 trillion when it is listed. Basic elements of Aramco's governance, structure and financial disclosures remain unresolved. Aramco and the government need to determine how to account for various subsidies and how the newly public company would pay taxes, according to several of the people familiar with the matter. Some foreign and domestic advisers say the finances of Aramco and the Saudi government are so enmeshed that it will take many months to untangle them. For example, Saudi Arabia's leadership hasn't decided how much of Aramco's profit will fund government operations and payments to the royal court, three of these people say. Currently, about 90% of Aramco's profit goes to the Saudi government and members of the royal family, say five people familiar with the finances. The rest, they say, gets reinvested in the company. Spokesmen for Saudi Aramco and the Saudi government declined to comment for this article. To advise on issues like oil-reserves accounting, financial disclosure and how to disentangle Aramco's finances from those of the kingdom, the government and Aramco have brought in a host of foreign advisers, including banks; accounting firms PricewaterhouseCoopers LLP and Ernst & Young LLP; and law firms, among others, say people familiar with the matter. An Ernst & Young spokeswoman and a PwC spokeswoman declined to comment. While advisers are weighing in, Deputy Crown Prince Mohammed bin Salman has gotten personally involved in the IPO planning , say six people familiar with the matter. The IPO is part of his plan to wean Saudi Arabia's economy of its dependence on oil. The prince declined to comment via the Saudi government spokesman. Taking Aramco public is the first big step in a project which, Prince Mohammed has said, would put IPO proceeds and much of Aramco's stock into a giant sovereign-wealth fund. That fund would then sink tens of billions of dollars into international and domestic companies outside the oil industry. Late last year, Prince Mohammed dispatched helicopters near an Aramco oil field in Saudi Arabia's eastern province, near Aramco headquarters, and told staff to set up camp. The prince then moved into the camp for about a week last month, say two people familiar with the matter, and while he was there, he met with some government officials including Aramco's chairman, according to one of those people. Prince Mohammed also met dignitaries including former British Prime Minister Tony Blair. A spokeswoman for Mr. Blair declined to comment. Prince Mohammed last month received a report from Aramco executives containing financial information, including material on the number of shares that might be offered and potential exchanges for the IPO, say two people familiar with the matter. That report is intended to be the basis for an IPO prospectus, the people said. But company officials and advisers want to keep it private until Aramco's tax treatment is resolved, so would-be shareholders get a clear picture of the company as separate from the government, they said. Under the plan Prince Mohammed is pursuing, Saudi Arabia would impose a new corporate tax structure on Aramco. In meetings last year with Aramco officials and Saudi energy minister Khalid al-Falih, the prince said he wants to reduce the tax on Aramco's net income to about 50%, according to a person at the meeting. Reducing the tax rate would be in keeping with the government's intent to make Aramco comparable to private oil companies, rather than state-owned enterprises that are typically taxed at higher rates. Prince Mohammed also discussed reducing royalty rates the company pays, according to two people familiar with the discussions. That change would put more money into the sovereign-wealth fund that is supposed to become the vehicle for tens of billions of dollars in new investments, but less into government coffers. That could spur resistance from royals, say people familiar with the matter. Aramco and the government are also trying to figure out how to handle vast subsidies on Aramco's books, including natural gas that it sells at a loss to government-owned power plants, according to three people familiar with the matter. In some cases plants pay about two-thirds of the cost of pumping the gas; at other times the utilities don't pay at all, according to one of those people, who said Saudi officials have been working on plans for the government to take over the subsidies by paying full price for the gas. Keeping such subsidies on the books could repel would-be IPO investors. The IPO process isn't the first time Aramco has tried to become more like a Western oil company. For years, it has hired senior executives from big international companies, and consultants to help train Saudis in American and European management practices. But those efforts have clashed with other priorities like increasing the proportion of Saudi Aramco employees. The company currently requires that 80% of employees in each division be Saudi nationals, which is a challenge in some areas, like accounting, where there is a dearth of trained Saudis, say current and former Aramco officials. Despite the hurdles, Aramco officials and advisers are still pushing to do the IPO as quickly as feasible. Recently, Aramco hired boutique bank Moelis & Co. for advice on the IPO, and has been soliciting proposals from bigger banks to underwrite it. The underwriters could become public in coming weeks, people familiar with the process said. Write to Summer Said at summer.said@wsj.com , Maureen Farrell at maureen.farrell@wsj.com and Justin Scheck at justin.scheck@wsj.com Related * Energy's Crude Reality: Better to Leave It in the Ground * Worst Gas Glut in 27 Years Could Be Oil Rally's Nemesis * Oil Slips as U.S. Crude Stocks Rise More * Moelis Beats Out Rivals for Adviser Role In Saudi Aramco IPO (2/8/2017) * Saudi Aramco Hires Firm to Assess Oil Reserves Before IPO (1/26/2017) * Saudi Aramco IPO: The Biggest Fee Event in Wall Street History (6/9/2016) Credit: Summer Said, Maureen Farrell, Justin Scheck
Subject: Tax rates; Chief executive officers; Going public; Stockholders; Subsidies; Initial public offerings; Natural gas; Accounting
Location: Saudi Arabia
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1869911347
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1869911347?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Weekend Investor: Basketball Scion Scores Big in Oil
Author: Dezember, Ryan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Feb 2017: B.7.
Abstract:
Ares's shares jumped 11% -- the stock's second-biggest one-day gain ever -- after The Wall Street Journal in January reported its expected profits from the sale of Texas oil producer Clayton Williams Energy Inc., in which Mr. Walton had led Ares to invest during the depths of the recent oil-price slump. "Rather than try to buy assets, we're providing capital to companies that already have assets with real competitive advantages and strong management teams," Mr. Walton said in an interview.
Full text: Nate Walton, the 6-foot-7-inch son of basketball great Bill Walton and older brother of Los Angeles Lakers coach Luke Walton, was born to star on the hardwood. Instead, the former Princeton University basketball captain is winning in high finance. A partner in the private-equity group at Ares Management LP, Mr. Walton orchestrated one of the most successful shale deals in recent years, expected to net more than $1 billion within a year. Ares's shares jumped 11% -- the stock's second-biggest one-day gain ever -- after The Wall Street Journal in January reported its expected profits from the sale of Texas oil producer Clayton Williams Energy Inc., in which Mr. Walton had led Ares to invest during the depths of the recent oil-price slump. The sale of Clayton Williams was part of a run that has lifted Ares shares 80% over the past year. That is tops among its rivals, including Blackstone Group LP and KKR & Co. Nate Walton said Ares's flexibility to buy corporate debt, equity or sometimes both has enabled the firm to tailor deals to entice energy executives into partnerships and boost returns. At a time when many financiers have aimed to acquire drilling fields on the cheap from beleaguered oil producers, Ares opted to invest directly in such companies. "Rather than try to buy assets, we're providing capital to companies that already have assets with real competitive advantages and strong management teams," Mr. Walton said in an interview. Some Walton family members have confessed that they don't fully understand what Nate does for a living, and his emergence as a financier contrasts with his father's hippie demeanor. Bill Walton wears tie-dyed shirts, even when announcing basketball games on ESPN, and he loves the Grateful Dead. As a star for UCLA and in the NBA in the 1970s, he became known for antiestablishment and environmental activism that some may find hard to square with his son's oil deals. "I'm a solar guy," said the elder Walton, leaving it at that. Nathan Whitecloud Walton was born in 1978, the year after his 6-foot-11-inch father led the Portland Trail Blazers to their only NBA championship. The second of four boys who grew up mostly in Southern California, Nate was the most scholarly of the bunch. As a six-year-old, his mother recalls, he begged for a computer years before many people knew what a PC was. "He was the smartest of all the brothers, by far," said Luke Walton, who won two championships with the Lakers before becoming the team's coach this season. "We had classes together. I'd get a B- and he'd get like a 98%." Nate's parents, who are divorced, said their son soaked up the experiences afforded to the child of a star athlete. There were driveway shootarounds with basketball legend Larry Bird and banter with best-selling author David Halberstam over dinner. Susie Walton, his mother, recalled a teenage Nate hitting it off with his father's friend Timothy Leary and asking if the psychologist known for advocating psychedelic-drug use could become his godfather. Nate Walton was wooed by big-time basketball programs but opted instead for the Ivy League. At Princeton, Mr. Walton was an undersize center and team captain his senior year. The team's famed offense of constant motion and back-door cuts flowed through him. "He was an exquisite passer just like his pop," said Bill Carmody, one of Nate's coaches at Princeton. He had a brief spell at a hedge fund in New York, where he lived with his college buddy, Brett Icahn, son of billionaire investor Carl Icahn, and another with the Boston Celtics front office. He returned to California and, on a lark, ran for governor in 2003 to replace Gov. Gray Davis, who had been recalled. Campaigning in the family uniform of tie-dyed T-shirt, Mr. Walton finished 47th out of about 135 candidates, well behind the winner, Arnold Schwarzenegger. Mr. Walton enrolled at the Stanford Graduate School of Business that year and joined Ares in 2006 on the credit desk. He was soon noticed by two of the firm's founders, Bennett Rosenthal and David Kaplan, who moved him to the private-equity team and assigned him to the oil-and-gas sector. Over two years, his group studied about 200 oil companies for investment opportunities. Ares made only one investment in a closely held Texas oil company, though. When oil prices collapsed in late 2014, distressed opportunities emerged, and Mr. Walton pounced. Ares bought Halcon Resources Corp.'s deeply discounted debt and emerged with a 20% stake in the company after the oil explorer exited from bankruptcy protection last year. Ares recently launched a firm that helps oil producers pay for drilling projects, and on Friday, the firm said it would invest in Gastar Exploration Inc., spreading $425 million over a loan, convertible notes and the struggling energy explorer's stock. Mr. Walton is joining Gastar's board, his sixth in the industry. In the case of Clayton Williams, a company with prolific oil fields in West Texas but little cash, Ares made a $350 million loan last March, not long after oil prices had slumped to about $26 a barrel. Ares also bought shares in the company, on the open market and directly from Clayton Williams, which used the cash to prove its drilling properties were in a sweet spot. With energy prices stabilizing at around $50 a barrel, Noble Energy Inc. agreed in January to buy Clayton Williams. Under the terms of the deal, Ares is due to triple its roughly $515 million investment. Mr. Kaplan said Mr. Walton convinced Clayton Williams that Ares could get it through a tough period. "He said, 'Let's fix your balance sheet and go on offense"' Mr. Kaplan said. Credit: By Ryan Dezember
Subject: Private equity; Oil shale
People: Walton, Nate
Company / organization: Name: Ares Management LLC; NAICS: 523920
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.7
Publication year: 2017
Publication date: Feb 18, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1869478425
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1869478425?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Prices Leave Drillers in Crude Quandary --- Stubborn market, climate rules cloud equation on bringing oil up out of ground
Author: Kent, Sarah; Olson, Bradley; Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Feb 2017: B.1.
Abstract:
The Alberta and Canadian governments have introduced new rules, including a cap on emissions and a carbon tax During most of the past decade, Exxon and other giant oil companies spent billions of dollars in Canada as part of a global quest for new sources of supply, as analysts cautioned about "peak oil," or the idea that production would start declining as resources ran out.
Full text: A new era of low crude prices and stricter regulations on climate change is pushing energy companies and resource-rich governments to confront the possibility that some fossil-fuel resources will remain in the ground indefinitely. In a signal that the prospect is growing more likely, Exxon Mobil Corp. has said that as many as 3.6 billion barrels of oil that it planned to produce in Canada in the next few decades is no longer profitable to extract. A disclosure is expected in the coming week. The step stems from U.S. regulations that require companies to take oil reserves off their books if they aren't profitable at existing prices or can no longer be included as part of five-year development plans. The company said it still expects the reserves will be developed and again be added to its totals if prices rise, costs fall or its operations improve. It has stopped short of taking a financial write-down on its Canadian assets. The acknowledgment by Exxon, after the company spent about $20 billion to put the oil sands at the center of its growth plans, highlights how dramatically the prospects of the region have dimmed. Once considered a safe bet, Canada's vast deposits are emerging as a prominent case of reserves being stranded by a combination of high costs, low prices and tough new environmental rules. "For a lot of reasons the oil sands look like a prime candidate for eventual abandonment," said Jim Krane, an energy fellow at Rice University's Baker Institute. "One problem is that costs are persistently higher. The high carbon content only makes it worse." In addition to the oil sands' high costs, extracting and refining the region's heavy oil or bitumen is on average a more carbon-intensive process than almost any other type of extraction. The Alberta and Canadian governments have introduced new rules, including a cap on emissions and a carbon tax During most of the past decade, Exxon and other giant oil companies spent billions of dollars in Canada as part of a global quest for new sources of supply, as analysts cautioned about "peak oil," or the idea that production would start declining as resources ran out. Prices surged to $140 a barrel. Companies worked feverishly to replenish their reserves of oil and gas, especially as investors have traditionally considered reserves a key indicator of future success. But now, the worry is more about "peak demand." Amid a glut of supply that led to a price collapse in 2014 and a tepid recovery, investors and executives at some of the world's biggest energy producers are considering the possibility that oil demand will top out in the coming decades. The shift from a preoccupation with future supply to worries about demand has altered investment priorities away from high-cost opportunities in the Arctic, ultradeep waters and the oil sands. Such projects can require billions of dollars in upfront investment and seven to 10 years, or even more, to bring returns. Now companies are turning to new sources of crude oil, such as shale, that don't require the same massive investment of time and money to bring to production. "Barring some geopolitical catastrophe that really changes the outlook . . . all these other projects are going to take the wind out of the oil sands," said Amy Myers Jaffe, executive director for energy and sustainability at the University of California, Davis. Canada was once thought to hold the world's third-largest trove of crude, enough to meet U.S. demand for almost 30 years, largely due to the oil sands in northern Alberta -- giant deposits of crude with the consistency of a hockey puck. Today, only about 20% of those reserves, or about 36.5 billion barrels, are capable of being profitable, according to energy consultancy Wood Mackenzie. In the decade leading up to the 2014 price collapse, companies spent as much as $200 billion building megaprojects to extract heavy oil in Alberta's boreal forest. Canada, despite its high costs, was attractive to companies like Exxon for its stability and proximity to the U.S. For its Kearl oil sands project in Alberta, Exxon invested more than $20 billion, designing a less carbon-intensive process by which the oil could be extracted without the use of a high-emitting plant called an upgrader. The project was supposed to unlock 4.6 billion barrels of crude over 40 years and produce as much as 300,000 barrels a day. Production came online in 2013 and was expanded significantly two years later. The plant produced an average of about 169,000 barrels a day last year, according to an Exxon subsidiary. The reserves Exxon is about to take off its book are a casualty of the price collapse that has foiled more than 17 oil sands projects, representing about 2.5 million barrels a day of production, according to ARC Financial Corp. Global companies such as Statoil ASA and Royal Dutch Shell PLC that raced to build massive industrial projects in Canada have been forced to lower the value of their oil sands investments.Since 2012, the write-downs from those companies and Canadian producers have exceed $20 billion. Exxon isn't forecasting an oil demand peak through 2040 despite the action it is taking on its reserves. "Even though we make that transfer, there is no change to our operations or how we manage the business, those assets, going forward," Jeff Woodbury, Exxon's vice president of investor relations, told investors last month. U.S. Securities and Exchange Commission rules require companies to evaluate their prospects based on the average oil price in the previous year -- about $43 a barrel in the U.S. for 2016. Exxon isn't the only company taking steps that underscore the tenuousness of oil reserves. In its annual energy outlook published earlier this year, BP PLC warned that an abundance of already discovered oil resources and slowing demand growth will likely mean some barrels are never recovered. Exxon Mobil, along with Chevron Corp., is pouring billions into expanding their footprint in shale oil, turning to projects that can ramp up quickly to fill the void left by a lack of larger, costlier developments. Many of Canada's biggest producers are planning to rein in spending this year, even as spending in parts of the U.S. is starting to rise. According to the Canadian Association of Petroleum Producers, capital investment in the oil sands fell about 30% in both 2015 and 2016 and is expected to slide another 11% this year. To be sure, oil output isn't expected to fall in Canada as it has in the U.S. Fully invested oil-sands projects may go forward because the cash cost of producing barrels once a project is up and running is low. Credit: By Sarah Kent, Bradley Olson and Georgi Kantchev
Subject: Energy industry; Oil sands; Fossil fuels; Petroleum production
Location: United States--US Canada
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Feb 18, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1869480251
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1869480251?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distributio n is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Under Pressure as U.S. Supply Grows; April Brent crude fell $0.07 to $55.74 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Feb 2017: n/a.
Abstract:
Crude futures barely moved in Asian trade Monday on signs that the U.S. oil production is on a steady uptrend, which could potentially thwart ongoing efforts by multiple oil producers to curb global supply.On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.37 a barrel at 0227 GMT, down $0.03 in the Globex electronic session.Full text: Crude futures barely moved in Asian trade Monday on signs that the U.S. oil production is on a steady uptrend, which could potentially thwart ongoing efforts by multiple oil producers to curb global supply. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at $53.37 a barrel at 0227 GMT, down $0.03 in the Globex electronic session. April Brent crude on London's ICE Futures exchange fell $0.07 to $55.74 a barrel. "This low volatility is the result of the market caught between the exuberance of production cuts from the Organization of the Petroleum Exporting Countries and concerns over rising inventories in the U.S.," said ANZ Research. Oil came under pressure over the weekend after data indicated the number of rigs drilling for oil in the U.S. rose by six. At 597, the count is the highest since October 2015. Goldman Sachs said current rig count implies that the U.S. production would increase on average by 130,000 barrels a day year-on-year in 2017. The U.S. Department of Energy reported the U.S. produced 8.9 million barrels a day last year and is expected to rise to 9.0 million barrels a day this year. U.S. crude production has risen around 3.2% since late last year, when OPEC and 11 non-cartels agreed to cut their daily production by 1.8 million barrels for six months, underlining the eagerness of the U.S. producers to capture the higher prices. Analysts say supplies from the U.S. will remain ample given that many U.S. oil companies have been sharpening their technology and focusing on new areas with the high oil potential in order to drill at a lesser cost. "This will result in production growth gathering pace through 2017," said Societe Generale in a research report. Even though current growth rate in U.S. production is not yet fast enough to derail the OPEC-led initiative, the worry is what would happen if the group does not renew the supply cut agreement after June, said Vivek Dhar, commodities strategist at Commonwealth Bank of Australia. "We are all watching if the rise in U.S. supply will push oil prices back to the high $40 and low $50s range in the second half of this year," he said. For this week, market watchers will be monitoring the weekly U.S. crude inventory and production data slated for Thursday instead of Wednesday due to the public holiday on Monday. China will also release its January final oil trade data on Thursday. It is expected to confirm preliminary data which showed China's crude imports rose 28% on-year to 8 million barrels day. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 15 points to $1.5181 a gallon, while March diesel traded at $1.6372, 8 points higher. ICE gasoil for March changed hands at $493.50 a metric ton, up $3.50 from Friday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Cartels; Crude oil
Location: United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1869809187
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1869809187?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Jim Mattis Says U.S. Isn't in Iraq to Take Its Oil; U.S. defense secretary is to assess the fight against Islamic State
Author: Lubold, Gordon; Kesling, Ben; Sonne, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Feb 2017: n/a.
Abstract:
Speaking to employees at the Central Intelligence Agency on Jan. 21, Mr. Trump doubled down on campaign rhetoric in which he suggested the U.S. should have taken the oil in exchange for U.S. battlefield sacrifices there. U.S.-backed troops have already ousted the extremist group from the eastern part of the city, but the density of the western side, across the Tigris River, poses challenges to the Iraqi forces and their American advisers, according to U.S. military officials. Iraq's military, with air support from the U.S.-led coalition, restarted its offensive Sunday morning on the city after a pause in the campaign to retake Mosul , an effort that began in October. The renewed assault on eastern Mosul comes as the Pentagon follows through on Mr. Trump's Jan. 28 executive order, which gives Mr. Mattis no more than 30 days to outline ways for the U.S. to accelerate the campaign against Islamic State and provide his official assessment of the military operation. While in Iraq on Monday, Mr. Mattis emphasized that Iraqi forces were bearing the brunt of the fight against Islamic State militants and praised the progress the country's military has made, with the help of U.S. and other coalition members,...Full text: The U.S. isn't in Iraq to seize anybody's oil, Defense Secretary Jim Mattis said Monday, deviating from comments by President Donald Trump ahead of a visit to the country, where American troops are now operating closer to the front line against Islamic State. Mr. Mattis, a retired four-star Marine Corps general who led troops into battle during the invasion of Iraq in 2003, made the comments to reporters in Abu Dhabi before arriving Monday in Baghdad to assess the fight against Islamic State in Iraq. "I think all of us here in this room, all of us in America, have paid for our gas and oil all along and I'm sure that we will continue to do so in the future," he told reporters. "We are not in Iraq to seize anybody's oil." The comments by Mr. Mattis, on a seven-day visit to the Middle East, are at odds with remarks made repeatedly by Mr. Trump , who said as recently as last month that the U.S. should have taken Iraq's oil. Speaking to employees at the Central Intelligence Agency on Jan. 21, Mr. Trump doubled down on campaign rhetoric in which he suggested the U.S. should have taken the oil in exchange for U.S. battlefield sacrifices there. "The old expression, to the victor belonged the spoils, you remember, they always used to say, keep the oil," he said. "If we kept the oil, you probably wouldn't have ISIS, because that's where they made money in the first place," he added, using an acronym for Islamic State. Mr. Trump also hinted at the possibility of future operations in the country where the U.S. might do just that. Meanwhile, as U.S. forces assisted Iraqi forces in western Mosul, the top commander there said U.S. troops were operating under less restrictive rules than they had been. Lt. Gen. Stephen Townsend, the commander of U.S. forces in Iraq and Syria, acknowledged Monday that American troops are operating closer to the front lines of combat as they assist Iraqi forces, a significant loosening of the restrictions under which the military operated under during the Obama administration. "It is true that we are operating closer and deeper into the Iraqi formation," Lt. Gen. Townsend said at a briefing at the military airport in Baghdad. "We adjusted our posture during the east Mosul fight and embedded advisers a bit further down into the formation." Officials said the Pentagon used existing authorities provided under the previous administration but never before used to loosen the restrictions, allowing U.S. troops to operate with more latitude. Lt. Gen. Townsend said American forces, including combat advisers, trainers and others, are tied more closely to Iraqi forces than they had been. The timing of the change suggests that the military was empowered by the election of Mr. Trump, who signaled a desire for a more aggressive fight against Islamic State. The Obama administration had sought to keep U.S. troops away from the front lines, an approach that at times frustrated the Pentagon. U.S. military officials said that despite the adjustment, Iraqi forces remain in the lead and U.S. forces remain in an advise and assist role. Iraqi officials reiterate that sentiment. The change gives trainers and advisers more latitude to work closely with Iraqi forces. It also provides permission for forces known as "forward air controllers" who help call in airstrikes, to conduct operations at a far more tactical level than before. The change pertains to about 450 troops across Iraq, according to Col. John Dorrian, a spokesman for the U.S. command in Baghdad. Another separate change gives lower-level commanders, including one- and two-star generals, the power to approve airstrikes in some cases, a delegation of authority down from a three-star general or above. The public acknowledgment of the changes comes as Iraqi and U.S. troops resume the campaign to remove Islamic State fighters from western Mosul after a weekslong pause in combat, Iraq's second largest city is the Sunni extremist group's last major Iraqi stronghold. A January executive order by Mr. Trump that temporarily banned entry to the U.S. from citizens of seven Muslim-majority countries included Iraq, and has further fueled Baghdad's concerns about relations, including the fate of interpreters and other Iraqis who have worked with U.S. troops. Mr. Trump said the measure was intended to curb the risk of terrorists entering the U.S. The White House is currently rewriting the order after it was suspended by a federal court. "I have not seen the new executive order, but right now I am assured that we will take steps to allow those who fight alongside us for example to be allowed into the United States," Mr. Mattis said. "They will be vetted, obviously, by their performance on the battlefield beside us, and I'm sure we'll work through this quickly." The Trump administration's mixed signals on Iraq come as American troops help local forces, including Iraqi armed forces and Kurdish Peshmerga troops, work to push Islamic State out of the country. U.S.-backed troops have already ousted the extremist group from the eastern part of the city, but the density of the western side, across the Tigris River, poses challenges to the Iraqi forces and their American advisers, according to U.S. military officials. Iraq's military, with air support from the U.S.-led coalition, restarted its offensive Sunday morning on the city after a pause in the campaign to retake Mosul , an effort that began in October. The delay in operations stemmed in part from the heavy casualties taken by Iraqi special forces who slogged through much of the house-to-house fighting on the city's east side. Iraqi ground forces took a key village on the edge of Mosul on Monday, reaching the outskirts of the city's airport as part of the renewed advance. The Iraqi security forces pushed into the village of Albu Saif, the first major obstacle to retaking western Mosul from militants, according to military officials. The village sits on high ground and serves as a southern approach to the airport and a sprawling military base, which the Iraqi military used before the city fell to Islamic State in 2014. The renewed assault on eastern Mosul comes as the Pentagon follows through on Mr. Trump's Jan. 28 executive order, which gives Mr. Mattis no more than 30 days to outline ways for the U.S. to accelerate the campaign against Islamic State and provide his official assessment of the military operation. Mr. Mattis is expected to consider loosening restrictions under which the U.S. military forces operate even further. The Pentagon chief will also look at changes to intelligence sharing, battlefield logistics and tactics, he said Monday. While in Iraq on Monday, Mr. Mattis emphasized that Iraqi forces were bearing the brunt of the fight against Islamic State militants and praised the progress the country's military has made, with the help of U.S. and other coalition members, in defeating the extremists. "This is not something that was a foregone conclusion for an army that only a year ago many people were questioning," Mr. Mattis said. He said the U.S.-Iraqi military relationship, which has had highs and lows in the past, would endure. "This is a partnership," Mr. Mattis said. "There have been a lot of rocky times out here, I imagine we'll be in this fight for a while, and we'll stand by each other." Ghassan Adnan contributed to this article. Write to Gordon Lubold at Gordon.Lubold@wsj.com , Ben Kesling at benjamin.kesling@wsj.com and Paul Sonne at paul.sonne@wsj.com Credit: Gordon Lubold, Ben Kesling, Paul Sonne
Subject: Iraq War-2003; Political campaigns; Executive orders; Armed forces
Location: Abu Dhabi United Arab Emirates Middle East United States--US Iraq
People: Trump, Donald J
Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Islamic State of Iraq & the Levant--ISIS; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 20, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1869863168
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1869863168?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Rise Despite Higher U.S. Rig Count; Bullish sentiment about OPEC cuts appears to continue
Author: Hsu, Jenny W; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Feb 2017: n/a.
Abstract:
Oil prices edged higher on Monday despite lingering concerns regarding U.S. supply that have kept prices within a narrow trading range despite major producers continuing to curb global supply. Analysts say supplies from the U.S. will remain ample given that many U.S. oil companies have been sharpening their technology and...Full text: Oil prices edged higher on Monday despite lingering concerns regarding U.S. supply that have kept prices within a narrow trading range despite major producers continuing to curb global supply. The April contract for global crude benchmark Brent gained 0.49% to $56.08 a barrel while its U.S. counterpart West Texas Intermediate was up 0.32% to $53.95 for March deliveries. "This low volatility is the result of the market caught between the exuberance of production cuts from the Organization of the Petroleum Exporting Countries and concerns over rising inventories in the U.S.," said ANZ Research. Oil came under pressure over the weekend after data indicated the number of rigs drilling for oil in the U.S. rose by six. At 597, the count is the highest since October 2015. Goldman Sachs said current rig count implies that U.S. output would increase on average by 130,000 barrels a day year-over-year in 2017. The U.S. Department of Energy reported the U.S. produced 8.9 million barrels a day last year and is expected to rise to 9.0 million barrels a day this year. Analysts say supplies from the U.S. will remain ample given that many U.S. oil companies have been sharpening their technology and focusing on new areas with high oil potential in order to drill at a lesser cost. "This will result in production growth gathering pace through 2017," said Société Générale in a research report. The week ahead is expected to start slowly with trading volumes being affected by a public holiday in the U.S. coupled with a major oil conference in London. "You won't see many traders behind their desks today and this should translate as a quiet day for the oil markets," said Olivier Jakob from the Switzerland-based Petromatrix. For this week, market watchers will be monitoring the weekly U.S. crude inventory and production data slated for Thursday instead of Wednesday because of the public holiday on Monday. China will also release its January final oil trade data on Thursday. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose to $1.5224 a gallon, while March diesel traded higher at $1.6372. ICE gasoil for March changed hands at $493.50 a metric ton, up $3.50 from Friday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Jenny W. Hsu and Kevin Baxter
Subject: Crude oil; Supply & demand
Location: China United States--US
Company / organization: Name: Department of Energy; NAICS: 926130; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1869902858
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1869902858?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Bullish Oil Investors May Be Getting Ahead of Themselves; Crude market still has a massive glut
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Feb 2017: n/a.
Abstract:
Last week, hedge funds and other big money managers increased their net long position--a bet on rising prices--in Brent crude oil to the highest level since records started in 2011, the Intercontinental Exchange Inc. said Monday. In the U.S., wagers on rising oil prices have hit their highest point in more than 10 years of record-keeping by the Commodity Futures Trading Commission. According to Mr. Martin, prices could fall by $5-10 a barrel if inventories...Full text: Investors have amassed a record number of bullish bets on oil, but market fundamentals have yet to catch up with their optimism--putting oil prices at risk of a large fall, analysts say. Last week, hedge funds and other big money managers increased their net long position--a bet on rising prices--in Brent crude oil to the highest level since records started in 2011, the Intercontinental Exchange Inc. said Monday. This mirrors the U.S., where funds have raised their bullish bets to a fresh record. This comes as reports from both the Organization of the Petroleum Exporting Countries and outside observers suggest members of the cartel have achieved around 90% of the production cuts agreed in 2016's deal. That would mark higher compliance than OPEC has achieved with past agreements. However, other indicators show the market has some way to go to shake off the massive glut that has depressed prices for more than two years. The U.S. Energy Information Administration said Wednesday that U.S. crude stockpiles rose to their highest level in the week ended Feb. 10 since the collation of data began in the 1980s. "Oil prices continue to be pulled between the contradictory influences of reports of falling OPEC production and rising U.S. crude inventories," David Martin, analyst at J.P. Morgan, said. "The U.S. stock build sends a cautionary signal to the market at a time when stocks should be starting to decline, rather than build." Investors seem unfazed. Managed-money accounts increased the number of long positions, or bets on rising Brent prices, to the equivalent of 525 million barrels of crude, while cutting the number of short positions, or bets that prices will fall, to 44 million barrels, according to the Commitment of Traders report from the ICE. In the U.S., wagers on rising oil prices have hit their highest point in more than 10 years of record-keeping by the Commodity Futures Trading Commission. That leaves investors exposed to big losses if sentiment sours. According to Mr. Martin, prices could fall by $5-10 a barrel if inventories continue to increase or demand fails to catch up. On Monday, Brent crude--the global oil benchmark--was trading at $52.34 a barrel, up 0.8%, while U.S. crude was changing hands at $50.11 a barrel, up 0.6%. Oil prices have jumped by around a fifth since OPEC clinched its production deal in November. Futures, however, have settled in a narrow band above $50 a barrel so far in 2017. Two big producers, Nigeria and Libya, were exempt from the deal and have increased their output. U.S. Energy Information Administration numbers suggest OPEC output cuts, if Nigeria and Libya are included, amount to about 75% of what was promised. Meanwhile, the number of rigs drilling for crude in the U.S. hit a 16-month high last week, according to Baker Hughes. "Higher U.S. output, building stocks and the possibility that OPEC continues to fall short of their targeted cuts, could be the perfect catalyst for a speculative sell-off," Warren Patterson, commodity strategist at ING Bank, said. A key question is whether the OPEC deal will be extended beyond its initial expiry data in June 2017. If it isn't and OPEC members resume producing above their targets, the glut would return, analysts say. "The OPEC deal managed to put a floor under prices but now the market is in a wait-and-see mood," Abhishek Deshpande, chief oil analyst at Natixis, said. Mr. Deshpande expects Brent crude to rise to $65 a barrel by the end of 2017. However, if there is no extension of the OPEC deal and a stronger return of U.S. barrels, he predicts prices will fall to $50 a barrel by December. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Investments; Crude oil prices; Price increases; Crude oil
Location: United States--US Libya Nigeria
Company / organization: Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: Intercontinental Exchange Inc; NAICS: 523210; Name: Commodity Futures Trading Commission; NAICS: 926140, 926150
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1869952270
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1869952270?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Higher on Bullish Bets; April Brent crude rose $0.04 to $56.22 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Feb 2017: n/a.
Abstract:
On the New York Mercantile Exchange, light, sweet crude futures or the West Texas Intermediate for delivery in March traded at $53.70 a barrel at 0152 GMT, up $0.30 in the Globex electronic session. Last week, hedge funds and other big money managers increased their net long position--a bet on rising prices--in Brent crude oil to the highest level since records started in 2011, the Intercontinental Exchange Inc. said Monday. [...]OPEC's top producers are prioritizing...Full text: Crude futures moved higher in Asia Tuesday as investors held on to their bullish positions, betting on the supply to tighten as major oil producers cut their output. On the New York Mercantile Exchange, light, sweet crude futures or the West Texas Intermediate for delivery in March traded at $53.70 a barrel at 0152 GMT, up $0.30 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.04 to $56.22 a barrel. "Despite prices stuck in a tight trading range, Commodity Futures Trading Commission data showed investors raised their net long positions in WTI and Brent to a record high level," said ANZ Research. Last week, hedge funds and other big money managers increased their net long position--a bet on rising prices--in Brent crude oil to the highest level since records started in 2011, the Intercontinental Exchange Inc. said Monday. This mirrors the U.S., where funds have raised their bullish bets to a fresh record. Optimism in the market stems from the high compliance rate of over 90% from a group of oil producers who have agreed to curtail their production. The pact, signed last year, calls for the group to cut their collective daily production by 1.8 million barrels. This joint effort by the Organization of the Petroleum Exporting Countries and 11 other non-cartel producers is expected to push global oil prices to $60 a barrel by the end of the year, despite the growth in U.S. supply, said Gordon Kwan, the head of Asia oil and gas at Nomura. He pointed out that the world's crude demand is expected to grow by 1.4 million barrels a day in 2017. Assuming that the OPEC-led initiative maintains a 90% compliance rate translating to around 1.5 million barrels a day, the market could see a combined shortage of 2.9 million barrels a day. "There is no way that the U.S. can make up the differences," said Mr. Kwan, adding that despite the rise in oil drilling activities in the U.S., shale producers are expected to add at most around 1 million barrels a day to the market. However, other analysts view U.S. oil as a real threat that could delay the market from rebalancing as drillers there have invested heavily to increase efficiency and reduce production costs. As the U.S. oil production balloons, so has its exports. BMI Research notes crude exports from the U.S. reached a record high in the week ended February 10, with most of the volume directed to Asia--the fastest growing market and the longstanding battleground for OPEC nations. In fact, OPEC's top producers are prioritizing trades with Asia over the U.S. and Europe in order to maintain market shares, the firm added. "You can say the U.S. is the counterforce against OPEC," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--fell 116 points to $1.5050 a gallon, while March diesel traded at $1.6465, 101 points higher. ICE gasoil for March changed hands at $497.00 a metric ton, down $0.50 from Monday's settlement. Georgi Kantchev contributed to this article. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Petroleum production; Futures; Crude oil prices
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commodity Futures Trading Commission; NAICS: 926140, 926150; Name: Intercontinental Exchange Inc; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870121978
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870121978?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Fu rther reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Bullish Oil Bets Put Prices at Risk
Author: Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Feb 2017: B.10.
Abstract:
According to Mr. Martin, prices could fall by $5 to $10 a barrel if inventories continue to increase or demand fails to catch up.
Full text: Investors have amassed a record number of bullish bets on oil, but market fundamentals have yet to catch up with their optimism -- putting oil prices at risk of a large fall, analysts said. Last week, hedge funds and other big money managers increased their net long position -- a bet on rising prices -- in Brent crude oil to the highest level since records started in 2011, Intercontinental Exchange Inc. said Monday. This mirrors the U.S., where funds have raised their bullish bets to a record. This comes as reports from both the Organization of the Petroleum Exporting Countries and outside observers suggest members of the cartel have achieved around 90% of the production cuts agreed upon in 2016's deal. That would mark higher compliance than OPEC has achieved with past agreements. However, other indicators show the market has some way to go to shake off the massive glut that has depressed prices for more than two years. The U.S. Energy Information Administration said that U.S. crude stockpiles rose to their highest level in the week ended Feb. 10 since the collation of data began in the 1980s. "Oil prices continue to be pulled between the contradictory influences of reports of falling OPEC production and rising U.S. crude inventories," David Martin, analyst at J.P. Morgan, said. "The U.S. stock build sends a cautionary signal to the market at a time when stocks should be starting to decline, rather than build." Investors seem unfazed. Managed-money accounts increased the number of long positions, or bets on rising Brent prices, to the equivalent of 525 million barrels of crude, while cutting the number of short positions, or bets that prices will fall, to 44 million barrels, according to the Commitment of Traders report from the ICE. In the U.S., wagers on rising oil prices have hit their highest point in more than 10 years of record-keeping by the Commodity Futures Trading Commission. That leaves investors exposed to big losses if sentiment sours. According to Mr. Martin, prices could fall by $5 to $10 a barrel if inventories continue to increase or demand fails to catch up. On Monday, Brent crude -- the global oil benchmark -- settled at $56.18 a barrel, up 0.7%. Oil prices have jumped since OPEC clinched its production deal in November. Futures, however, have settled in a narrow band above $50 a barrel so far in 2017. Two big producers, Nigeria and Libya, were exempt from the deal and have increased their output. U.S. Energy Information Administration numbers suggest OPEC output cuts, if Nigeria and Libya are included, amount to about 75% of what was promised. Meanwhile, the number of rigs drilling for crude in the U.S. hit a 16-month high last week, according to Baker Hughes. "Higher U.S. output, building stocks and the possibility that OPEC continues to fall short of their targeted cuts, could be the perfect catalyst for a speculative selloff," said Warren Patterson, commodity strategist at ING Bank. Credit: By Georgi Kantchev
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Feb 21, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870185540
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870185540?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rise on Expectation of OPEC Production Cut Extension; Optimism stems from high compliance rate from a group of oil producers who have agreed to curtail production
Author: Puko, Timothy; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Feb 2017: n/a.
Abstract:
U.S. oil prices rose to meet a 19-month high Tuesday as comments from leaders of the Organization of the Petroleum Exporting Countries encouraged investors to bet on shrinking supply and rising prices. OPEC will decide on extending its recently enacted production cuts based on how far global inventories fall, the group's secretary-general said at a conference in London. Last week, hedge funds and other big money managers increased their net long position -- a bet...Full text: U.S. oil prices rose to meet a 19-month high Tuesday as comments from leaders of the Organization of the Petroleum Exporting Countries encouraged investors to bet on shrinking supply and rising prices. OPEC will decide on extending its recently enacted production cuts based on how far global inventories fall, the group's secretary-general said at a conference in London. That has traders optimistic the deal, which aims to cut global production by 1.8 million barrels a day, will get an extension into the second half of the year if oversupply is still a problem, brokers and analysts said. Light, sweet crude for March delivery settled up 66 cents, or 1.2%, at $54.06 a barrel on the New York Mercantile Exchange. That matched the highest settlement since July 2, 2015. U.S. prices rose seven times in the last nine sessions. The March contract expired at settlement. The more actively traded April contract settled up 55 cents, or 1%, to $54.33 a barrel. Brent crude, the global benchmark, gained 48 cents, or 0.9%, to $56.66 a barrel on ICE Futures Europe. It is only Brent's sixth highest settlement of the year. OPEC and 11 other non-cartel producers reached an agreement to cut output last autumn to end an oil glut that has lingered for more than two years. The deal is for six months, but OPEC leaders from the start said they would consider an extension later this year. The lead up to that deal has kept oil rallying for almost a year now. Traders have been more optimistic about the deal lately because of a high compliance rate from participants of over 90%. It could push global oil prices to $60 a barrel by the end of the year, despite growth in U.S. supply that has already started from higher prices, said Gordon Kwan, the head of Asia oil and gas at Nomura. Speaking to reporters on the sidelines of a London oil conference, the OPEC leader Mohamed Barkindo said he expected compliance rates to increase above 90%. He said he agreed with views of Saudi oil minister Khalid al-Falih that members should respect 100% of their commitments to reduce output. "You've heard rhetoric they might extend the cuts," said Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC and has been expecting prices to fall. "You've got one month of OPEC (cuts now). Show me four or five more and that no one's cheating at that point." Despite valid skepticism, there is reason to consider the implications of Mr. Barkindo's comments and expect the rally to resume, said Robbie Fraser, commodity analyst at consultant Schneider Electric SA in Louisville, Ky. That Mr. Barkindo is talking about the chance of an extension, encouraging participants to raise compliance and addressing the risk of growing output in the U.S. all makes traders think an extension is becoming more likely. "It's all the kinds of things you would need OPEC to be saying and thinking to get that extension," Mr. Fraser said. "It's pretty standard OPEC playbook to set the things up with their commentary first." Last week, hedge funds and other big money managers increased their net long position -- a bet on rising prices -- in Brent crude oil to the highest level since records started in 2011, the Intercontinental Exchange Inc. said Monday. This mirrors the U.S., where funds have raised their bullish bets to a fresh record. World crude demand is expected to grow by 1.4 million barrels a day in 2017, Mr. Kwan noted. If the OPEC-led initiative maintains a 90% compliance rate translating to around 1.5 million barrels a day, the market could see a combined shortage of 2.9 million barrels a day. "There is no way that the U.S. can make up the differences," Mr. Kwan said, adding that despite the rise in oil drilling activities in the U.S., shale producers are expected to add at most around 1 million barrels a day to the market. Gasoline futures lost 1.5% to $1.494 a gallon, their third-straight losing session. Diesel futures gained 0.4% to $1.6425 a gallon. Benoit Faucon and Kevin Baxter contributed to this article. Write to Timothy Puko at tim.puko@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Timothy Puko and Jenny W. Hsu
Subject: Petroleum production; Compliance; Crude oil prices; Price increases; Crude oil
Location: United States--US Asia
Company / organization: Name: Intercontinental Exchange Inc; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870206974
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870206974?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Woodside Annual Profit Jumps as Production Rises; Revenue falls as oil prices continue to weigh
Author: Stewart, Robb M
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Feb 2017: n/a.
Abstract:
The bulk of Woodside's profit is derived from liquefied natural gas operations in Western Australia, where it operates the North West Shelf project that has been operating since 1984 and the Pluto LNG plant that began producing in 2012. Overall production rose almost 3% last year to 94.9 million barrels of oil equivalent, lifted by record LNG output, although the company has flagged a dip this year to between 84 million and 90 million barrels...Full text: MELBOURNE, Australia--Woodside Petroleum Ltd.'s (WPL.AU) profit rebounded last year as production rose and the oil-and-gas producer didn't see a repeat of the hefty charges that nearly tipped it to a loss in 2015. The Australian energy company reported a net profit of US$868 million in 2016, up sharply from US$26 million the year before when it was squeezed by US$1.1 billion in asset impairments and charges following the slump in prices. The result was ahead of the US$853 million median of eight analyst forecasts compiled by the Wall Street Journal. Still, oil continued to weigh on the company after a continued drop in prices through much of the year before recovering into the tail end of 2016, with revenue falling 19% to US$4.08 billion from US$5.03 billion. The bulk of Woodside's profit is derived from liquefied natural gas operations in Western Australia, where it operates the North West Shelf project that has been operating since 1984 and the Pluto LNG plant that began producing in 2012. LNG pricing formulas are linked to crude-oil prices. Overall production rose almost 3% last year to 94.9 million barrels of oil equivalent, lifted by record LNG output, although the company has flagged a dip this year to between 84 million and 90 million barrels even as LNG levels continue to rise with the anticipated start-up of the US$34 billion Wheatstone project in Western Australia being developed by Chevron Corp. (CVX) Peter Coleman, Woodside's chief executive, said the company had exceeded production targets over the past year, reduced its operating costs, picked up assets to support further growth and given the go ahead for an oil development off Australia. Over the past two years, Woodside has focused on rebuilding its resource base, including a US$2.8 billion deal in 2015 with Apache Corp. (APA) that included a 13% stake in the Wheatstone project and a US$350 million deal last year to buy ConocoPhilips's (COP) interest in three promising oil discoveries off Senegal. But it was thwarted from building a regional oil-and-gas champion in 2015 after Papua New Guinea-focused Oil Search Ltd. (OSH.AU) rejected as too low a roughly US$8 billion takeover offer, and belt-tightening last year prompted the company to shelve plans for a floating LNG operation off Australia's west coast. Woodside, which forecast production would grow by about 15% between 2017 and 2020, said it plans to pay a final dividend of US$0.49 a share for a full-year payout of US$0.83, down from last year's A$1.09. Write to Robb M. Stewart at robb.stewart@wsj.com Credit: By Robb M. Stewart
Subject: Tender offers; LNG; Natural gas
Location: Western Australia Australia United States--US Papua New Guinea Senegal
Company / organization: Name: Oil Search Ltd; NAICS: 213111; Name: Woodside Petroleum Ltd; NAICS: 211111; Name: Chevron Corp; NAICS: 211111, 324110; Name: Apache Corp; NAICS: 211111, 213112, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 21, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870376989
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870376989?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Stocks Pressured by Lower Oil Prices; The S&P 500, which fell 0.1%, hasn't posted a decline of 1% or more since Oct. 11
Author: Bird, Mike; Driebusch, Corrie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2017: n/a.
Abstract:
Relatively small daily moves, most of which are minor gains, have been a theme for the U.S. stock market in recent months.Fed officials said they anticipated raising short-term interest rates "fairly soon," according to minutes from the central bank's latest meeting published Wednesday.Full text: A pullback in the price of oil weighed on shares of energy companies, dragging the S&P 500 slightly lower. The pause followed a solid day of gains on Tuesday, when all three indexes finished at records. Energy companies in the S&P 500 were the worst performers in the index Wednesday, falling 1.6%. The price of U.S.-traded crude oil declined 1.4% to $53.59 a barrel as investors continued to be concerned about high U.S. stockpiles. On Tuesday, oil rose to its highest settlement since December. The S&P 500 slipped 2.56 points, or 0.1%, to 2362.82, and the Nasdaq Composite edged down 5.32 points, or 0.1%, to 5860.63. The Dow Jones Industrial Average rose 32.60 points, or 0.2%, to 20775.60, its ninth consecutive record close. Relatively small daily moves, most of which are minor gains, have been a theme for the U.S. stock market in recent months. The S&P 500 hasn't posted a decline of 1% or more since Oct. 11, the longest such stretch since 2006, according to the WSJ Market Data Group. Similarly, the index hasn't posted a gain of 1% or more since Dec. 7, the longest streak since 2014. The next catalyst to shake up markets could be an interest-rate increase by the U.S. Federal Reserve, which could come as soon as March. Fed officials said they anticipated raising short-term interest rates "fairly soon," according to minutes from the central bank's latest meeting published Wednesday. The yield on the 10-year U.S. Treasury note fell to 2.416% from 2.429% Tuesday. Yields drop as prices rise. Elsewhere, the Stoxx Europe 600 was little changed following three consecutive sessions of gains. Hong Kong's Hang Seng Index rose 1% to its highest closing level since August 2015. Japan's Nikkei Stock Average closed down less than 0.1% Wednesday as the yen strengthened against the dollar. The U.S. currency fell 0.3% against the Japanese yen to ¥113.31 in late New York trading. Write to Mike Bird at Mike.Bird@wsj.com and Corrie Driebusch at corrie.driebusch@wsj.com Credit: By Mike Bird and Corrie Driebusch
Subject: Securities markets
Location: Australia Hong Kong United States--US Asia Saudi Arabia Japan South Korea
Company / organization: Name: RBC Capital Markets; NAICS: 523110; Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 22, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870377105
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870377105?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Woodside Plans to Expand Western Australia LNG Output; Woodside has forecast a modest fall in oil-and-gas output this year, after a rise of 3% last year
Author: Stewart, Robb M
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2017: n/a.
Abstract:
MELBOURNE, Australia--Woodside Petroleum Ltd. (WPL.AU) is positioning to lift gas-export capacity in coming years in expectation that still-rising supplies of liquefied natural gas will be absorbed by higher Asian demand.On Wednesday, the Australian energy company said it is planning to increase production at its Pluto LNG plant in Western Australia and potentially position the facility as a hub for undeveloped gas fields in the region.Full text: MELBOURNE, Australia--Woodside Petroleum Ltd. (WPL.AU) is positioning to lift gas-export capacity in coming years in expectation that still-rising supplies of liquefied natural gas will be absorbed by higher Asian demand. On Wednesday, the Australian energy company said it is planning to increase production at its Pluto LNG plant in Western Australia and potentially position the facility as a hub for undeveloped gas fields in the region. The company is seeking to leverage its position as an investor in several big gas fields around the country's northwest. Woodside's profit rebounded last year, jumping to US$868 million after being almost wiped out the year before by US$1.1 billion in asset impairments and charges following the slump in prices. Peter Coleman, chief executive of Perth-based Woodside, said the mid- to longer-term demand outlook for LNG, natural gas chilled to a liquid so it can more easily be transported, remains strong and new markets for the fuel are being established. Global supply currently outstrips demand, after multibillion-dollar investments in new facilities in Australia and as the U.S. begins exporting. Yet Mr. Coleman said demand continues to grow, and unlike the oil industry there are no stockpiles of LNG or loaded cargo ships floating at sea. Woodside initially intends to tap existing gas supplies around its Pluto operation and drive its production hard to lift output. It also will consider adding another smaller-scale production line at the facility and will lobby for gas from the undeveloped Scarborough and Browse fields off west Australia to be funneled through Pluto's operations, if that provides a better return than the floating LNG plants currently envisaged by the venture partners. A new off-the-shelf production line could be added quickly to Pluto, lifting output by as much as 1.5 million metric tons a year, Mr. Coleman said. At the same time, Woodside is building the infrastructure needed to supply Pluto's LNG to the local mining and marine industries as a cheaper alternative to diesel, helping companies meet tougher emissions rules and introducing new buyers for Woodside. Woodside has forecast a modest fall in oil-and-gas output this year, after a rise of 3% last year to 94.9 million barrels of oil equivalent thanks in part to Pluto, an onshore facility that started up in 2012 and last year produced 5 million tons, 16% above its original design capacity. The company has forecast its production will rise about 15% between 2017 and 2020, helped by the startup of Chevron Corp.'s $34 billion Wheatstone LNG project in Western Australia and the development of Woodside's Greater Enfield oil project. Mr. Coleman said it was unlikely there would be large single buyers of LNG in the next few years that would commit to new supplies and underpin big LNG developments, but there remains scope for smaller-scale developments and for existing operations to collaborate to lower costs by sharing facilities, supplies and maintenance. For Pluto, it is about accelerating growth to meet demand opportunities expected in 2020-2025, he said. The LNG market needs an additional 16 million tons a year in capacity to be added annually to meet expected demand, although only 6 million tons of capacity was approved by companies in 2016 and 6 million is forecast for this year, Mr. Coleman said. Studies suggest that by about 2023, the rise in demand will outpace projected supply. Write to Robb M. Stewart at robb.stewart@wsj.com Credit: By Robb M. Stewart
Subject: LNG; Natural gas
Location: Western Australia Australia United States--US
Company / organization: Name: Woodside Petroleum Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 22, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870390803
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870390803?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Up as OPEC Affirms Output Cut Plan; April Brent crude rose $0.25 to $56.91 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2017: n/a.
Abstract:
Oil prices rose 1% overnight after OPEC Secretary-general Mohammad Barkindo said compliance rate among cartel members who agreed to participate in the production cutback deal is expected to increase above the current 90%. "The stakes are even higher for Saudi Arabia as not only do they need cash but they are readying the market for the listing of state oil giant Saudi Aramco, an IPO expected at around a minimum of $2 trillion," said Stuart...Full text: U.S. oil prices stayed at a 19-month high in Asia Wednesday after oil leaders affirmed that the supply cut effort by heavyweights producers was making headway. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $54.54 a barrel at 0323 GMT, up $0.21 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.25 to $56.91 a barrel. Oil prices rose 1% overnight after OPEC Secretary-general Mohammad Barkindo said compliance rate among cartel members who agreed to participate in the production cutback deal is expected to increase above the current 90%. OPEC nations plus 11 other non-cartel players, including Russia, late last year agreed to cut combined production by 1.8 million barrels. If fully implemented, the plan would erase around 2% of the world's daily supply and reset the supply into a rebalance, and possibly a deficit by the end of the year. The pact took effect in January and will be reviewed in May. Signatories will deliberate whether or not to extend the cuts beyond the original six-month time frame based on the reduction in inventories, analysts say. The agreement is intended to revive oil prices which were battered for over two years due to a persistent supply overhang in the market. Many oil dollar-dependent nations, such as Venezuela, are still grappling with the effects of the price collapse. Even cash-rich countries like Saudi Arabia are eager to boost oil prices as it plans to privatize its state-own oil company Saudi Aramco. "The stakes are even higher for Saudi Arabia as not only do they need cash but they are readying the market for the listing of state oil giant Saudi Aramco, an IPO expected at around a minimum of $2 trillion," said Stuart Ive, a client manager at OM Financial. The Wall Street Journal reported that the kingdom is looking to list its company in New York. The IPO could occur around 2019. However, OPEC's plan to trim down supply is facing threats on multiple fronts. OPEC members, who were exempt from the cut plan are steadily ramping up their output. In January, Libya and Nigeria increased their daily production by 65,000 and 101,800 barrels, while Iran added 50,200 barrels. "Moreover, we note that Iranian oil officials are talking about increasing production further..In our view this chance of increased Iranian output raises the possibility that overall OPEC compliance weakens over the next few months rather than improves," said Tim Evans, a Citi Futures analyst. Growing production from the U.S., is also seen as a potential disruptor. Crude production in the U.S. has risen around 3.4% since mid-November. In the same time period, U.S. oil prices have climbed around 20%, underlining shale producers' assertiveness to capitalize on the higher prices resulting from cuts made by other producers. "A rebound in U.S. shale production could also replace barrels missing from OPEC suppliers. After a two-year downturn, shale-watchers have expressed astonishment at the pace of activity just a handful of weeks into 2017," said analysts at S&P Global Platts. U.S. drillers added eight oil rigs in the week to Feb. 10, bringing the total to 591, the most since October 2015, according to U.S. driller Baker Hughes. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 131 points to $1.5071 a gallon, while March diesel traded at $1.6499, 74 points higher. ICE gasoil for March changed hands at $499.00 a metric ton, down $2.75 from Tuesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Futures; Crude oil prices; Crude oil
Location: United States--US Saudi Arabia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870391200
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870391200?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Crude Rally Fizzles on Concerns Over U.S. Stockpiles; OPEC's success in curbing output had underpinned bullish oil-market sentiment
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2017: n/a.
Abstract:
Money managers have a record-high bullish bet on rising oil prices, expecting cutbacks from major exporters to end a longstanding glut. The American Petroleum Institute, an industry group, said late Wednesday that its own data for the week showed a 884,000-barrel decrease in crude supplies, a 893,000-barrel decline in gasoline stocks and a 4.2-million-barrel decrease in distillate inventories, according to a market participant. Last week, hedge funds and other big money managers increased their net...Full text: Oil prices retreated Wednesday on continued investor concern about high U.S. stockpiles. Money managers have a record-high bullish bet on rising oil prices, expecting cutbacks from major exporters to end a longstanding glut. But rising U.S. shale production and U.S. oil stockpiles undermines the ability of international rivals to control the market and has often capped rallies, including this week, analysts said. Prices matched a 19-month high yesterday before Wednesday's retreat nearly canceled out all of Tuesday's gains. Light, sweet crude for April delivery settled down 74 cents, or 1.4%, at $53.59 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, lost 82 cents, or 1.4%, to $55.84 a barrel on ICE Futures Europe. Both snapped a three-session winning streak. Prices had reached new highs because the Organization of the Petroleum Exporting Countries and 11 other non-cartel producers reached an agreement last autumn to cut output. Tuesday traders were betting on an increasing chance that agreement would get extended into the second half of the year, an idea based on recent rhetoric from group leaders, including its secretary-general's comments at a Tuesday conference in London. "But the market's already discounted that," said Jim Ritterbusch, president of energy-advisory firm Ritterbusch & Associates. He noted stockpiles for oil and gasoline are at record highs. "It's helping to cap the rally, no doubt about it." Crude stockpiles likely added to their recent record high last week, according to The Wall Street Journal's survey of 12 analysts and traders. Their consensus average forecast puts crude stockpiles up another 3.4 million barrels. They did, however, forecast gasoline stockpiles to fall by 1.2 million barrels and stockpiles of distillates, which include heating oil and diesel, to fall by 400,000 barrels. The official data from the U.S. Energy Information Administration will be released on Thursday morning. The American Petroleum Institute, an industry group, said late Wednesday that its own data for the week showed a 884,000-barrel decrease in crude supplies, a 893,000-barrel decline in gasoline stocks and a 4.2-million-barrel decrease in distillate inventories, according to a market participant. Crude stockpiles added 39 million barrels just since the start of the year, according to EIA data. It also showed gasoline stockpiles up nearly 24 million barrels. "That's just a gigantic number," said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. Speculators "can only spit in the face of those numbers so many times before it becomes an issue." Last week, hedge funds and other big money managers increased their net long position--a bet on rising prices--in Brent crude oil to the highest level since records started in 2011, the Intercontinental Exchange Inc. said Monday. This mirrors the U.S., where funds have raised their bullish bets to a fresh record. That makes it harder for oil to get out of a tight trading range it has been in for weeks, analysts said. Since breaking back above $50 Dec. 1, shortly after the OPEC agreement, oil prices have settled outside of a $3.24 range just once. It could stay stuck in that range for another three to four weeks, Mr. Ritterbusch said. "Where's the next wave of buyers really going to come from, unless we see some indication the big overhang in inventories is really going to lower?" said Gene McGillian, research manager at Tradition Energy. "I'm surprised the market was as strong this week as it was." Gasoline futures rose 1.93 cents, or 1.3%, to $1.5133 a gallon, snapping a three-session losing streak. Diesel futures lost 1.3 cents, or 0.8%, to $1.6296 a gallon. Neanda Salvaterra and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Crude oil prices; Price increases; Crude oil
Location: Iran Russia United States--US Venezuela Libya Saudi Arabia Nigeria
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210; Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870624670
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870624670?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Non-OPEC Members Falling Short of Promised Production Cuts; Best figures available, though imperfect, show reductions are 'about 50%' of what was promised, Qatar oil minister says
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2017: n/a.
Abstract: None available.
Full text: LONDON--Big oil producers outside OPEC aren't cutting production as much as they pledged, Qatar's oil minister said Wednesday, deepening pessimism about the effect of a landmark output deal struck last year. Russia, Mexico and nine other oil-producing countries agreed in December to reduce their output by a combined 558,000 barrels a day. The promise was part of a deal to raise crude prices with the 13 nations of the Organization of the Petroleum Exporting Countries, which separately agreed to slash 1.2 million barrels a day. But the non-OPEC piece of the deal doesn't appear to be falling into place yet, said Mohammed al-Sada, the oil minister of OPEC member Qatar, and a key negotiator who brought the landmark deal together last year. Speaking to reporters at a London oil-market conference, Mr. Sada said non-OPEC members have cut "about 50%" of the total promised. He cautioned that his estimate could be incomplete because those countries have little experience calculating reductions. Russia said it would cut 300,000 barrels a day from total output above 11 million barrels a day. But the country has made about one-third of those cuts, the International Energy Agency said in its latest report. Russian officials have said their oil-production cuts would come gradually over the first six months of the year. Oil producers have a meeting scheduled on Wednesday to discuss compliance with the deal. Summer Said contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Cartels; International markets; Supply & demand
Location: Mexico Russia Qatar
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870632899
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870632899?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copy right owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Increasing in DOE Data; Analysts expect gasoline stockpiles to fall
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Thursday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 12 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 3.4 million barrels, on average, in the week ended Feb. 17. Eleven analysts expect stockpiles to rise and one expects them to fall. Forecasts range from a decrease of 789,000 barrels to an increase of 6.5 million barrels. The closely watched survey from the Energy Information Administration is due at 11 a.m. EST Thursday. Gasoline stockpiles are expected to show a decrease of 1.2 million barrels on average, according to analysts. One analyst expects them to rise and 11 expect them to fall. Estimates range from a fall of 2.8 million barrels to an increase of 3.9 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 400,000 barrels. Two analysts expect an increase and 10 expect a decrease. Forecasts range from a decline of 2 million barrels to an increase of 3 million barrels. Refinery use is seen staying unchanged for the week at 85.4% of capacity, based on EIA data. Five analysts expect an increase, four expect a decrease, one expects no change and two didn't report expectations. Forecasts range from a decrease of 1.1 points to an increase of 1 point. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870717395
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870717395?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Lowers Proved Reserve Estimates; Oil company forced to shave off nearly 15%, or 3.3 billion barrels of oil equivalent, in 2016
Author: Cook, Lynn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2017: n/a.
Abstract:
Extremely low energy prices during 2016 forced Exxon Mobil Corp. on Wednesday to lower its estimate of proved oil and gas reserves in the ground that the company controls. The reserve changes stem from rules enforced by the U.S. Securities and Exchange Commission, which call for companies to take oil...Full text: Extremely low energy prices during 2016 forced Exxon Mobil Corp. on Wednesday to lower its estimate of proved oil and gas reserves in the ground that the company controls. The Irving, Texas, energy company, which had warned late last year that it might have to take reserves off its books due to lower prices, said it had to shave off nearly 15%, or 3.3 billion barrels of oil equivalent, from its proved reserves when compared with 2015. Exxon managed to replace only 65% of the oil and gas it pumped out of the ground in 2016 with new discoveries last year. This marks the second year in a row that Exxon has failed to fully replace the fuel that it pulled from the ground. It now has reserves of 20 billion barrels of oil equivalent. Using new discoveries to hit 100% reserve replacement is a milestone that Exxon met consistently for more than two decades until 2015. By comparison, Exxon's top U.S. rival, Chevron Corp., said it replaced 95% of the reserves it produced during 2016, after replacing 107% of the oil and gas it pumped during 2015. Most of the reserves that Exxon is taking off its books are in Canada's oil sands region, where it didn't make economic sense to produce given recent prices. The reserve changes stem from rules enforced by the U.S. Securities and Exchange Commission, which call for companies to take oil reserves off their books if they aren't profitable at existing prices or can no longer be included as part of five-year development plans. So far this year prices have been higher than in the beginning months of 2016, a signal that some of the lost reserves could be recognized again in future years, the company said. Exxon recently said it continues to operate its Kearl oil sands mine in Alberta and will continue to develop Canadian prospects in the future. Those reserves could be added back to Exxon's proved total if prices rise, costs fall or its operations improve. The company's reserve picture would have been worse had it not been for 1 billion barrels of oil equivalent in new finds in the U.S., Kazakhstan, Papua New Guinea, Indonesia and Norway during 2016. Write to Lynn Cook at lynn.cook@wsj.com Credit: By Lynn Cook
Subject: Oil reserves; Offshore oil wells; Natural gas reserves
Location: Kazakhstan Texas United States--US Canada Indonesia Norway Papua New Guinea
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 22, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870724610
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870724610?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon Lowers Proved Reserve Estimates; Oil company forced to shave off nearly 15%, or 3.3 billion barrels of oil equivalent, in 2016
Author: Cook, Lynn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Feb 2017: n/a.
Abstract:
Extremely low energy prices during 2016 forced Exxon Mobil Corp. on Wednesday to lower its estimate of proved oil and gas reserves in the ground that the company controls.The reserve changes stem from rules enforced by the U.S. Securities and Exchange Commission, which call for companies to take oil reserves off their books if they aren't profitable at existing prices or can no longer be included as part of five-year development plans.Full text: Extremely low energy prices during 2016 forced Exxon Mobil Corp. on Wednesday to lower its estimate of proved oil and gas reserves in the ground that the company controls. The Irving, Texas, energy company, which had warned late last year that it might have to take reserves off its books due to lower prices, said it had to shave off nearly 15%, or 3.3 billion barrels of oil equivalent, from its proved reserves when compared with 2015. Exxon managed to replace only 65% of the oil and gas it pumped out of the ground in 2016 with new discoveries last year. This marks the second year in a row that Exxon has failed to fully replace the fuel that it pulled from the ground. It now has reserves of 20 billion barrels of oil equivalent. Using new discoveries to hit 100% reserve replacement is a milestone that Exxon met consistently for more than two decades until 2015. By comparison, Exxon's top U.S. rival, Chevron Corp., said it replaced 95% of the reserves it produced during 2016, after replacing 107% of the oil and gas it pumped during 2015. Most of the reserves that Exxon is taking off its books are in Canada's oil sands region and weren't profitable at recent prices. The company continues to produce oil at its Kearl oil sands project in Alberta. The reserve changes stem from rules enforced by the U.S. Securities and Exchange Commission, which call for companies to take oil reserves off their books if they aren't profitable at existing prices or can no longer be included as part of five-year development plans. "These revisions are not expected to affect the operation of the underlying projects or to alter the company's outlook for future production volumes," the company said So far this year prices have been higher than in the beginning months of 2016, a signal that some of the lost reserves could be recognized again in future years, the company said. Exxon recently said it continues to operate its Kearl oil sands mine in Alberta and will continue to develop Canadian prospects in the future. Those reserves could be added back to Exxon's proved total if prices rise, costs fall or its operations improve. The company's reserve picture would have been worse had it not been for 1 billion barrels of oil equivalent in new finds in the U.S., Kazakhstan, Papua New Guinea, Indonesia and Norway during 2016. Write to Lynn Cook at lynn.cook@wsj.com Credit: By Lynn Cook
Subject: Oil reserves; Offshore oil wells; Natural gas reserves
Location: Kazakhstan Texas United States--US Canada Indonesia Norway Papua New Guinea
Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 23, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publicationsubject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870762976
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870762976?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Up But Remain Rangebound; April Brent crude rose $0.43 to $56.27 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Feb 2017: n/a.
Abstract:
Prices retreated overnight by around 1.4% after a three-session winning streak, mainly due to technical selling, said Ben Le Brun, a market analyst at optionsXpress. Since the end of 2016, money managers have increased net-length in crude contracts by the equivalent of some 100 million barrels, consultancy firm FGE said. Data from industry group American Petroleum Institute showed a 884,000-barrel decrease in crude supplies, a 893,000-barrel decline in gasoline stocks and a 4.2-million-barrel decrease in...Full text: Oil prices regained momentum in Asia Thursday, but the tug-of-war between ongoing supply cuts in the Middle East and increasing production in the U.S., kept prices rangebound. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $54.04 a barrel at 0150 GMT, up $0.45 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.43 to $56.27 a barrel. Prices retreated overnight by around 1.4% after a three-session winning streak, mainly due to technical selling, said Ben Le Brun, a market analyst at optionsXpress. Since the end of 2016, money managers have increased net-length in crude contracts by the equivalent of some 100 million barrels, consultancy firm FGE said. "As long as oil markets continue in the current bullish mood, the record-high net longs position is likely to persist," it noted. Data shows the 20 oil producers, in and outside of the Organization of the Petroleum Exporting Countries, have largely kept their promise to slash collective output by 1.8 million barrels a day. However, steady uptick in U.S. crude production and inventories is stoking concerns that global supply remains bloated despite these cuts. U.S. producers likely added another 3.4 million barrels to the latest total of 518 million barrels for the week ended Feb. 17, according to analysts surveyed by The Wall Street Journal. They also estimated gasoline stockpiles to have fallen by 1.2 million barrels and stockpiles of distillates to fall by 400,000 barrels. Data from industry group American Petroleum Institute showed a 884,000-barrel decrease in crude supplies, a 893,000-barrel decline in gasoline stocks and a 4.2-million-barrel decrease in distillate inventories, according to a market participant. Official data from the U.S. Energy Information Administration will be released later today. Year-to-date, crude stockpiles in the U.S. grew by 39 million barrels while gasoline stocks expanded by nearly 24 million barrels according to EIA data. With oil prices staying above the $50 per barrel mark, more shale drillers are returning to the oil fields, suggesting U.S. crude oil production will likely continue to increase, said the agency. It estimates total U.S. production to average 9.0 million barrels a day in 2017 and 9.5 million barrels a day next year. Such development will bludgeon OPEC's effort to dry out the market and potentially push oil prices back to the low $50s or high $40's range, analysts warned. "OPEC will need to keep the limits on production beyond the initial six-month term if inventories are to be drawn down over the second half of the year," said Tim Evans, a Citi Futures analyst. OPEC is scheduled to meet in May to review the cuts and discuss whether to extend the production curtailment further. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--rose 97 points to $1.5230 a gallon, while March diesel traded at $1.6401, 105 points higher. ICE gasoil for March changed hands at $495.75 a metric ton, up $6.25 from Wednesday's settlement. Timothy Puko contributed to this article. Credit: By Jenny Hsu
Subject: Price increases
Location: United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870769324
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870769324?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
North Dakota Pipeline Protesters Arrested as Deadline Passes; Standing Rock Sioux Tribe, which led movement against oil pipeline, also asked protesters to leave
Author: Connors, Will
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Feb 2017: n/a.
Abstract:
Law-enforcement officials didn't enter the campsite on Wednesday, Mr. Burgum said during a press conference Wednesday evening, but he said officials will move in Thursday morning to continue with cleanup efforts already under way. The Morton County Sheriff's Department, which is leading the evacuation effort, said that it aimed to avoid any violence during the push to remove protesters from the site. Morton County Sheriff Kyle Kirchmeier said Wednesday evening they had heard reports of one subject having his hip injured, and that it "will be followed up on." Since August, authorities have been accused of employing heavy-handed tactics against protesters and been criticized on social media for the use of tear gas, attack dogs and water hoses when temperatures were below freezing. Protesters celebrated in December when, under a decree from the Obama administration, the Army Corps denied the permit needed to complete the last leg of the oil...Full text: Corrections & Amplifications Mr. Archambault and the Governor of North Dakota, Doug Burgum, spoke at length on Monday about the deadline. An earlier version of this article incorrectly stated the Governor of North Dakota is Mike Burgum. The deadline was 2 p.m. CST. An earlier version of the article listed it as 2 p.m. MST. (Feb. 22) Ten protesters opposed to the Dakota Access Pipeline were arrested Wednesday afternoon as law-enforcement authorities began the evacuation of the main protest campsite. The evacuation began largely without incident, as law-enforcement officials and protest organizers worked for a calm resolution to what has often been a volatile monthslong standoff. But a small group of protesters refused to leave and were arrested, according to the governor of North Dakota, Doug Burgum. Some protesters set fire to teepees and other structures before they left the camp, according to social-media posts from the site and the governor. Law-enforcement officials didn't enter the campsite on Wednesday, Mr. Burgum said during a press conference Wednesday evening, but he said officials will move in Thursday morning to continue with cleanup efforts already under way. "You had to really be trying to get [arrested], because that was not part of our operational plan," Mr. Burgum said. An estimated 25 to 50 people remain at the main campsite, down from as many as 10,000 at one point last year, and will be allowed to leave voluntarily up until 9 a.m. Thursday, at which point "they will be subject to arrest," Mr. Burgum said. The U.S. Army Corps of Engineers and North Dakota authorities had given protesters until Wednesday at 2 p.m. CT, to leave the main campsite, citing worries over rising spring floodwaters. Leaders from the Standing Rock Sioux Tribe, who have led the movement against the oil pipeline, have also asked protesters to leave. The Oceti Sakowin camp, set up last summer on the banks of the Missouri River, has become the symbolic heart of the protest against the oil pipeline, and for similar movements around the country. The Morton County Sheriff's Department, which is leading the evacuation effort, said that it aimed to avoid any violence during the push to remove protesters from the site. One man, Eric Poemz, who identifies himself on Facebook as a Native American activist from Oklahoma, was tackled by law enforcement while live-streaming the standoff and appeared to be injured. "You broke my hip!" he shouted as the video kept recording. "That wasn't necessary!" A law-enforcement official is heard on the video offering medical assistance. "We're not here to hurt you, so just cut your stupid shit," the law-enforcement official said. "You've been disrespecting this whole area, you've been disrespecting us and our state for six months. Knock it off. The game's over, so work with us." Morton County Sheriff Kyle Kirchmeier said Wednesday evening they had heard reports of one subject having his hip injured, and that it "will be followed up on." Since August, authorities have been accused of employing heavy-handed tactics against protesters and been criticized on social media for the use of tear gas, attack dogs and water hoses when temperatures were below freezing. Law-enforcement officials rebutted those accusations. Morton County and other North Dakota government agencies this week set up a "transition center" where protesters without access to transportation or other lodging will be assisted. Mr. Burgum said that at least 70 people have taken advantage of this assistance so far. A representative from the Standing Rock Sioux Tribe didn't respond to a request for comment. On Monday, Dave Archambault, the chairman of the tribe, said, "I continue to ask that there be no forcible removal of remaining campers. We ask that everyone keep public safety their top priority at this time." Local officials and protesters have been working to get the campsite cleaned up before the floodwaters rise and wash trash and other debris into the Missouri River. The Standing Rock Tribe says cleanup will continue after Wednesday's deadline. Thousands of protesters have gathered near Cannon Ball, N.D., since August to protest the $3.8 billion pipeline, which the tribe says threatens sacred sites and drinking-water supplies. What began as a small protest against a nearly-finished pipeline in North Dakota gathered steam and became a focal point of a larger environmental and indigenous-rights movement. Roughly 700 people have been arrested in clashes between law enforcement and protesters since the protest began. Protesters celebrated in December when, under a decree from the Obama administration, the Army Corps denied the permit needed to complete the last leg of the oil pipeline being built by Energy Transfer Partners. That celebration proved to be short-lived. Last month, President Donald Trump signed an executive action that reopened the door for the Dakota Access Pipeline (along with the Keystone XL pipeline), and construction on the last stretch of the Dakota pipeline resumed. While the Standing Rock leadership asked all protesters at the main camp to leave, it has vowed to continue to fight the project in court. Write to Will Connors at william.connors@wsj.com Credit: By Will Connors
Subject: Social networks; Governors; Law enforcement; Pipelines
Location: Missouri River Oklahoma
Company / organization: Name: Army Corps of Engineers; NAICS: 928110; Name: Standing Rock Sioux Tribe; NAICS: 921150
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 23, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870777156
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870777156?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Sees Cracks in Oil-Output Pact
Author: Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]23 Feb 2017: B.10.
Abstract:
The promise was part of a deal to raise crude prices with the 13 members of the Organization of the Petroleum Exporting Countries, which separately agreed to cut 1.2 million barrels a day.
Full text: LONDON -- Big oil producers outside OPEC aren't cutting production as much as they pledged, Qatar's oil minister said, deepening pessimism about the effect of a landmark output deal struck last year. Russia, Mexico and nine other oil-producing countries agreed in December to reduce output by a combined 558,000 barrels a day. The promise was part of a deal to raise crude prices with the 13 members of the Organization of the Petroleum Exporting Countries, which separately agreed to cut 1.2 million barrels a day. But the non-OPEC piece of the deal doesn't appear to be falling into place, said Mohammed al-Sada, the oil minister of OPEC member Qatar and a key negotiator who brought the landmark deal together last year. Speaking to reporters at a London oil-market conference on Wednesday, Mr. Sada said non-OPEC members have cut about 50% of the total promised. He cautioned that his estimate could be incomplete because those countries have little experience calculating reductions. Credit: By Benoit Faucon and Summer Said
Subject: International markets; Petroleum production
Location: Mexico Russia
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Feb 23, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870833524
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870833524?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Equities: Energy Stocks Push Down S&P 500 as Oil Turns Lower
Author: Bird, Mike; Driebusch, Corrie
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]23 Feb 2017: B.11.
Abstract:
Fed officials said they anticipated raising short-term interest rates "fairly soon," according to minutes from the central bank's latest meeting published Wednesday.
Full text: A pullback in the price of oil weighed on shares of energy companies, dragging the S&P 500 slightly lower. The pause followed a solid day of gains on Tuesday, when all three indexes finished at records. Energy companies in the S&P 500 were the worst performers in the index Wednesday, falling 1.6%. The price of U.S.-traded crude oil declined 1.4% to $53.59 a barrel as investors continued to be concerned about high U.S. stockpiles. On Tuesday, oil rose to its highest settlement since December. The S&P 500 slipped 2.56 points, or 0.1%, to 2362.82, and the Nasdaq Composite edged down 5.32 points, or 0.1%, to 5860.63. The Dow Jones Industrial Average rose 32.60 points, or 0.2%, to 20775.60, its ninth consecutive record close. Relatively small daily moves, most of which are minor gains, have been a theme for the U.S. stock market in recent months. The S&P 500 hasn't posted a decline of 1% or more since Oct. 11, the longest such stretch since 2006, according to the WSJ Market Data Group. Similarly, the index hasn't posted a gain of 1% or more since Dec. 7, the longest streak since 2014. The next catalyst to shake up markets could be an interest-rate increase by the Federal Reserve, which could come as soon as March. Fed officials said they anticipated raising short-term interest rates "fairly soon," according to minutes from the central bank's latest meeting published Wednesday. Early Thursday, Asian stocks were broadly lower with Japan's Nikkei down 0.4% and Hong Kong's Hang Seng Index down 0.3%. Credit: By Mike Bird and Corrie Driebusch
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Feb 23, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870836623
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870836623?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Settle Higher After Stockpiles Report; Data show crude supplies up 564,000 barrels last week to 518.7 million barrels
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Feb 2017: n/a.
Abstract:
[...]the 564,000 barrel increase reported in data from the U.S. Energy Information Administration fell well short of the 3.4 million barrel addition analysts and traders surveyed by The Wall Street Journal had anticipated. The smaller-than-expected increase was largely due to sharply lower volumes of imported crude--potentially a sign the supply cuts by major exporters are showing up in the U.S. Some analysts have attributed steadily increasing U.S. oil inventories to surge of production late last...Full text: Oil prices settled at their highest level in more than a year and a half as federal data showed U.S. crude glut grew more slowly than expected last week. U.S. crude futures rose 86 cents, or 1.6%, to $54.45 a barrel on the New York Mercantile Exchange--the highest settlement value since July 2015. Brent, the global benchmark, gained 74 cents, or 1.33%, to $56.58 on ICE Futures Europe. Prices had climbed even higher in earlier trading, approaching the upper end of the narrow band they have traded in this year, before pulling back. The amount of oil in storage has increased for seven straight weeks to hit new records. But the 564,000 barrel increase reported in data from the U.S. Energy Information Administration fell well short of the 3.4 million barrel addition analysts and traders surveyed by The Wall Street Journal had anticipated. The smaller-than-expected increase was largely due to sharply lower volumes of imported crude--potentially a sign the supply cuts by major exporters are showing up in the U.S. Some analysts have attributed steadily increasing U.S. oil inventories to surge of production late last year by members of the Organization of the Petroleum Exporting Countries. "We like that the biggest contributor to the constructive turn of the U.S. crude balance was a big drop of imports," Credit Suisse analysts wrote. "To us that is the most important data point." Data show the 20 oil producers, in and outside of the Organization of the Petroleum Exporting Countries, have largely kept their promise to reduce collective output by 1.8 million barrels a day starting in January to tackle a global supply glut. But the hefty stockpiles have muted the impact of the cutbacks, analysts said, keeping a lid on crude prices. On Thursday, prices rose as high as $54.94 per barrel--the upper end of the recent trading range--before pulling back. "It's still a very oversupplied North American market," said Bob Yawger, director of the futures division of Mizuho Securities USA. And with oil prices staying above the $50-a-barrel mark, more shale drillers are returning to the oil fields, which could also undermine OPEC's efforts to bring supply and demand into balance. U.S. production rose above 9 million barrels a day last week. Gasoline futures rose 1.53 cents, or 1.01%, to $1.5286 a gallon. Diesel futures rose 2.71 cents, or 1.66%, to $1.6567 a gallon. Sarah McFarlane and Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Petroleum production; Futures; Stocks; Crude oil prices; Supply & demand
Location: Middle East United States--US United Kingdom--UK
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870912300
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870912300?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Inventories Rise Modestly
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Feb 2017: n/a.
Abstract: None available.
Full text: U.S. crude oil inventories rose less than expected for the week ended Feb. 17, and fuel supplies decreased, according to data released Thursday by the Energy Information Administration. Crude-oil stockpiles increased by 564,000 barrels to 518.7 million barrels, surpassing the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 3.4 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, decreased by 1.5 million barrels to 63 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 2.6 million barrels to 256.4 million barrels. Analysts were expecting gasoline inventories to fall by 1.2 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 4.9 million barrels to 165.1 million barrels, but remain above the upper limit of the average range, the EIA said. Earlier in the week, analysts had forecast supplies would decrease by 400,000 barrels from a week earlier. Refining capacity utilization fell by 1.1 percentage points from the previous week to 84.3%. Analysts were expecting utilization levels to be unchanged from the previous week. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Price increases; Crude oil; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1870990144
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870990144?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
EPA Chief Scott Pruitt's Emails Show Close Ties With Oil and Gas Companies; Pruitt has been tasked with repealing major climate and environmental regulations enacted by the Obama administration
Author: Harder, Amy; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Feb 2017: n/a.
Abstract:
WASHINGTON--Thousands of newly released emails showing close contact between Scott Pruitt, the new chief of the Environmental Protection Agency, and oil and natural-gas companies are casting clouds over Mr. Pruitt's newly minted leadership of the agency tasked with protecting the nation's air and water. In another instance that year, Devon provided Mr. Pruitt's office with its thoughts on a proposed draft rule from the U.S. Bureau of Land Management that one Devon executive characterized as...Full text: WASHINGTON--Thousands of newly released emails showing close contact between Scott Pruitt, the new chief of the Environmental Protection Agency, and oil and natural-gas companies are casting clouds over Mr. Pruitt's newly minted leadership of the agency tasked with protecting the nation's air and water. The emails, which cover a period when Mr. Pruitt was attorney general of Oklahoma, were released earlier this week after an order from a state judge. They detail Mr. Pruitt's correspondence with several oil companies that have big operations in Oklahoma, including Devon Energy Corp. Under President Donald Trump, the work Mr. Pruitt has been tasked with includes repealing major climate and environmental regulations enacted by the Obama administration. The emails released so far could bolster the concerns of congressional Democrats and other critics, who say Mr. Pruitt has potential conflicts of interest since he will be running an agency whose job is to regulate companies he was close to in his prior position. "He came from an oil and gas state, and you would expect that kind of an interchange between he and the constituents in that state, and he was an elected representative of those constituents," said Christine Todd Whitman, a former EPA administrator under George W. Bush, in an interview on MSNBC on Thursday. "So that, in and of itself, isn't unusual," Ms. Whitman added. "What he's got to do is make very clear, first of all, his understanding that he's now in a totally different position." As Oklahoma attorney general, Mr. Pruitt was part of a coalition of about two dozen mostly Republican state attorneys general who sued the federal government over an array of regulations during Mr. Obama's presidency, targeting numerous environmental rules. Mr. Pruitt often joined lawsuits with energy companies that also contributed to his campaigns for the attorney general post. "As attorney general, administrator Pruitt consistently stood up for the state's energy industry and other constituencies who sought representation to stop real-life harm that was occurring as a result of overreaching federal regulations and actions," said a spokesman for the EPA. The Center for Media and Democracy, a progressive group that filed the lawsuit seeking the emails' release, said it would keep pushing to release more emails. "The newly released emails reveal a close and friendly relationship between Scott Pruitt's office and the fossil-fuel industry, with frequent meetings, calls, dinners and other events," said Nick Surgey, research director at the group. The emails reveal that Mr. Pruitt's office worked closely at times with Devon Energy, an oil-and-gas producer based in Oklahoma, and other energy companies, as they worked to influence proposed federal regulations affecting the industry. The close alliance between Mr. Pruitt and Devon, along with other fossil-fuel companies, was first reported by the New York Times in 2014. There was much back-and-forth, for instance, over a letter that Devon helped draft and that Mr. Pruitt's office ultimately used to make a case against a methane emission rule in 2013. In another instance that year, Devon provided Mr. Pruitt's office with its thoughts on a proposed draft rule from the U.S. Bureau of Land Management that one Devon executive characterized as "sweeping unnecessary federal regulations on hydraulic fracturing operations on federal and Indian lands." Devon defended its interactions with Mr. Pruitt's office, saying it has a "clear obligation to our shareholders" to be involved in such discussions and sometimes serves a resource for decision makers. "Our engagement with Scott Pruitt as Attorney General of Oklahoma is consistent--and proportionate--with our commitment to engage in conversations with policymakers on a broad range of matters that promote jobs, economic growth and a robust domestic energy sector," the company said in a statement. Write to Amy Harder at amy.harder@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com
Credit: By Amy Harder and Erin Ailworth
Subject: Attorneys general; Natural gas utilities; Energy industry; Litigation
Location: Oklahoma
People: Whitman, Christine Todd Bush, George W
Company / organization: Name: New York Times Co; NAICS: 511110, 511120, 515112, 515120; Name: MSNBC; NAICS: 511140, 515210; Name: Devon Energy Corp; NAICS: 211111; Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 24, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1871298519
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1871298519?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Oil Prices Retreat But Trend Remains Upbeat; April Brent crude fell $0.11 to $56.47 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Feb 2017: n/a.
Abstract:
While the amount of oil in storage increased for seven straight weeks to hit new records, the 564,000 barrel increase was far short of the 3.4 million barrel addition anticipated by analysts and traders surveyed by The Wall Street Journal.A group of 20 oil producers, including members of the Organization of the Petroleum Exporting Countries, have reduced their production in the past month in line with a landmark output cut agreement signed last year.Full text: Crude-oil prices moderated in Asia Friday as investors took profits following gains of over 1% during the New York session. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $54.33 a barrel at 0224 GMT, down $0.12 in the Globex electronic session. April Brent crude on London's ICE Futures exchange fell $0.11 to $56.47 a barrel. Overnight, oil prices got a boost from the U.S. Energy Information Administration's data that showed crude stockpiles there grew less than expected last week. While the amount of oil in storage increased for seven straight weeks to hit new records, the 564,000 barrel increase was far short of the 3.4 million barrel addition anticipated by analysts and traders surveyed by The Wall Street Journal. The smaller-than-expected increase was largely due to sharply lower volumes of imported crude, potentially a sign that supply cuts by major oil exporters are manifesting in the U.S, analysts said. A group of 20 oil producers, including members of the Organization of the Petroleum Exporting Countries, have reduced their production in the past month in line with a landmark output cut agreement signed last year. Prices have since moved upward, but growing supplies from the U.S. is hindering them from breaching the $60 a barrel mark. U.S. crude production at 9 million barrels a day last week was the highest level since early April 2016, according to the EIA data. "It is apparent that U.S. oil producers have turned the taps back on," said Phin Ziebell, a senior analyst at National Australia Bank. Oil watchers say rapid rise of U.S. shale oil could weaken oil producers' resolve to stick to the production cut pact after the initial period. OPEC's latest data shows the bloc has eliminated 890,000 barrels a day in January, the first full month after the agreement took effect, indicating a roughly 90% adherence rate among participant countries. It remains to be seen how much longer the members will remain compliant under the looming threat of U.S. oil. A telling barometer of the group's commitment level would be the outcome of OPEC's meeting in May when members discuss whether or not to extend the cuts further. Analysts say the short-to-mid term trading curve shows that most oil investors are still banking on a tighter oil market, and possibly a rebalance by end of this year due to the cuts. Steady demand growth in China and India will also help soak up a bulk of the surplus barrels. However, the negative trend seen in the futures curve beyond 2018 "could likely be a reflection of concerns over the prospects of future production curbs beyond OPEC's six months agreement term," said Barnabas Gan, an economist at OCBC. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--fell 55 points to $1.5231 a gallon, while March diesel traded at $1.6525, 42 points lower. ICE gasoil for March changed hands at $498.25 a metric ton, down $1.75 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Agreements; Futures; Crude oil prices
Location: United States--US Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1871328525
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1871328525?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Ease as U.S. Crude Stocks Rise Again; U.S. data showed crude stocks climbed for the seventh straight week to hit new records
Author: McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Feb 2017: n/a.
Abstract:
U.S. Energy Information Administration data published Thursday showed crude stocks increased for the seventh straight week to hit new records, though the 564,000 barrel rise was far short of the 3.4 million barrel addition anticipated by analysts and traders surveyed by The Wall Street Journal. The smaller-than-expected increase was largely due to sharply lower volumes of imported crude, potentially a sign that supply cuts by major oil exporters including members of the Organization of the...Full text: Oil prices eased Friday as still bloated U.S. supplies continued to weigh on prices. The selloff came just as it appeared crude prices were poised to break out of the narrow band they've traded in this year. Crude futures settled at their highest level since July 2015 on Thursday, but the rally lost some steam. "Every time it gets near $55, it stalls out a little bit," said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. On Friday, U.S. crude futures fell 46 cents, or 0.84%, to $53.99 a barrel on the New York Mercantile Exchange. Brent crude fell 59 cents, or 1.04%, to $55.99 on ICE Futures Europe. Last week, hedge funds and other big money managers increased their net long position--a bet on rising prices--in Brent crude oil to the highest level since records started in 2011, the Intercontinental Exchange Inc. said Monday. This mirrors the U.S., where funds have also recently raised their bullish bets to record highs. But that may limit upward momentum. "Is there more capacity to buy the market? Right now there might not be," said Andy Lebow, senior partner at Commodity Research Group. U.S. Energy Information Administration data published Thursday showed crude stocks increased for the seventh straight week to hit new records, though the 564,000 barrel rise was far short of the 3.4 million barrel addition anticipated by analysts and traders surveyed by The Wall Street Journal. The smaller-than-expected increase was largely due to sharply lower volumes of imported crude, potentially a sign that supply cuts by major oil exporters including members of the Organization of the Petroleum Exporting Countries are manifesting in the U.S., analysts said. "Last week, one of the main countries that imports fell from was Saudi Arabia so OPEC cuts are definitely a contributing factor," said Joseph Oyegoke, commodities economist at Capital Economics. A group of 20 oil producers, within OPEC and beyond, have reduced their production in the past month in line with a landmark output cut agreed last year aiming to reduce supply by 1.8 million barrels a day. A joint committee of OPEC and non-OPEC members monitoring the agreement said in a statement Friday that overall compliance with the targets set in the agreement is at 86%. But oil watchers say a rapid rise of U.S. shale oil could weaken producers' resolve to stick to the production cut pact beyond the initial six-month period. U.S. crude production, at 9 million barrels a day last week, was at its highest level since early April 2016, according to the EIA data. U.S. drillers have added rigs to the field for six straight weeks, including five more oil rigs in the latest week, according to oilfield services firm Baker Hughes Inc. "It is apparent that U.S. oil producers have turned the taps back on," said Phin Ziebell, a senior analyst at National Australia Bank. It remains to be seen how much longer the members will remain compliant under the looming threat of U.S. oil. A telling sign of the group's commitment level would be the outcome of OPEC's meeting in May when members discuss whether or not to extend the cuts. Gasoline futures fell 1.38 cents, or 0.9%, to $1.5148 a gallon. Diesel futures fell 1.63 cents, or 0.98%, to $1.6404 a gallon. Jenny Hsu contributed to this article Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Sarah McFarlane and Jenny W. Hsu
Subject: Stocks; Crude oil prices; Supply & demand
Location: United States--US Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1871484680
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1871484680?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
From Arab Sheiks to Dakota Frackers: The Oil Industry's Go-To Analyst; Energy economist Gary Ross brags 'I know everybody' in the business
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Feb 2017: n/a.
Abstract:
An energy economist who got his start in New York during a tumultuous period for oil in the 1970s, Mr. Ross today boasts a personal network that spans the globe: from the Saudi royal family to west Texas wildcatters to Wall Street oil traders.The 68-year-old founder of consulting firm PIRA Energy Group relies on that extensive contact list to inform his monthly oil price forecasts.Scott Sheffield, the recently retired chief executive of oil-and-gas company Pioneer Natural Resources, said Mr. Ross's forecasts helped convince him in early 2014 to hedge against falling crude prices.When the Saudi state oil company later announced it was slashing prices to some customers, Mr. Ross said he knew the country was prioritizing market share over supporting prices.[...]what really separates his conclusions from rivals is the personal conversations with Chinese officials, OPEC chieftains or other industry players that may color his final views and forecasts--what Mark Schwartz, global head of analytic content for S&P Global Platts, calls "the non-quantifiable factors" that give PIRA an edge.In 1976, Mr. Ross helped start PIRA, a consulting business that grew out of the nonprofit Petroleum Industry Research Foundation.Full text: Nobody in the oil industry is better connected than Gary Ross. An energy economist who got his start in New York during a tumultuous period for oil in the 1970s, Mr. Ross today boasts a personal network that spans the globe: from the Saudi royal family to west Texas wildcatters to Wall Street oil traders. "I can pick up the phone and call anybody in this business, because I know everybody," he said. The 68-year-old founder of consulting firm PIRA Energy Group relies on that extensive contact list to inform his monthly oil price forecasts. His reports have become must reading for drillers, refiners, energy traders and most anyone else who makes a living based on the price of crude. Access to those insights can cost upward of $50,000 a year, current and former subscribers say. "I would not make a big play based on energy prices without talking to him," said Stanley Druckenmiller, a longtime investor and a former fund manager for billionaire George Soros. Scott Sheffield, the recently retired chief executive of oil-and-gas company Pioneer Natural Resources, said Mr. Ross's forecasts helped convince him in early 2014 to hedge against falling crude prices. That move made Pioneer about $1.8 billion when prices fell by more than half, Mr. Sheffield estimated. "He knows all the people, especially in the Middle Eastern countries," Mr. Sheffield said. "He's in contact with them continuously." It was that bearish 2014 forecast that some say elevated Mr. Ross to guru status. At a January meeting in Riyadh that year, Mr. Ross told Saudi officials they would have to dial back their production substantially if they wanted to keep global crude prices at $100 a barrel. Their chilly reaction was Mr. Ross's first indication that higher prices weren't necessarily the kingdom's top priority. When the Saudi state oil company later announced it was slashing prices to some customers, Mr. Ross said he knew the country was prioritizing market share over supporting prices. "That was the telltale sign," he said. Mr. Ross cashed in last year by selling his firm to the commodities data firm S&P Global Platts for an undisclosed sum. He now serves as the group's head of global oil. Mr. Ross said he has no plans to retire or even dial back his role. Some oil traders and analysts say his famously tight industry ties haven't always served him well. They suggest he may have gotten too close to some major players, clouding his judgment and making him potentially conflicted. Ed Morse, global head of commodities research at Citigroup, said PIRA's grasp of the markets is unparalleled. But Mr. Ross's often bullish take has been a "blind spot" that has blemished his record, he added. For one, Mr. Morse said PIRA often overestimates demand for crude. Even Mr. Ross's famous 2014 forecast didn't go entirely as he predicted. By mid-2015, as prices hit $60 a barrel, Mr. Ross said a "full-blown" rebound was under way. He later predicted prices would rise to $75 a barrel in 2017. Instead, crude prices fell again, forcing him to walk back his rosy forecast. Mr. Ross said he was caught off guard by the shifting winds of the economy that year, but pivoted quickly to call the market's slide to $26 in early 2016. He dismisses criticism that his forecasts have been overly positive, saying that he anticipated major downturns in 1986 and 2008. "Of course you're not going to get everything right," Mr. Ross said. Now Mr. Ross is once again optimistic. He has predicted that crude prices will reach $70 by the year's end as cutbacks by major exporters take effect. Mr. Ross said fundamentals drive most oil price action. He employs one of the largest teams in the industry to compile PIRA's own supply and demand estimates, dedicating up to 40 people when much of the industry has cut back. But what really separates his conclusions from rivals is the personal conversations with Chinese officials, OPEC chieftains or other industry players that may color his final views and forecasts--what Mark Schwartz, global head of analytic content for S&P Global Platts, calls "the non-quantifiable factors" that give PIRA an edge. PIRA's predictions, especially when delivered to a broad audience at its annual conference, can move the oil market. One trader recalled a few years ago watching prices tick up 50 cents as Mr. Ross spoke at one of these events and his comments scrolled across Twitter. Mr. Ross didn't seem destined for the oil patch. Born in Brooklyn, he received a doctorate in economics from the City University of New York where he wrote about the impact of off-track betting on track attendance. He nearly took a job in Lexington, Ky., in the horse-racing industry. But Mr. Ross determined there was more money to be made in energy, which was experiencing a period of rapid change. The Organization of the Petroleum Exporting Countries was asserting for the first time its power to set prices. The price controls implemented in the U.S. in the early 1970s were on their way to being lifted. Futures exchanges would soon begin offering oil contracts, a step toward making oil a financial investment. He began his career at the consulting firm run by Walter J. Levy, who many considered the dean of U.S. oil economists, then worked at a petrochemical consulting firm. In 1976, Mr. Ross helped start PIRA, a consulting business that grew out of the nonprofit Petroleum Industry Research Foundation. "I basically got on planes and flew around the world," Mr. Ross said. "The pitch was 'we can make you money.' Our advice pays for itself." Andrew Hall, one of the most high-profile oil traders, said he speaks with Mr. Ross every month, and sometimes several times a week when markets are in flux. Where many oil analysts can be afraid to take a stand, Mr. Ross "distills it down to basically a binary call on whether oil prices are going up or down," Mr. Hall said. "It requires a certain courage to do that." Others in the oil forecasting business see too much bravado. "Gary would be even more lovable," said Mr. Morse of Citigroup, "if he would admit that he's wrong sometimes." Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Wage & price controls; Petroleum industry; Crude oil prices; Consulting firms
Location: Riyadh Saudi Arabia Texas New York
People: Druckenmiller, Stanley F Soros, George
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: PIRA Energy Group; NAICS: 541618
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1871598074
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1871598074?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by Five, Baker Hughes Says; Gas rigs decline by two, while the offshore-rig count drops by one from last week to 17
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Feb 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by five in the past week to 602, according to oil-field services company Baker Hughes Inc., marking another week of increases. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. However, the rig count has generally been rising since summer. The nation's gas-rig count was down two to 151 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell by one from last week to 17, which is 10 fewer than a year ago. On Friday, weekly U.S. data showed crude inventories had grown as stocks of products including gasoline and distillates shrank. U.S. crude futures fell 33 cents, or 0.61%, to $54.12 a barrel on the New York Mercantile Exchange. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1871604933
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1871604933?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Industry's Go-To Analyst Says, 'I Know Everybody' --- From Arab sheiks to West Texas wildcatters, Gary Ross's extensive contact list informs his must-read price forecasts
Author: Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]25 Feb 2017: B.1.
Abstract:
An energy economist who got his start in New York during a tumultuous period for oil in the 1970s, Mr. Ross today boasts a personal network that spans the globe: from the Saudi royal family to West Texas wildcatters to Wall Street oil traders. When the Saudi state oil company later announced it was slashing prices to some customers, Mr. Ross said he knew the country was prioritizing market share over supporting prices.
Full text: Nobody in the oil industry is better connected than Gary Ross. An energy economist who got his start in New York during a tumultuous period for oil in the 1970s, Mr. Ross today boasts a personal network that spans the globe: from the Saudi royal family to West Texas wildcatters to Wall Street oil traders. "I can pick up the phone and call anybody in this business, because I know everybody," he said. The 68-year-old founder of consulting firm PIRA Energy Group relies on that extensive contact list to inform his monthly oil-price forecasts. His reports have become must reading for drillers, refiners, energy traders and almost anyone else who makes a living based on the price of crude. Access to those insights can cost upward of $50,000 a year, current and former subscribers say. "I would not make a big play based on energy prices without talking to him," said Stanley Druckenmiller, a longtime investor and a former fund manager for billionaire George Soros. Scott Sheffield, the recently retired chief executive of oil-and-gas company Pioneer Natural Resources, said Mr. Ross's forecasts helped convince him in early 2014 to hedge against falling crude prices. That move made Pioneer about $1.8 billion when prices fell by more than half, Mr. Sheffield estimated. "He knows all the people, especially in the Middle Eastern countries," Mr. Sheffield said. "He's in contact with them continuously." It was that bearish 2014 forecast that some say elevated Mr. Ross to guru status. At a January meeting in Riyadh that year, Mr. Ross told Saudi officials they would have to dial back their production substantially if they wanted to keep global crude prices at $100 a barrel. Their chilly reaction was Mr. Ross's first indication that higher prices weren't necessarily the kingdom's top priority. When the Saudi state oil company later announced it was slashing prices to some customers, Mr. Ross said he knew the country was prioritizing market share over supporting prices. "That was the telltale sign," he said. Mr. Ross cashed in last year by selling his firm to the commodities-data firm S&P Global Platts for an undisclosed sum. He is now the group's head of global oil. Mr. Ross said he has no plans to retire or even dial back his role. Some oil traders and analysts say his famously tight industry ties haven't always served him well. They suggest he may have gotten too close to some major players, clouding his judgment and making him potentially conflicted. Ed Morse, global head of commodities research at Citigroup, said PIRA's grasp of the markets is unparalleled. But Mr. Ross's often bullish take has been a "blind spot" that has blemished his record, he added. For one, Mr. Morse said PIRA often overestimates demand for crude. Even Mr. Ross's famous 2014 forecast didn't go entirely as he predicted. By mid-2015, as prices hit $60 a barrel, Mr. Ross said a "full-blown" rebound was under way. He later predicted prices would rise to $75 a barrel in 2017. Instead, crude prices dropped again, forcing him to walk back his rosy forecast. Mr. Ross said he was caught off guard by the shifting winds of the economy that year, but pivoted quickly to call the market's slide to $26 in early 2016. "Of course, you're not going to get everything right," Mr. Ross said. Now Mr. Ross is once again optimistic. He has predicted that crude prices will reach $70 by year's end as cutbacks by major exporters take effect. Mr. Ross said fundamentals drive most oil-price action. He employs one of the largest teams in the industry to compile PIRA's own supply-and-demand estimates, dedicating as many as 40 people when much of the industry has cut back. But what really separates his conclusions from rivals are the personal conversations with Chinese officials, OPEC chieftains or other industry players that may color his final views and forecasts. PIRA's predictions, especially when delivered to a broad audience at its annual conference, can move the oil market. One trader recalled a few years ago watching prices tick up 50 cents as Mr. Ross spoke at one of these events and his comments scrolled across Twitter. Mr. Ross didn't seem destined for the oil patch. Born in Brooklyn, he received a doctorate in economics from the City University of New York, where he wrote about the impact of off-track betting on track attendance. He nearly took a job in Lexington, Ky., in the horse-racing industry. But Mr. Ross determined there was more money to be made in energy, which was experiencing a period of rapid change. The Organization of the Petroleum Exporting Countries was asserting its power to set prices. Price controls implemented in the U.S. in the early 1970s were on their way to being lifted. Futures exchanges would soon begin offering oil contracts. In 1976, Mr. Ross helped start PIRA, a consulting business that grew out of the nonprofit Petroleum Industry Research Foundation. "I basically got on planes and flew around the world," Mr. Ross said. "The pitch was 'we can make you money.' Our advice pays for itself." Some in the oil-forecasting business see too much bravado. "Gary would be even more lovable," said Mr. Morse of Citigroup, "if he would admit that he's wrong sometimes." --- Gary Ross 68 years old Professional History 1970: Walter J. Levy Consultants Corp. 1972: Chem Systems Inc. 1976: Launched PIRA Energy Group 2016: Sold PIRA to S&P Global Platts Member of the Council on Foreign Relations Education 1969: Long Island University, B.A. 1970: City College of New York, M.A. in economics 1974: The City University of New York, Ph.D. in economics Credit: By Alison Sider
Subject: Crude oil prices; Petroleum industry
Location: West Texas
People: Ross, Gary
Company / organization: Name: PIRA Energy Group; NAICS: 541618
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Feb 25, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: Feature
ProQuest document ID: 1871740193
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1871740193?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Suspect in Kim Jong Nam Killing Says Oil 'Prank' Earned Her $90; Siti Aisyah sticks to claim that she was playing a prank as part of a reality show
Author: Otto, Ben; Rachman, Anita
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Feb 2017: n/a.
Abstract:
KUALA LUMPUR, Malaysia--An Indonesian suspect in the attack on Kim Jong Nam said she was paid $90 to help apply a baby oil-like liquid to his face, which Malaysian police say contained a lethal nerve agent that killed the half brother of North Korea's dictator . Malaysian police have described Ms. Aisyah as a spa masseuse, and haven't offered details about how she became a part of the hit team that killed Mr. Kim. [...]several years ago, Ms. Aisyah, a 25-year-old from a small town in western Java , was working at a clothing store at a mall in Indonesia, making about $200 a month. The chemical is classified by the United Nations as a weapon of mass destruction and is lethal even in tiny doses. Write to Ben Otto at ben.otto@wsj.com Related Coverage * Malaysia to Sweep Kuala Lumpur Airport for Chemicals * Role of VX in Kim Jong...Full text: KUALA LUMPUR, Malaysia--An Indonesian suspect in the attack on Kim Jong Nam said she was paid $90 to help apply a baby oil-like liquid to his face, which Malaysian police say contained a lethal nerve agent that killed the half brother of North Korea's dictator . Siti Aisyah, in her first meeting with Indonesian officials after more than a week in detention in Kuala Lumpur, said Saturday she didn't know that the substance--subsequently identified by police as a banned, lethal nerve agent known as VX --was poisonous. Police believe Ms. Aisyah and another woman, Doan Thi Huong of Vietnam, applied the chemical to Mr. Kim's face on Feb. 13 in a three-second assault at Kuala Lumpur International Airport that was orchestrated by a group of North Korean men. Mr. Kim died shortly afterward. Ms. Aisyah told Indonesian officials she thought she was playing a prank as part of a reality show, said Andreano Erwin, deputy chief of mission at the Indonesian embassy after a 30-minute meeting with her. Malaysia police have expressed skepticism about that claim , saying both women involved appeared to be well-trained for the act. Both Ms. Aisyah and Ms. Huong left the airport soon after the assault. "She just said that she was given some kind of oil, like baby oil," Mr. Erwin said. "She didn't know about [the poison]; that's the answer from her." Vietnamese diplomats on Saturday also visited Ms. Huong, 28 years old, for the first time, saying she offered a similar explanation for her role in the hit. Ms. "Huong said she was duped and thought she was playing in a funny movie clip," Vietnam's Foreign Ministry told The Wall Street Journal in a statement. Government representatives of both countries on Saturday confirmed for the first time the identities of both women. Ms. Aisyah, Ms. Huong and a male North Korean resident of Kuala Lumpur are being detained by Malaysian authorities, who say at least seven other North Koreans are suspects in the case. Police have until next week to file charges. Mr. Erwin said Ms. Aisyah told Indonesian officials that men with Japanese or Korean appearances, and names name like James and Chang, asked her to carry out the act, and that she was paid about 400 Malaysian ringgit ($90). One of the seven suspects Malaysia is seeking is Ri Ji U, a 30-year-old North Korean who police say is also known as James. Selangor Police Chief Abdul Samah Mat said separately Saturday that among the North Korean suspects at large, Mr. Ri is the only one they haven't been able to trace. Four suspects fled Malaysia on the day of the attack, while police believe at least two others--including a North Korean Embassy official--remain in the country. Malaysian police have described Ms. Aisyah as a spa masseuse, and haven't offered details about how she became a part of the hit team that killed Mr. Kim. Until several years ago, Ms. Aisyah, a 25-year-old from a small town in western Java , was working at a clothing store at a mall in Indonesia, making about $200 a month. But she has traveled extensively in Asia since then, people with knowledge of the matter told the Journal. Government representatives of both Indonesia and Vietnam suggested Saturday that Ms. Aisyah and Ms. Huong were in good health and didn't seem to be suffering any ill effects from VX exposure. The chemical is classified by the United Nations as a weapon of mass destruction and is lethal even in tiny doses. On Friday, Malaysian police said one of the two women had vomited after the assault. Later Saturday, 12 days after Mr. Kim was killed, Malaysia announced an inspection of the airport terminal where he was exposed to VX, bringing in specialists to search for traces of hazardous materials early Sunday morning. VX in liquid form can linger for days. Tens of thousands of travelers pass through terminal daily. Airport managers say there have been no reports at its medical center of ill health related to the chemical. Mr. Abdul Samah, the Selangor police chief, said Malaysian specialists are continuing to analyze whether other chemicals were used in the assault. He said police haven't determined whether the VX nerve agent was brought into Malaysia or made locally. Yantoultra Ngui in Kuala Lumpur and Vu Trong Khanh in Hanoi contributed to this article. Write to Ben Otto at ben.otto@wsj.com Related Coverage * Malaysia to Sweep Kuala Lumpur Airport for Chemicals * Role of VX in Kim Jong Nam's Death Raises Global Alarm * A Firsthand Account of a VX Attack * VX Nerve Agent Is Among World's Most Deadly * North Korea Mocks China for 'Dancing to U.S. Tune' * What Killing? North Korea Pushes Alternative Storyline * How the Hit Team Came Together to Kill Kim Jong Nam * North Korean Embassy Official Sought in Killing * Kim Jong Un Ordered Half Brother Killed, South Korean Spy Chief Says Credit: By Ben Otto and Anita Rachman
Subject: Biological & chemical weapons; Diplomatic & consular services
Location: Malaysia North Korea Selangor Malaysia Indonesia
Company / organization: Name: Kuala Lumpur International Airport; NAICS: 488119
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 25, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1871773996
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1871773996?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices See Modest Gains; Downside Pressure Remains; April Brent crude on London's ICE Futures exchange rose $0.18 to $56.17 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Feb 2017: n/a.
Abstract:
The Organization of the Petroleum Exporting Countries and almost a dozen other oil producing nations such as Russia, reached an agreement in December to slash their output by 1.8 million barrels a day in order to eliminate at least 2% of global oil supply. For this week, oil traders will be eyeing the weekly U.S. crude inventories and production report as well as the China's February manufacturing figures as a gauge for global oil supply...Full text: Crude futures drifted marginally higher in Asia Monday, but trading was largely tepid as investors saw little reason to rush back to the market. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $54.11 a barrel at 0258 GMT, up $0.12 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.18 to $56.17 a barrel. "Oil traders were like rabbits in the headlight this morning as they are unsure of the short term direction of the market," said Michael McCarthy, chief strategist at CMC Markets. Oil prices have been facing strong resistance at the high $50s, frustrated by the steady increase in U.S. oil production. Last week, the number of active oil rigs in the U.S. rose by another five to a total of 602, according to oil-field service company Baker Hughes. The climb in oil rigs count comes at a time when U.S. production is nearly at a one-year high. In the week ended February 17, U.S. shale producers pumped 9 million barrels a day, the highest level since April. Assuming the U.S. oil rig count stays at current levels, oil production there would see an on-year increase of 435,000 barrels a day in the fourth quarter this year across the Permian, Eagle Ford, Bakken and Niobrara shale plays, said Goldman Sachs. The expected increase in U.S. oil output is "hardly a surprise" as American producers are taking advantage of the rising prices due to the continuing production cuts undertaken by a group of non-U.S. producers, said Mr. McCarthy. The Organization of the Petroleum Exporting Countries and almost a dozen other oil producing nations such as Russia, reached an agreement in December to slash their output by 1.8 million barrels a day in order to eliminate at least 2% of global oil supply. Though the current pace of U.S. growth is still insufficient to derail OPEC's plan, U.S. shale producers are seen springing back to the oil patches to capitalize on the rising prices, said Stuart Ive, a client manager at OM Financial. For this week, oil traders will be eyeing the weekly U.S. crude inventories and production report as well as the China's February manufacturing figures as a gauge for global oil supply and demand. Both data are due to be released on Wednesday. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--fell 17 points to $1.5131 a gallon, while March diesel traded at $1.6388, 16 points lower. ICE gas oil for March changed hands at $496.00 a metric ton, up $1.50 from Friday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Crude oil; Supply & demand
Location: United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872062753
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872062753?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil Stockpile Weighs On Crude
Author: McFarlane, Sarah; Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 Feb 2017: B.10.
Abstract:
The smaller-than-expected increase was largely due to sharply lower volumes of imported crude, potentially a sign that supply cuts by major oil exporters including members of the Organization of the Petroleum Exporting Countries are manifesting in the U.S., analysts said.
Full text: Oil prices slid Friday as still-bloated U.S. supplies continued to weigh on prices. The selloff came just as it appeared crude prices were poised to break out of the narrow band in which they have traded this year. Crude futures settled at their highest level since July 2015 Thursday, but the rally lost some steam. "Every time it gets near $55, it stalls out a little bit," said John Saucer, vice president of research and analysis at Mobius Risk Group, Houston. On Friday, U.S. crude futures fell 46 cents, or 0.84%, to $53.99 a barrel on the New York Mercantile Exchange. Brent crude fell 59 cents, or 1%, to $55.99 on ICE Futures Europe. Hedge funds and other big money managers recently increased their net long position -- a bet on rising prices -- in Brent crude oil to the highest level since records started in 2011, Intercontinental Exchange Inc. said. This mirrors the U.S., where funds have also recently raised their bullish bets to records. But that may limit upward momentum. "Is there more capacity to buy the market? Right now there might not be," said Andy Lebow, senior partner at Commodity Research Group. U.S. Energy Information Administration data published Thursday showed crude stocks increased for a seventh week in a row to records, though the 564,000-barrel rise was far short of the addition of 3.4 million barrels anticipated by analysts and traders surveyed by The Wall Street Journal. The smaller-than-expected increase was largely due to sharply lower volumes of imported crude, potentially a sign that supply cuts by major oil exporters including members of the Organization of the Petroleum Exporting Countries are manifesting in the U.S., analysts said. Credit: By Sarah McFarlane and Alison Sider
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Feb 27, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872114327
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872114327?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Crude Prices End Higher as Investors Grapple With Production; Oil futures face strong resistance at high $50s per barrel
Author: Sider, Alison; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Feb 2017: n/a.
Abstract:
Investors have made record numbers of bets on rising oil prices on the expectation that the Organization of the Petroleum Exporting Countries and other major producers will continue to curtail production as they agreed to last year. Last week, the number of active U.S. oil rigs rose by another five to a total of 602, according to oil-field service company Baker Hughes Inc. "The action between the hot flows of speculative funds betting on higher...Full text: Crude prices pared gains but settled higher Monday as investors continued to weigh rising U.S. crude production against high levels of compliance with OPEC's production cut agreement. U.S. crude futures rose 6 cents, or 0.1%, to $54.05 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 6 cents, or 0.1%, to $55.95 a barrel on ICE Futures Europe. Investors have made record numbers of bets on rising oil prices on the expectation that the Organization of the Petroleum Exporting Countries and other major producers will continue to curtail production as they agreed to last year. But oil prices have been facing strong resistance at the high $50s per barrel, with price volatility falling to its lowest level in years. Prices have recently tested the upper limits of this year's narrow range but once again failed to break higher on Monday. "I'm a little skeptical that the market has enough strength to break out of its band that we've been in," said Gene McGillian, research manager for Tradition Energy, noting that U.S. stockpiles are still at record levels. With money managers and other speculative investors heavily weighted toward bets on rising prices, the market may be vulnerable to a rapid reversal if investors begin to lose confidence. "The spring is certainly coiled with this record speculative length--something's got to give," said John Kilduff, founding partner at Again Capital. "We're all on tenterhooks, with the bets laid as to which way this is going to go." And the prospect of rising U.S. production could undermine OPEC's efforts. Last week, the number of active U.S. oil rigs rose by another five to a total of 602, according to oil-field service company Baker Hughes Inc. "The action between the hot flows of speculative funds betting on higher prices in spite of the consistent increases in rig counts has a bit of the 'Tortoise and the Hare' feel about it," analysts at TAC Energy wrote in a research note Monday. "It's relatively easy for speculators to jump in on the hot bet of rising oil prices, but will the slow-and-steady ramp-up in U.S. production ultimately win the race?" The resurgence of U.S. shale oil is the main anchor holding oil prices in the current trading window, according to Bjarne Schieldrop from the Stockholm-based SEB bank. The analyst said that while it is clear OPEC's "medicine" was working, the U.S. oil sector's resurgence was still the issue troubling investors. The climb in the rig count comes as U.S. production is nearly at a one-year high. In the week ended Feb. 17, U.S. shale producers pumped nine million barrels a day, the highest level since April. Assuming the U.S. oil rig count stays at current levels, oil production there would see a year-over-year increase of 435,000 barrels a day in the fourth quarter across the Permian, Eagle Ford, Bakken and Niobrara shale formations, Goldman Sachs said. The expected increase in U.S. oil output is "hardly a surprise" as American producers are taking advantage of rising prices resulting from the continuing production cuts undertaken by a group of non-U.S. producers, said Michael McCarthy, chief market strategist at CMC Markets. Gasoline futures rose 1.79 cents, or 1.2%, to $1.5327 a gallon. Diesel futures rose 0.05 cent, or 0.03%, to $1.6399 a gallon. Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Alison Sider and Kevin Baxter
Subject: Petroleum production; Crude oil prices; Price increases; Crude oil
Location: United States--US Germany
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872194170
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872194170?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mexico Registers $3.29 Billion Trade Deficit in January; Oil prices rose, lifting both exports and imports of the commodity
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Feb 2017: n/a.
Abstract:
About 80% of Mexico's exports go to the U.S. Petroleum exports jumped 74.4% to $1.87 billion as average crude oil prices nearly doubled to $45.35 a barrel, although that was offset by a 59.6% increase in petroleum imports as the cost of foreign gasoline and other fuels also rose.Full text: MEXICO CITY--Mexico ran up a trade deficit of $3.29 billion in January, similar to the year-ago gap as oil prices rose from a year before, pushing up both exports and imports of petroleum. Total exports in the first month of the year rose 11.4% from January of 2016 to $27.49 billion, while imports were 10% higher at $30.79 billion, the National Statistics Institute said Monday. About 80% of Mexico's exports go to the U.S. Petroleum exports jumped 74.4% to $1.87 billion as average crude oil prices nearly doubled to $45.35 a barrel, although that was offset by a 59.6% increase in petroleum imports as the cost of foreign gasoline and other fuels also rose. State oil company Petróleos Mexicanos exported 1.09 million barrels a day of crude oil, down from 1.12 million barrels a day in January 2016. Trade in petroleum accounted for $1.5 billion of the $3.29 billion January deficit, and non-petroleum goods for $1.79 billion. Exports of manufactured goods rose 7.7% from a year before to $23.83 billion, with auto exports up 4.4% and shipments of other factory goods up 9.7%. That was offset by higher imports of intermediate goods used in production processes, which rose 11.1% to $23.4 billion. The weaker Mexican peso , which touched new lows against the U.S. dollar in January, continued to limit imports of non-petroleum consumer goods. Those imports fell 5.2% to $2.89 billion, while imports of equipment and machinery rose 4.4%. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Subject: International trade; Crude oil prices; Trade deficit
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 27, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872235012
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872235012?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
A New Way to Look at Crazy Stock Valuations; Valuations have been inflated by a collapse in profits for oil companies
Author: Mackintosh, James
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Feb 2017: n/a.
Abstract:
[...]it may also be messing with the heads of investors by pushing the most popular tool for U.S. stock-market valuation to the highest in more than a decade. Yet, the valuation has been inflated by a collapse in profits for oil companies . Because analysts expect little in the way of earnings over the next year, but a recovery later, the ratio of price to year-ahead earnings for oil stocks is elevated. The Federal Reserve...Full text: The swinging price of oil has played havoc with forecasts for the economy and inflation over the past two years. Now it may also be messing with the heads of investors by pushing the most popular tool for U.S. stock-market valuation to the highest in more than a decade. The S&P 500 stands at almost 18 times estimated operating earnings, the highest forward PE ratio since 2004 and a figure which was higher before that only during the late 1990s dot-com bubble and its aftermath. Yet, the valuation has been inflated by a collapse in profits for oil companies . Because analysts expect little in the way of earnings over the next year, but a recovery later, the ratio of price to year-ahead earnings for oil stocks is elevated. The energy sector stands at more than 30 times Thomson Reuters IBES's estimate of operating earnings over the next 12 months, higher than any time from when the sector data started in 1995 up to last year--when it briefly reached an extreme of almost 60 times. There are other reasons to think future returns from stocks might be low, but investors who rely on the overall valuation of the index as a signal for future returns would be misled if they ignored the collapse in oil-sector profits. Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, puts the overall market at 18.1 times this year's estimated operating earnings. When the energy sector--containing six of the seven S&P companies forecast to lose money this year--is excluded, the forward PE stands at 16.6, a much less frightening figure. There are lots of ways to compute the forward PE, and the gap is slightly narrower on IBES figures used by Société Générale's quantitative equity team. But either way, valuations are lower when the oil sector is stripped out, and look little different to two years ago. There are both conceptual and practical objections to taking this as a signal that stocks are at a reasonable level. The conceptual problem is that it looks like manipulation of the figures to justify buying shares, a practice with a long and dishonorable history on Wall Street. In reality, whether to include or exclude the oil sector amounts to a question about whether its profits will recover. If oil prices and profits plunge again, then the sector is truly expensive, and it should be included in the overall figures. Excluding energy from valuations amounts to an assumption that oil sector profits will recover, implying prices won't fall much below $50 a barrel. The practical issue is more worrying. Even without energy, valuations are pretty high. Stocks were expensive two years ago and are still expensive today, with valuations high compared with most of history. Investors are pricing in a lot of good news for earnings, notably U.S. corporate tax cuts, and not a lot of bad news. The main explanation for pricey shares is the same as it was two years ago, too. Low interest rates tend to lead to higher valuations, since the same future profits are worth more when discounted back into today's money. Profit margins are elevated by cheap debt, and investors think that will continue. The Federal Reserve may have started raising U.S. interest rates, but it has barely kept up with the rise in inflation, and investors expect money to remain easy pretty much forever. If today's market is a bubble, it is a particularly joyless one. Cheap money has pushed every sector to be pricey, but none to be extraordinary. Indeed, the most expensive sector after energy is consumer staples, made up of boring-but-reliable earners. We're promised news on Donald Trump's "phenomenal" tax cut in his speech Tuesday, which could reverse at least some of the postelection stock rally if the corporate tax plans disappoint. The real threat to valuations, though, would come if it looked like inflation was running out of control, and the Fed were forced to get serious with rate increases. Investors expect oil to stay calm, energy-sector profits to recover and inflation to be subdued. If any of those turn out to be wrong, high valuations may yet be a problem. Write to James Mackintosh at James.Mackintosh@wsj.com Related * Bond Market Is Flashing Warning Signal on Trump Reflation Trade Credit: By James Mackintosh
Subject: Financial performance; Profit margins; Investments; Interest rates; Energy industry; Stock exchanges; Valuation
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspape rs
Language of publication: English
Document type: News
ProQuest document ID: 1872253668
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872253668?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
A New Way to Look at Crazy Stock Valuations; Valuations have been inflated by a collapse in profits for oil companies
Author: Mackintosh, James
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Feb 2017: n/a.
Abstract:
[...]it may also be messing with the heads of investors by pushing the most popular tool for U.S. stock-market valuation to the highest in more than a decade. Yet, the valuation has been inflated by a collapse in profits for oil companies . Because analysts expect little in the way of earnings over the next year, but a recovery later, the ratio of price to year-ahead earnings for oil stocks is elevated. The Federal Reserve...Full text: The swinging price of oil has played havoc with forecasts for the economy and inflation over the past two years. Now it may also be messing with the heads of investors by pushing the most popular tool for U.S. stock-market valuation to the highest in more than a decade. The S&P 500 stands at almost 18 times estimated operating earnings, the highest forward PE ratio since 2004 and a figure which was higher before that only during the late 1990s dot-com bubble and its aftermath. Yet, the valuation has been inflated by a collapse in profits for oil companies . Because analysts expect little in the way of earnings over the next year, but a recovery later, the ratio of price to year-ahead earnings for oil stocks is elevated. The energy sector stands at more than 30 times Thomson Reuters IBES's estimate of operating earnings over the next 12 months, higher than any time from when the sector data started in 1995 up to last year--when it briefly reached an extreme of almost 60 times. There are other reasons to think future returns from stocks might be low, but investors who rely on the overall valuation of the index as a signal for future returns would be misled if they ignored the collapse in oil-sector profits. Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, puts the overall market at 18.1 times this year's estimated operating earnings. When the energy sector--containing six of the seven S&P companies forecast to lose money this year--is excluded, the forward PE stands at 16.6, a much less frightening figure. There are lots of ways to compute the forward PE, and the gap is slightly narrower on IBES figures used by Société Générale's quantitative equity team. But either way, valuations are lower when the oil sector is stripped out, and look little different to two years ago. There are both conceptual and practical objections to taking this as a signal that stocks are at a reasonable level. The conceptual problem is that it looks like manipulation of the figures to justify buying shares, a practice with a long and dishonorable history on Wall Street. In reality, whether to include or exclude the oil sector amounts to a question about whether its profits will recover. If oil prices and profits plunge again, then the sector is truly expensive, and it should be included in the overall figures. Excluding energy from valuations amounts to an assumption that oil sector profits will recover, implying prices won't fall much below $50 a barrel. The practical issue is more worrying. Even without energy, valuations are pretty high. Stocks were expensive two years ago and are still expensive today, with valuations high compared with most of history. Investors are pricing in a lot of good news for earnings, notably U.S. corporate tax cuts, and not a lot of bad news. The main explanation for pricey shares is the same as it was two years ago, too. Low interest rates tend to lead to higher valuations, since the same future profits are worth more when discounted back into today's money. Profit margins are elevated by cheap debt, and investors think that will continue. The Federal Reserve may have started raising U.S. interest rates, but it has barely kept up with the rise in inflation, and investors expect money to remain easy pretty much forever. If today's market is a bubble, it is a particularly joyless one. Cheap money has pushed every sector to be pricey, but none to be extraordinary. Indeed, the most expensive sector after energy is consumer staples, made up of boring-but-reliable earners. We're promised news on Donald Trump's "phenomenal" tax cut in his speech Tuesday, which could reverse at least some of the postelection stock rally if the corporate tax plans disappoint. The real threat to valuations, though, would come if it looked like inflation was running out of control, and the Fed were forced to get serious with rate increases. Investors expect oil to stay calm, energy-sector profits to recover and inflation to be subdued. If any of those turn out to be wrong, high valuations may yet be a problem. Write to James Mackintosh at James.Mackintosh@wsj.com Related * Bond Market Is Flashing Warning Signal on Trump Reflation Trade Credit: By James Mackintosh
Subject: Financial performance; Profit margins; Investments; Interest rates; Energy industry; Stock exchanges; Valuation; Corporate taxes
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872350183
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872350183?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Trends Higher But Pressure Remains; April Brent crude on London's ICE Futures exchange rose $0.18 to $56.11 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Feb 2017: n/a.
Abstract:
U.S. oil producers, once banned from selling their products abroad, are expected to boost their exports in the coming years. [...]with domestic demand growth near flat, U.S. crude inventories remains bloated, albeit expanding at a slower pace. For now, many commodities traders are awaiting U.S. President Donald Trump's speech at the Congress Tuesday evening in Washington, D.C. He is expected to touch on plans for overhauling the tax code, boosting defense spending, and revamping the...Full text: Oil prices crept higher in Asia Tuesday in thin volume as market players held back their bets ahead of more data points to trade on. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $54.15 a barrel at 0156 GMT, up $0.10 in the Globex electronic session. April Brent crude on London's ICE Futures exchange rose $0.18 to $56.11 a barrel. Oil prices made scant gains overnight on signs that participants in an Organization of the Petroleum Exporting Countries-led production cut agreement are fulfilling their pledges. A Russian news agency Tass reported that Russia, a heavyweight oil producer that joined the pact, is expected to show a 117,000 barrel reduction in February from the previous month. Compliance to the production agreement is proving both a boon and bane for the oil market. Data so far shows a 90% compliance rate, reinforcing views that the supply will be become tighter under this plan. "With the prospect of OPEC extending the current cuts even longer, we would expect to see prices continue to push higher from here," ANZ said in a note. However, as the six-month production pact has only been in force since January, some market observers are skeptical how much longer would the members stay committed to the agreed. In the past, commitment by cartel members has flamed out when oil prices edged higher or when they felt their market share was being threatened. This concern is well warranted given that shale production in the U.S. is increasing and producers there are undertaking cheaper and more efficient methods to crank up production. U.S. oil producers, once banned from selling their products abroad, are expected to boost their exports in the coming years. Moreover, with domestic demand growth near flat, U.S. crude inventories remains bloated, albeit expanding at a slower pace. Citi Futures forecasts U.S. crude stocks grew by 3 million barrels for the week ended February 24. If confirmed by the U.S. Energy Department on Wednesday, the build would be far below the 10.4 million barrels seen in the same week last year, but "still enough to remind the market that inventories are in a seasonal uptrend that could have another two months to run." For now, many commodities traders are awaiting U.S. President Donald Trump's speech at the Congress Tuesday evening in Washington, D.C. He is expected to touch on plans for overhauling the tax code, boosting defense spending, and revamping the health insurance system. Nymex reformulated gasoline blendstock for March--the benchmark gasoline contract--was unchanged at $1.5327 a gallon, while March diesel traded at $1.6425, 26 points higher. ICE gas oil for March changed hands at $497.25 a metric ton, unchanged from Monday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Futures; Crude oil prices; Price increases; Supply & demand
Location: Russia United States--US Asia
People: Trump, Donald J
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872355415
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872355415?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices End Lower on Creeping Production; February the 'dullest' month for oil prices since 2003
Author: Sider, Alison; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Feb 2017: n/a.
Abstract:
February has been the "dullest" month for oil prices since 2003, analysts at Mizuho wrote Tuesday, with crude futures trading in a $3.72 range, with the prospect of rising U.S. oil production limiting potential price increases. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2.5-million-barrel increase in crude supplies, a 1.8-million-barrel rise in gasoline stocks and a 3.7-million-barrel decrease in distillate inventories, according to...Full text: Crude prices pared losses but remained within their recent narrow trading band Tuesday as high levels of oil inventories in the U.S. continued to weigh on the market. U.S. crude futures settled down 4 cents, or 0.07%, at $54.01 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 34 cents, or 0.61%, to $55.59 a barrel on ICE Futures Europe. February has been the "dullest" month for oil prices since 2003, analysts at Mizuho wrote Tuesday, with crude futures trading in a $3.72 range, with the prospect of rising U.S. oil production limiting potential price increases. Even as oil prices have remained wedged in a narrow band, investors have piled into a record number of bets that prices will rise, and many are anticipating that oil's next big move will be upward, especially if OPEC and other major exporters agree to extend their production-cut agreement. "The guessing game is in full swing as which direction oil prices will break out of their current range. It is fair to say the voice of those who are expecting higher prices in the coming months is louder than that of their rivals," the brokerage PVM wrote in a note Tuesday. But the large number of bullish bets presents its own risks to prices, analysts said. "The high degree of speculative interest is hanging over oil prices like the sword of Damocles," analysts at German's Commerzbank said Tuesday. "If financial investors were to unwind their positions, a sharp fall in prices would be on the cards." Market participants are awaiting data on U.S. crude production and inventory levels, due from the U.S. Department of Energy on Wednesday. Analysts and traders surveyed by The Wall Street Journal are anticipating that crude supplies rose by 2.4 million barrels last week. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2.5-million-barrel increase in crude supplies, a 1.8-million-barrel rise in gasoline stocks and a 3.7-million-barrel decrease in distillate inventories, according to a market participant. Crude futures pared losses earlier in the day, when they were trading down more than 1%, amid reports that the Trump administration was preparing to change a provision of a federal mandate requiring ethanol to be blended into gasoline. The change would relieve refiners of their obligation to buy renewable fuel blending credits. The price of those credits plunged and "came right out of the product margins" when it appeared the program was poised to change, said Andy Lipow, president of Lipow Oil Associates in Houston. The prospect of a change set off a domino effect, pulling down gasoline prices and crude prices, analysts said. Brokers said the price declines reversed later in the day when the administration said it wasn't readying an order to restructure the program. Gasoline futures settled down 2.07 cents, or 1.35%, to $1.4949 a gallon. Diesel futures fell 1.91 cents, or 1.16%, to $1.6208 a gallon. Amy Harder and Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Alison Sider and Kevin Baxter
Subject: Petroleum production; Price increases
Location: Russia United States--US Germany Washington DC
People: Trump, Donald J
Company / organization: Name: Congress; NAICS: 921120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872479623
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872479623?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribut ion is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BP Sets Break-Even Target at $35 a Barrel; British oil firm plans growth, cuts to lower break-even price from current $60 a barrel
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Feb 2017: n/a.
Abstract:
The company said it expects a future in which oil supply is abundant even as demand for cleaner energy sources is expected to increase, though it expects oil demand to continue to grow out to 2035.According to Jefferies, Royal Dutch Shell PLC, Exxon Mobil Corp. and Chevron Corp can all break even this year at under $50 a barrel.Full text: LONDON--BP PLC on Tuesday laid out plans to drive its break-even oil price down to $35 to $40 a barrel by 2021, asserting that it can grow again and keep a lid on spending despite a massive bill from its Gulf of Mexico disaster six years ago. In a strategic update that detailed the company's plans for the next five years, the British oil giant said it expects to increase production by an average of 5% a year from 2016 to 2021 without expanding its capital budget above its current $17 billion ceiling. By 2021, the company expects its exploration and production unit to generate free cash flow of $13 billion to $14 billion at oil prices around current levels, above $55 a barrel on the ICE futures exchange recently. This year the company expects to need oil prices at $60 a barrel just to break even. "You have a company that is getting back to growth--growth today, growth in the medium term, and growth over the very long term," Chief Executive Bob Dudley told investors. It is a narrative the company is emphasizing after years spent retrenching following its fatal 2010 blowout in the Gulf of Mexico, coupled with a dramatic decline in oil prices since 2014. It remains burdened by the fallout from the disaster in the Gulf, which killed 11 workers, spewed millions of barrels of oil into the ocean and has already cost nearly $63 billion. Over the past six years, BP has sold off roughly $75 billion worth of assets, slashed spending and worked to bring down costs to cope with the dual challenges of its Gulf of Mexico liabilities and slumping oil prices. Management said those changes and progress still to come leave the company well positioned to grow and compete in a challenging market. The company said it expects a future in which oil supply is abundant even as demand for cleaner energy sources is expected to increase, though it expects oil demand to continue to grow out to 2035. The company's new oil-price break-even goal of $35 to $40 a barrel contrasts with its current predicament. BP said in early February that it had to raise its break-even oil price to $60 a barrel, and Jefferies, the investment bank, says it is actually higher than $69 a barrel, the highest among the big Western oil companies. According to Jefferies, Royal Dutch Shell PLC, Exxon Mobil Corp. and Chevron Corp can all break even this year at under $50 a barrel. "We're building a company that is competitive in a low-price environment," Mr. Dudley said. "We want to be invested in the best projects in the best basins." Capital discipline and rigorous cost efficiency remain company buzzwords. BP says new projects now through 2020 are expected to generate 35% more cash than the average BP development just two years ago. Its refining and marketing arm is targeting returns of around 20% by 2021 and free-cash-flow generation of $9 billion to $10 billion. More than 200,000 barrels a day of additional oil and gas production is expected by the end of the decade from recent acquisitions--primarily a long-term interest in low-cost oil in Abu Dhabi--that top BP executive Bernard Looney described as "not-to-be-missed" opportunities. Write to Sarah Kent at sarah.kent@wsj.com Read More * Energy Companies Face Crude Reality: Better to Leave It in the Ground * BP Needs Oil to Rise to $60 to Break Even * Big Oil Firms Look to Save, While Smaller Upstarts Want to Spend Credit: By Sarah Kent
Subject: Crude oil prices; Energy industry
People: Dudley, Bob
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 28, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872640182
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872640182?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Stocks Seen Increasing in DOE Data
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Feb 2017: n/a.
Abstract:
U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a...Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 11 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 2.4 million barrels, on average, in the week ended Feb. 24. Nine analysts expect stockpiles to rise and two expect them to fall. Forecasts range from a decrease of 1 million barrels to an increase of 4.5 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show a decrease of 1.6 million barrels on average, according to analysts. Estimates range from a decrease of 2.7 million barrels to a decrease of 600,000 barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 900,000 barrels. One analyst expects an increase and 10 expect a decrease. Forecasts range from a decline of 3 million barrels to an increase of 1 million barrels. Refinery use is seen increasing 0.4 percentage point for the week at 84.7% of capacity, based on EIA data. Six analysts expect an increase, four expect a decrease, and one didn't report expectations. Forecasts range from a decrease of 0.5 point to an increase of 1.7 points. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2.5-million-barrel increase in crude supplies, a 1.8-million-barrel rise in gasoline stocks and a 3.7-million-barrel decrease in distillate inventories, according to a market participant. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Petroleum products; Price increases; Supply & demand
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Feb 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872640410
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872640410?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Caught Between U.S. Inventories Growth and OPEC Cut; May Brent crude on London's ICE Futures exchange rose $0.14 to $56.65 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2017: n/a.
Abstract:
Market observers say even though the current rise in U.S. crude oil output still lags behind the reductions made by producers from the Organization of the Petroleum Exporting Countries and Russia, the gap could shrink if U.S. production maintains its current rate. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2.5-million-barrel increase in crude supplies, a 1.8-million-barrel rise in gasoline stocks and a 3.7-million-barrel...Full text: Oil prices saw meager gains in Asia trade Wednesday as the growth in U.S. crude inventories offset the hope that the market is tightening as a result of production cuts in the Middle East and Russia. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $54.11 a barrel at 0234 GMT, up $0.10 in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $0.14 to $56.65 a barrel. Traders also largely stood on the sidelines ahead of U.S. President Donald Trump's first address to a joint congressional session, from which they will be seeking clarity on his new tax policy. "There is potential for border adjustment taxes (BAT) to be slapped on oil imports into the U.S.," said Gordon Kwan, the head of Asia oil and gas research at Nomura. If implemented, such move would raise the cost of imported oil, dealing a direct blow to Middle East suppliers. At the same time, American shale producers would also be more incentivized to pump more amid stronger domestic demand and higher prices. U.S. gasoline prices could jump as high as 10% if imported oil faces heavier taxes, Mr. Kwan said. "Signs that the U.S. shale industry is recovering weighed on the market," ANZ said in a report. "One of the biggest shale producers, EOG Resources said it had boosted its drilling budget by 44% after the recent rally in prices." Market observers say even though the current rise in U.S. crude oil output still lags behind the reductions made by producers from the Organization of the Petroleum Exporting Countries and Russia, the gap could shrink if U.S. production maintains its current rate. February has been the "dullest" month for oil prices since 2003, analysts at Mizuho wrote Tuesday, as investors are still unsure of when the market will return to a balance. Market participants are awaiting data on U.S. crude production and inventory levels, due from the U.S. Department of Energy later Wednesday. Analysts and traders surveyed by The Wall Street Journal are anticipating that crude supplies rose by 2.4 million barrels last week. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 2.5-million-barrel increase in crude supplies, a 1.8-million-barrel rise in gasoline stocks and a 3.7-million-barrel decrease in distillate inventories, according to a market participant. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell 110 points to $1.7184 a gallon, while April diesel traded at $1.6421, 22 points higher. ICE gas oil for March changed hands at $495.50 a metric ton, up $6.25 from Tuesday's settlement. Alison Sider contributed to this article. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Crude oil prices; Crude oil
Location: United States--US Asia
People: Trump, Donald J
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Department of Energy; NAICS: 926130; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872643467
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872643467?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Closes Lower; Prices have been caught between better-than-expected compliance in limiting production among OPEC members, and concerns over surge in activity from U.S. shale producers
Author: Yang, Stephanie; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2017: n/a.
Abstract:
Oil prices closed lower on Wednesday, as investors digested inventory data that did little to ease concerns over building supply in the U.S. Light, sweet crude for April delivery settled down 18 cents, or 0.3%, at $53.83 a barrel on the New York Mercantile Exchange, after trading as high as $54.44 following the most recent storage report. Oil prices have been caught between better-than-expected compliance in limiting production among members of the Organization of the...Full text: Oil prices closed lower on Wednesday, as investors digested inventory data that did little to ease concerns over building supply in the U.S. Light, sweet crude for April delivery settled down 18 cents, or 0.3%, at $53.83 a barrel on the New York Mercantile Exchange, after trading as high as $54.44 following the most recent storage report. Brent, the global benchmark, fell 15 cents, or 0.3%, to $56.36 a barrel. On Wednesday, the U.S. Energy Information Administration reported an increase of 1.5 million barrels in storage in the week ended Feb. 24, compared with estimates for an increase of 2.4 million barrels from analysts and traders surveyed by The Wall Street Journal. While the build in inventory was less than expected, the rise in storage took crude stockpiles to a record high of more than 520 million barrels. "It's a very, very mixed report," said Kyle Cooper, a consultant at ION Energy Group in Houston. "If you want to find some bullish...[or] bearish nuggets, you certainly can." Stocks of oil products also remain high, analysts noted. Gasoline inventories declined by 500,000 barrels, less than the expected 1.6 million barrels on average. Distillate inventories fell by 900,000 barrels, coming in line with analyst expectations. Oil prices have been caught between better-than-expected compliance in limiting production among members of the Organization of the Petroleum Exporting Countries, and concerns over a surge in activity from U.S. shale producers. "Let's face it, we've got a lot of crude oil and we're pumping it out like there's no tomorrow," said Mark Waggoner, president of brokerage Excel Futures. Mr. Cooper said he is more inclined to be bearish as U.S. oil production has risen to the highest in nearly a year. However, questions remain on how well OPEC will adhere to the agreement with other major producers to cut 2% of global output. "The market has been very, very choppy despite what appears to be pretty good OPEC compliance in February," he said. "[But] despite these high inventory levels, the market's not breaking down either." JBC Energy analysts estimate that OPEC crude production increased in February compared with the previous month, with a compliance rate of about 89%. Market observers say even though the current rise in U.S. crude oil output still lags behind the reductions made by OPEC and Russia, the gap could shrink if U.S. production maintains its current rate. According to oil field services firm Baker Hughes Inc., U.S. producers added five new oil rigs last week. That brings the total figure of active drilling rigs to 602, "the highest number since October 2015, "noted JBC Energy. Gasoline futures settled down 3% at $1.6780 a gallon, and diesel futures settled down 1% at $1.6241 a gallon. Jenny W. Hsu contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Stephanie Yang and Neanda Salvaterra
Subject: Petroleum production; Futures; Crude oil prices; Supply & demand
Location: Russia Saudi Arabia Angola Iraq Ecuador
Company / organization: Name: Department of Energy; NAICS: 926130; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: ICE Futures; NAICS: 523210; Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872778733
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872778733?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Eni Returns to Profit Amid Corruption Probe; Italian oil firm's CEO Claudio Descalzi seeks new mandate
Author: Sylvers, Eric
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2017: n/a.
Abstract:
MILAN--Eni SpA returned to profit in the fourth quarter and promised to continue asset sales and cost cuts, while its chief executive made his case for getting a new three-year term at the helm of the Italian oil-and-gas company. While most financial analysts have lauded Mr. Descalzi's guidance of Eni through the steep drop in oil prices since 2014, the executive's future is in doubt because he has been ensnared in a corruption probe with...Full text: MILAN--Eni SpA returned to profit in the fourth quarter and promised to continue asset sales and cost cuts, while its chief executive made his case for getting a new three-year term at the helm of the Italian oil-and-gas company. Chief Executive Claudio Descalzi, whose current term comes due in April, struck an upbeat tone as he presented the company's four-year strategic plan that is based on crude oil being little changed this year before rising about 25% by 2020. The Italian government owns 30% of Eni and appoints the CEO. There have been no indications yet on Mr. Descalzi's future. While most financial analysts have lauded Mr. Descalzi's guidance of Eni through the steep drop in oil prices since 2014, the executive's future is in doubt because he has been ensnared in a corruption probe with Italian prosecutors seeking to send him to trial for his alleged role in a controversial Nigerian deal. Mr. Descalzi denies any wrongdoing, and Eni's board has supported his bid for a new term as CEO, saying a company-commissioned investigation by an independent U.S. law firm into the allegations found the executive did nothing wrong. Prosecutors are also seeking a trial for other past and current Eni executives, all of whom have denied any wrongdoing. Eni's success under Mr. Descalzi, most recently as CEO and previously as the head of the company's exploration and production unit, is underpinned by one of the industry's best track records in finding new sources of oil and gas. Turning a profit on new fields can take years, but Eni has been able to quickly monetize its exploration success by selling stakes to other companies, something Mr. Descalzi said he plans to continue. "People were asking me in 2011, 2012, 2013 and every year since then if I can keep [the exploration success] going and every time I say this is my hope and focus," Mr. Descalzi told The Wall Street Journal. Eni, Italy's largest company by market value, said it will pay a dividend of 80 euro cents ($0.84) on 2017 results, the same as the company is paying for 2016. That ensures a payout of about [euro]3 billion for the Italian government, which is in a continual struggle to keep its deficit under control. As part of its four-year plan, Eni will reduce capital expenditure this year by 18% compared with 2016. Following asset sales of [euro]20 billion over the last four years, Eni is forecasting another [euro]5 billion-[euro]7 billion in disposals in the new plan. "We have shown that we can deliver growth even while reducing capex," Mr. Descalzi said, noting that as one of the major achievements of his three years running the company. Mr. Descalzi forecast that production of oil and gas would rise on average 3% a year through 2020. Eni's net profit was [euro]340 million in the three months to the end of December, compared with a loss of [euro]8.45 billion in the same period of 2015, when Eni took a large charge to realign the value of its oil inventories to the drop in crude prices. The results beat analysts' expectations, pushing its shares up 3% to [euro]14.96 each. Like its peers, Eni profited from stronger crude prices toward the end of last year, but improved results in the fourth quarter didn't overcome a weak start to 2016 and the company posted a full-year loss of [euro]1.46 billion, compared with a loss of almost [euro]9 billion in 2015. While the average price of Brent, the global benchmark, was 13% higher in the quarter compared with the same period of 2015, the full-year average price fell 17%. Eni forecast crude will average about $55-$60 a barrel for the rest of 2017 before rising in coming years to reach $70 a barrel by 2020. Brent Wednesday traded at $56 a barrel. Mr. Descalzi said Eni's overall business--including all units and the cash it pays out in dividends--breaks even with oil at $50 a barrel, while new oil and gas projects cover their costs with oil at $30 a barrel. Write to Eric Sylvers at eric.sylvers@wsj.com RELATED ARTICLES * Oil Prices Higher Ahead of U.S. Stockpile Data * BP Sets Break-Even Target at $35 a Barrel * Eni to Sell Egyptian Gas-Field Stake to Rosneft for $1.6 Billion (Dec. 12) Credit: By Eric Sylvers
Subject: Corporate profits; Success; Crude oil prices
Location: Italy
Company / organization: Name: Eni SpA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 1, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872789716
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872789716?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
A Surprising Clue About Oil Prices Today; Surging U.S. crude oil exports don't mean that OPEC is winning, but a shift in customers would
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2017: n/a.
Abstract:
The rising output of nimble U.S. shale oil producers is cited as evidence that the production cuts agreed to in November by the Organization of the Petroleum Exporting Countries and Russia will fail because the higher prices will bring on new supply. U.S. Gulf Coast refineries, meanwhile, mostly optimized for heavy, sour crudes, don't desire more of the rising supply of U.S. light crude. [...]according to Michael Tran, Director of Global Energy Strategy at RBC...Full text: The doubling in oil prices over the past year, aided by OPEC's output deal , has revived U.S. drilling and production. Now, the energy world is abuzz about a recent surge in American crude exports that would be unprecedented if sustained. The boost makes the U.S. a bigger exporter than even some members of OPEC and a close second to Saudi Arabia in overall production. The rising output of nimble U.S. shale oil producers is cited as evidence that the production cuts agreed to in November by the Organization of the Petroleum Exporting Countries and Russia will fail because the higher prices will bring on new supply. But such analysis may be too simple. Instead, some sophisticated oil hands are watching the U.S. closely for a signal that the cuts are really working. Rather than looking just at supply, one has to look where the crude is going. The boost in U.S. production would have been stranded were it not for the lifting of an export ban by the Obama administration a little over a year ago, which has given extra barrels a place to go. In economist-speak, the U.S. is acting as an economic free rider on OPEC's efforts to drive up prices. That is aided by another economic concept, fungibility, when a good is capable of mutual substitution. One less Saudi barrel plus one more U.S. barrel equals no change to supply. But oil isn't perfectly substitutable, and that is why where the oil goes says a lot about whether the OPEC production cuts will work and whether oil prices will rise or fall. Asia's thirst for light, sweet barrels from the Middle East that its refineries are best equipped to process has led it to Africa to replace the crude it was getting from the Middle East. That has led to a surge in long-distance shipments from the Atlantic Basin area that normally supplies Europe. U.S. Gulf Coast refineries, meanwhile, mostly optimized for heavy, sour crudes, don't desire more of the rising supply of U.S. light crude. Instead of flowing into storage, a substantial amount is now being shipped abroad. The U.S. exports aren't going to end users like refineries. Instead, according to Michael Tran, Director of Global Energy Strategy at RBC Capital Markets, the shipments of U.S. light crude largely are steaming toward global oil trading hubs such as Rotterdam and Singapore. The traders are hoping to take advantage of the roughly $2.60-a-barrel spread between the main U.S. benchmark crude and more expensive Brent. "Watching U.S. exports is really key," says Mr. Tran. "We still think the Atlantic Basin is oversupplied." He is waiting for the moment when U.S. oil is sought by end users, not traders. That is a sign that the extra supply is being soaked up and a signal that the impact of OPEC's cuts are being felt worldwide. In that situation, OPEC exporters would have greater pricing power and the price gap between U.S. and international benchmarks probably would narrow. That, in turn, would be a sign for higher oil prices globally. The process may take a while. Far from being a sign that OPEC is losing, though, rising U.S. exports should be watched closely for clues that it is succeeding. Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Petroleum refineries; Shipments; US exports; Crude oil prices
Location: Africa Middle East Russia Asia Saudi Arabia Europe Singapore
Company / organization: Name: RBC Capital Markets; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 1, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872893335
Document URL: https://login.ezproxy.uta.edu/login?url=https: //search.proquest.com/docview/1872893335?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Crude Oil Inventories Rise Less Than Expected; Stockpiles increased by 1.5 million barrels
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. crude oil inventories increased less than forecast for the week ended Feb. 24 as refinery activity picked up speed, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles increased by 1.5 million barrels to 520.2 million barrels, and are still above the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 2.4 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 495,000 barrels to 63.5 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 546,000 barrels to 255.9 million barrels. Analysts were expecting gasoline inventories to fall by 1.6 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 925,000 barrels to 164.2 million barrels, but remain above the upper limit of the average range, the EIA said. Earlier in the week, analysts had forecast supplies would decrease by 900,000 barrels from a week earlier. Refining capacity utilization rose by 1.7 percentage points from the previous week to 86%. Analysts were expecting utilization levels to rise by just 0.4 percentage point from the previous week. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Price increases; Supply & demand; Crude oil
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872893413
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872893413?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Mobil Turns to U.S. Shale Basins for Growth; Company plans to spend about a fourth of its 2017 budget drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2017: n/a.
Abstract:
Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company.Exxon's debt has risen as the company increased borrowing to pay for dividends, one of several factors that prompted Standard & Poor's Global Ratings last year to take away the triple-A credit rating it had held since the Great Depression.Identified years ago as a future leader through Exxon's meticulous process of winnowing its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work.Full text: Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future. The company plans to spend about a fourth of its 2017 budget--about $5.5 billion--drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells that can turn a profit at a price of $40 a barrel. The U.S. increasingly appears at the center of a burgeoning global revival after prices rebounded modestly and companies such as Exxon have improved in their ability to profit due to lower costs and feats of engineering. Yet unlike some peers that plan to keep investment roughly flat in future years, Exxon plans to increase spending to an average of $26 billion a year from 2018 to 2020. The company plans $22 billion in investments this year. "Our job is to compete and succeed in any market, irrespective of conditions or price," new Chief Executive Darren Woods said at Exxon's analyst meeting in New York. It is his first major appearance since taking over for Rex Tillerson, who stepped down to become President Donald Trump's secretary of state. "The ultimate prize in the Permian is significant," he said, noting that the land the company controls in the West Texas and New Mexico oil region may hold the equivalent of as much as 6 billion barrels of oil and natural gas. The company also plans to invest in Guyana, where it made a major discovery in 2015. He also warned that because shale drilling has the ability to ramp up more quickly than other kinds of production, it has the potential to "temper" price volatility. Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company. Debt has soared in recent years. Growth continues to be elusive. Returns in Exxon's oil-and-gas production business are at the lowest levels in decades. Activists are targeting the company over whether it concealed its prior knowledge of climate change, charges Exxon has denied and said are part of a conspiracy by antagonists to smear its reputation. Some investors meanwhile have grown enamored of smaller producers with a longer record of stopping and starting production on a dime in U.S. shale fields. That is a comedown from Exxon's exalted status a decade ago, when the company was a Wall Street darling, the biggest and most profitable publicly traded corporation in the world. In 2007, Exxon generated more than $40 billion in profits, then a record, most of which came from oil-and-gas drilling in many of the world's continents. The recent crash in oil prices has exposed weaknesses in a record of stable profits and returns that was once unimpeachable. Net income last year was $7.8 billion, the lowest since 1996, before Exxon bought rival Mobil Corp. for $82 billion in 1999. Exxon's debt has risen as the company increased borrowing to pay for dividends, one of several factors that prompted Standard & Poor's Global Ratings last year to take away the triple-A credit rating it had held since the Great Depression. Some analysts are urging Mr. Woods, whose rise at the company occurred within Exxon's sprawling network of refineries and chemical plants, to shake up the cloistered descendant of John D. Rockefeller's Standard Oil. Exxon has lost cachet among institutional investors in recent years: Most portfolios hold a smaller proportion of Exxon stock than its relative size in the S&P 500 index, according to Evercore ISI analyst Doug Terreson. This "underscores investor concern" over Exxon's strategy, Mr. Terreson wrote in February, arguing that the company should make returns a priority over growth, a move taken up by peers including Chevron Corp. and Royal Dutch Shell PLC. Many analysts believe Mr. Woods is the perfect person to put the company on a new course. Identified years ago as a future leader through Exxon's meticulous process of winnowing its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work. He helped lead an effort to sell refineries or gas stations that were less profitable and less interconnected with Exxon's other operations. As he occupied various leadership roles in those businesses, Exxon shaved off 1.3 million barrels a day of refining capacity, about a fifth of the total in 2007. The company sold off thousands of gas stations from Japan to Canada. Mr. Woods, a staunch advocate of "integration," or the effort to squeeze money from every aspect of the business--including producing, shipping, refining and processing oil and gas--turned to investments that would provide numerous options for turning a profit. Those include equipment allowing a refinery to process heavier crude that is cheaper than other grades, or making more chemicals or niche products that can be sold at a premium. Write to Bradley Olson at Bradley.Olson@wsj.com Related News * BP Sets Break-Even Target at $35 a Barrel Credit: By Bradley Olson
Subject: Petroleum refineries; Corporate profits; Institutional investments; Service stations; Natural gas
Location: North Dakota New Mexico New York United States--US Guyana West Texas
People: Trump, Donald J Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: New York Stock Exchange--NYSE; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 1, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1872893558
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872893558?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Fewer People at Risk for Man-Made Earthquakes, USGS Says; Drop may be due to stepped-up efforts in some states to regulate the underground disposal of wastewater from oil and gas drilling
Author: Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2017: n/a.
Abstract:
[...]wells, which bury the super-salty water produced when fossil fuels are pumped from the ground, have been linked to a sharp rise in earthquakes in states like Oklahoma and Texas, while a few quakes have also been linked to fracking operations.Oklahoma officials said Wednesday that the USGS forecast is encouraging but the state's earthquake risk clearly remains high, so regulators will continue to seek disposal well volume reductions in areas of quake activity.Full text: Fewer people in the central and eastern U.S. are now at risk from man-made earthquakes compared to a year ago, according to new maps identifying potential hazards by the U.S. Geological Survey. A 2017 forecast released Wednesday by the USGS shows that roughly 3.5 million people in the central and eastern parts of the country, primarily in Oklahoma and Kansas, live and work in areas with "significant potential for damaging shaking" because of man-made temblors. That is down from seven million people at risk in 2016 , the first year in which the USGS released maps estimating man-made as well as natural earthquake risks . Government scientists, who based their forecast on historic data, say the risk of quakes is lower this year because there were fewer felt quakes in 2016 than 2015. They said that drop may be due to stepped-up efforts in some states to regulate the underground disposal of wastewater from oil and gas drilling . Such wells, which bury the super-salty water produced when fossil fuels are pumped from the ground, have been linked to a sharp rise in earthquakes in states like Oklahoma and Texas, while a few quakes have also been linked to fracking operations. "This wastewater can weaken faults deep in the earth, causing them to rupture," said Mark Petersen, chief of the National Seismic Hazard Mapping Project at the USGS, which has concluded that wastewater disposal is the primary cause of man-made quakes . The USGS said decreased oil and gas production--the result of low energy prices--may also have contributed to the drop in earthquake risk. Its latest forecast shows the majority of people at risk of man-made quakes live in southern Kansas and Oklahoma, a big oil and gas producing area. Researchers say the danger of a damaging quake in central Oklahoma is similar to that of natural earthquakes occurring in high-hazard areas of California. Texas and north Arkansas also remained at "enhanced hazard" of man-made quakes, the USGS said, but the level of risk in those two states is significantly lower than forecast in 2016. Oklahoma experienced its strongest quake in September , when a 5.8 magnitude quake struck near Pawnee, a city about 55 miles northwest of Tulsa. Oklahoma officials said Wednesday that the USGS forecast is encouraging but the state's earthquake risk clearly remains high, so regulators will continue to seek disposal well volume reductions in areas of quake activity. "Obviously, if we start to see an increase in earthquake activity and an increase in volumes we will do something about it," said Tim Baker, director of the oil and gas division at the Oklahoma Corporation Commission. Write to Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Erin Ailworth
Subject: Earthquakes
Location: Arkansas Texas California United States--US Kansas Oklahoma
Company / organization: Name: US Geological Survey; NAICS: 541711, 924120
Publication title: Wall Stree t Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 1, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873062434
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873062434?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Decline on Record High Build in U.S. Crude Stocks; May Brent crude on London's ICE Futures exchange fell $0.06 to $56.30 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Mar 2017: n/a.
Abstract:
"If January 2017 was considered a fairly 'boring' month for crude oil prices, February was even worse!" the Singapore Exchange said in a note, pointing out that Brent prices traded in one of the narrowest ranges in recent memory last month--between $54 to just over $57 a barrel. Oil prices were also pressured by the U.S. dollar rising on increasing odds of an interest rate rise by the Federal Reserve as early as later this...Full text: Oil prices fell further in Asian trade Thursday, depressed by the latest pick up in U.S. crude stockpiles and production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $53.74 a barrel at 0152 GMT, down $0.09 in the Globex electronic session. May Brent crude on London's ICE Futures exchange fell $0.06 to $56.30 a barrel. U.S. crude inventories rose to a historical high last week, increasing by 1.5 million barrels to 520.2 million barrels, according to data by the U.S. Energy Information Administration. The build was largely driven by significant imports from Saudi Arabia, Iraq, and Canada, as well as strong domestic production which rose above 9 million barrels for the second straight week. The burgeoning U.S. crude output in recent months has largely offset the continuing production cuts by the Organization of the Petroleum Exporting Countries and Russia. The two counterforces are keeping prices in a slim range, analysts say. "If January 2017 was considered a fairly 'boring' month for crude oil prices, February was even worse!" the Singapore Exchange said in a note, pointing out that Brent prices traded in one of the narrowest ranges in recent memory last month--between $54 to just over $57 a barrel. ANZ Research pointed out that crude volatility has been at its lowest level since 2014, according to the Chicago Board Options Exchange. Market observers expect the lull to persist for more weeks with the next major price mover likely to be OPEC's meeting at the end of May in which members will deliberate whether to extend the cuts beyond the initial six-month period. "The OPEC decision could be the first disappointment even though at the moment members are showing a 90% compliance rate to the production cut deal," said Vivek Dhar, a commodities strategist with Commonwealth Bank of Australia. Oil prices were also pressured by the U.S. dollar rising on increasing odds of an interest rate rise by the Federal Reserve as early as later this month. Since oil business is conducted in dollars, a stronger greenback is typically a deterrent for buyers using other currencies. The WSJ Dollar Index, a measure of the U.S. dollar against a basket of major currencies, was last up 0.09% at 91.58. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell 120 points to $1.6660 a gallon, while April diesel traded at $1.6252, 11 points higher. ICE gas oil for March changed hands at $493.25 a metric ton, down $3.50 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Futures; Crude oil prices; Crude oil
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Chicago Board Options Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873082223
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873082223?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distri bution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Mobil Turns to U.S. Shale Basins for Growth; Company plans to spend about a fourth of its 2017 budget drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Mar 2017: n/a.
Abstract:
Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company.Exxon's debt has risen as the company increased borrowing to pay for dividends, one of several factors that prompted Standard & Poor's Global Ratings last year to take away the triple-A credit rating it had held since the Great Depression.Identified years ago as a future leader through Exxon's meticulous process of winnowing its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work.Full text: Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future. The company plans to spend about a fourth of its 2017 budget--about $5.5 billion--drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells that can turn a profit at a price of $40 a barrel. The U.S. increasingly appears at the center of a burgeoning global revival after prices rebounded modestly and companies such as Exxon have improved in their ability to profit due to lower costs and feats of engineering. Yet unlike some peers that plan to keep investment roughly flat in future years, Exxon plans to increase spending to an average of $26 billion a year from 2018 to 2020. The company plans $22 billion in investments this year. "Our job is to compete and succeed in any market, irrespective of conditions or price," new Chief Executive Darren Woods said at Exxon's analyst meeting in New York. It is his first major appearance since taking over for Rex Tillerson, who stepped down to become President Donald Trump's secretary of state. "The ultimate prize in the Permian is significant," he said, noting that the land the company controls in the West Texas and New Mexico oil region may hold the equivalent of as much as 6 billion barrels of oil and natural gas. The company also plans to invest in Guyana, where it made a major discovery in 2015. He also warned that because shale drilling has the ability to ramp up more quickly than other kinds of production, it has the potential to "temper" price volatility. Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company. Debt has soared in recent years. Growth continues to be elusive. Returns in Exxon's oil-and-gas production business are at the lowest levels in decades. Activists are targeting the company over whether it concealed its prior knowledge of climate change, charges Exxon has denied and said are part of a conspiracy by antagonists to smear its reputation. Some investors meanwhile have grown enamored of smaller producers with a longer record of stopping and starting production on a dime in U.S. shale fields. That is a comedown from Exxon's exalted status a decade ago, when the company was a Wall Street darling, the biggest and most profitable publicly traded corporation in the world. In 2007, Exxon generated more than $40 billion in profits, then a record, most of which came from oil-and-gas drilling in many of the world's continents. The recent crash in oil prices has exposed weaknesses in a record of stable profits and returns that was once unimpeachable. Net income last year was $7.8 billion, the lowest since 1996, before Exxon bought rival Mobil Corp. for $82 billion in 1999. Exxon's debt has risen as the company increased borrowing to pay for dividends, one of several factors that prompted Standard & Poor's Global Ratings last year to take away the triple-A credit rating it had held since the Great Depression. Some analysts are urging Mr. Woods, whose rise at the company occurred within Exxon's sprawling network of refineries and chemical plants, to shake up the cloistered descendant of John D. Rockefeller's Standard Oil. Exxon has lost cachet among institutional investors in recent years: Most portfolios hold a smaller proportion of Exxon stock than its relative size in the S&P 500 index, according to Evercore ISI analyst Doug Terreson. This "underscores investor concern" over Exxon's strategy, Mr. Terreson wrote in February, arguing that the company should make returns a priority over growth, a move taken up by peers including Chevron Corp. and Royal Dutch Shell PLC. Many analysts believe Mr. Woods is the perfect person to put the company on a new course. Identified years ago as a future leader through Exxon's meticulous process of winnowing its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work. He helped lead an effort to sell refineries or gas stations that were less profitable and less interconnected with Exxon's other operations. As he occupied various leadership roles in those businesses, Exxon shaved off 1.3 million barrels a day of refining capacity, about a fifth of the total in 2007. The company sold off thousands of gas stations from Japan to Canada. Mr. Woods, a staunch advocate of "integration," or the effort to squeeze money from every aspect of the business--including producing, shipping, refining and processing oil and gas--turned to investments that would provide numerous options for turning a profit. Those include equipment allowing a refinery to process heavier crude that is cheaper than other grades, or making more chemicals or niche products that can be sold at a premium. Write to Bradley Olson at Bradley.Olson@wsj.com Related News * BP Sets Break-Even Target at $35 a Barrel Credit: By Bradley Olson
Subject: Petroleum refineries; Corporate profits; Institutional investments; Service stations; Natural gas
Location: North Dakota New Mexico New York United States--US Guyana West Texas
People: Trump, Donald J Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: New York Stock Exchange--NYSE; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 2, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873147519
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873147519?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Business News: Exxon Sharpens Focus on U.S. Shale Oil
Author: Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Mar 2017: B.6.
Abstract:
Exxon Mobil Corp. on Wednesday described a bold turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.
Full text: Exxon Mobil Corp. on Wednesday described a bold turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future. The company plans to spend about a fourth of its 2017 budget -- about $5.5 billion -- drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells that can turn a profit at a price of $40 a barrel. The U.S. increasingly appears at the center of a burgeoning global revival after prices rebounded modestly and companies such as Exxon have gotten better at making a profit due to lower costs and feats of engineering. Yet unlike some peers that plan to keep investment roughly flat in future years, Exxon aims to increase annual spending to an average of $26 billion from 2018 to 2020. The company plans $22 billion in investments this year. "Our job is to compete and succeed in any market, irrespective of conditions or price," Chief Executive Darren Woods said at Exxon's analyst meeting in New York. The event marked Mr. Woods's first major appearance as CEO since succeeding Rex Tillerson, who stepped down to become President Donald Trump's secretary of state. "The ultimate prize in the Permian is significant," Mr. Woods said, noting that the land the company controls in the West Texas and New Mexico oil region may hold the equivalent of as much as 6 billion barrels of oil and natural gas. Exxon also plans to invest in Guyana, where it made a major discovery in 2015. He also said that because shale drilling has the ability to ramp up more quickly than other kinds of production, it has the potential to "temper" price volatility. Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company. Debt has soared in recent years. Growth continues to be elusive. Returns in Exxon's oil-and-gas production business are at their lowest levels in decades. Activists are targeting the company over whether it concealed its prior knowledge of climate change, charges Exxon has denied and said are part of a conspiracy by antagonists to smear its reputation. Some investors meanwhile have grown enamored of smaller producers with a longer record of stopping and starting production on a dime in U.S. shale fields. That trend marks a comedown from Exxon's exalted status a decade ago, when the company was a Wall Street darling, the biggest and most profitable publicly traded corporation in the world. The recent crash in oil prices has exposed weaknesses in a record for profit and returns that was once unimpeachable. Net income last year was $7.8 billion, the lowest since 1996, before Exxon bought rival Mobil Corp. for $82 billion in 1999. Many analysts believe Mr. Woods is the perfect person to put the company on a new course. Identified years ago as a future leader through Exxon's winnowing of its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work. He also helped lead an effort to sell refineries and gas stations that were less profitable and less interconnected with Exxon's other operations. Credit: By Bradley Olson
Subject: Corporate profits; Natural gas; Oil shale
Location: United States--US
People: Woods, Darren
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.6
Publication year: 2017
Publication date: Mar 2, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873265715
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873265715?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Hits Three-Week Low on Record-High Inventories; Crude prices were also pressured by a stronger dollar
Author: McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Mar 2017: n/a.
Abstract:
Burgeoning U.S. crude output in recent months has largely offset the output cuts that some of the world's biggest oil producers -- mostly members of the Organization of the Petroleum Exporting Countries along with some nations outside the cartel, including Russia -- agreed to in a deal late last year. Oil prices were also pressured by the U.S. dollar rising on increasing odds that the Federal Reserve could raise interest rates as early as later...Full text: Oil prices fell for the third straight session on Thursday, with bearish sentiment fueled by the latest increase in U.S. crude stockpiles and production in addition to the strength of the dollar on currency markets. Light, sweet crude for April delivery fell $1.22, or 2.3%, to $52.61 a barrel on the New York Mercantile Exchange, closing at the lowest level since Feb. 8. Brent crude, the global oil benchmark, lost $1.28, or 2.3% to $55.08 a barrel. U.S. crude inventories rose to a new high last week, increasing by 1.5 million barrels to 520.2 million barrels, according to Wednesday data from the U.S. Energy Information Administration. The increase derived largely from significant imports from Saudi Arabia, Iraq, and Canada, though strong domestic production , which rose above 9 million barrels for the second straight week, also contributed. Exports of gasoline hit a record, and domestic demand was around 6% lower than a year earlier. While gasoline inventories fell last week, the decline was smaller than expected, exacerbating concerns over a glut that could pressure oil prices. "We are viewing an extremely heavy gasoline market as a force that could more than offset the strong OPEC compliance, at least over the short term period of about 4-6 weeks," said Jim Ritterbusch, president of Ritterbusch & Associates, in a Thursday note. Burgeoning U.S. crude output in recent months has largely offset the output cuts that some of the world's biggest oil producers -- mostly members of the Organization of the Petroleum Exporting Countries along with some nations outside the cartel, including Russia -- agreed to in a deal late last year. The net impact has been to keep prices in a tight range, with doubts lingering on whether countries are complying fully with the OPEC-led deal to reduce production by 1.8 million barrels a day, analysts say. Estimates so far of how well OPEC has complied with the production agreement have reassured analysts, but "Russian data released this morning for February shows that output remained largely stable month on month, suggesting that compliance on the non-OPEC side is not likely to see significant gains," said JBC Energy in a note. Market observers expect the next major price mover to be OPEC's meeting at the end of May at which members will deliberate whether to extend the cuts beyond the initial six-month period. "The OPEC decision could be the first disappointment even though at the moment members are showing a 90% compliance rate to the production cut deal," said Vivek Dhar, a commodities strategist with Commonwealth Bank of Australia. Oil prices were also pressured by the U.S. dollar rising on increasing odds that the Federal Reserve could raise interest rates as early as later this month. Since oil business is conducted in dollars, a stronger greenback is typically a deterrent for buyers using other currencies. The WSJ Dollar Index, a measure of the U.S. dollar against a basket of major currencies, was recently up 0.6% at 92.00. Gasoline futures settled down 2.1% at $1.6433 a gallon and diesel futures settled down 2.8% to $1.5791 a gallon. Stephanie Yang contributed to this article. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Sarah McFarlane and Jenny W. Hsu
Subject: Inventory; Cartels; Crude oil prices
Location: Russia Canada Saudi Arabia Iraq
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 2, 2017
Section: Markets
Publisher: Dow Jones & Compa ny Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873314793
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873314793?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Was Aubrey McClendon a Billionaire, or Broke? On the anniversary of his death, the oil tycoon's estate is still a conundrum for creditors
Author: Dezember, Ryan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Mar 2017: n/a.
Abstract:
Banks and other creditors are preparing for a long fight. Because Mr. McClendon's businesses are complex and many of his investments are illiquid, it could be years before the estate is fully unwound, according to people familiar with the case. Mr. McClendon's estate has sold assets including his Gulfstream G450 jet and 300 acres of property on Lake Michigan, but has yet to sell his mansion on that lake and many relatively illiquid holdings, such as stakes in private-equity and hedge funds. EIG Global Energy Partners claims it is owed more than $100 million stemming from loans the Washington, D.C., investment firm extended to Mr. McClendon to help him pay for his personal stake in wells drilled by Chesapeake Energy while he was the company's chief executive, according to court records and people familiar with the case. A group of big banks, including Goldman Sachs Group Inc., Bank of America Corp. and Credit Suisse Group AG, is seeking about $465 million that Mr. McClendon borrowed to launch several energy ventures after he was ousted from Chesapeake Energy in 2013 over corporate-governance issues. Write to Ryan Dezember at ryan.dezember@wsj.com Previously * McClendon's Bordeaux Collection Goes Up for Auction (Sept. 15, 2016)...Full text: A year after oil magnate Aubrey McClendon died in an auto crash , lawyers in Oklahoma City are sifting through the tangle of obligations and assets he left behind, trying to determine if he died a wealthy man--or swamped by debt. As one of the biggest probate cases in history enters its second year, at stake is the resolution of more than $600 million of claims against Mr. McClendon's estate that remain outstanding, according to court records and people familiar with the matter, out of a total exceeding $1.1 billion that were filed. Banks and other creditors are preparing for a long fight. Because Mr. McClendon's businesses are complex and many of his investments are illiquid, it could be years before the estate is fully unwound, according to people familiar with the case. The prospects for creditors have brightened recently thanks to a big rally in oil prices, which have soared more than 50% from a nearly 13-year low since Mr. McClendon died on March 2, 2016. Natural-gas prices are up 60%. The rally has raised valuations of many of his energy holdings and the numerous companies he founded. But these gains could prove fleeting should energy prices reverse course. As a co-founder of Chesapeake Energy Corp., Mr. McClendon was a pioneer of the shale industry and one of Wall Street's biggest customers. He was also a major benefactor in his native Oklahoma City, where he helped bring a professional basketball team and donated millions of dollars to civic groups, like Big Brothers Big Sisters of Oklahoma and local schools. Despite his many successes, he died heavily indebted to numerous creditors because he often personally guaranteed the debts of his businesses. In a hearing last May in Oklahoma City, Arthur Hoge III, a lawyer trying to recoup $465 million for a group of Wall Street creditors said, "We believe this is an insolvent estate until proven otherwise." A lawyer for the estate, Martin Stringer, countered that no one could say for sure. "It depends on commodity prices," he said. Although Mr. McClendon left a will, it wasn't detailed enough to address all the aspects of his sprawling business empire. That is in part why his estate ended up in probate, which is typically for those who lack the means to plan their estates or don't have many assets to pass on. Mr. McClendon's estate has sold assets including his Gulfstream G450 jet and 300 acres of property on Lake Michigan, but has yet to sell his mansion on that lake and many relatively illiquid holdings, such as stakes in private-equity and hedge funds. Proceeds will be used to repay his lenders and other creditors, ranging from credit-card companies seeking a few thousand dollars to Wall Street firms that helped bankroll his energy ventures. EIG Global Energy Partners claims it is owed more than $100 million stemming from loans the Washington, D.C., investment firm extended to Mr. McClendon to help him pay for his personal stake in wells drilled by Chesapeake Energy while he was the company's chief executive, according to court records and people familiar with the case. A group of big banks, including Goldman Sachs Group Inc., Bank of America Corp. and Credit Suisse Group AG, is seeking about $465 million that Mr. McClendon borrowed to launch several energy ventures after he was ousted from Chesapeake Energy in 2013 over corporate-governance issues. There isn't much comprehensive historical data on probate cases, but attorneys say that Mr. McClendon's estate is surely one of the largest and most complex ever to wind through probate. "It's remarkable to find a case like this going through probate court," said David Horton, a law professor who specializes in trusts and estates at the University of California, Davis. "One of the first things you do in estate planning is avoid probate." Mr. McClendon helped start Chesapeake in 1989 and built it into one of the country's largest oil and gas producers. He led a rush to lease drilling land in Louisiana, Texas, Ohio and other places where Chesapeake unearthed troves of oil and natural gas using new energy-extraction techniques, such as hydraulic fracturing, or fracking. On March 1, 2016, Mr. McClendon was indicted by a federal grand jury on a charge of conspiring to rig the price of oil and gas leases. Mr. McClendon denied any wrongdoing. The next day the 56-year-old's Chevy Tahoe crashed into a bridge underpass. Police ruled his death an accident , and prosecutors have since withdrawn the charge. Mr. McClendon didn't hesitate to personally guarantee his business loans. In September, the estate collected $8.4 million from an auction of fine wine that the oil tycoon used as collateral for a loan from Goldman Sachs. He borrowed $85 million against his roughly 20% stake in the Oklahoma City Thunder basketball team to assemble an 18,000-acre oil prospect in Oklahoma just before he died. His estate sold it last year for $136.5 million. Investments in technology startups, local businesses and a collection of antique boats were mortgaged as well, state property and business records show. His $465 million debt with the Wall Street banks paid for his stake in a handful of oil-and-gas companies that he started with investment firm Energy & Minerals Group, or EMG, according to court records and people familiar with the matter. For collateral the banks accepted his minority stakes in the companies and some of his rights to future profits, which look more likely now that energy prices have rebounded and the companies have enjoyed drilling success. The price of some bonds sold by Permian Resources LLC, one of the largest companies that is controlled by EMG, have climbed from about 26 cents on the dollar a year ago--indicating that investors doubted its survival--to 84 cents, according to FactSet. Its senior debt trades well above face value. The estate recently sold natural-gas fields in Louisiana for a modest profit, according to people familiar with the matter. His estate also sold a 29,000-square-foot Quonset-hut-style structure that Mr. McClendon built to be a gym for American Energy Partners LP, the holding company for his energy ventures. Property records show it was bought by the Oklahoma City Ballet for about $4.1 million, which will go toward repaying creditors. Chesapeake Energy last month agreed to withdraw a $445 million claim against its former CEO related to an alleged theft of data and geologic maps in exchange for the estate dropping its pursuit of any unpaid compensation. Write to Ryan Dezember at ryan.dezember@wsj.com Previously * McClendon's Bordeaux Collection Goes Up for Auction (Sept. 15, 2016) * Oil-Deal Score Helps McClendon's Heirs Hang on to NBA's Thunder (Aug. 30, 2016) * Duke Withdraws Claim Against McClendon's Estate (Aug. 29) * Police Probe Finds Nothing to Suggest McClendon Committed Suicide (June 7, 2016) * McClendon Bet Big to Finance Second Act (March 7, 2016) * McClendon Dies in Car Crash (March 2, 2016) Credit: By Ryan Dezember
Subject: Hydraulic fracturing; Indictments; Prices; Probate; Professional basketball; Natural gas utilities; Youth organizations
Location: Oklahoma
People: Stringer, Martin
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New Y ork, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873433668
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873433668?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of c opyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Inflation Returns to Japan; Data helped by higher oil prices world-wide
Author: Nakamichi, Takashi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Mar 2017: n/a.
Abstract:
The return to rising prices in Japan is the latest sign of an uptick in inflation rates around the world as more expensive fuel and commodities push up consumer price indexes, relieving some of the pressure on central banks to drive price growth. While Japan has kept its monetary policy in expansionary territory to force limp prices higher, some analysts say the central bank may consider raising its long-term interest rate target from zero this...Full text: TOKYO--Japan's consumer prices rose for the first time in more than a year in January as higher oil prices world-wide gave Prime Minister Shinzo Abe and the Bank of Japan a helping hand in their campaign to overcome deflation . The return to rising prices in Japan is the latest sign of an uptick in inflation rates around the world as more expensive fuel and commodities push up consumer price indexes, relieving some of the pressure on central banks to drive price growth. Some leading central banks have already tightened policy to prevent any overrun of inflation targets, including the Federal Reserve, which looks increasingly set to raise rates again later this month . The core consumer price index rose 0.1% from a year earlier in January after falling 0.2% in the previous month, according to data released Friday by the Ministry of Internal Affairs and Communications. The rise was the first since December 2015. The core index excludes fresh food but includes energy. The reading matched a forecast from economists. "We have reached a turning point on prices" as the impact of the past oil-price falls and yen strength disappears, said Takuji Aida, chief economist at Société Générale. "The inflation rate will likely rise by the end of the year, helped by upward pressure from tightening labor supplies." While Japan has kept its monetary policy in expansionary territory to force limp prices higher, some analysts say the central bank may consider raising its long-term interest rate target from zero this year, partly to address the downsides of easing measures that have hurt the earnings of commercial banks and starved insurance and pension funds of returns on government debt. Japan's price outlook, however, isn't necessarily clear. The small increase in prices for January still leaves the central bank far from its 2% goal. Domestic consumption has yet to show a sign of the strength needed to keep feeding inflation, despite solid job growth. Yasunari Ueno, Mizuho Securities chief market economist, said even with the latest signs of improvement, 2% inflation is nowhere on the horizon. He says prices will have difficulty gaining traction with sluggish wage growth and the possibility of the yen strengthening again, a factor that would push down import prices. The core CPI for the Tokyo metropolitan area--which is less affected by gasoline costs than nationwide price data--fell 0.3% in February. Separate data pointed again to the mixed signals coming from Japan's economy. While the job market showed continued strength with unemployment falling to 3.0%--a factor that should help force up wages and by extension consumption down the line--household spending fell for the 11th straight month. Economists and policy makers say that higher wages and stronger domestic consumption are important factors for lifting consumer prices and strengthening Japanese growth. Write to Takashi Nakamichi at takashi.nakamichi@wsj.com Credit: By Takashi Nakamichi
Subject: Central banks; Consumer Price Index; Interest rates; Consumption; Inflation
Location: Japan
People: Abe, Shinzo
Company / organization: Name: Bank of Japan; NAICS: 521110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 3, 2017
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873480634
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873480634?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Recover, Oversupply Pressure Remains; May Brent crude on London's ICE Futures exchange rose $0.16 to $55.24 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Mar 2017: n/a.
Abstract:
Crude oil prices rebounded in Asia Friday morning after slumping to a three-week low overnight, but pressure from increasing U.S. production is expected to keep a tight lid on prices. Since January, Russia has decreased its crude & condensate production by about 120,000 barrels a day from the October 2016 level, the baseline of its promised cuts, consultancy firm FGE said. In the near term, energy traders will take cues from Federal Reserve Chairwoman Janet...Full text: Crude oil prices rebounded in Asia Friday morning after slumping to a three-week low overnight, but pressure from increasing U.S. production is expected to keep a tight lid on prices. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $52.77 a barrel at 0257 GMT, up $0.16 in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $0.16 to $55.24 a barrel. Oil prices fell for the third straight session in U.S. trading overnight dropping over 2%, dragged by the latest expansion in U.S. stockpiles and production. The jumps exacerbated concerns that the market is still oversupplied despite ongoing output cuts by the Organization of the Petroleum Exporting Countries and Russia. Analysts say the weekly U.S. rig count data slated for release later tonight will a be key price mover to watch. Compounding the pressure was data that showed Russia's oil production in February stood pat from the previous month at 11.11 million barrels a day. As part of the multicountry agreement, Russia has pledged to cut 300,000 barrels a day by the end of the six-month agreement period. Since January, Russia has decreased its crude & condensate production by about 120,000 barrels a day from the October 2016 level, the baseline of its promised cuts, consultancy firm FGE said. The volume indicates Russia has fulfilled around 40% of its promise so far. FGE projects Russia will reach 100% compliance by the end of May when OPEC meets to review the agreement. However, there are "still some doubts whether sufficient cutbacks are being made by individual Russian companies on a voluntary basis" to reach the pledged target, the consultancy said. Market observers are also watching the increase in production out of Libya and Nigeria, the two OPEC members that are exempted from the cuts are allowed to increase their output. OPEC production data for month of February is due on March 14. In the near term, energy traders will take cues from Federal Reserve Chairwoman Janet Yellen's address on the U.S. economic outlook in Chicago later today and the Fed's meeting next week when it decides on short-term interest rates. An increase in interest rates typically boosts the greenback which means oil traders using other currencies would be more discouraged to buy. Despite the bearish factors, the upcoming conclusion of seasonal maintenance period in the U.S. could provide some near term support, analysts say. "With the refinery maintenance period coming to an end in coming weeks, we would expect to see inventories begin their seasonal decline as refineries pick up their processing of crude," said ANZ Research. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 32 points to $1.6465 a gallon, while April diesel traded at $1.5833, 42 points higher. ICE gas oil for March changed hands at $482.25 a metric ton, down $1.75 from Thursday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Agreements; Petroleum production; Futures; Interest rates; Crude oil prices; Crude oil
Location: Russia United States--US Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: En glish
Document type: News
ProQuest document ID: 1873487831
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873487831?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Extend Their Slide as Stockpiles Swell
Author: McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Mar 2017: B.11.
Abstract:
Oil prices also were pressured by the U.S. dollar rising as investors considered it increasingly likely that the Federal Reserve could raise interest rates as early as later this month. Since oil business is conducted in dollars, a stronger greenback is typically a deterrent for buyers using other currencies. ---
Full text: Oil prices fell for a third consecutive session on Thursday, with bearish sentiment fueled by the latest increase in U.S. crude stockpiles and production in addition to the strength of the dollar on currency markets. Light, sweet crude for April delivery fell $1.22, or 2.3%, to $52.61 a barrel on the New York Mercantile Exchange, closing at the lowest level since Feb. 8. Brent crude, the global oil benchmark, lost $1.28, or 2.3% to $55.08 a barrel. U.S. crude inventories rose to a new high last week, increasing by 1.5 million barrels to 520.2 million barrels, according to Wednesday data from the U.S. Energy Information Administration. The increase derived largely from significant imports from Saudi Arabia, Iraq and Canada, though strong domestic production, which exceeded 9 million barrels for a second week in a row, also contributed. Exports of gasoline hit a record, and domestic demand was around 6% lower than a year earlier. While gasoline inventories fell last week, the decline was smaller than expected, exacerbating concerns over a glut that could pressure oil prices. "We are viewing an extremely heavy gasoline market as a force that could more than offset the strong OPEC compliance, at least over the short term period of about 4-6 weeks," Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a note on Thursday. Burgeoning U.S. crude output in recent months has largely offset the output cuts that some of the world's biggest oil producers -- mostly members of the Organization of the Petroleum Exporting Countries along with some nations outside the cartel, including Russia -- agreed to in a deal late last year. The net impact has been to keep prices in a tight range, with doubts lingering on whether countries are complying fully with the OPEC-led deal to reduce production by 1.8 million barrels a day, analysts say. Estimates so far of how well OPEC has complied with the production agreement have reassured analysts, but "Russian data released this morning for February shows that output remained largely stable month on month, suggesting that compliance on the non-OPEC side is not likely to see significant gains," wrote JBC Energy in a note. Market observers expect the next major price mover to be OPEC's meeting at the end of May at which members will deliberate whether to extend the cuts beyond the initial six-month period. "The OPEC decision could be the first disappointment even though at the moment members are showing a 90% compliance rate to the production cut deal," said Vivek Dhar, a commodities strategist with Commonwealth Bank of Australia. Oil prices also were pressured by the U.S. dollar rising as investors considered it increasingly likely that the Federal Reserve could raise interest rates as early as later this month. Since oil business is conducted in dollars, a stronger greenback is typically a deterrent for buyers using other currencies. --- Stephanie Yang contributed to this article. Credit: By Sarah McFarlane and Jenny W. Hsu
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Mar 3, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873578829
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873578829?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Tycoon's Probate Fight Enters Year 2
Author: Dezember, Ryan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Mar 2017: A.1.
Abstract:
Banks and other creditors are preparing for an unusually long fight. Because Mr. McClendon's businesses are complex and many of his investments are hard to sell, it could be years before the estate is fully unwound, according to people familiar with the case.
Full text: A year after oil magnate Aubrey McClendon died in an auto crash, lawyers in Oklahoma City are still sifting through the tangle of obligations and assets he left behind, trying to determine if he died a wealthy man -- or swamped by debt. As one of the biggest probate cases in history enters its second year, at stake is the resolution of more than $600 million of claims against Mr. McClendon's estate that remain outstanding out of a total exceeding $1.1 billion that were filed, according to court records and people familiar with the matter. Banks and other creditors are preparing for an unusually long fight. Because Mr. McClendon's businesses are complex and many of his investments are hard to sell, it could be years before the estate is fully unwound, according to people familiar with the case. The prospects for creditors have brightened recently thanks to a big rally in oil prices, which have soared more than 50% from a nearly 13-year low since Mr. McClendon died on March 2, 2016, when his sport-utility vehicle crashed. The rally has raised valuations of many of his energy holdings and the numerous companies he founded. But these gains could prove fleeting should energy prices reverse course. As a co-founder of Chesapeake Energy Corp., Mr. McClendon was a pioneer of the shale industry and one of Wall Street's biggest payers of banking fees. He was also a major benefactor in his native Oklahoma City, where he helped bring the Oklahoma City Thunder basketball team and donated millions of dollars to civic groups such as Big Brothers Big Sisters of Oklahoma. Despite his many successes, he died heavily indebted to numerous creditors because he often personally guaranteed the debts of his businesses. The solvency of his estate has been a point of contention in court. In a hearing last May in Oklahoma City, Arthur Hoge III, a lawyer trying to recoup $465 million for a group of Wall Street creditors, said, "We believe this is an insolvent estate until proven otherwise." A lawyer for the estate, Martin Stringer, countered that no one could say for sure. "It depends on commodity prices," he said. Although Mr. McClendon left a will, it wasn't detailed enough to address all the aspects of his sprawling business empire. That is in part why his estate ended up in probate, which is usually for those who lack the means to plan their estates. Mr. McClendon's estate has sold assets, including his Gulfstream G450 jet and 300 acres of property on Lake Michigan, but has yet to sell his mansion on that lake and many relatively illiquid holdings, such as stakes in private-equity funds. Sale proceeds will be used to repay his creditors, ranging from credit-card companies seeking a few thousand dollars to Wall Street firms that helped bankroll his energy ventures and are owed many millions. EIG Global Energy Partners claims it is owed more than $100 million stemming from loans the investment firm extended to Mr. McClendon to help him pay for his personal stake in wells drilled by Chesapeake while he was the company's chief executive, according to court records and people familiar with the case. A group of big banks, including Goldman Sachs Group Inc., Bank of America Corp. and Credit Suisse Group AG, is seeking about $465 million that Mr. McClendon borrowed to launch several energy ventures after he was ousted from Chesapeake in 2013. "It's remarkable to find a case like this going through probate court," said David Horton, a law professor who specializes in trusts and estates at the University of California, Davis. Mr. McClendon helped start Chesapeake in 1989 and built it into one of the country's largest energy producers. He led a rush to lease drilling land in Louisiana and other places where Chesapeake unearthed oil and gas using new techniques. On March 1, 2016, Mr. McClendon was indicted by a federal grand jury on a charge of conspiring to rig the price of oil and gas leases. Mr. McClendon denied any wrongdoing. The next day, the 56-year-old's Chevy Tahoe crashed into a bridge underpass. Police ruled his death an accident, and prosecutors have since withdrawn the conspiracy charge. Mr. McClendon's $465 million debt with the Wall Street banks stems from a loan he used to help launch several companies with investment firm Energy & Minerals Group, according to court records and people familiar with the matter. For collateral, the banks accepted his minority stakes in those companies and some of his rights to future profits, which look more likely now that energy prices have rebounded. The estate recently sold natural-gas fields in Louisiana for a modest profit, according to people familiar with the matter. His estate also sold a 29,000-square-foot Quonset-hut-style structure that Mr. McClendon built to be a gym for the holding company for his energy ventures. Property records show it was bought by the Oklahoma City Ballet for about $4.1 million. Credit: By Ryan Dezember
Subject: Youth organizations; Equity funds; Estates; Probate
Location: Oklahoma
People: McClendon, Aubrey
Company / organization: Name: Oklahoma City Thunder; NAICS: 711211
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Mar 3, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873590526
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873590526?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil's Friday Rebound Can't Cancel Out Weekly Loss; U.S. prices now haven't settled outside a $4 trading range in nearly three months
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Mar 2017: n/a.
Abstract:
Many traders are still waiting to see how well global exporters come through on promises to cut output to ease oversupply, while others who trade based on momentum have been keeping prices from breaking through multimonth averages, said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. Since January, Russia has decreased its crude and condensate production by about 120,000 barrels a day from the October 2016 level, the baseline of its promised cuts, consultancy firm FGE said. The number of rigs drilling for oil in the U.S. also rose by seven in the past week to 609 rigs, according to oil-field services company Baker Hughes Inc. The U.S. Energy Information Administration forecasts the country's oil output will average 9 million barrels a day in 2017, up from 8.9 million barrels a day the previous year. "Several weeks of increasing number of active drilling...Full text: Crude oil prices ended the week back in the middle of the range they have been mired in for two months as a rebound Friday couldn't overcome big losses from the day before. Rebounding refined-fuel prices, a falling dollar and momentum-based traders who believe oil is stuck near its current price all helped the market recover slightly Friday. But those factors may eventually turn against oil and, combined with large world-wide stockpiles, could keep oil from getting beyond the highs it hit only a little more than a week ago. Light, sweet crude for April delivery gained 72 cents, or 1.4%, to $53.33 a barrel on the New York Mercantile Exchange. It snapped a three-session losing streak, but oil still finished the week down, losing 66 cents, or 1.2%. It is down 2.1% from the 20-month high it hit Feb. 23. Brent, the global benchmark, settled up 82 cents, or 1.5%, at $55.90 a barrel. It snapped a five-session losing streak, but also ended the week down 41 cents, or 0.7%, its third losing week in the past four. U.S. prices now haven't settled outside a $4 trading range in nearly three months. A year-long rally has stalled and volatility this week hit multiyear lows. Many traders are still waiting to see how well global exporters come through on promises to cut output to ease oversupply, while others who trade based on momentum have been keeping prices from breaking through multimonth averages, said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. "In the grand scheme of things, [Friday's trade] hasn't meant much," he said. "We're really in a trading range." The week's biggest move came Thursday, when prices dropped more than 2% from the latest expansion in U.S. stockpiles and production. The rises exacerbated concerns that the market is still oversupplied despite ongoing output cuts by the Organization of the Petroleum Exporting Countries and other producers outside the cartel, including Russia. U.S. refinery utilization also rose more than 2% despite high stockpiles of gasoline and diesel, which had product traders expecting oversupply issues, said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. Those prices have rebounded Friday from Thursday's selling, helping the broader oil markets recover, but that is likely just traders cashing out and not a larger reversal, Mr. Morton added. "This is a little bit of a bounce off a slap in the face," he said. "These are big moves down." Gasoline futures gained 0.6%, to $1.6531 a gallon. It finished the week down 4.8%, its largest one-week decline since September and its seventh losing week in the past nine. Diesel futures gained 0.9%, to $1.5936 a gallon. It finished the week down 3.3%, its largest one-week loss since November and its second losing week of the last three. Oil's gains Friday also coincided with a falling dollar. A weaker dollar makes dollar-traded oil less expensive for foreign buyers, a scenario that often causes prices to rise. The WSJ Dollar Index, which measures the U.S. currency against 16 others, was recently down 0.4%, and its losses accelerated around 1:30 p.m., just as oil began adding to its gains. But that trend may add to the several bearish weights on oil in the weeks to come, said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. Expectations are rising for central bankers to raise rates this spring, which would likely send the dollar higher and oil lower. The Federal Reserve is on course to pick up the pace of interest-rate increases, with the next rise coming as soon as March and more to come later this year, Chairwoman Janet Yellen said in remarks prepared for delivery at the Executives' Club of Chicago. "The big headwind moving forward is the dollar," Mr. Yawger said. "It looks like we're in a rate-hike environment here." Compounding the pressure was data that showed Russia's oil production in February stood pat from the previous month at 11.11 million barrels a day. As part of the multicountry agreement, Russia has pledged to cut 300,000 barrels a day by the end of the six-month agreement period. Since January, Russia has decreased its crude and condensate production by about 120,000 barrels a day from the October 2016 level, the baseline of its promised cuts, consultancy firm FGE said. The volume indicates Russia has fulfilled around 40% of its promise so far. The number of rigs drilling for oil in the U.S. also rose by seven in the past week to 609 rigs, according to oil-field services company Baker Hughes Inc. The U.S. Energy Information Administration forecasts the country's oil output will average 9 million barrels a day in 2017, up from 8.9 million barrels a day the previous year. "Several weeks of increasing number of active drilling rigs have spurred expectations of increasing U.S. shale oil production," said Michael Poulsen, oil risk manager at Global Risk Management. Sarah McFarlane, Jenny W. Hsu and Harriet Torry contributed to this article Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Petroleum production; Interest rates; Crude oil prices
Location: Chicago Illinois Russia United States--US Libya Nigeria
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873644242
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873644242?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Inflation Is Back, But Where It Goes from Here Depends on the Region; A major factor in higher global prices has been oil, but that effect is likely to abate by second quarter
Author: Rosenthal, Rachel; Nakamichi, Takashi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Mar 2017: n/a.
Abstract:
The specter of falling prices pushed Japan's central bank into new policy experiments, from setting negative interest rates to setting a target rate for 10-year government bonds. In Japan, policy makers are growing confident that the inflation rate will accelerate to more than 1% within a year or so--even as oil prices stabilize--as the country rides the tailwinds of stronger U.S. economy and a weaker yen, according to people close to the central bank. In...Full text: Inflation is back around the globe--even in Japan, the poster-child of an economy long beset by falling prices. The big question now is whether it will stick around. A major factor in higher global prices so far has been oil, which hit a 13-year low in January 2016 and has nearly doubled since. When that is fed into annual inflation rate data, it helps drive up the year-over-year comparisons. But that effect is likely to start to abate by the second quarter, absent another run-up in oil prices this year. At that point, global inflation trends could start to diverge. In developed markets like the U.S., Europe and Japan, the impact of tightening labor markets will step in to pick up where oil has left off, economists say. In emerging markets, though, inflation may moderate as a result of weak underlying economic growth. That could lead to differing policy paths for global central banks, "with less accommodation or even outright tightening needed in developed markets but continued accommodation, if not outright easing, needed to cushion growth in emerging markets" said Frederic Neumann, co-head of Asia economic research at HSBC Holdings PLC in Hong Kong. On Friday, Japan reported that core consumer prices, which exclude fresh food but include energy, rose for the first time in more than a year in January, up 0.1% from a year earlier. Petroleum inflation accelerated 9.2% from a year earlier, compared with 0.5% in December, according to Capital Economics. Eurozone consumer prices rose 2% in February, the highest annual rate of inflation since January 2013, largely due to a 9.2% increase in energy costs, according to Eurostat. In the U.S., a 10.8% rise in energy costs drove annual inflation to 2.5% in January, according to the Bureau of Labor Statistics. The trend marks a turnaround from a year ago, when the word "deflation" was closer to economists' lips. The specter of falling prices pushed Japan's central bank into new policy experiments, from setting negative interest rates to setting a target rate for 10-year government bonds. The European Central Bank started buying corporate bonds in June, and the U.S. Federal Reserve kept interest rates on hold throughout last year. In Japan, policy makers are growing confident that the inflation rate will accelerate to more than 1% within a year or so--even as oil prices stabilize--as the country rides the tailwinds of stronger U.S. economy and a weaker yen, according to people close to the central bank. A lower yen would drive up import prices, underpinning higher inflation. Historically, it has taken nine months for currency weakness to show up in inflation readings, said Shuichi Ohsaki, Japan rates strategist at Bank of America Merrill Lynch in Tokyo. He expects the impact of the weakening yen to kick in by April. The yen was last at 114.25 per U.S. dollar. Bank of Japan officials are also gaining confidence that wages will rise this year. While companies remain cautious about giving base-wage increases to full-time workers, they are seen as more willing to raise their bonuses while increasing hourly wages for part-time or temporary workers, who are in short supply. In a speech last month, BOJ Deputy Gov. Hiroshi Nakaso pointed to tightening labor market conditions as evidence of Japan's improving "output gap," which measures the difference between an economy's actual and potential output. This week, the U.S. reported that the number of Americans applying for unemployment benefits fell to the lowest level in nearly half a century. While unemployment is still high in Europe, the figure fell to a seven-year low of 9.6% in December and held steady in January, the latest data available. Tightening labor markets could lead to "second-round effects," as workers with higher wages spend more and businesses raise prices to cover their costs, giving inflation an extra boost, said HSBC's Mr. Neumann. In Asia's emerging markets, there are few price pressures beyond fuel. Food prices, which tend to make up a larger share of inflation baskets than energy, have been stable. Moreover, "relatively subdued economic growth will also help keep inflation in check," wrote Capital Economics in a note. "At this stage, even though we expect growth in Asia to pick up from last year, we don't think the pace is strong enough to create genuine inflation pressures," said Khoon Goh, head of Asia research at ANZ Bank in Singapore. In China, where the consumer-price index rose 2.5% in January from a year earlier--the fastest pace in more than 2½ years--many economists believe that inflation will moderate this year as the effects of government stimulus fades and Beijing turns its attention to tamping down potential asset bubbles. Lucy Craymer and Liyan Qi contributed to this article. Write to Rachel Rosenthal at Rachel.Rosenthal@wsj.com and Takashi Nakamichi at takashi.nakamichi@wsj.com Credit: By Rachel Rosenthal and Takashi Nakamichi
Subject: Central banks; Interest rates; Labor market; Inflation
Location: Hong Kong United States--US Asia Japan Europe
Company / organization: Name: European Central Bank; NAICS: 521110; Name: Bureau of Labor Statistics; NAICS: 921110, 923110; Name: HSBC Holdings PLC; NAICS: 523120, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 3, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873679023
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873679023?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by Seven -- Baker Hughes; Company says nation's number of gas rigs fell five to 146 in the past week
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Mar 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by seven in the past week to 609 rigs, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. However, since the summer, the nation's oil-rig count has generally been rising, and oil prices have regained some lost ground. The nation's gas-rig count fell five rigs to 146 in the past week, according to Baker Hughes. The U.S. offshore-rig count rose by one rig from last week to 18, which is down six rigs year-over-year. On Friday, crude-oil prices inched higher , rebounding a bit from Thursday's fall in refined-fuel prices. The dollar, which typically helps left commodity prices, was also falling. U.S. crude-oil prices rose 1.1% to $53.18 a barrel in afternoon trading. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873807445
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873807445?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Inflation Is Back, But Where It Goes from Here Depends on the Region; A major factor in higher global prices has been oil, but that effect is likely to abate by second quarter
Author: Rosenthal, Rachel; Nakamichi, Takashi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Mar 2017: n/a.
Abstract:
The specter of falling prices pushed Japan's central bank into new policy experiments, from setting negative interest rates to setting a target rate for 10-year government bonds. In Japan, policy makers are growing confident that the inflation rate will accelerate to more than 1% within a year or so--even as oil prices stabilize--as the country rides the tailwinds of stronger U.S. economy and a weaker yen, according to people close to the central bank. In...Full text: Inflation is back around the globe--even in Japan, the poster-child of an economy long beset by falling prices. The big question now is whether it will stick around. A major factor in higher global prices so far has been oil, which hit a 13-year low in January 2016 and has nearly doubled since. When that is fed into annual inflation rate data, it helps drive up the year-over-year comparisons. But that effect is likely to start to abate by the second quarter, absent another run-up in oil prices this year. At that point, global inflation trends could start to diverge. In developed markets like the U.S., Europe and Japan, the impact of tightening labor markets will step in to pick up where oil has left off, economists say. In emerging markets, though, inflation may moderate as a result of weak underlying economic growth. That could lead to differing policy paths for global central banks, "with less accommodation or even outright tightening needed in developed markets but continued accommodation, if not outright easing, needed to cushion growth in emerging markets" said Frederic Neumann, co-head of Asia economic research at HSBC Holdings PLC in Hong Kong. On Friday, Japan reported that core consumer prices, which exclude fresh food but include energy, rose for the first time in more than a year in January, up 0.1% from a year earlier. Petroleum inflation accelerated 9.2% from a year earlier, compared with 0.5% in December, according to Capital Economics. Eurozone consumer prices rose 2% in February, the highest annual rate of inflation since January 2013, largely due to a 9.2% increase in energy costs, according to Eurostat. In the U.S., a 10.8% rise in energy costs drove annual inflation to 2.5% in January, according to the Bureau of Labor Statistics. The trend marks a turnaround from a year ago, when the word "deflation" was closer to economists' lips. The specter of falling prices pushed Japan's central bank into new policy experiments, from setting negative interest rates to setting a target rate for 10-year government bonds. The European Central Bank started buying corporate bonds in June, and the U.S. Federal Reserve kept interest rates on hold throughout last year. In Japan, policy makers are growing confident that the inflation rate will accelerate to more than 1% within a year or so--even as oil prices stabilize--as the country rides the tailwinds of stronger U.S. economy and a weaker yen, according to people close to the central bank. A lower yen would drive up import prices, underpinning higher inflation. Historically, it has taken nine months for currency weakness to show up in inflation readings, said Shuichi Ohsaki, Japan rates strategist at Bank of America Merrill Lynch in Tokyo. He expects the impact of the weakening yen to kick in by April. The yen was last at 114.25 per U.S. dollar. Bank of Japan officials are also gaining confidence that wages will rise this year. While companies remain cautious about giving base-wage increases to full-time workers, they are seen as more willing to raise their bonuses while increasing hourly wages for part-time or temporary workers, who are in short supply. In a speech last month, BOJ Deputy Gov. Hiroshi Nakaso pointed to tightening labor market conditions as evidence of Japan's improving "output gap," which measures the difference between an economy's actual and potential output. This week, the U.S. reported that the number of Americans applying for unemployment benefits fell to the lowest level in nearly half a century. While unemployment is still high in Europe, the figure fell to a seven-year low of 9.6% in December and held steady in January, the latest data available. Tightening labor markets could lead to "second-round effects," as workers with higher wages spend more and businesses raise prices to cover their costs, giving inflation an extra boost, said HSBC's Mr. Neumann. In Asia's emerging markets, there are few price pressures beyond fuel. Food prices, which tend to make up a larger share of inflation baskets than energy, have been stable. Moreover, "relatively subdued economic growth will also help keep inflation in check," wrote Capital Economics in a note. "At this stage, even though we expect growth in Asia to pick up from last year, we don't think the pace is strong enough to create genuine inflation pressures," said Khoon Goh, head of Asia research at ANZ Bank in Singapore. In China, where the consumer-price index rose 2.5% in January from a year earlier--the fastest pace in more than 2½ years--many economists believe that inflation will moderate this year as the effects of government stimulus fades and Beijing turns its attention to tamping down potential asset bubbles. Lucy Craymer and Liyan Qi contributed to this article. Write to Rachel Rosenthal at Rachel.Rosenthal@wsj.com and Takashi Nakamichi at takashi.nakamichi@wsj.com Credit: By Rachel Rosenthal and Takashi Nakamichi
Subject: Central banks; Interest rates; Labor market; Inflation
Location: Hong Kong United States--US Asia Japan Europe
Company / organization: Name: European Central Bank; NAICS: 521110; Name: Bureau of Labor Statistics; NAICS: 921110, 923110; Name: HSBC Holdings PLC; NAICS: 523120, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 4, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1873987197
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873987197?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil-Price Rise Brightens Mood for Big CERAWeek Energy Conference; Market recovery, Trump's promise to roll back regulations expected to stoke optimism at weeklong Houston event
Author: Cook, Lynn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Mar 2017: n/a.
Abstract:
[...]the Organization of the Petroleum Exporting Countries has agreed to temporarily curtail production to help ease a global glut, and U.S. shale producers have come roaring back to life as the price of oil bounced back to over $50 a barrel. [...]many industry watchers now feel fossil fuels have brighter near-term prospects, thanks to Mr. Trump's promises to roll back environmental regulations and prioritize the construction of pipelines and other infrastructure. The chief executives of...Full text: The world's energy leaders will descend on Houston next week for the most influential energy conference in the U.S., a gathering reshaped this year by the election of President Donald Trump and a partial rebound in oil prices. Thousands of industry executives, oil ministers and experts meet annually in Texas for CERAWeek, a five-day symposium that draws big-name players from 55 countries. This year, the mood will likely be radically different than a year ago, when U.S. oil prices dropped below $30 a barrel , and pessimism prevailed. Since then, the Organization of the Petroleum Exporting Countries has agreed to temporarily curtail production to help ease a global glut, and U.S. shale producers have come roaring back to life as the price of oil bounced back to over $50 a barrel. In addition, many industry watchers now feel fossil fuels have brighter near-term prospects, thanks to Mr. Trump's promises to roll back environmental regulations and prioritize the construction of pipelines and other infrastructure. "What a difference a year makes," said energy scholar Daniel Yergin, vice chairman of energy research at IHS Markit Ltd. He serves as the event's master of ceremonies, co-hosting dozens of sessions on oil, natural gas, electric power and geopolitics. The chief executives of all the largest oil companies--Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron Corp. and BP PLC--are set to speak over the weeklong event, as are the chief executives of utilities Duke Energy Corp., Southern Co. and Iberdrola SA, among many others. Canadian Prime Minister Justin Trudeau was a late addition to the lineup and will give a keynote address on Thursday. It all figures to be quite a bit different than last year, when Ali al-Naimi, Saudi Arabia's powerful oil minister at the time, kicked off the conference by saying the market imbalance would only be resolved when weaker players perished. It was a message some interpreted as him telling the struggling U.S. frackers in attendance to get efficient or go bankrupt. But while Mr. Naimi suggested OPEC wouldn't come to the rescue of the glutted market , a new Saudi oil minister, Khalid Al-Falih, last November helped convince OPEC producers and other oil nations, including Russia, to curb output by a combined 1.2 million barrels a day . Mr. Falih will speak at this year's event, as will OPEC Secretary-General Mohammed Barkindo, and their remarks will be closely followed for signs of whether the Saudis are pleased with the state of the market--and whether the output cuts could be extended. So far--and to almost everyone's surprise--most countries appear to be upholding their end of the bargain, at least for now. U.S. producers have already rushed into that void, putting more than 250 drilling rigs back to work and pumping an extra 600,000 barrels of oil every day since July, according to the latest federal data. "Last year they were still in survival mode," Mr. Yergin says of American shale companies. "The vitality and resilience and degree of ingenuity wasn't yet clear." The conference starts Monday with a speech by Alexander Novak, the energy minister of Russia. Iraq's oil minister, Jabbar Ali Al-Luiebi, is expected in Houston, although the Trump administration's plans for a revised executive order banning certain travelers from entering the U.S. loom large over the event. Last year Oman's oil minister, Mohammed Al-Rumhi, told the Houston gathering that the outcome of the U.S. presidential election would be important. "Next year, I may not be able to come here," he said at the time, eliciting nervous laughter and groans. No cabinet members or regulators from the Trump administration are set to make an appearance, despite repeated requests. In past years, high-ranking heads of federal agencies, including the Environmental Protection Agency and U.S. Energy Department, have been mainstays. But some economic advisers to the president feature prominently. Andrew Liveris, chairman of Dow Chemical Co. and Mr. Trump's manufacturing council, is leading a session on what's next for industrial America. Venture capitalist Peter Thiel--the first big investor in Facebook Inc., a backer of Elon Musk's SpaceX and an outspoken Trump supporter--will deliver a Tuesday evening about how technological innovation could disrupt the energy space. keynote Credit: By Lynn Cook
Subject: Crude oil prices; Supply & demand; Chemical industry
Location: Texas Russia United States--US Saudi Arabia
People: Naimi, Ali I Trudeau, Justin Al-Falih, Khalid
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Iberdrola SA; NAICS: 221118, 221122; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Duke Energy Corp; NAICS: 221122; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Southern Co; NAICS: 221112, 221122
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 4, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874027467
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874027467?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Inflation Is Back, But Where It Goes from Here Depends on the Region; A major factor in higher global prices has been oil, but that effect is likely to abate by second quarter
Author: Rosenthal, Rachel; Nakamichi, Takashi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Mar 2017: n/a.
Abstract:
The specter of falling prices pushed Japan's central bank into new policy experiments, from setting negative interest rates to setting a target rate for 10-year government bonds. In Japan, policy makers are growing confident that the inflation rate will accelerate to more than 1% within a year or so--even as oil prices stabilize--as the country rides the tailwinds of stronger U.S. economy and a weaker yen, according to people close to the central bank. In...Full text: Inflation is back around the globe--even in Japan, the poster-child of an economy long beset by falling prices. The big question now is whether it will stick around. A major factor in higher global prices so far has been oil, which hit a 13-year low in January 2016 and has nearly doubled since. When that is fed into annual inflation rate data, it helps drive up the year-over-year comparisons. But that effect is likely to start to abate by the second quarter, absent another run-up in oil prices this year. At that point, global inflation trends could start to diverge. In developed markets like the U.S., Europe and Japan, the impact of tightening labor markets will step in to pick up where oil has left off, economists say. In emerging markets, though, inflation may moderate as a result of weak underlying economic growth. That could lead to differing policy paths for global central banks, "with less accommodation or even outright tightening needed in developed markets but continued accommodation, if not outright easing, needed to cushion growth in emerging markets" said Frederic Neumann, co-head of Asia economic research at HSBC Holdings PLC in Hong Kong. On Friday, Japan reported that core consumer prices, which exclude fresh food but include energy, rose for the first time in more than a year in January, up 0.1% from a year earlier. Petroleum inflation accelerated 9.2% from a year earlier, compared with 0.5% in December, according to Capital Economics. Eurozone consumer prices rose 2% in February, the highest annual rate of inflation since January 2013, largely due to a 9.2% increase in energy costs, according to Eurostat. In the U.S., a 10.8% rise in energy costs drove annual inflation to 2.5% in January, according to the Bureau of Labor Statistics. The trend marks a turnaround from a year ago, when the word "deflation" was closer to economists' lips. The specter of falling prices pushed Japan's central bank into new policy experiments, from setting negative interest rates to setting a target rate for 10-year government bonds. The European Central Bank started buying corporate bonds in June, and the U.S. Federal Reserve kept interest rates on hold throughout last year. In Japan, policy makers are growing confident that the inflation rate will accelerate to more than 1% within a year or so--even as oil prices stabilize--as the country rides the tailwinds of stronger U.S. economy and a weaker yen, according to people close to the central bank. A lower yen would drive up import prices, underpinning higher inflation. Historically, it has taken nine months for currency weakness to show up in inflation readings, said Shuichi Ohsaki, Japan rates strategist at Bank of America Merrill Lynch in Tokyo. He expects the impact of the weakening yen to kick in by April. The yen was last at 114.25 per U.S. dollar. Bank of Japan officials are also gaining confidence that wages will rise this year. While companies remain cautious about giving base-wage increases to full-time workers, they are seen as more willing to raise their bonuses while increasing hourly wages for part-time or temporary workers, who are in short supply. In a speech last month, BOJ Deputy Gov. Hiroshi Nakaso pointed to tightening labor market conditions as evidence of Japan's improving "output gap," which measures the difference between an economy's actual and potential output. This week, the U.S. reported that the number of Americans applying for unemployment benefits fell to the lowest level in nearly half a century. While unemployment is still high in Europe, the figure fell to a seven-year low of 9.6% in December and held steady in January, the latest data available. Tightening labor markets could lead to "second-round effects," as workers with higher wages spend more and businesses raise prices to cover their costs, giving inflation an extra boost, said HSBC's Mr. Neumann. In Asia's emerging markets, there are few price pressures beyond fuel. Food prices, which tend to make up a larger share of inflation baskets than energy, have been stable. Moreover, "relatively subdued economic growth will also help keep inflation in check," wrote Capital Economics in a note. "At this stage, even though we expect growth in Asia to pick up from last year, we don't think the pace is strong enough to create genuine inflation pressures," said Khoon Goh, head of Asia research at ANZ Bank in Singapore. In China, where the consumer-price index rose 2.5% in January from a year earlier--the fastest pace in more than 2½ years--many economists believe that inflation will moderate this year as the effects of government stimulus fades and Beijing turns its attention to tamping down potential asset bubbles. Lucy Craymer and Liyan Qi contributed to this article. Write to Rachel Rosenthal at Rachel.Rosenthal@wsj.com and Takashi Nakamichi at takashi.nakamichi@wsj.com Credit: By Rachel Rosenthal and Takashi Nakamichi
Subject: Central banks; Interest rates; Labor market; Inflation
Location: Hong Kong United States--US Asia Japan Europe
Company / organization: Name: European Central Bank; NAICS: 521110; Name: Bureau of Labor Statistics; NAICS: 921110, 923110; Name: HSBC Holdings PLC; NAICS: 523120, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 5, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874132037
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874132037?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall on Concerns About U.S. Stockpiles, Output; May Brent crude on London's ICE Futures exchange fell 17 cents to $55.73 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract:
Latest weekly data showed the number of rigs drilling for oil in the U.S. rose by seven to 609 rigs, according to oil-field services company Baker Hughes Inc. The U.S. Energy Information Administration forecasts the country's oil output will average 9 million barrels a day in 2017, up from 8.9 million barrels a day the previous year. Maybe going forward this will happen once they have gauged how seriously members of the Organization of the...Full text: Oil prices are trading lower on Monday, pulled down by higher U.S. oil rig count and the likelihood of a U.S. interest rate increase later this month. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $53.12 a barrel at 0352 GMT, down 21 cents in the Globex electronic session. May Brent crude on London's ICE Futures exchange fell 17 cents to $55.73 a barrel. "Oil prices are caught in a range right now. I don't expect them to fall much further," Gnanasekar Thiagarajan, director with Commtrendz Risk Management said. An expansion in U.S. oil stockpiles and production have pressured oil prices as traders are waiting to see how well global exporters implement their output cut plans to ease oversupply. Latest weekly data showed the number of rigs drilling for oil in the U.S. rose by seven to 609 rigs, according to oil-field services company Baker Hughes Inc. The U.S. Energy Information Administration forecasts the country's oil output will average 9 million barrels a day in 2017, up from 8.9 million barrels a day the previous year. "The market's expectations that Russia will cut its oil output has not yet happened. Maybe going forward this will happen once they have gauged how seriously members of the Organization of the Petroleum Exporting Countries follow through on their planned output cuts," said Mr. Thiagarajan. Besides the rising U.S. supplies, markets are also bracing for an interest-rate increase by the Federal Reserve around the middle of this month, a move which could strengthen the dollar. A stronger dollar makes dollar-traded oil more expensive for foreign buyers, a scenario that often causes prices to fall. "I think oil prices are likely to remain in the range of $55 a barrel in the short term," said Li Li, analyst with ICIS. "We need to pay attention to import volumes by China as that may be quite strong." Over the weekend at a meeting of the annual National People's Congress, China said that it will target a GDP growth of 6.5% this year, a number which shows the nation's economy is stabilizing and therefore demand for crude oil including for strategic reserves may pick up, said Li Li. Oil product futures were trading mixed. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell 41 points to $1.6490 cents a gallon. ICE gas oil for March changed hands at $485 a metric ton, up $1 from Friday's settlement. Write to Biman Mukherji at biman.mukherji@wsj.com Credit: By Biman Mukherji
Subject: Futures; Crude oil prices; Crude oil
Location: China United States--US Libya Asia
Company / organization: Name: Commonwealth Bank of Australia; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874273616
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874273616?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Seen Stuck in Mid-$50s Range; Oil is being pulled in opposite directions by OPEC production cuts and increased U.S. shale oil
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract:
A poll of 15 investment banks, surveyed by The Wall Street Journal in late February, predicts that Brent crude, the international oil-price benchmark, will average at $57 a barrel this year. Last year's historic production deal by members of the Organization of the Petroleum Exporting Countries and other big producers has set a floor under the oil price. "If OPEC doesn't extend, oil prices could fall heavily as global stockpiles are still at historic highs,"...Full text: Oil prices may have found their new normal, for now. Analysts forecast that crude will remain stuck in its current tight-trading range in the mid-$50s a barrel until at least the spring, as the market continues to be pulled in opposite directions by OPEC output cuts and rising U.S. shale production. That would prove a rare bout of calm for a market that has grown accustomed to wild swings in the past three years. A poll of 15 investment banks, surveyed by The Wall Street Journal in late February, predicts that Brent crude, the international oil-price benchmark, will average at $57 a barrel this year. That prediction is broadly unchanged from the previous survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $55 a barrel this year. On Monday, Brent was changing hands at $55.46 a barrel while WTI was trading at $52.88 a barrel. "There doesn't seem to be many catalysts to throw us out of the current range," said Christopher Main, oil analyst at Citigroup. "We should be treading water until springtime." Brent crude has been trading in a tight band since early December, ranging from around $53 to $57 a barrel. That follows a period of extreme volatility, with oil dropping to below $30 a barrel last January from over $100 in the middle of 2014. The CBOE Crude Oil Volatility Index, which measures the expected volatility of crude prices, is currently hovering near a 28-month low reached last month. The banks in the survey expect Brent to average $56 in the second quarter and to stay below $60 through the end of the year. Next year, the banks see Brent averaging $65 a barrel, down a dollar from January's survey. Last year's historic production deal by members of the Organization of the Petroleum Exporting Countries and other big producers has set a floor under the oil price. OPEC data shows the cartel carried out around 90% of their agreed cuts in January, a higher-than-expected compliance rate for an organization with a history of not sticking to such deals. OPEC officials have estimated compliance by non-OPEC producers, including Russia, at around 50%. But that deal means that oil's floor is fragile. "If the deal falls apart, prices could easily go below $50" a barrel, said Citigroup's Mr. Main, who estimates that last month OPEC compliance declined slightly to around 80%. Market participants are now waiting for the next OPEC meeting, scheduled for end-May, for pointers. The group will debate then whether to extend the current deal, which is set to expire in June. "If OPEC doesn't extend, oil prices could fall heavily as global stockpiles are still at historic highs," said Gareth Lewis-Davies, analyst at BNP Paribas. "Until May, we're in a wait-and-see mode and prices are likely to move sideways." If OPEC is the price floor, the ceiling is the high amount of stockpiled crude and rising U.S. output. Producers built up large oil stockpiles when prices were low and demand lackluster. The International Energy Agency estimates that at the end of 2016, stocks in the 35-member states of the Organization for Economic Cooperation and Development were still 286 million barrels above the average over the preceding five years. Rising U.S. output is also a cap on any sustainable price rally. With prices above $50 a barrel, drilling has become more economic for many American shale producers. In the past two weeks, U.S. production has run above 9 million barrels a day--a level last seen in April. "It's pretty obvious that U.S. shale is coming back," BNP's Mr. Lewis-Davies said. "But the more shale comes on, the longer we are going to stay in the current price range." Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Compliance; Crude oil prices; Crude oil; Volatility
Location: Russia United States--US
Company / organization: Name: Citigroup Inc; NAICS: 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874298084
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874298084?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Declines as Investors Continue to Weigh OPEC's Production Cuts; Rising U.S. crude output continues to undermine bullish sentiment
Author: Sider, Alison; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract:
Oil prices edged lower Monday, as investors continued to weigh OPEC's production cuts against rising production in the U.S. U.S. crude futures fell 13 cents, or 0.24%, to $53.20 a barrel on the New York Mercantile Exchange.Latest weekly data from oil-field services company Baker Hughes Inc. showed the number of rigs drilling for oil in the U.S. rose by seven to 609 .Full text: Oil prices edged lower Monday, as investors continued to weigh OPEC's production cuts against rising production in the U.S. U.S. crude futures fell 13 cents, or 0.24%, to $53.20 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained 11 cents, or 0.2%, to $56.01 a barrel on ICE Futures Europe. While data has indicated OPEC has achieved almost full compliance with its production cut agreement, some analysts say the deal looks increasingly precarious, as Saudi Arabia has taken on the bulk of the cutbacks, reducing production below the level it agreed to in November. Other countries haven't met their pledges, and with data last week showing that Russia's production stood pat in February from the previous month, some analysts anticipate that the accord could start to fray. "It's like the Saudis are doing the whole thing themselves," said Tariq Zahir, managing member of Tyche Capital Partners. "The other nations are going to say why not keep pumping?" And U.S. producers have responded quickly to higher prices. Latest weekly data from oil-field services company Baker Hughes Inc. showed the number of rigs drilling for oil in the U.S. rose by seven to 609 . The U.S. Energy Information Administration forecasts the country's oil output will average 9 million barrels a day in 2017, up from 8.9 million barrels a day the previous year. Drilling rigs have now been growing for over six months, and the increased production activity could have an impact on the OPEC's initiative to cut output. "As long as producers in the U.S. add more drilling rigs, shale production will continue in a sustained uptrend adding further pressure on OPEC to not only extend the accord beyond the original six months, but possibly cut even deeper," said Dominick Chirichella from the New York-based Energy Management Institute. Still, some analysts suggest that crude's next move will likely be higher. Analysts at brokerage PVM said investors who have bet on rising prices aren't ready to give up, even though oil futures have remained wedged in a narrow trading band all year. "They got knocked down on one or two occasions last week but have managed to get up and undoubtedly will continue to fight," the analysts said. Goldman Sachs analysts wrote Sunday evening that despite an "uninspiring start" to the process of working off the oil glut, they expect demand and supply will come into balance. "While the shale production rebound has surprised to the upside, the slightly larger production cuts than we had expected and most importantly, the higher 2016 realized demand level, lead us to expect a slightly faster normalization in OECD inventories through 2017 than previously," the analysts wrote. Gasoline futures rose 1.92 cents, or 1.16 %, to $1.6723 a gallon--their second highest settlement value of the year. Diesel futures rose 1.09 cents, or 0.68%, to $1.6045 a gallon. Write to Alison Sider at alison.sider@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Alison Sider and Kevin Baxter
Subject: Petroleum production; Oil service industry; Crude oil prices; Price increases
Location: China Beijing China Russia Germany
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: Congress; NAICS: 921120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874366497
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874366497?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
IEA Sees No Peak Oil Demand 'Any Time Soon'; Demand from the developing world will keep consumption growing, says the International Energy Agency
Author: Said, Summer; Cook, Lynn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract:
Global petroleum consumption will keep growing for the foreseeable future despite tougher legislation to control vehicle emissions, the International Energy Agency said Monday, lending its voice to a debate over when demand for oil might peak. The rise of renewable energy sources and cleaner fossil-fuels such as natural gas have led to similar predictions, including Royal Dutch Shell PLC's forecast last year that rising oil demand could end within five to 15 years. Electric vehicles...Full text: Global petroleum consumption will keep growing for the foreseeable future despite tougher legislation to control vehicle emissions, the International Energy Agency said Monday, lending its voice to a debate over when demand for oil might peak. The forecast of the IEA--a Paris-based energy adviser to industrialized countries--marked a change in tone from its prediction three years ago that oil-demand growth may slow as soon as the end of this decade. The rise of renewable energy sources and cleaner fossil-fuels such as natural gas have led to similar predictions, including Royal Dutch Shell PLC's forecast last year that rising oil demand could end within five to 15 years. In its annual five-year outlook, the IEA said oil demand from the developing world would keep consumption growing. "We don't see a peak in oil demand any time soon," said Fatih Birol, the IEA's executive director. Oil demand will rise in the next five years from an average of 96.6 million barrels a day in 2016, passing the 100 million barrels a day threshold in 2019 and reaching about 104 million barrels by 2022, the IEA said. Asian countries will use about seven out of every 10 extra barrels consumed globally. India's oil demand growth will outpace China's by 2022, according to the report. Electric vehicles are a potential disrupter for growth in demand for oil, but the IEA predicted that battery-powered automobiles will displace only limited amounts of transportation fuel by 2022. "The growth in oil demand globally comes mainly from trucks, jets and petrochemicals where it is difficult to find substitutes for oil for now," Mr. Birol said in a briefing with reporters at the annual CERAWeek energy conference in Houston. Mr. Birol said the report, which was six months in the making, didn't take potential American policy changes into account, such as whether U.S. President Donald Trump rolls back some fuel-efficiency standards, as he has promised. But he cautioned that the Trump administration's promises of energy independence and less regulation may conflict, arguing that the U.S. would need to promote policies that encourage fuel efficiency to become more energy independent. "For U.S. energy independence, as much as one needs to see domestic oil production, we also need to see domestic oil consumption not be made in a wasteful manner," he said. The agency noted a significant shift in which countries will contribute new oil supply to global markets, with U.S. shale drillers ranking as the top new producers, with output rising in Canada and Brazil, too. The pivot to the western hemisphere from the Middle East and Asia comes as several members of the Organization of the Petroleum Exporting Countries face shrinking oil production, including Nigeria, Algeria and Venezuela. "This means oil trade routes will shift and become longer," Mr. Birol said, noting that the most important growth markets for oil will remain China and India. At current prices the agency expects U.S. oil producers to boost output 1.4 million barrels a day, but if crude prices rise to $80 a barrel in the next few years, shale drillers could increase output by as much another 3 million barrels a day by 2022. Demand for crude oil has increased steadily since the end of World War II, as the commodity helped to enable advances in transportation that shaped the modern world. The day that overall demand for oil begins to fall is seen as a seminal moment for an energy industry making a long-term transition toward lower-carbon resources. Oil companies have begun preparing for that day of reckoning. They are increasing investment in petrochemicals, pumping more natural gas, driving down costs, and even diversifying into alternative energy sources such as solar power. Demand for oil to power passenger cars may drop from 2020 as the European Union imposes tougher legislation to control vehicle emissions, the IEA said, but other sectors may offset this fall. The IEA sounded a warning about oil supplies. With oil prices depressed for the third straight year, oil-producing countries and companies have made fewer investments, the agency said. As demand keeps growing, oil-supply growth could falter by 2020 and lead to large price increases, the IEA said. "Unless investments globally rebound sharply, a new period of price volatility looms on the horizon," Mr. Birol said. Write to Summer Said at summer.said@wsj.com and Lynn Cook at lynn.cook@wsj.com Related * Oil Declines as Investors Weigh OPEC's Production Cuts Credit: By Summer Said and Lynn Cook
Subject: Alternative energy sources; Energy resources; Energy industry; Oil consumption; Supply & demand
Location: China India
People: Birol, Fatih
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: European Union; NAICS: 926110, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874416469
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874416469?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 20 17-11-23
Database: The Wall Street Journal
The Cheap Resource That Worries Oil Shale Drillers; The rising cost of fracking sand shows how drillers of oil and gas are facing rising costs and capacity constraints
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract:
A typical well in the booming Permian Basin might have cost about $6 million to drill last year including around $350,000 worth of sand according to George O'Leary, an equity analyst at Tudor, Pickering, Holt & Co. By late 2017 he says that could reach $800,000 and conceivably top $1 million if providers flex their pricing muscles.Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team.Full text: Most Silicon Valley companies would kill for the sorts of gains made by sellers of plain old silicon. Even after a recent selloff, leading producers of sand used by oil and gas producers--companies like Hi-Crush Partners and U.S. Silica Holdings--are up between 170% and 380% over the past year. Their gain is turning into oil producers' pain, though, and could affect the global energy market. Used after shale formations have been fracked, sand was a hot commodity during the boom that ended in 2014. Now that activity is again on the upswing, sand producers have rebounded from crisis to expansion mode. Some analysts see demand for sand equaling or exceeding the prior peak even with drilling activity far lower. Drillers have discovered that more sand produces more oil or gas. Praveen Narra, an equity analyst at Raymond James, estimates that the amount used per foot of well depth last year was 40% to 50% greater than in 2014. The amount and quality of sand used varies greatly according to geographical and geological constraints, but with usage per well higher and prices for sand about twice what they were just a year ago, costs are starting to bite the drillers . A production executive at Continental Resources recently said on a conference call that the company would try to economize on sand relative to peers. A typical well in the booming Permian Basin might have cost about $6 million to drill last year including around $350,000 worth of sand according to George O'Leary, an equity analyst at Tudor, Pickering, Holt & Co. By late 2017 he says that could reach $800,000 and conceivably top $1 million if providers flex their pricing muscles. Drillers are already facing a shortage of equipment and personnel for pressure pumping, another vital and expensive element in shale drilling. "We think there's significant service cost inflation to come," says Mr. Narra. All else being equal, that hurts projected cash flows and means drillers will need higher prices to justify new investment. Big exporters such as Saudi Arabia and Russia miscalculated back in 2014 the price at which shale producers would capitulate and also how quickly they would bounce back once prices stabilized. Drilling costs came down significantly during the bust, in part because of drillers' ingenuity but in part because lack of demand made services, and sand, cheaper. Surging prices are putting a smile on the faces of sand-company shareholders but also should cheer people up in Riyadh and Moscow. Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Prices; Costs; Energy industry; Drilling
Location: Permian Basin Russia Saudi Arabia
Company / organization: Name: Hi-Crush Partners LP; NAICS: 212321; Name: Tudor Pickering Holt & Co LLC; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874425128
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874425128?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Woos Old Nemesis--Wall Street; Oil cartel meets with traders in London and New York
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract:
The Organization of the Petroleum Exporting Countries is on an unusual listening tour, in which it exchanges views with hedge funds, investment banks and other big financial players while trying to figure out how the market reacts to its moves. Mr. Andurand and Vitol have declined to comment, while Lukoil didn't respond to requests for comment. Since the output-cut deal, OPEC Secretary General Mohammad Barkindo has met with a series of hedge funds and oil buyers. Among them: BBL Commodities Value Fund, a $540 million investment vehicle run by ex-Goldman Sachs trader Jonathan Goldberg; Ospraie Management, headed by veteran commodities investor Dwight Anderson; Taylor Woods Capital which is managed by former Credit Suisse trader Beau Taylor; and EasyJet, the U.K. budget airline that buys and sells oil-market derivatives to hedge against fuel-price rises. Former Saudi oil minister Ali al-Naimi blamed Wall Street for the $100 a barrel and higher prices...Full text: The Organization of the Petroleum Exporting Countries is on an unusual listening tour, in which it exchanges views with hedge funds, investment banks and other big financial players while trying to figure out how the market reacts to its moves. The private meetings with oil traders and money managers in London and New York, along with a planned gathering this week at a conference in Houston, are a departure for OPEC. The cartel's leaders have long derided oil-futures-contract traders as "speculators" who cause unnecessary volatility in crude prices. Now, OPEC and its most powerful member, Saudi Arabia , are wooing traders, trying to convince the market they are serious about raising oil prices with a nearly 5% production cut agreed to in 2016. The oil producers are also trying to understand how traders and banks make decisions. The gatherings began in Vienna just before the Nov. 30 decision to cut production. A Saudi OPEC official sounded out the effects of a potential cut with French oil trader Pierre Andurand, Lukoil traders and Mark Couling of Vitol Group, according to people familiar with the meetings. Mr. Andurand and Vitol have declined to comment, while Lukoil didn't respond to requests for comment. Since the output-cut deal, OPEC Secretary General Mohammad Barkindo has met with a series of hedge funds and oil buyers. Among them: BBL Commodities Value Fund, a $540 million investment vehicle run by ex-Goldman Sachs trader Jonathan Goldberg; Ospraie Management, headed by veteran commodities investor Dwight Anderson; Taylor Woods Capital which is managed by former Credit Suisse trader Beau Taylor; and EasyJet, the U.K. budget airline that buys and sells oil-market derivatives to hedge against fuel-price rises. Taylor Woods, BBL and EasyJet confirmed the meetings. A spokesman for Ospraie declined to comment. This week, Mr. Barkindo said he would meet hedge funds on the sidelines of CERAWeek, a conference in Houston featuring the oil industry's biggest players, including Saudi oil minister Khalid al-Falih. The efforts are aimed at building confidence in OPEC, said Ed Morse, global head of commodities research at Citigroup. He organized a private briefing with Mr. Barkindo for dozens of hedge funds, oil companies and big oil buyers at the Corinthia Hotel in London on Feb. 20. Oil traders have been skeptical about OPEC following through on production cuts, with members historically pumping far more than pledged. OPEC formed a coalition of 24 oil producers--including 11 outside of the cartel --to pledge cuts of nearly 1.8 million barrels a day of supply from the market. Mr. Barkindo oversaw the formation of the first-ever compliance committee to soothe fears that members would pump more than they agreed to. Mr. Morse said Mr. Barkindo wanted to go farther, making a "concerted effort to interact with the financial sector." OPEC wants to "better understand how [its action] impacts oil prices," he said. Oil prices rose over 20% in the wake of the deal, although they have hit a ceiling of around $57 a barrel in recent weeks . On Monday afternoon in London, Brent crude, the international benchmark, was down 0.05% at $55.88. The coordinated outreach to Wall Street is unprecedented for OPEC and its biggest producer, Saudi Arabia. Former Saudi oil minister Ali al-Naimi blamed Wall Street for the $100 a barrel and higher prices from 2011 to 2014, saying the trade in oil future contracts wasn't taking account of the fundamentals of supply and demand. Mr. Naimi and Mr. Barkindo's predecessor as OPEC secretary general, Abdalla Salem el-Badri, generally shunned Wall Street, although an OPEC official said Mr. Badri occasionally talked to traders. Mr. Barkindo, a Nigerian who took over the top job at OPEC last June, agrees that "excessive speculation" in oil futures markets is a big challenge for the cartel. However, he and Mr. Falih have tried to be more open with traders, as they attempt to reassert OPEC's clout. "We cannot afford to ignore the impact of the financial markets on physical oil," Mr. Barkindo said in a recent interview. He said he wanted to show markets that OPEC was "as transparent as a fishbowl." In meetings with traders, Mr. Barkindo has asked about the declining role of investment banks in commodity-futures trading and the increased use of automated trades, according to people who were present. He asked why U.S. banks were so quick to reinvest in American shale producers after the bust and what would happen if prices fell again, said the sources, who were asked not to disclose the substance of the talks. Mr. Barkindo was especially interested in how quickly stockpiled oil would be sold off as prices rose, the people said. OPEC has said its production cuts are meant to quicken a sell-off in record levels of stored oil--stockpiles that built up when traders bought cheap crude and hoarded it to sell at a profit later. "He was mostly listening. He was not confrontational," said a person who attended the meetings. Traders have quizzed Mr. Barkindo on whether OPEC will extend its production agreement at its next meeting in May. Mr. Barkindo said it would depend on whether stockpiled oil had fallen to a five-year average at the end of May. One hedge-fund manager told Mr. Barkindo about the importance of extending those cuts. An extension would cause him to shift his views and bet that oil prices would keep rising, the sources said. Robert Wall, Georgi Kantchev and Summer Said contributed to this article. Credit: By Benoit Faucon
Subject: Meetings; Futures; Commodities; Cartels; Crude oil prices
Location: New York Saudi Arabia United Kingdom--UK
People: Andurand, Pierre
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: Credit Suisse Group; NAICS: 522110; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874425143
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874425143?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Norway's Statoil to Increase Bet on Renewables; Commitment to increasing alternatives to fossil fuel energy is driven by view global demand for oil will eventually peak
Author: Cherney, Elena; Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract:
The commitment to increasing the company's alternatives to fossil fuel energy is driven by a view that global demand for oil will eventually peak, and the company wants to get ahead of that shift, Statoil Chief Executive Eldar Saetre said in an interview Monday at the CERAWeek conference in Houston. According to a forecast released Monday by the Paris-based International Energy Agency, oil demand will rise for the next five years to hit 104 million...Full text: HOUSTON--Norway's Statoil ASA aims to increase its investment in renewables to between 15% and 20% of total spending by 2030, up from 5% today. The commitment to increasing the company's alternatives to fossil fuel energy is driven by a view that global demand for oil will eventually peak, and the company wants to get ahead of that shift, Statoil Chief Executive Eldar Saetre said in an interview Monday at the CERAWeek conference in Houston. Statoil, which is majority state-owned, has focused its renewable investments so far in offshore wind, an area where it can tap some of its offshore oil expertise, Mr. Saetre said. "One day, there will be a peak in oil demand," he said. "There is a debate about when that will happen. At some point, it will be a shrinking business." Varying scenarios put the date of oil's growth peak somewhere between the mid 2020s and well into the 2030s, Mr. Saetre said. According to a forecast released Monday by the Paris-based International Energy Agency, oil demand will rise for the next five years to hit 104 million barrels a day by 2022. While long-term concern over demand for oil and gas is motivating investment in alternatives, such businesses can also provide a hedge against the volatility of the oil and gas business, which depends heavily on the price of the commodity , according to Mr. Saetre. That kind of bulwark against cyclical ups and downs in prices is especially important to a company like Statoil, which has focused heavily on oil and gas production, leaving it with an even more concentrated exposure to price swings than many other big players that have more sizable refining and pipeline businesses. "As an upstream company we are totally exposed to oil and gas prices and we have to live with whatever that commodity environment gives us," he said. "To have a portfolio that also has elements that are independent and doesn't follow oil and gas is useful in tough times." Mr. Saetre said the company's renewables projects typically see a rate of return around 10%. By contrast its oil and gas projects going forward are expected to have a return of 20% when prices are $50 a barrel. Despite moves by the Trump administration to roll back environmental protections , Mr. Saetre said that major energy companies remain committed to the emissions-reduction goals of the Paris Accord. To achieve those goals, Statoil executives and a growing number of industry peers support a carbon tax. Write to Elena Cherney at elena.cherney@wsj.com and Sarah Kent at sarah.kent@wsj.com Credit: By Elena Cherney and Sarah Kent
Subject: Prices; Fossil fuels; Energy industry; Supply & demand
Location: Norway
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Languageof publication: English
Document type: News
ProQuest document ID: 1874513409
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874513409?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Nigeria Shuts Bonga Oil Field for Maintenance; Production expected to resume next month
Author: Oredein, Obafemi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract: None available.
Full text: IBADAN, Nigeria--Royal Dutch Shell PLC's (RDSA.LN) Nigerian unit said Monday it has halted production from its 225,000-barrel-a-day Bonga deep-water oil field for turnaround maintenance. Bamidele Odugbesan, spokesman for Shell Nigeria Exploration and Production Co., or Snepco, said in a statement that the field was shut down on March 4 and that production is expected to resume next month. He didn't give a specific date for resumption of production. "This is the fourth turnaround maintenance since Bonga began production," said Snepco Managing Director Bayo Ojulari. "The exercise will help ensure sustained production and reduced unscheduled production deferments." Bonga, which lies about 120 kilometers (75 miles) off the Nigeria coast, began producing in November 2005. Mr. Ojulari said the turnaround maintenance involves inspections, recertification, testing and repair of equipment as well as engineering upgrades with Nigerian companies. Snepco operates Bonga in partnership with Esso Exploration and Production Nigeria (Deep Water) Ltd., Total E&P Nigeria Ltd., and Nigerian Agip Exploration Ltd. under a production-sharing contract with the Nigerian National Petroleum Corp., the statement said. Write to Obafemi Oredein at realtimedesk@dowjones.com Credit: By Obafemi Oredein
Subject: Oil fields
Location: Nigeria
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Nigerian National Petroleum Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874522786
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874522786?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Russia Committed to Oil Production Cut; Expects to meet 300,000-barrel a day reduction by end of April
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract: None available.
Full text: HOUSTON--Russia's energy minister said Monday the nation is gradually reducing its oil production in line with an agreement reached with OPEC late last year and should be fully compliant by the end of April. The country, which ranks among the world's top oil producers, agreed to reduce its output by 300,000 barrels a day as part of a broad effort by the Organization of the Petroleum Exporting Countries and other producers to boost prices, but it is behind target on meeting that commitment. "We are currently at a higher level than what was planned," energy minister Alexander Novak said during a media briefing at CERAWeek in Houston, speaking through a translator. "We will achieve the 300,000-barrel-a-day cut by the end of April," he said. The minister added that it is premature to talk about extending last year's agreement, which is scheduled for review in May. A ministerial monitoring group will meet later this month in Kuwait to consider the state of the market. "The terms will shape up closer to the end of the agreement. We need to wait and see what will happen," Mr. Novak said. Russia sees oil prices at $55 to $60 barrel this year, Mr. Novak said. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Agreements; Petroleum production; Price increases
Location: Kuwait Russia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874529471
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874529471?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge; Exxon CEO Darren Woods outlined an 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.
Abstract:
HOUSTON--Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production, U.S. operators have vowed to return...Full text: HOUSTON--Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America. Mr. Woods outlined the 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas, in a speech at the annual CERAWeek conference. It came after a meeting with analysts last week in which he said Exxon
is poised to nearly double its production from U.S. shale basins
in the next decade. The spending plans were cheered by President Donald Trump, who released a statement Monday calling Exxon's projects "exactly the kind of investment, economic development and job creation that will help put Americans back to work." Exxon's $20 billion in Gulf Coast spending began in 2013 and will continue through at least 2022, according to the company. Chevron Corp. is expected to unveil similar plans this week, ramping up its operations
in the already booming Permian basin in West Texas and New Mexico. The company's output from the region could reach 900,000 barrels a day by 2020 if oil prices continue to rise, according to energy investment bank Tudor Pickering Holt & Co. That would mean production from one company in just one area would rival output from major world producers such as Azerbaijan. Exxon's announcement underscored the extent to which new technology has unlocked vast new resources in the U.S., upending the balance of power in global oil. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production,
U.S. operators have vowed to return to the oil fields almost en masse to make up the difference. "Hydraulic fracturing has opened up a whole new energy future for the United States, and potentially for many other countries," Mr. Woods said Monday. "We have managed, in the United States, to accomplish what was practically unthinkable only a decade ago." The conference is expected to be defined by similar bravado as energy titans from companies and governments gather, eager to show off their resilience after prices fell from more than $100 in mid-2014 to below $30 in February of last year before beginning a partial recovery. Prices have been hovering
steadily above $50 for weeks. In his remarks, Mr. Woods also praised industry efforts to respond to the threat of climate change, spending much of his high-profile address discussing what Exxon is doing to reduce emissions. The remarks, as well as others he has made since taking over as chief executive, such as expressing support for the 2015 Paris climate deal, have signaled the company's plan to stay the course in its environmental stance. That comes even as some in Mr. Trump's inner circle have pushed to walk away from the deal, while others have urged the president to keep the country's part in the agreement. "We have an opportunity to contribute and help mitigate that risk through technology," Mr. Woods said. He also extolled the virtues of free trade as having an elemental role in the U.S. energy renaissance. Global energy executives have shown mixed responses to plans by U.S. Republicans to change tax policy in a way that would favor exports and burden imports into the country. "It's hard to be in our business and not support open markets and free trade," he said. The U.S. will be the greatest contributor to new global supply through 2022, with production from shale rising to 1.4 million barrels a day if prices remain around $60 a barrel, according to the Paris-based International Energy Agency. If prices rise to $80, output from shale fields alone could reach 3 million barrels a day, about the same as Kuwait, the IEA said Monday. Companies such as Exxon are making immense investments in their refining, chemicals and export operations to take advantage of the new opportunity. From 2010 to 2020, such investments are expected to reach almost $180 billion, according to the American Chemistry Council, about 70% of which will go to the U.S. Gulf Coast. In addition to Exxon's plans to build new plants or expand facilities to turn natural gas into the building blocks of common plastics, companies including Royal Dutch Shell PLC, Chevron Phillips Chemical and others plan similar investments or will expand production of fertilizer, polymers used to make lubricants, and even tennis racket strings. Write to Bradley Olson at Bradley.Olson@wsj.com Credit: By Bradley Olson
Subject: International trade; Budgets; Prices; Chemical industry; Free trade; Energy industry; International markets; Natural gas
Location: Azerbaijan New Mexico United States--US Gulf of Mexico West Texas
People: Trump, Donald J
Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Republican Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 6, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874531554
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874531554?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Oil Prices Extend Falls; May Brent crude on London's ICE Futures exchange fell 8 cents to $55.93 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
Latest weekly data from oil-field services company Baker Hughes Inc. showed the number of rigs drilling for oil in the U.S. rose by seven to 609. The International Energy Agency on Monday warned that global petroleum consumption will keep growing for the foreseeable future due to rising oil demand from the developing world. [...]Russia's energy minister said Monday that the nation is gradually reducing its oil production in line with an agreement reached with the...Full text: Oil prices extended their declines on Tuesday over concerns about rising U.S. oil supplies and pessimism over China's economic growth outlook for this year. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $53.19 a barrel at 0410 GMT, down 1 cent in the Globex electronic session. May Brent crude on London's ICE Futures exchange fell 8 cents to $55.93 a barrel. "In H1 2017, we expect persistent macroeconomic headwinds (in China) and by extension, slower consumption growth at home for certain fuels (diesel, fuel oil) to maintain the pressure on overall oil demand. Also weighing on imports will be softer demand by the independent teapot refiners," BMI Research said. However, longer term demand in China is likely to be positive with plans to buildup import and distribution infrastructure in the Shandong province, it added. In its annual meeting of the National People's Congress over the weekend, Beijing said it expects GDP growth of 6.5% this year compared with 6.7% in 2016. Near-term outlook for crude oil remains weak as investors are bracing for a U.S. rate increase next week. Higher interest rates would likely boost the dollar and make dollar-denominated commodities like oil more expensive for holders of other currencies. Rising U.S. oil supplies are also keeping prices under pressure. Latest weekly data from oil-field services company Baker Hughes Inc. showed the number of rigs drilling for oil in the U.S. rose by seven to 609. The U.S. Energy Information Administration forecasts the country's oil output will average 9 million barrels a day in 2017, up from 8.9 million barrels a day the previous year. Still, analysts are not ruling out the chance of a rebound because of risks of supply disruptions. Libya's two largest ports have been shut due to fresh clashes, cutting output by over 50,000 barrels/day, while in Gabon, a majority of oil workers agreed to go on a general strike, notes an ANZ Bank report. The International Energy Agency on Monday warned that global petroleum consumption will keep growing for the foreseeable future due to rising oil demand from the developing world. As demand keeps growing, oil-supply growth could falter by 2020 and lead to large price increases, the IEA said. Meanwhile, Russia's energy minister said Monday that the nation is gradually reducing its oil production in line with an agreement reached with the Organization of the Petroleum Exporting Countries late last year and should be fully compliant by the end of April. Russia had agreed to reduce its output by 300,000 barrels a day as part of a broad effort by OPEC and other producers to boost prices, but is behind target on meeting that commitment. Oil product futures were mixed. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 95 points to $1.6818 a gallon. ICE gas oil for March changed hands at $486.5 a metric ton, down $0.25 from Monday's settlement. Write to Biman Mukherji at biman.mukherji@wsj.com Credit: By Biman Mukherji
Subject: Petroleum production; Futures; Crude oil prices; Price increases; Crude oil
Location: United States--US Libya Gabon
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111; Name: Congress; NAICS: 921120; Name: ICE Futures; NAICS: 523210; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874567178
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874567178?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Trump Praise for Exxon Follows Meeting With Tillerson, Ex-CEO; President met with Secretary of State before issuing statement and calling company 'true American success story'
Author: Ballhaus, Rebecca
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
The White House at 3:43 p.m. on Monday issued an official statement congratulating Exxon Mobil Corp. on its plan to invest $20 billion expanding its manufacturing capabilities along the Gulf Coast. [...]the company's "Growing the Gulf" program includes investments that started in 2013, mirroring a growing pattern among companies who fear the president's Twitter account of trumpeting investment programs already under way. Mr. Trump's decision to tap the former Exxon CEO as his secretary of...Full text: When President Donald Trump has singled out companies for praise or criticism in the past, it has often raised the question: Why those? The White House at 3:43 p.m. on Monday issued an official statement congratulating Exxon Mobil Corp. on its plan to invest $20 billion
expanding its manufacturing capabilities along the Gulf Coast. "This is a true American success story," Mr. Trump said in a statement that closely echoed Exxon's own press release, issued half an hour earlier. The White House statement quoted Exxon CEO Darren Woods and cited the press release's figure that the jobs created by the new investment would pay an average salary of $100,000. It also lifted one paragraph
on the program's background nearly word-for-word. Less than four hours later, Mr. Trump followed up with some more praise for the oil giant--this time in video form
. Calling Exxon a "great company," he said the new investment was "something that was done to a large extent because of our policies." In fact, the company's "Growing the Gulf" program includes investments that started in 2013, mirroring a growing pattern among companies
who fear the president's Twitter account of trumpeting investment programs already under way. What could have spurred the president's burst of enthusiasm for Exxon? One possibility: an Oval Office meeting he held two hours before issuing the statement with the company's former CEO--Secretary of State Rex Tillerson. Mr. Tillerson stepped down as chief executive
of the company on Jan. 1, taking with him a $180 million retirement package. Mr. Trump's decision to tap the former Exxon CEO as his secretary of state at the time raised questions about whether the oil company--which already spends millions lobbying the federal government--would see a heightened influence in Washington as a result. One particular area of concern: the company's history of lobbying the government on sanctions on Russia, which the company has said hurt its business interests. Mr. Tillerson in his confirmation hearing
argued that neither he nor his former company ever lobbied against U.S. sanctions on Russia or Iran, though his company and its outside consultants have filed more than 30 lobbying disclosure reports, listing sanctions issues in Iran, Russia and Libya as among its issues. A White House spokeswoman, asked whether Mr. Trump's praise of Exxon suggested that he was trying to reward his secretary of state's former company, responded: "Actually it's the other way around. Exxon is giving America a boost by heavily investing in creating good paying jobs right here at home." The spokeswoman, Sarah Huckabee Sanders, added: "It's no secret job creation is a top priority of the president, and when companies make this type of commitment the administration will recognize their efforts." Indeed, Exxon isn't the only company whose investment plans have elicited praise from the president. Intel CEO Brian Krzanich unveiled a planned $7 billion investment
at the White House last month, prompting Mr. Trump to tweet him a thank you. Exxon also donated $500,000 to Mr. Trump's inauguration fund in December, less than a week after he officially named Mr. Tillerson as his pick to head the State Department. In 2013, the company gave half that amount to former President Barack Obama's inauguration fund. Yet even $250,000 was enough to draw Mr. Trump's scorn in 2013
. "Exxon donated $250g to Obama's inaugural," he tweeted that January. "I guess the Democrats have no problem accepting money from 'big oil.' " Felicia Schwartz contributed to this article. Write to Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com Related * Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge
Credit: By Rebecca Ballhaus
Subject: Presidents; Sanctions; Lobbying
Location: Iran Russia United States--US Libya
People: Woods, Darren
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Twitter Inc; NAICS: 519130; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874576216
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874576216?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge; Exxon CEO Darren Woods outlined an 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
HOUSTON--Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production, U.S. operators have vowed to return...Full text: HOUSTON--Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America. Mr. Woods outlined the 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas, in a speech at the annual CERAWeek conference. It came after a meeting with analysts last week in which he said Exxon
is poised to nearly double its production from U.S. shale basins
in the next decade. The spending plans were cheered by President Donald Trump
, who released a statement Monday calling Exxon's projects "exactly the kind of investment, economic development and job creation that will help put Americans back to work." Exxon's $20 billion in Gulf Coast spending began in 2013 and will continue through at least 2022, according to the company. Chevron Corp. is expected to unveil similar plans this week, ramping up its operations
in the already booming Permian basin in West Texas and New Mexico. The company's output from the region could reach 900,000 barrels a day by 2020 if oil prices continue to rise, according to energy investment bank Tudor Pickering Holt & Co. That would mean production from one company in just one area would rival output from major world producers such as Azerbaijan. Exxon's announcement underscored the extent to which new technology has unlocked vast new resources in the U.S., upending the balance of power in global oil. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production,
U.S. operators have vowed to return to the oil fields almost en masse to make up the difference. "Hydraulic fracturing has opened up a whole new energy future for the United States, and potentially for many other countries," Mr. Woods said Monday. "We have managed, in the United States, to accomplish what was practically unthinkable only a decade ago." The conference is expected to be defined by similar bravado as energy titans from companies and governments gather, eager to show off their resilience after prices fell from more than $100 in mid-2014 to below $30 in February of last year before beginning a partial recovery. Prices have been hovering
steadily above $50 for weeks. In his remarks, Mr. Woods also praised industry efforts to respond to the threat of climate change, spending much of his high-profile address discussing what Exxon is doing to reduce emissions. The remarks, as well as others he has made since taking over as chief executive, such as expressing support for the 2015 Paris climate deal, have signaled the company's plan to stay the course in its environmental stance. That comes even as some in Mr. Trump's inner circle have pushed to walk away from the deal, while others have urged the president to keep the country's part in the agreement. "We have an opportunity to contribute and help mitigate that risk through technology," Mr. Woods said. He also extolled the virtues of free trade as having an elemental role in the U.S. energy renaissance. Global energy executives have shown mixed responses to plans by U.S. Republicans to change tax policy in a way that would favor exports and burden imports into the country. "It's hard to be in our business and not support open markets and free trade," he said. The U.S. will be the greatest contributor to new global supply through 2022, with production from shale rising to 1.4 million barrels a day if prices remain around $60 a barrel, according to the Paris-based International Energy Agency. If prices rise to $80, output from shale fields alone could reach 3 million barrels a day, about the same as Kuwait, the IEA said Monday. Companies such as Exxon are making immense investments in their refining, chemicals and export operations to take advantage of the new opportunity. From 2010 to 2020, such investments are expected to reach almost $180 billion, according to the American Chemistry Council, about 70% of which will go to the U.S. Gulf Coast. In addition to Exxon's plans to build new plants or expand facilities to turn natural gas into the building blocks of common plastics, companies including Royal Dutch Shell PLC, Chevron Phillips Chemical and others plan similar investments or will expand production of fertilizer, polymers used to make lubricants, and even tennis racket strings. Write to Bradley Olson at Bradley.Olson@wsj.com Related * Trump Praise for Exxon Follows Meeting With Tillerson
* Statoil Sets Sights on Renewables
Credit: By Bradley Olson
Subject: International trade; Budgets; Prices; Free trade; Chemical industry; Energy industry; International markets; Natural gas
Location: Azerbaijan New Mexico United States--US West Texas Gulf of Mexico
People: Trump, Donald J
Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Republican Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874585935
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874585935?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Oil Forecast: Calm Trading Ahead
Author: Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Mar 2017: B.11.
Abstract:
"If OPEC doesn't extend, oil prices could fall heavily as global stockpiles are still at historic highs," said Gareth Lewis-Davies, analyst at BNP Paribas SA. "Until May, we're in a wait-and-see mode and prices are likely to move sideways."
Full text: Oil prices may have found their new normal, for now. Analysts forecast that crude will remain stuck in its tight trading range in the mid-$50s a barrel until at least the spring, as the market continues to be pulled in opposite directions by OPEC output cuts and rising U.S. shale production. That would be a rare bout of tranquility for a market that has become accustomed to wild swings in the past three years. A poll of 15 investment banks, surveyed by The Wall Street Journal in late February, predicts that Brent crude, the international oil-price benchmark, will average $57 a barrel this year. That prediction is broadly unchanged from the previous survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $55 a barrel this year. On Monday, Brent climbed 0.2% to settle at $56.01 a barrel, while WTI lost 0.2% to $53.20. "There doesn't seem to be many catalysts to throw us out of the current range," said Christopher Main, oil analyst at Citigroup Inc. "We should be treading water until springtime." Brent crude has been trading in a tight band since early December, ranging from $53 to $57 a barrel. That follows a period of extreme volatility, with oil dropping to below $30 a barrel last January from over $100 in the middle of 2014. The CBOE Crude Oil Volatility Index, which measures the expected volatility of crude prices, is hovering near a 28-month low reached last month. The banks in the survey expect Brent to average $56 in the second quarter and to stay below $60 through the end of the year. Next year, the banks see Brent averaging $65 a barrel, down a dollar from January's survey. Last year's production deal by members of the Organization of the Petroleum Exporting Countries and other big producers has set a floor under the oil price. OPEC data show the group carried out about 90% of their agreed cuts in January, a higher-than-expected compliance rate for an organization with a history of not sticking to such deals. OPEC officials have estimated compliance by non-OPEC producers, including Russia, at around 50%. But that deal means that oil's floor is fragile. "If the deal falls apart, prices could easily go below $50" a barrel, said Citigroup's Mr. Main, who estimates that last month OPEC compliance declined slightly to around 80%. Market participants are now waiting for the next OPEC meeting, scheduled for the end of May. The group will debate then whether to extend the deal, which is set to expire in June. "If OPEC doesn't extend, oil prices could fall heavily as global stockpiles are still at historic highs," said Gareth Lewis-Davies, analyst at BNP Paribas SA. "Until May, we're in a wait-and-see mode and prices are likely to move sideways."
Credit: By Georgi Kantchev
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Mar 7, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874618602
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874618602?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Exxon Places Big Wager on U.S. Energy --- Oil giant's $20 billion spending plan shows how sector is shifting focus toward America
Author: Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Mar 2017: B.3.
Abstract:
Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America.
Full text: HOUSTON -- Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America. Mr. Woods outlined the 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas, in a speech at the annual CERAWeek conference. It came after a meeting with analysts last week in which he said Exxon is poised to nearly double its production from U.S. shale basins in the next decade. The spending plans were cheered by President Donald Trump, who released a statement Monday calling Exxon's projects "exactly the kind of investment, economic development and job creation that will help put Americans back to work." Exxon's $20 billion in Gulf Coast spending began in 2013 and will continue through at least 2022, according to the company. Chevron Corp. is expected to unveil similar plans this week, ramping up its operations in the already booming Permian basin in West Texas and New Mexico. The company's output from the region could reach 900,000 barrels a day by 2020 if oil prices continue to rise, according to energy investment bank Tudor Pickering Holt & Co. That would mean production from one company in just one area would rival output from major world producers such as Azerbaijan. Exxon's announcement highlights the extent to which new technology has unlocked vast new resources in the U.S., upending the balance of power in global oil. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production, U.S. operators have vowed to return to the oil fields almost en masse to make up the difference. "Hydraulic fracturing has opened up a whole new energy future for the United States, and potentially for many other countries," Mr. Woods said Monday. "We have managed, in the United States, to accomplish what was practically unthinkable only a decade ago." The conference is expected to be defined by similar bravado as energy titans from companies and governments gather, eager to show off their resilience after prices fell from more than $100 in mid-2014 to below $30 in February of last year before beginning a partial recovery. Prices have been hovering steadily above $50 for weeks. In his remarks, Mr. Woods also praised industry efforts to respond to the threat of climate change, spending much of his high-profile address discussing what Exxon is doing to reduce emissions. The remarks, as well as others he has made since taking over as chief executive, such as expressing support for the 2015 Paris climate deal, have signaled the company's plan to stay the course in its environmental stance. That comes even as some in Mr. Trump's inner circle have pushed to walk away from the deal, while others have urged the president to keep the country's part in the agreement. "We have an opportunity to contribute and help mitigate that risk through technology," Mr. Woods said. Credit: By Bradley Olson
Subject: International markets; Capital expenditures; Refineries; Petroleum industry
Location: United States--US Gulf of Mexico
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Mar 7, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874620405
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874620405?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or dist ribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Retreats Ahead of Inventory Data; EIA report expected to show rise in weekly crude-oil stockpiles
Author: Yang, Stephanie; Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
Inventory data from the U.S. Energy Information Administration is expected to show an increase of 1.7 million barrels in the week ended March 3, according to the average forecast from traders and analysts surveyed by The Wall Street Journal. Monday's 2017 annual outlook report from the Paris-based International Energy Agency said that oil demand growth between now and 2022 should bring the global surplus down, aided by cuts from OPEC and some producers outside the...Full text: Oil prices edged lower Tuesday as investors awaited inventory data expected to show an increase in crude-oil stockpiles. Light, sweet crude for April delivery fell 6 cents, or 0.1%, to $53.14 a barrel on the New York Mercantile Exchange, reversing gains after trading as high as $53.80 a barrel earlier in the session. Brent, the global benchmark, lost 9 cents, or 0.2%, to $55.92 a barrel. Inventory data from the U.S. Energy Information Administration is expected to show an increase of 1.7 million barrels in the week ended March 3, according to the average forecast from traders and analysts surveyed by The Wall Street Journal. Data from the American Petroleum Institute, the industry group, should shed some light on the amount of oil in storage Tuesday afternoon. The official EIA data is scheduled for release on Wednesday at 10:30 a.m. Eastern. Oil prices also took cues from comments during the CERAWeek energy conference this week, said John Kilduff, founding partner at Again Capital, particularly from Saudi Arabia's energy minister . It seemed "they weren't all that committed to continuing this deal," Mr. Kilduff said. "The Russians and the Saudis had the opportunity to talk up the market ... and they didn't really come through." On Tuesday, Saudi oil minister Khalid al-Falih suggested that the country wouldn't bend to accommodate the increase in U.S. shale production, and "Saudi Arabia will not allow itself to be used by others." Saudi Arabia has been responsible for the majority of production cuts implemented by the Organization of the Petroleum Exporting Countries after the November deal to limit output by 1.2 million barrels a day. While analysts estimate that OPEC has reached near-full compliance with the deal, some are skeptical of the longer-term impact the cuts will have, especially if individual countries fail to adhere to the agreement. Prices got a boost earlier on Monday on reports of growing global demand. Monday's 2017 annual outlook report from the Paris-based International Energy Agency said that oil demand growth between now and 2022 should bring the global surplus down, aided by cuts from OPEC and some producers outside the cartel. This week, Goldman Sachs analysts said global oil demand has been stronger than expected at the end of last year and the beginning of 2017. The bank said this should help offset increasing production levels and inventory in the U.S. "It's really the demand piece that we're waiting [for] to flip that supply and demand balance," said Robbie Fraser, commodity analyst at Schneider Electric. Meanwhile, Russia's energy minister said Monday that the nation is gradually reducing its oil production in line with an agreement reached with OPEC late last year and should be fully compliant by the end of April. Russia had agreed to reduce its output by 300,000 barrels a day as part of a broad effort by OPEC and other producers to boost prices, but is behind target on meeting that commitment. Gasoline and diesel futures rose as analysts forecast a decline in oil product stockpiles in the weekly inventory data. Gasoline futures settled up 0.5% at $1.6798 a gallon, and diesel futures settled up 0.6% at $1.6139 a gallon. Bradley Olsen and Biman Mukherji contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com and Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Stephanie Yang and Kevin Baxter
Subject: Petroleum production; Crude oil prices; International markets; Supply & demand
Location: China Russia United States--US Libya Gabon Germany
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: Unite d States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874716415
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874716415?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC and Resilient Shale Companies Learning to Coexist; CERAWeek energy conference is much different from last year's event, when oil prices had fallen under $30
Author: Cook, Lynn; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
While dozens of shale producers did go bankrupt during the slump, many proved resilient, and the Organization of the Petroleum Exporting Countries in November agreed to temporarily curtail production to help rebalance an oversupplied market. OPEC Secretary-General Mohammed Barkindo, who met this week with American shale executives, including the heads of Hess Corp. and Chesapeake Energy Corp., told the gathering that U.S. shale drillers haven't just surprised to the upside with better technology, but also proved resilient thanks to "financial engineering" that has propped up the industry during more than two years of relatively low oil and gas prices. The tone of the Houston conference contrasts with last year, when then-Saudi oil minister Ali al-Naimi bluntly told a packed ballroom that OPEC wouldn't rescue the oil market by cutting its own production to prop up prices--and said a rebalancing would occur only when the weaker, higher-cost producers fell by the wayside. Oil patch bankruptcies soared , with 250 exploration, production, pipeline and oil-field service companies in North America filing for chapter 11 or chapter 7 in the last two years, according to Haynes & Boone, an international law firm that tracks the fallout. Write to Lynn Cook at lynn.cook@wsj.com and...Full text: HOUSTON--U.S. shale producers won't quit pumping oil, and OPEC is learning to deal with that. That is the message emerging from this year's CERAWeek energy conference, where the mood is markedly different from a year ago, when oil prices had just fallen under $30 and the Saudi oil minister suggested that shale producers and others would have to perish for the industry to recover. The annual meeting hosted by consulting firm IHS Markit draws thousands of energy executives and oil ministers from around the world. While dozens of shale producers did go bankrupt during the slump, many proved resilient, and the Organization of the Petroleum Exporting Countries in November agreed to temporarily curtail production to help rebalance an oversupplied market. That in turn gave a shot in the arm to shale producers, which have roared back in recent months as prices have stabilized at more than $50 a barrel. OPEC nations have been locked in an epic stare-down with American shale companies for more than two years, since the resurgent U.S. producers helped create a global oil glut. But much in the same way that OPEC had to accept the discovery of new supplies from the North Sea in 1970, the group's members are growing reconciled to the idea that the U.S. will be a major source of oil for years to come, said energy scholar Daniel Yergin, who is vice chairman of energy research at IHS Markit. "It's not so much 'us-versus-them' any more, but a watchful but peaceful coexistence," he said in an interview. Saudi oil minister Khalid al-Falih, who helped broker the agreement by OPEC to slash output by 1.2 million barrels a day, told the conference Tuesday that he welcomed the rebirth of U.S. production as a good sign for the industry as a whole. But he warned that the oil price recovery under way was fragile, and that "Saudi Arabia will not allow itself to be used by others." "We see the green shoots of recovery in the industry," Mr. Falih said. He later added: "The green shoots are here in the U.S. Maybe they're growing too fast." Mr. Falih left open the possibility that the production cuts would be extended in May, though he made no commitments. OPEC Secretary-General Mohammed Barkindo, who met this week with American shale executives, including the heads of Hess Corp. and Chesapeake Energy Corp., told the gathering that U.S. shale drillers haven't just surprised to the upside with better technology, but also proved resilient thanks to "financial engineering" that has propped up the industry during more than two years of relatively low oil and gas prices. "For the record, we didn't have any war" with shale producers , Mr. Barkindo added. He noted that American production had earlier helped offset falling output in Nigeria, Iran, Libya and other hot spots. "We only wish it was done in an orderly fashion that did not trigger this severe cycle that we're still battling to come out of." OPEC will meet formally later this month to assess whether participants are respecting the production cut agreement, but so far compliance has been uneven. OPEC says the 24 countries that agreed to be part of the deal--both in OPEC and outside--have respected 86% of their promises so far. But while Saudi Arabia has cut more than it promised, Russia has only reduced a third of what it promised to cut. The tone of the Houston conference contrasts with last year, when then-Saudi oil minister Ali al-Naimi bluntly told a packed ballroom that OPEC wouldn't rescue the oil market by cutting its own production to prop up prices--and said a rebalancing would occur only when the weaker, higher-cost producers fell by the wayside. Last year, the big question on executives' minds was whether U.S. shale could be among those left standing. This year it is whether OPEC producers and American drillers can coexist. "I think the answer is very clearly yes," said John Hess, chief executive of Hess, adding that U.S. shale survived by getting hyper-efficient. When the price of crude began to fall in the summer of 2014, "American ingenuity went up," he said. Still, the reckoning was painful. More than 300,000 energy workers were laid off around the globe, with the majority of cuts coming in the U.S. and Canada, according to Graves & Co., a Houston-based consulting firm. Oil patch bankruptcies soared , with 250 exploration, production, pipeline and oil-field service companies in North America filing for chapter 11 or chapter 7 in the last two years, according to Haynes & Boone, an international law firm that tracks the fallout. Despite the bloodletting, U.S. shale drillers have raced back into oil patches from Texas to North Dakota since the price of oil rebounded to above $50 a barrel last summer. They are redeploying rigs at breakneck speed, putting more than 250 back to work drilling since July. The result: U.S. oil production is up 600,000 barrels a day. Oil giants including Exxon Mobil Corp. and Chevron Corp. are now planning to focus more of their investment on Texas shale fields in coming years, seeking to capitalize on the advances in horizontal drilling, hydraulic fracturing and other techniques. The International Energy Agency is forecasting global markets will need all the new U.S. oil by year end--and then some. World-wide oil and gas investments have dropped to roughly $450 billion, or 25% lower than what is required to meet projected demand, according to Fatih Birol, executive director of the IEA. Without more investment, Mr. Birol warns the world could be in for an oil price shock in the next few years. One group aspires to filling any gap: shale drillers. Tim Dove, chief executive of Pioneer Natural Resources Co., recently told investors that American shale companies have emerged as swing producers for the world, a role traditionally served by Saudi Arabia. "When the world needs more oil, we could get it there within a few months," Mr. Dove said. Benoit Faucon and Erin Ailworth contributed to this article. Write to Lynn Cook at lynn.cook@wsj.com and Bradley Olson at Bradley.Olson@wsj.com Read More * 'Fictitious' Divide With Shale Drillers * Saudi Energy Minister Says OPEC Will Remain Stabilizing Force for Oil Prices * Saudi Aramco to Pay Royal Dutch Shell $2.2 Billion in Motiva Breakup * OPEC, Shale Producers Bond Over a Chicken Dinner * Colombia's Oil Sector Faces 'Post-Conflict' Security Woes * Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge * Russia Committed to Oil Production Cut * IEA Sees No Peak Oil Demand 'Any Time Soon' Credit: By Lynn Cook and Bradley Olson
Subject: Petroleum production; Crude oil prices; Personal bankruptcy; Supply & demand
Location: Texas Russia United States--US North Sea Saudi Arabia
People: Naimi, Ali I
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Coexist; NAICS: 315210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874835564
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874835564?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Energy Minister Says OPEC Will Remain Stabilizing Force for Oil Prices; Khalid al-Falih says companies have grown overly optimistic about potential of shale
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
HOUSTON--Saudi Arabia's energy minister said Tuesday that the Organization of the Petroleum Exporting Countries will continue to be the world's "only catalyst" for stabilizing oil prices, but he warned that the group won't take steps to bail out the market. The energy minister signaled that Saudi Arabia intends to deepen its investment ties with the U.S., making note of a deal announced earlier Tuesday for the Saudi Arabian Oil Co. to take control of a...Full text: HOUSTON--Saudi Arabia's energy minister said Tuesday that the Organization of the Petroleum Exporting Countries will continue to be the world's "only catalyst" for stabilizing oil prices, but he warned that the group won't take steps to bail out the market. Investors should not fall prey to "wishful thinking that OPEC or the kingdom will underwrite the investments of others at our own expense and long-term interests," Khalid al-Falih said at the annual CERAWeek conference. "Saudi Arabia will not allow itself to be used by others." The kingdom's energy minister, who helped to broker last year's production cut of more than 1 million barrels a day, walked a careful line between supporting ongoing OPEC involvement in price stability and defending Saudi Arabian interests in ramping up production. OPEC and other producing countries including Russia and Oman agreed in December to reduce output in a bid to put a floor under prices that fell from more than $100 a barrel in 2014 to below $30 a barrel at the beginning of last year. Crude has recovered after the move to about $55 a barrel. Mr. Falih said OPEC will look at inventory levels in May as it evaluates whether to extend the production cut into the second half of the year. The Saudi energy minister said he was surprised by the speed at which operators have returned to U.S. shale basins . He added that he was concerned that too many companies have grown overly optimistic about the potential of shale and aren't investing enough in major projects to compensate for declining production around the world. "We see the green shoots of recovery in the industry," Mr. Falih said, later adding, "The green shoots are here in the U.S. Maybe they're growing too fast." Still, Mr. Falih said his country welcomes investments in shale because it believes more spending will be needed to meet demand in the coming years. The U.S. has become the bellwether of the global industry, Mr. Falih said, as the world's largest oil consumer and one of the biggest producers. U.S. operators have returned to oil fields from Texas to North Dakota since last year's production-cut deal, making plans to boost spending and add rigs. The U.S. will be the largest contributor of new oil supplies in the coming years, with production from shale growing to 1.4 million barrels a day by 2022 if prices remain around $60 a barrel, according to the International Energy Agency. Mr. Falih addressed projections that global oil demand will peak and leave some petroleum resources stranded, calling the concerns "misguided." Such projections, he said, may discourage "trillions of dollars of investment needed to underpin essential oil and gas supplies during the long transformation for global energy." The energy minister signaled that Saudi Arabia intends to deepen its investment ties with the U.S., making note of a deal announced earlier Tuesday for the Saudi Arabian Oil Co. to take control of a Texas refining operation that the company had operated jointly with Royal Dutch Shell PLC. Under the terms of the deal, the Saudi state oil company, known as Aramco, will have sole control over the largest U.S. refinery, a 600,000 barrel-a-day plant in Port Arthur, Texas. "Saudi government and private-sector investments in the U.S. are vast and we will continue to strengthen our presence here," Mr. Falih said. Those expansions will occur through Aramco, petrochemical investments and research centers, he said. Mr. Falih discussed Aramco's plans for an initial public offering, saying outside firms involved in the plans have been "awed" by the firm's operations. Saudi Arabia's reserves, long a closely held secret that has prompted significant market speculation, have been "partially" audited, Mr. Falih said. The listing, which Saudi officials have said will occur in 2018, could fetch as much as $100 billion to $150 billion, analysts have said. Saudi Arabian Deputy Crown Prince Mohammed bin Salman has estimated that the entire company is valued at more than $2 trillion. The IPO "will unleash the company in a positive way to do more globally," Mr. Falih said. Write to Bradley Olson at Bradley.Olson@wsj.com Read More * OPEC, Shale Companies Learning to Coexist * Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge * Russia Committed to Oil Production Cut (March 6) * IEA Sees No Peak Oil Demand 'Any Time Soon' (March 6) * Oil-Price Rise Brightens Mood for Big CERAWeek Energy Conference (March 4) * New Saudi Energy Minister Khalid al-Falih an Insider Signifying Policy Continuity (May 7, 2016) Credit: By Bradley Olson
Subject: Crude oil prices; Supply & demand
Location: Texas United States--US Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874858226
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874858226?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Colombia's Oil Sector Faces 'Post-Conflict' Security Problems; Country's National Hydrocarbons Agency plans to auction off smaller-size exploration parcels
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
[...]while kidnappings mostly have ended and some security problems have lessened, the continued existence of a smaller rebel group, the ELN, a deep-seated hostility toward the oil industry and an emboldened environmental lobby is keeping the sector hamstrung, said Orlando Velandia, president of Colombia's National Hydrocarbons Agency, said. The nearly 500-mile, 210,000-barrel-a-day Cano Limon pipeline is used by Houston-based Occidental Petroleum Corp. Colombian President Juan Manuel Santos has begun peace talks with the ELN in...Full text: HOUSTON--Colombia's oil industry continues to face bombings and other security challenges even after last year's peace deal that ended a long-running guerrilla conflict, a top Colombian oil official said Tuesday. The government signed a deal in November with the Revolutionary Armed Forces of Colombia, or FARC, to end more than a half-century of conflict that claimed at least 220,000 lives and displaced more than 5 million people. The oil industry was often caught in the conflict--foreign and local oil executives were kidnapped for ransom, pipelines were bombed, energy companies were extorted. But while kidnappings mostly have ended and some security problems have lessened, the continued existence of a smaller rebel group, the ELN, a deep-seated hostility toward the oil industry and an emboldened environmental lobby is keeping the sector hamstrung, said Orlando Velandia, president of Colombia's National Hydrocarbons Agency, said. "We have to get rid of the stigma against the oil industry, because there is a radicalization of people fighting the industry," Mr. Velandia told oil executives at the CERAWeek oil symposium in Houston. "We must explain to the people that they will not run out of water [due to exploration and production of oil], and they will still be able to raise cattle." Colombia, Latin America's fourth-largest economy, saw an oil boom between 2007 and 2015 that pushed production to more than 1 million barrels a day, making crude oil the country's biggest export and a main source of foreign revenue. But production fell below 900,000 barrels a day last year, and combined with a drop in oil prices in recent years, government is facing major budget shortfalls. Colombia's second-longest oil pipeline, the Cano Limon, was dynamite-bombed, allegedly by ELN rebels, two times in late February for a total of more than a dozen pipeline bombings this year, after nearly 50 attacks in 2016. The nearly 500-mile, 210,000-barrel-a-day Cano Limon pipeline is used by Houston-based Occidental Petroleum Corp. Colombian President Juan Manuel Santos has begun peace talks with the ELN in Ecuador, and, Mr. Velandia said, "we're moving forward" on reaching a peace treaty as soon as possible, adding that he is optimistic. But he said his agency, which oversees the auctioning of exploration and production licenses to foreign and local oil companies, isn't waiting around for the deal to be signed. Rather, it is making pro-active regulatory adjustments to promote investment even as "post-conflict" security problems continue. For instance, Mr. Velandia said the geographic size of individual oil-exploration blocks are being shrunk to make them more manageable and less vulnerable to protests and other problems. While the National Hydrocarbons Agency used to sell companies the right to explore fields as big as 1.5 million acres, he said newly offered fields will be no larger than 250,000 acres, with many blocks even smaller than that. The key, he said, is to pinpoint the areas that are oil-rich but are also likely to face less protesting from environmentalists, indigenous groups and villagers. "Not only are we concentrating a smaller geological area, but we're also avoiding the environmental restrictions that there may be in the future, and also avoid the zones where communities may generate strong opposition," Mr. Velandia told The Wall Street Journal on the sidelines of the conference. Nonetheless, he said conflicts seem to go hand-in-hand with Colombia's oil-rich zones. "If you have two maps--one that shows Colombia's oil-rich regions, and another that shows where the violent conflicts are centralized--and you overlay the two maps, they match up perfectly." Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Hydrocarbons; Peace negotiations; Petroleum industry; Pipelines
Location: Ecuador Colombia Latin America
Company / organization: Name: Revolutionary Armed Forces of Colombia; NAICS: 813940; Name: National Hydrocarbons Agency; NAICS: 924120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874865102
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874865102?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Increasing in DOE Data; Gasoline stockpiles are expected to decrease
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed an...Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 10 analysts and traders surveyed showed U.S. oil inventories are projected to have increased by 1.7 million barrels, on average, in the week ended March 3. Seven analysts expect stockpiles to rise and three expect them to fall. Forecasts range from a decrease of 2 million barrels to an increase of 3.5 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EST Wednesday. Gasoline stockpiles are expected to show a decrease of 1.7 million barrels on average, according to analysts. One analyst expects them to rise and nine analysts expect them to fall. Estimates range from a fall of 3 million barrels to an increase of 400,000 barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 1.3 million barrels. One analyst expects an increase and nine expect a decrease. Forecasts range from a decline of 3 million barrels to an increase of 1 million barrels. Refinery use is seen increasing 0.5 percentage point to 86.5% of capacity. Six analysts expect an increase and one expects no change. Three didn't report expectations. Forecasts range from no change to an increase of 1 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed an 11.6-million-barrel increase in crude supplies, a 5-million-barrel decrease in gasoline stocks and a 2.9-million-barrel decrease in distillate inventories, according to a market participant. Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Price increases; Supply & demand
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874879575
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874879575?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Shale Helped Offset Some Global Declines in Oil Production, OPEC Leader Says; Mohammad Barkindo says of shale revolution: 'We only wish it was done in an orderly fashion'
Author: Cook, Lynn; Bustillo, Miguel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
"Domestic oil output is expected to increase to an average of 9.7 million barrels per day next year led by increased drilling in the Permian shale region of Texas and New Mexico and from rising production in the Gulf of Mexico, breaking the U.S. total annual production record set back in 1970," the report from the U.S. Energy Department said. Write to Lynn Cook at lynn.cook@wsj.com and Miguel Bustillo at miguel.bustillo@wsj.com Read More * Crude...Full text: HOUSTON--Without the U.S. shale revolution, the global economy probably would have been mired in deep crisis, said Mohammad Barkindo, secretary-general of the Organization of the Petroleum Exporting Countries, on Tuesday. When American drillers began using advanced technologies to tap new wells from Texas to North Dakota, a lot of global oil production was in peril, with output falling in Nigeria, Iran, Libya and other hot spots. "We only wish it was done in an orderly fashion that did not trigger this severe cycle that we're still battling to come out of," Mr. Barkindo, speaking at the CERAWeek by IHS Markit conference, said of U.S. shale drillers. OPEC last year agreed to temporarily cut production to help rebalance the oil markets, after shale producers helped trigger a global glut that sent prices plunging after topping $100 a barrel in 2014. Prices have since stabilized at more than $50 a barrel. "For the record, we didn't have any war" with shale producers, Mr. Barkindo said, adding that he had met with shale producers while in Texas attending the conference, and "I learned a lot." Mr. Barkindo said U.S. shale drillers haven't just surprised to the upside with better technology, but also proved resilient thanks to "financial engineering" that has propped up the industry during more than two years of relatively low oil and gas prices. "We all found that the thin line that we thought separated us was probably fictitious. We all belong to the same industry," Mr. Barkindo told reporters in a briefing following his onstage remarks Tuesday afternoon. The Energy Information Administration issued a new projection Tuesday forecasting that the rebound in American crude production would soon bump the country's output past 1970 levels. "Domestic oil output is expected to increase to an average of 9.7 million barrels per day next year led by increased drilling in the Permian shale region of Texas and New Mexico and from rising production in the Gulf of Mexico, breaking the U.S. total annual production record set back in 1970," the report from the U.S. Energy Department said. Mr. Barkindo appeared on a panel with Fatih Birol, executive director of the International Energy Agency, and both tried to dispel the idea that oil demand cold peak in the near to midterm. "Peak demand does not feature in the foreseeable future," Mr. Barkindo said. Even if half the cars sold ultimately run on electricity, the majority of the growth in oil demand is driven by Asian trucking, jets and the growth in the petrochemical industry, not transportation fuel for passenger cars, Mr. Birol said. Write to Lynn Cook at lynn.cook@wsj.com and Miguel Bustillo at miguel.bustillo@wsj.com Read More * Crude Producers Learn to Coexist * Saudi Energy Minister Says OPEC Will Remain Stabilizing Force for Oil Prices * Saudi Aramco to Pay Royal Dutch Shell $2.2 Billion in Motiva Breakup * OPEC, Shale Producers Bond Over a Chicken Dinner * Colombia's Oil Sector Faces 'Post-Conflict' Security Woes * Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge * Russia Committed to Oil Production Cut * IEA Sees No Peak Oil Demand 'Any Time Soon' Credit: By Lynn Cook and Miguel Bustillo
Subject: Petroleum production; Oil consumption; Supply & demand
Location: Iran North Dakota Texas New Mexico United States--US Libya Nigeria Gulf of Mexico
People: Birol, Fatih
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874880621
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874880621?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC, Shale Producers Bond Over a Chicken Dinner; American oil executives met with OPEC secretary-general Mohammad Barkindo
Author: Faucon, Benoit; Ailworth, Erin; Cook, Lynn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.
Abstract:
At what some attendees described as a "rubber chicken dinner," Mr. Barkindo held forth about the Organization of the Petroleum Exporting Countries' sometimes tense negotiations to hammer out an agreement to cut oil production, according to people at the meeting. [...]Saudi oil minister Ali al-Naimi stunned CERAWeek attendees last year when he said OPEC wasn't going to cut production and that "high-cost producers"--interpreted to mean American shale companies--would have to cut costs or go out...Full text: HOUSTON--On the night before the oil industry's most important annual conference, CERAWeek, American oil executives sat down Sunday for a more intimate gathering with an unexpected host : Mohammad Barkindo, the secretary-general of OPEC, the oil cartel. At what some attendees described as a "rubber chicken dinner," Mr. Barkindo held forth about the Organization of the Petroleum Exporting Countries' sometimes tense negotiations to hammer out an agreement to cut oil production, according to people at the meeting. Mr. Barkindo assured shale executives that OPEC didn't want to put them out of business. And OPEC's top official had an admission for his audience. "We did confess that we do not have sufficient understanding of how they operate and their impact on us," he said later. The meetings on Sunday and Monday nights were arranged with the help of John Hess, chief executive of U.S. producer, Hess Corp, as well as Bill White, a former Houston mayor who is now with investment bank Lazard, a key backer of shale projects, people familiar with the matter said. "It's a new OPEC," said Mr. Hess, adding that Mr. Barkindo's message was "We're all in the same boat." A year ago, the tension between OPEC and shale producers was palpable, with the cartel pumping at full tilt in what appeared to be a bid to drive prices down and kill off the U.S. industry. Spooked by a flood of new production from the U.S., OPEC had abandoned its traditional role of propping up prices and watched the market dive to less than $28 a barrel from $114 a barrel in 2014 as part of a brutal competition for oil buyers. Then-Saudi oil minister Ali al-Naimi stunned CERAWeek attendees last year when he said OPEC wasn't going to cut production and that "high-cost producers"--interpreted to mean American shale companies--would have to cut costs or go out of business. Now, there is a new Saudi oil minister, Khalid al-Falih, who led OPEC to cut production by almost 5% last year--a concession that U.S. producers are here to stay. And there is a new OPEC secretary-general in Mr. Barkindo, an ex-Nigerian oil minister who took over last summer and has made outreach to OPEC's traditional rivals a central theme of his tenure. He helped to bring onboard 11 producers outside the cartel--including Russia--for production cuts in December. Over the past several weeks, he has held several briefings with traders in oil-futures contracts who for years had been derided by OPEC officials as "speculators." On Sunday and Monday, Mr. Barkindo sat down with what many in the industry regard as OPEC's biggest rivals. Among the attendees were independent American producers like Mr. Hess, Chesapeake Energy, Scott Sheffield of Pioneer Natural Resources and Harold Hamm, the chief executive of Continental Resources Inc. It isn't unusual for OPEC member countries and officials to meet with international oil companies like Royal Dutch Shell and BP PLC, which have business interests across the world. But Mr. Sheffield said he has never seen so many OPEC members looking to meet with shale producers as they have been at this conference. "They're trying to find out more about U.S. shale and we're trying to find out what OPEC is thinking," he said. He called Sunday night's dinner--in a location he wouldn't name--a "sharing of knowledge" about how the OPEC agreement came together and where independent U.S. producers think shale is headed. "I think they're surprised by how fast it's come back," Mr. Sheffield said in an interview. "They never expected to see $26 oil." Write to Benoit Faucon at benoit.faucon@wsj.com , Erin Ailworth at Erin.Ailworth@wsj.com and Lynn Cook at lynn.cook@wsj.com Credit: By Benoit Faucon, Erin Ailworth and Lynn Cook
Subject: Petroleum production; Cartels; Supply & demand
Location: Russia United States--US
People: Naimi, Ali I Hess, John
Company / organization: Name: Hess Corp; NAICS: 211111, 324110, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874911322
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874911322?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall as Higher U.S. Inventories Loom Amid Tepid Chinese Demand; May Brent crude on London's ICE Futures exchange fell 29 cents to $55.63 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2017: n/a.
Abstract:
Crude oil prices declined Wednesday as investors braced for a further rise in U.S. oil inventories as well as a tapering of China's demand. Inventory data from the U.S. Energy Information Administration due later in the global day is expected to show an increase of 1.7 million barrels in the week ended March 3, according to the average forecast from traders and analysts surveyed by The Wall Street Journal. Crude oil prices have recently been...Full text: Crude oil prices declined Wednesday as investors braced for a further rise in U.S. oil inventories as well as a tapering of China's demand. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $52.81 a barrel at 0521 GMT, down 33 cents in the Globex electronic session. May Brent crude on London's ICE Futures exchange fell 29 cents to $55.63 a barrel. Inventory data from the U.S. Energy Information Administration due later in the global day is expected to show an increase of 1.7 million barrels in the week ended March 3, according to the average forecast from traders and analysts surveyed by The Wall Street Journal. Data on Tuesday from the American Petroleum Institute, the industry group, reported inventories of crude oil in the U.S. increased by a huge 11.6 million barrels in the latest week. "If the EIA data tonight confirms a huge inventory build up, prices may come under further pressure," said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. "However, I don't expect prices to fall a lot as supplies are expected to tighten soon. Prices are already showing a lot of resistance in going down." Crude oil prices have recently been caught in a range around $55 a barrel, pulled and pushed in opposite directions as rising U.S. supply offset production cuts by members of the Organization of the Petroleum Exporting Countries (OPEC). "Prices could push into the mid $60s as global inventories start to fall on the back of OPEC output cuts, even if U.S. output rises," said Daniel Hynes, analyst with ANZ Bank. He added that he did not expect to see this until the second quarter of the year. Saudi Arabia has been responsible for the majority of OPEC's production cuts after a deal in November to limit output by 1.2 million barrels a day. Iraq and Angola have both signaled that they are willing to extend curbs on output into the second half of this year, but a U.S. Energy Information Administration report showed it had raised its forecast of U.S. output to 9.21 million barrels a day, up from 8.98 million barrels a day. Russia's energy minister said Monday that the nation is gradually reducing its oil production in line with an agreement reached with OPEC late last year and should be fully compliant by the end of April. Meanwhile China, the world's second-largest energy consumer, imported 31.78 million metric tons of crude oil in February, down 0.1% from the corresponding month last year, according to preliminary data from the General Administration of Customs Wednesday. The volume was 7.4% down from 34.03 million tons in January. The decline came amid strong imports in previous months that temporarily weighed on new demand. "We do see additional refining capacity coming on line in China which will need to be met by imported oil. We are fairly positive," said Mr. Hynes, analyst with ANZ Bank. The prospect of a U.S. interest rate increase is also impacting oil prices as it would likely boost the dollar and make dollar-denominated commodities like oil more expensive for holders of other currencies. Oil product futures were mixed. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 129 points to $1.6927 a gallon. ICE gas oil for March changed hands at $486.5 a metric ton, down $1.25 from Tuesday's settlement. Credit: By Biman Mukherji
Subject: Price increases
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210; Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874946945
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874946945?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Energy Ministers Stress Commitment to Curb Production and Boost Oil Prices; Ministers from coalition of oil-producing nations say they are united despite signs lack of compliance by some is causing tension
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2017: n/a.
Abstract:
The Organization of the Petroleum Exporting Countries lashed together a broad coalition of 24 oil-producing countries into temporarily dialing back oil output late last year, in an effort to speed up a rebound in the oil market. Related * Saudi Energy Minister Says OPEC Will Remain Stabilizing Force for Oil Prices * Russia Committed to Oil Production Cut * OPEC and Shale Companies Learning to Coexist * OPEC, Shale Producers Bond Over a Chicken Dinner...Full text: HOUSTON--Energy ministers from several major oil-pumping countries, including Russia, Iraq and Saudi Arabia, took great pains Tuesday to defend their commitment to curb production and boost prices, despite signs that a lack of compliance by some nations is causing friction within the group. The Organization of the Petroleum Exporting Countries lashed together a broad coalition of 24 oil-producing countries into temporarily dialing back oil output late last year, in an effort to speed up a rebound in the oil market. The agreement to dial down production is scheduled to end in June. The deal helped boost crude prices around 20%, but oil has flatlined at around $55 a barrel in recent weeks amid skepticism about whether all members of the coalition will adhere to their commitments. So far, compliance has been uneven. While Saudi Arabia has cut more than it promised, Russia has only fulfilled about a third of its commitment to reduce supply. Despite the disparity, Saudi Arabia and Russia's energy ministers stressed that their agreement is working to alleviate the oil glut and shore up prices. They said the coalition remains united and committed to the cuts, which total roughly 1.8 million barrels a day. "I am a perfectionist and always seek 100% delivery on our promises and we're not there yet," Saudi Arabia's energy minister, Khalid al-Falih, told a news briefing Tuesday during the CERAWeek conference in Houston. "Whatever gap remains in the perfection that we seek will be closed and will be closed very soon." Earlier in the day, Mr. Falih sent a pointed message to other members of the coalition, warning that the kingdom wouldn't tolerate "free riders." But his tone changed after a series of meetings on the sidelines of the industry gathering. In the last-minute news conference, called as several ministers prepared to head for the airport, Mr. Falih gathered with ministers from Iraq, Mexico and Russia and OPEC Secretary-General Mohammad Barkindo to present a united front. Russia's energy minister, Alexander Novak, said "we are fully committed" to the country's pledge of cutting 300,000 barrels a day "in accordance with an accelerated schedule." "It is extremely important that we all reach conformity because we have all seen the positive reaction of the market and in order to continue enjoying this we need to live up to expectations," Mr. Novak said. Earlier Tuesday, Mr. Barkindo said the agreement to curtail oil production globally was arrived at by all members of the group, so any extension of the agreement into the second half of the year would have to be weighed carefully and agreed upon by all members of the coalition. Related * Saudi Energy Minister Says OPEC Will Remain Stabilizing Force for Oil Prices * Russia Committed to Oil Production Cut * OPEC and Shale Companies Learning to Coexist * OPEC, Shale Producers Bond Over a Chicken Dinner * Saudi Aramco to Pay Royal Dutch Shell $2.2 Billion in Motiva Breakup Credit: By Sarah Kent
Subject: Agreements; Petroleum production; Compliance; Crude oil prices
Location: Mexico Russia Saudi Arabia Iraq
People: Novak, Alexander
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874946973
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874946973?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Stocks Slip as Oil's Decline Weighs on Energy Shares; Markets are awaiting fresh cues from the Federal Reserve, ECB
Author: Gold, Riva
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2017: n/a.
Abstract:
Many investors are focused on upcoming meetings of the European Central Bank on Thursday and the Federal Reserve on March 14-15, when the U.S. central bank is widely expected to nudge borrowing costs higher. The ADP National Employment Report on Wednesday pointed to continued strength in the labor market ahead of Friday's monthly jobs report--the last major piece of economic data the Fed will consider before making a call on interest rates next week. In...Full text: U.S. stocks slipped Wednesday as a decline in oil prices hit energy companies. Still, overall stock moves were muted, as they have been in recent days after major indexes climbed to record highs last week. The Dow Jones Industrial Average lost 69.03 points, or 0.3%, to 20855.73. The S&P 500 lost 5.41 points, or 0.2%, to 2362.98, and the Nasdaq Composite climbed 3.62 points, or less than 0.1%, to 5837.55. Energy shares in the S&P 500 posted their biggest daily drop since September, shedding 2.5%. The price of U.S. crude oil fell to its lowest settlement since December after federal data showed the U.S. crude surplus hit a fresh record last week. Chevron lost $2.20, or 2%, to $109.61 and Exxon Mobil fell 1.49, or 1.8%, to 81.03, weighing on the Dow industrials. Urban Outfitters declined 66 cents, or 2.6%, to 24.75 after the company said Tuesday that profits fell for a third straight year . Corporate earnings have improved for S&P 500 companies overall recently, resuming growth after five consecutive quarters of contraction, according to FactSet. Many investors are focused on upcoming meetings of the European Central Bank on Thursday and the Federal Reserve on March 14-15, when the U.S. central bank is widely expected to nudge borrowing costs higher. Ultraloose monetary policy has underpinned years of stock-market gains, but shares have been relatively resilient to recent signals that the Fed may be moving faster than previously expected. "The Fed is hiking for the right reasons: growth is accelerating and inflation is approaching the central bank's target," said Valentijn Van Nieuwenhuijzen, head of multiasset at NN Investment Partners. Those factors will also continue to propel stocks and corporate earnings higher, but stretched positioning suggests that stocks may be due for a slight pullback in the very short term, he said. The ADP National Employment Report on Wednesday pointed to continued strength in the labor market ahead of Friday's monthly jobs report--the last major piece of economic data the Fed will consider before making a call on interest rates next week. Most investors believe the figure would have to come in dramatically below expectations to knock the Fed off course. The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, edged up 0.4%, on track for a third day of gains. Higher rates tend to make the currency more attractive to yield-seeking investors. U.S. government bonds weakened for a sixth consecutive session, with the yield on the benchmark 10-year U.S. Treasury note rising to 2.552%--its highest settlement since December--from 2.511% Tuesday. Yields have risen as expectations have grown for the Fed to raise rates next week. In the wake of the presidential election, some investors also are waiting for policy details from the new U.S. administration, after hopes for tax cuts, increased government spending and deregulation helped boost shares. "U.S. markets, we believe, are in really good shape, but the danger is they've priced in a lot of good news," said Michael Thompson, managing director at S&P Global Market Intelligence. "The market won't be happy if we don't see some movement on middle-class tax cuts. People expect to see tangible plans and debate this year so something gets done in 2018," he said. The Stoxx Europe 600 rose less than 0.1%, led by gains in banks. Japan's Nikkei Stock Average fell 0.5% after Japanese economic growth data were revised higher but less than economists had forecast. Aaron Kuriloff contributed to this article. Write to Riva Gold at riva.gold@wsj.com Credit: By Riva Gold
Subject: Securities markets; Stock exchanges
Location: Australia Hong Kong United States--US Japan South Korea
People: Hammond, Philip
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 8, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1874971882
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Business News: Crude Producers Learn to Coexist --- Global energy meeting is mellower this year even as oil-price rise revives U.S. output
Author: Cook, Lynn; Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]08 Mar 2017: B.3.
Abstract:
While dozens of shale producers did go bankrupt during the slump, many proved resilient, and the Organization of the Petroleum Exporting Countries in November agreed to temporarily curtail production to help rebalance an oversupplied market. Without the U.S. shale revolution, the global economy probably would have been mired in deep crisis, Mohammad Barkindo, secretary-general of the Organization of the Petroleum Exporting Countries, said on Tuesday.
Full text: HOUSTON -- U.S. shale producers won't quit pumping oil, and OPEC is learning to deal with that. That is the message emerging from this year's CERAWeek energy conference, where the mood is markedly different from a year ago, when oil prices had just fallen under $30 and the Saudi oil minister suggested that shale producers and others would have to perish for the industry to recover. The annual meeting hosted by consulting firm IHS Markit draws thousands of energy executives and oil ministers from around the world. While dozens of shale producers did go bankrupt during the slump, many proved resilient, and the Organization of the Petroleum Exporting Countries in November agreed to temporarily curtail production to help rebalance an oversupplied market. That in turn gave a shot in the arm to shale producers, which have roared back in recent months as prices have stabilized at more than $50 a barrel. OPEC nations have been locked in an epic stare-down with American shale companies for more than two years since the resurgent U.S. producers helped create a global oil glut. But much in the same way that OPEC had to accept the discovery of new supplies from the North Sea in 1970, the group's members are growing reconciled to the idea that the U.S. will be a major source of oil for years to come, said energy scholar Daniel Yergin, who is vice chairman of energy research at IHS Markit. "It's not so much 'us-versus-them' any more, but a watchful but peaceful coexistence," he said in an interview. Saudi oil minister Khalid al-Falih, who helped broker the agreement by OPEC to slash output by 1.2 million barrels a day, told the conference Tuesday that he welcomed the rebirth of U.S. production as a good sign for the industry as a whole. But he warned that the oil-price recovery under way was fragile, and that "Saudi Arabia will not allow itself to be used by others." Citing the recovery, he said, "the green shoots are here in the U.S. Maybe they're growing too fast." Mr. Falih left open the possibility that the production cuts would be extended in May, though he made no commitments. "For the record, we didn't have any war" with shale producers, said OPEC Secretary-General Mohammed Barkindo. OPEC will meet formally later this month to assess whether participants are respecting the production cut agreement, but so far compliance has been uneven. OPEC says the 24 countries that agreed to be part of the deal -- both in OPEC and outside -- have respected 86% of their promises so far. But while Saudi Arabia has cut more than it promised, Russia has only reduced one-third of what it promised to cut. Last year at CERAWeek, the big question on executives' minds was whether U.S. shale could be among those left standing. This year, it is whether OPEC producers and American drillers can coexist. "I think the answer is very clearly yes," said John Hess, chief executive of Hess Corp., adding that U.S. shale survived by getting hyperefficient. When the price of crude began to fall in the summer of 2014, "American ingenuity went up," he said. Still, the reckoning was painful. More than 300,000 energy workers were laid off around the globe, with the majority of cuts coming in the U.S. and Canada, according to Graves & Co., a Houston-based consulting firm. Despite the bloodletting, U.S. shale drillers are now racing back into oil patches, redeploying rigs at breakneck speed. The result: U.S. oil output is up 600,000 barrels a day. --- Benoit Faucon and Erin Ailworth contributed to this article. --- 'Fictitious' Divide With Shale Drillers HOUSTON -- Without the U.S. shale revolution, the global economy probably would have been mired in deep crisis, Mohammad Barkindo, secretary-general of the Organization of the Petroleum Exporting Countries, said on Tuesday. When American drillers began using advanced technologies to tap new wells from Texas to North Dakota, a lot of global oil production was in peril, with output falling in Nigeria, Iran, Libya and other hot spots. "We only wish it was done in an orderly fashion that did not trigger this severe cycle that we're still battling to come out of," Mr. Barkindo said of the surge in U.S. production. Mr. Barkindo said U.S. shale drillers haven't been just surprised to the upside with better technology, but also proved resilient thanks to "financial engineering" that has propped up the industry during more than two years of relatively low prices for oil and gas. Mr. Barkindo said he "learned a lot" from a meeting in Texas with shale producers. "We all found that the thin line that we thought separated us was probably fictitious. We all belong to the same industry." -- Lynn Cook and Miguel Bustillo
Credit: By Lynn Cook and Bradley Olson
Subject: Supply & demand; Oil shale; Crude oil prices; Petroleum production
Location: United States--US Saudi Arabia
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Mar 8, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Econ omics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875027950
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875027950?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Companies Take to Thrifty Bets; Energy producers like Exxon and BP are avoiding expensive engineering forays in favor of cheaper, quicker projects
Author: Kent, Sarah; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2017: n/a.
Abstract:
Oil prices have made a modest comeback from the lows hit a little over a year ago, but energy companies such as Exxon Mobil Corp. and BP PLC aren't pursuing the extravagant bets they made at $100 a barrel--like commissioning multibillion-dollar projects in Arctic waters and Kazakhstan's Caspian Sea.According to Sanford C. Bernstein, Europe's biggest oil companies have slashed capital budgets by $51 billion since their 2013 peak and are expected to keep spending at current levels of around $90 billion a year through to 2020, but production volumes are on the rise.Fatih Birol, executive director of the International Energy Agency in Paris, warned Monday that shorter cycle investment plans could create an oil price shock.The IEA estimates oil and gas investment dropped to $450 billion annually during the two-year energy downturn, 25% less than it needs to be to meet future global demand growth and offset declines in existing fields.Full text: The world's biggest oil companies are getting thrifty. Oil prices have made a modest comeback from the lows hit a little over a year ago, but energy companies such as Exxon Mobil Corp. and BP PLC aren't pursuing the extravagant bets they made at $100 a barrel--like commissioning multibillion-dollar projects in Arctic waters and Kazakhstan's Caspian Sea. These companies, including Exxon, BP, Royal Dutch Shell PLC and Chevron Corp., are putting their money into cheaper, quicker ventures in Texas shale country, the Middle East and Brazil and squeezing more from existing projects world-wide. Exxon last week unveiled an ambitious plan to put its U.S. drilling opportunities in Texas, New Mexico and North Dakota at the heart of its future. By 2025, the company said, its production from these areas could more than triple to the equivalent of 750,000 barrels a day. Together with other shale production, that would amount to about a third of Exxon's current output. It is a shift away from the business model long-employed by the world's largest oil companies, favoring technologically challenging projects that had huge upfront costs that would be paid off over 20 or 30 years. To drive down costs, big oil companies are abandoning such developments in favor of standardization and bolt-on models that take advantage of existing infrastructure. They are returning to old basins to see what they can extract with new technologies and focusing on the lowest-cost prospects. The appeal of cheaper projects that can bring oil or gas to market within a few years is that it allows big companies to avoid being locked in to multibillion investments over as much as a decade, said Ryan Lance, the chief executive of ConocoPhillips, at the annual CERAWeek conference in Houston on Tuesday. "They're not just paying lip service to this," said Luke Parker, vice president of corporate analysis at Wood Mackenzie, a Scottish energy consultancy. "They want to be in a position to future proof themselves against peak oil demand when it comes." The challenge of the strategy is that many of the big Western companies have yet to prove that they can consistently turn a profit in a time of lower prices, especially in U.S. shale fields. Increasing production may prove even more daunting since the companies have to spend billions just to replace the barrels they pump every year. Last week, BP announced plans to drive down its break-even oil price to between $35 and $40 a barrel by 2021, all while increasing production. It is a feat the British oil giant says it can pull off by maintaining strict cash discipline, driving down costs and focusing on projects that generate strong returns even at current prices. BP recently abandoned ambitious plans to explore in the Great Australian Bight--a potentially huge source of new supply that still couldn't compete economically with other project opportunities. Instead, it invested $2 billion for a 10% stake in oil fields in the United Arab Emirates, which has some of the world's lowest oil-extraction costs. Going forward, the company is focusing on "long-lived cash bricks" of low cost oil and natural gas, said BP Chief Executive Bob Dudley during an interview at CERAWeek. Others are pursuing a similar agenda. Chevron CEO John Watson told analysts Tuesday that the company intends to invest more of its capital budget in projects that start up quickly and generate higher returns. About three-fourths of the company's $20 billion capital budget in 2017 will generate cash within two years, Mr. Watson said. Shell is focusing the bulk of its new investment on deep water projects offshore Brazil that it says break even at less than $40 a barrel. France's Total SA says reducing the break-even level on its projects is "a top priority." Last week, Italy's Eni SpA said new projects out to 2020 will have an average break-even of $30 a barrel. The focus on frugality is a departure from the 10-year period from 2005 to 2014, when concerns that supply could run out and soaring oil prices sent energy companies on a grand, often wildly expensive, chase for new production. They took on projects like Kashagan, a giant oil field in Kazakhstan that took Exxon, Shell and others over a decade and $50 billion to develop. It will produce oil for decades but has become a cautionary tale, especially after oil prices began falling in 2014. According to Sanford C. Bernstein, Europe's biggest oil companies have slashed capital budgets by $51 billion since their 2013 peak and are expected to keep spending at current levels of around $90 billion a year through to 2020, but production volumes are on the rise. A similar pattern also is emerging at Exxon and Chevron, both of which have roughly halved spending since 2013, but production is still seen increasing, according to estimates from S&P Global Market Intelligence. Fatih Birol, executive director of the International Energy Agency in Paris, warned Monday that shorter cycle investment plans could create an oil price shock. The IEA estimates oil and gas investment dropped to $450 billion annually during the two-year energy downturn, 25% less than it needs to be to meet future global demand growth and offset declines in existing fields. Mr. Birol said investments globally need to rise at least 20% to avoid oil price spikes in the coming years. Another challenge for these companies will be to prove that they can pivot successfully. Even as Exxon plans to boost its U.S. focus--including with a $20 billion spending plan on American refinery and processing operations--the company lost $4.2 billion in its American oil-and-gas drilling business last year and more than $500 million in 2015. While many of the companies are moving ahead with investments on what now appear to be profitable projects from South America to Papua New Guinea, they face a major risk of surging costs that would erode returns. "Our job is to compete and succeed in any market, irrespective of conditions or price," said Exxon's new CEO Darren Woods last week. Write to Sarah Kent at sarah.kent@wsj.com and Bradley Olson at Bradley.Olson@wsj.com Related * Crude Logs Biggest Drop in Over a Year * OPEC and Resilient Shale Companies Learning to Coexist (March 7) * IEA Sees No Peak Oil Demand 'Any Time Soon' (March 6) * Brought Down by Long Bust, Texas Oilmen Pray for Another Boom (March 5) Credit: By Sarah Kent and Bradley Olson
Subject: Budgets; Crude oil prices; Costs; Energy industry; Natural gas
Location: Texas Middle East North Dakota New Mexico United States--US Arctic region Caspian Sea Kazakhstan Brazil
Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 8, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875093147
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875093147?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Posts Biggest One-Day Decline in 13 Months; Inventory data show big increase in stockpiles for latest week
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2017: n/a.
Abstract:
Oil prices suffered their biggest one-day plunge in more than a year after U.S. crude stockpiles hit record levels, raising concerns that even after recent production cuts, the world remains awash in oil. Many investors have been betting that this year's production cuts by the Organization of the Petroleum Exporting Countries and other exporters would work off the glut of oil that has weighed on prices since 2014. The selling on Wednesday snowballed throughout the...Full text: Oil prices suffered their biggest one-day plunge in more than a year after U.S. crude stockpiles hit record levels, raising concerns that even after recent production cuts, the world remains awash in oil. Supply data from the Energy Information Administration released on Wednesday showed crude-oil stockpiles rising by 8.2 million barrels in the week ended March 3. That dwarfed the increase of 1.7 million barrels the market was expecting. Many investors have been betting that this year's production cuts by the Organization of the Petroleum Exporting Countries and other exporters would work off the glut of oil that has weighed on prices since 2014. They are still waiting for evidence that OPEC cuts are causing U.S. refiners to drain their storage tanks. Instead, U.S. inventory levels have been on the rise for nine weeks in a row. They hit a record of 528.4 million barrels last week as both imports and U.S. production increased. The news was a body blow to a market that is starting to question whether excess supply is shrinking as rapidly as many have been predicting. "This is clearly a capitulation of sorts," said Jan Stuart, global energy economist at Credit Suisse. "The market was not ready for another big, fat inventory build." U.S. crude futures fell $2.86, or 5.38%, to $50.28 a barrel on the New York Mercantile Exchange to a three-month low. Brent, the global benchmark, fell $2.81, or 5.03%, to $53.11 a barrel on ICE Futures Europe. The selloff was the largest single-day percentage decline since February of last year, when prices were spiraling to a 13 year low. The selling on Wednesday snowballed throughout the afternoon, disrupting what has been a relatively placid oil market this year. Until Wednesday, the push and pull between rising U.S. supply and falling OPEC output has recently kept crude prices stuck in a narrow band between around $52 and $55 a barrel. But some analysts have warned that the market's bullish tilt made it vulnerable to this sort of rapid reversal. Money managers and other speculative investors piled into bets on rising prices for most of this year. Bullish wagers as of Feb. 21 outnumbered bearish ones by the largest margin in 10 years of data from the Commodity Futures Trading Commission, and are near a record level. The EIA data may have been the spark that sent some heading for the exits, said Mark Anderle, director of supply and trading for TAC Energy. "At some point the squeeze is going to come," Mr. Anderle said. "It's not surprising to see this type of reaction." As traders try to determine whether Wednesday's rout was a blip or the start of a longer retreat, many are focused on OPEC's meeting in May, when the group will decide whether to extend its production cuts through the end of the year. OPEC's agreement late last year to limit output set the stage for a powerful rally that lifted crude prices about 20%. Even before the May meeting, analysts are looking for any signs that cartel members are not abiding by the pledged cuts, an issue that has plagued previous OPEC agreements. This time, the group has reported high levels of compliance but some are on watch for the deal to fray. Saudi Arabia has taken on most of the burden. Russia, whose participation was key to striking an agreement, has yet to fully comply, though Energy Minister Alexander Novak said this week that Russia hit its target by April. Traders also are watching to see if the recent buildup in U.S. supplies can continue, starting with next Wednesday's EIA numbers. The industry's balancing act has been a focus of many executives' talks during CERAWeek, an annual gathering of global oil executives and analysts in Houston. Some U.S. producers acknowledging the risk posed to prices by their surging output. U.S. production growth is "going to have to be done in a measured way or else we'll kill the market," Harold Hamm, chairman and chief executive of Continental Resources, said Wednesday. Mr. Stuart at Credit Suisse said he still expects U.S. supply to taper off in the coming weeks. Credit Suisse has said previously it would start worrying if U.S. supplies don't start coming down by St. Patrick's Day. Wednesday's selloff doesn't change that, he said. "In market conditions like this you can see weaker participants get shaken out," Jonathan Berland, senior managing director at Gresham Investment Management. "That's probably what you saw today. Those same market participants might be right back in a week." Russell Gold and Sarah Kent contributed to this article. Write to Alison Sider at alison.sider@wsj.com Related * Oil Firms Now Favor Frugal Bets Credit: By Alison Sider
Subject: Petroleum production; Inventory; Supply & demand; Price increases
Location: Texas New Mexico Russia United States--US Saudi Arabia Iraq Angola Gulf of Mexico
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111; Name: ICE Futures; NAICS: 523210; Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875108127
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875108127?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Inventories Rise More Than Expected; Stockpiles increased by 8.2 million barrels to 528.4 million barrels
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil inventories increased much more than forecast for the week ended March 3 as refinery activity unexpectedly slowed, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles increased by 8.2 million barrels to 528.4 million barrels, and are still above the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 1.7 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 867,000 barrels to 64.4 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 6.6 million barrels to 249.3 million barrels. Analysts were expecting gasoline inventories to fall by 1.7 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 2.7 million barrels to 161.5 million barrels, but are near the upper limit of the average range, the EIA said. Earlier in the week, analysts had forecast supplies would decrease by 1.3 million barrels from a week earlier. Refining capacity utilization slipped by 0.1 percentage point from the previous week to 85.9%. Analysts were expecting utilization levels to rise by 0.5 percentage point from the previous week. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Price increases; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875133516
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875133516?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Stocks Slip as Oil's Decline Weighs on Energy Shares; Markets are awaiting fresh cues from the Federal Reserve, ECB
Author: Gold, Riva
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
Many investors are focused on coming meetings of the European Central Bank on Thursday and the Federal Reserve on Tuesday and Wednesday, when the U.S. central bank is widely expected to nudge borrowing costs higher. The ADP National Employment Report on Wednesday pointed to continued strength in the labor market ahead of Friday's monthly jobs report--the last major piece of economic data the Fed will consider before making a call on interest rates next week....Full text: U.S. stocks slipped Wednesday as a decline in oil prices hit energy companies. Still, overall stock moves were muted, as they have been in recent days after major indexes rose to records last week. The Dow Jones Industrial Average lost 69.03 points, or 0.3%, to 20855.73. The S&P 500 lost 5.41 points, or 0.2%, to 2362.98, and the Nasdaq Composite rose 3.62 points, or less than 0.1%, to 5837.55. Energy shares in the S&P 500 posted their biggest daily drop since September, shedding 2.5%. The price of U.S. crude oil fell to its lowest settlement since December, $50.28 a barrel, after federal data showed the U.S. crude surplus hit a fresh record last week. Chevron fell $2.20, or 2%, to $109.61 and Exxon Mobil fell 1.49, or 1.8%, to 81.03, weighing on the Dow industrials. Urban Outfitters declined 66 cents, or 2.6%, to 24.75 after saying on Tuesday that profits fell for a third straight year. Corporate earnings have improved for S&P 500 companies overall recently, resuming growth after five consecutive quarters of contraction, according to FactSet. Many investors are focused on coming meetings of the European Central Bank on Thursday and the Federal Reserve on Tuesday and Wednesday, when the U.S. central bank is widely expected to nudge borrowing costs higher. Ultraloose monetary policy has underpinned years of stock-market gains, but shares have been relatively resilient to recent signals that the Fed may be moving faster than previously expected. "The Fed is hiking for the right reasons: growth is accelerating and inflation is approaching the central bank's target," said Valentijn Van Nieuwenhuijzen, head of multiasset at NN Investment Partners. Those factors will also continue to propel stocks and corporate earnings higher, but stretched positioning suggests that stocks may be due for a slight pullback in the very short term, he said. The ADP National Employment Report on Wednesday pointed to continued strength in the labor market ahead of Friday's monthly jobs report--the last major piece of economic data the Fed will consider before making a call on interest rates next week. Most investors believe the figure would have to come in drastically below expectations to knock the Fed off course. The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, edged up 0.4%, for a third straight day of gains. Higher rates tend to make the currency more attractive to yield-seeking investors. U.S. government bonds weakened for a sixth consecutive session, with the yield on the benchmark 10-year U.S. Treasury note rising to 2.552%--its highest settlement since December--from 2.511% Tuesday. Yields have increased as expectations have grown for the Fed to raise rates next week. Some investors also are waiting for policy details from the new U.S. administration, after hopes for tax cuts, increased government spending and deregulation helped boost shares. "U.S. markets, we believe, are in really good shape, but the danger is they've priced in a lot of good news," said Michael Thompson, managing director at S&P Global Market Intelligence. "The market won't be happy if we don't see some movement on middle-class tax cuts. People expect to see tangible plans and debate this year so something gets done in 2018." The Stoxx Europe 600 rose less than 0.1%, led by gains in banks. Japan's Nikkei Stock Average fell 0.5% after Japanese economic growth data were revised higher but less than economists had forecast. Aaron Kuriloff contributed to this article. Write to Riva Gold at riva.gold@wsj.com Credit: By Riva Gold
Subject: Dow Jones averages; Central banks; Investments; Interest rates; Energy industry; Stock exchanges
Company / organization: Name: European Central Bank; NAICS: 521110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875243520
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875243520?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Stocks Flat on 8th Anniversary of Crisis Low; Energy shares rebound as oil prices pare losses late in the session
Author: Gold, Riva; Driebusch, Corrie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
The central bank left its key rates unchanged as expected and kept borrowing costs at record-low levels, but ECB President Mario Draghi indicated that the ECB probably won't need to take any fresh action to support the economy. Monetary policy has remained ultra-accommodative in Europe and Japan, helping to underpin the resilience of stock markets to a rising-rate environment in the U.S., according to Fahad Kamal, strategist at Kleinwort Hambros, the U.K. arm of Société...Full text: The S&P 500 didn't rise much Thursday, but it is up 250% from its lowest close during the financial crisis eight years ago. On March 10, 2009, shares started rising and U.S. stocks have been in a bull market ever since. Big-bank stocks have had some of the most dramatic rebounds, with the KBW Nasdaq Bank Index nearly quintupling in eight years. Stocks' most recent surge has come since the November election, though the rally has cooled this week. The Dow Jones Industrial Average rose 2.46 points, or less than 0.1%, to 20858.19 on Thursday--a far cry from the 6547.05 at which it closed on March 9, 2009. The S&P 500 added 1.89 points, or 0.1%, to 2364.87 and the Nasdaq Composite rose 1.25 points, or less than 0.1%, to 5838.81 on Thursday. Energy shares rebounded as oil prices pared losses late in the session. U.S. crude oil for April delivery fell more than 3% before ending the day down 2% at $49.28 a barrel, falling below $50 for the first time since early December. Prices fell more than 5% Wednesday in their largest one-day decline in more than a year. U.S. oil inventories are now at their highest levels since weekly stockpile data started being recorded in 1982, raising doubts over whether cuts from the Organization of the Petroleum Exporting Countries and other major producers will be enough to reduce a global glut of supply. Energy shares in the S&P 500 fell in the morning, but finished the session up 0.6%. Some companies still ended the day with losses: Transocean lost 41 cents, or 3.3%, to close at $11.99 and Halliburton fell 40 cents, or 0.8%, to 50.89. Royal Dutch Shell declined 2% in London. Bank stocks rose, with the KBW Nasdaq Bank index up 0.2%, as bond yields climbed. Rising yields tend to boost profits at lenders. The yield on the 10-year U.S. Treasury note rose to 2.596%, its highest settlement this year, from 2.552% Wednesday on continued expectations that the Federal Reserve will raise short-term interest rates at its meeting next week. Yields also got a lift after the European Central Bank meeting Thursday. The central bank left its key rates unchanged as expected and kept borrowing costs at record-low levels, but ECB President Mario Draghi indicated that the ECB probably won't need to take any fresh action to support the economy. The euro rose 0.3% against the U.S. dollar to $1.0577. The yield on the 10-year German bond increased to 0.429% from 0.376% a day earlier, according to Tradeweb. The Stoxx Europe 600 rose less than 0.1%. Monetary policy has remained ultra-accommodative in Europe and Japan, helping to underpin the resilience of stock markets to a rising-rate environment in the U.S., according to Fahad Kamal, strategist at Kleinwort Hambros, the U.K. arm of Société Générale Private Banking. Even with expectations for higher U.S. interest rates nudging Treasury yields higher, massive bond-purchase programs by global banks continue to anchor yields at historically low levels, making stocks look attractive in comparison. "People have to earn income from investment assets, and that just doesn't exist in bonds and cash, it only exists in equities" right now, Mr. Kamal said. Write to Riva Gold at riva.gold@wsj.com and Corrie Driebusch at corrie.driebusch@wsj.com Credit: By Riva Gold and Corrie Driebusch
Subject: Consumer Price Index; Stocks; Investments; American dollar
Location: Australia China Hong Kong United States--US Asia Taiwan
Company / organization: Name: Woodside Petroleum Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875246926
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875246926?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Edge up in Asia After Tumbling Overnight; May Brent crude on London's ICE Futures exchange rose 41 cents to $53.52 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
The U.S. Energy Information Administration on Wednesday reported an 8.2 million barrel increase in domestic crude supplies for last week, lifting total commercial inventories to a record weekly level of 528.4 million barrels. Organization of the Petroleum Exporting Countries (OPEC) Secretary-General Mohammed Barkindo said Tuesday, at a conference in Houston that commitment among countries who have planned output cuts, "remains high." U.S. oil producers have lifted output on the back of stronger oil prices following...Full text: Oil prices edged up in Asia Thursday after slipping overnight on weekly data which showed a higher than expected build up in U.S. inventories. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $50.59 a barrel at 0252 GMT, up 31 cents in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose 41 cents to $53.52 a barrel. The U.S. Energy Information Administration on Wednesday reported an 8.2 million barrel increase in domestic crude supplies for last week, lifting total commercial inventories to a record weekly level of 528.4 million barrels. The weekly climb was the ninth in a row. U.S. oil inventories are now at the highest level since weekly stockpile data started being recorded in 1982. Data on Tuesday from the American Petroleum Institute had showed that domestic crude inventories rose by a whopping 11.6 million barrels in the week ended March 3. Analysts polled by S&P Global Platts had forecast an inventory increase of 1.6 million barrels. "There was a huge build up in speculative position that sold off after seeing the rise in U.S. inventories," said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. "I expect OPEC members to talk up prices from these levels." Organization of the Petroleum Exporting Countries (OPEC) Secretary-General Mohammed Barkindo said Tuesday, at a conference in Houston that commitment among countries who have planned output cuts, "remains high." Energy ministers from several major oil producing countries including Iraq and Saudi Arabia also reiterated their commitment to reduce production. There is increasing talk of extending the OPEC production cut agreement, said ANZ Bank, adding that Iraq and Oman have already voiced their support for an extension. But latest data from the U.S., which isn't part of the output cut pact showed that crude production last week reached a more than one-year high. China's latest trade data showed a marginal decline in imports by the world's second-largest energy consumer after a strong consumption trend over the past few months. However, China's consumption is expected to pick up soon as additional refining capacity comes on board. Despite rising U.S. output most analysts are optimistic that oil prices will rise in the near term as cutbacks by OPEC members and other nations like Russia start to tighten supplies. "It is increasingly looking like OPEC will need to extend supply cuts beyond midyear in order to meaningfully reduce the surplus in oil markets and keep prices elevated," a Commonwealth Bank of Australia report said. U.S. oil producers have lifted output on the back of stronger oil prices following the decision by OPEC and other producers to sideline 1.8% of global supply in the first half of 2017, the report added. Meanwhile, oil product futures were mixed. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 49 points to $1.6575 a gallon. ICE gas oil for March changed hands at $471.5 a metric ton, down $11.25 from Wednesday's settlement. Write to Biman Mukherji at biman.mukherji@wsj.com Credit: By Biman Mukherji
Subject: Chemical industry; Crude oil prices
Location: United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: Commonwealth Bank of Australia; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: Ne ws
ProQuest document ID: 1875248657
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875248657?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-25
Database: The Wall Street Journal
Shell to Sell Canadian Oil-Sands Businesses for $7.25 Billion; The deal with Canadian Natural highlights the risks of high-cost oil-sands production for energy companies
Author: Amon, Michael; Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
LONDON--Royal Dutch Shell PLC is selling nearly all of its Canadian oil-sands developments in deals worth $7.25 billion, deserting a region that has come to symbolize the risks for energy companies in high-cost, carbon-intensive sources of oil. Selling the Canadian assets also cements a shift by Shell toward deep-water oil projects and the fast-growing liquefied natural gas market. Shell is pulling back from the Canadian oil sands only weeks after its biggest rival, Exxon Mobil...Full text: LONDON--Royal Dutch Shell PLC is selling nearly all of its Canadian oil-sands developments in deals worth $7.25 billion, deserting a region that has come to symbolize the risks for energy companies in high-cost, carbon-intensive sources of oil. The deal marks a another milestone in an ambitious plan by the British-Dutch oil producer to sell off $30 billion of assets by next year to help pay down debt and streamline the company following its roughly $50 billion acquisition of BG Group PLC in 2016. Selling the Canadian assets also cements a shift by Shell toward deep-water oil projects and the fast-growing liquefied natural gas market. "We want to be a player that is world-class in integrated gas, world-class in deep water," Shell Chief Executive Ben van Beurden said in an interview at the CERAWeek conference in Houston. "We want to have a large petrochemical portfolio. Over time we want to be a world-class new energies player. There's only so many things you can aspire to be at scale at and put money into." Shell is pulling back from the Canadian oil sands only weeks after its biggest rival, Exxon Mobil Corp., signaled that some of its planned production had become unprofitable there at current prices, and removed about 3.3 billion barrels of oil from its stated reserves mostly as a result of the oil sands. In the deals announced Thursday, Shell is selling a host of oil-sands developments to a subsidiary of Canadian Natural Resources Ltd., a Calgary-based company with significant oil-sands interests. The deal includes Shell's Carmon Creek, a project it abandoned in 2015 with a write-down of about $2 billion as oil prices crashed. The moves by Shell and Exxon highlight a stark reversal of fortunes for Canada's oil sands. In the decade leading up to the oil-price collapse of 2014, some of the world's biggest energy companies raced to build megaprojects in northern Alberta, spending an estimated $200 billion to tap reserves of heavy oil. But the oil sands' high fixed costs and emissions levels, and the long time horizons required to deliver a return on investment, have deterred new spending there and made reserves less profitable to tap. Canada's oil output isn't expected to fall, because projects that were already being built continue to add new barrels. But more than 17 oil-sands projects that would have added about 2.5 million barrels a day have been canceled or delayed, according to Arc Financial. Companies have taken write-downs that total more than $20 billion since 2012. Tough new environmental rules, including a cap on emissions and a carbon tax, are also chilling investment. In an interview before the Shell announcement, Alberta Premier Rachel Notley said she was encouraged by signs of investment returning. Ms. Notley pointed to recent moves toward building a pipeline that would carry more Canadian crude to the West Coast as a positive sign for the industry, and said companies are also finding new ways to bring down costs. They are also finding ways to reduce emissions, so that even with the introduction of a hard cap, "we can increase production while staying under the cap," she said. Shell is retaining a 10% interest in one oil-sands project known as Athabasca, in a new joint venture with Canadian Natural. The partnership will buy the 20% stake of Marathon Oil Corp.'s Canadian subsidiary in Athabasca. Shell is also maintaining some processing facilities in Alberta. Write to Michael Amon at michael.amon@wsj.com and Sarah Kent at sarah.kent@wsj.com Related * Shell's Oil-Sands Exit Puts It on Solid Ground Credit: By Michael Amon and Sarah Kent
Subject: Chemical industry; Cash flow; Oil sands
Location: Peace River Permian Basin Alberta Canada United States--US
People: van Beurden, Ben
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875317863
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/18 75317863?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Settles Below $50 a Barrel for the First Time in 2017; Higher-than-expected inventory data raises questions on OPEC's goal to cut production
Author: Puko, Timothy; Eisen, Ben; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
A large number of energy and mining companies are rated below investment-grade, making the junk-bond market sensitive to swings in commodity prices.[...]the U.S. Energy Dept. said earlier this week that it expects American oil production to rebound past 9.7 million barrels a day in 2018, breaking the record level of output set in 1970.Zach Jonson, a portfolio manager at Icon Advisers Inc., said he was already taking a cautious approach to the high-yield bond market, and oil's selloff introduces an additional risk.Oil volatility is likely to stay high and influence other markets through at least the rest of the month, said Craig Bethune, senior portfolio manager at Manulife Asset Management, which manages $334 billion.Full text: Global markets are once again fixating on the price of oil after U.S. crude fell below $50 a barrel for the first time this year, in the biggest two-day selloff since June. Traders began selling after new data on Wednesday showed that U.S. stockpiles have risen to record levels. U.S. oil futures fell another 2% to $49.28 a barrel on Thursday after tumbling 5.4% the day before. Oil had been trading in a narrow $4 range for more than two months until Wednesday as traders anticipated that the oversupplied market was returning to balance. This week's selloff abruptly ended what had been the calmest period for oil prices in more than two years. Now there are signs that another wave of volatility from the oil market could spill over into stocks, bonds and other markets. S&P 500 energy shares fell 2.5% Wednesday, their worst session since September, and initially an additional 1%, making it the worst-performing sector in the stock market before a late-day rebound put the sector in the black for Thursday. Oil driller Transocean Ltd. was among the five worst performers in the S&P 500, down 3.3%. A large number of energy and mining companies are rated below investment-grade, making the junk-bond market sensitive to swings in commodity prices. The broader high yield benchmark climbed to 3.79 percentage point on Wednesday from 3.55 percentage point on March 2, according to the Merrill Lynch data. Fallout from the oil market selloff echoes the period early last year when falling crude prices dragged the S&P 500 down more than 10% and pushed the yields on junk bonds sharply higher. At the time, some economists worried that falling oil could be signaling a slowdown in the global economy, though prices later recovered. Some analysts fear this week's declines could mark the beginning of a larger selloff in oil if more evidence emerges the global supply glut isn't shrinking as fast as the market is anticipating. Some industry executives also cautioned against ramping up production too fast. Harold Hamm, the chairman and chief executive of Continental Resources Inc., said there is a danger of oversupplying the market, which could cause oil prices to fall hard again. U.S. producers, he said, "have the potential to oversupply the market and we have the great responsibility not to do so." The Organization of the Petroleum Exporting Countries and other major producers agreed late last year to cut output by around 1.8 million barrels a day, the equivalent of about 2% of global production. But the U.S. Energy Dept. said earlier this week that it expects American oil production to rebound past 9.7 million barrels a day in 2018, breaking the record level of output set in 1970. "For the global rebalancing to work, we will need to see it in the U.S.," said Michael Wittner, global head of oil research at Société Générale. "The markets are getting a little tired of waiting." Hedge funds and other big money managers have also piled into bullish bets that prices would be heading higher, skewing the market in a way that can spark big selloffs. Last month, investors reached a record net-long position in U.S. oil for the 10 years of data collected by federal regulators. One week of surprisingly bearish data can scare traders out of the market, and that can cause other bullish traders to sell out of their positions before prices fall further. "It's pretty vulnerable," said Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC. On Wednesday he opened new options trades that would benefit from falling prices, expecting oversupply to keep weighing on near-term futures, he said. "With the velocity we've come down in the last two sessions, yes I think we can easily be in the mid-40s," he said. "I think there's another round of longs to get out of the market." Zach Jonson, a portfolio manager at Icon Advisers Inc., said he was already taking a cautious approach to the high-yield bond market, and oil's selloff introduces an additional risk. "It's not even just energy, it's the whole space," he said. "If we do see a legitimate selloff in the high yield space--especially energy--this will be just the beginning. We'll see it pick up steam." Markets are susceptible to falling crude prices even though it usually means lower heating costs and cheaper gasoline prices for consumers. That is because the growing importance of the energy sector to the overall U.S. economy means weaker crude prices impact employment, business investment and inflation. Oil volatility is likely to stay high and influence other markets through at least the rest of the month, said Craig Bethune, senior portfolio manager at Manulife Asset Management, which manages $334 billion. Many investors are closely watching for cuts to global oil output to show up and influence the data on U.S. stockpiles the government releases every week. "It's going to get swung around on a weekly basis," Mr. Bethune added. "You do see on a weekly basis some uptick in U.S. production, and what you really haven't seen is visible impacts from the OPEC cuts on U.S. inventories." Write to Timothy Puko at tim.puko@wsj.com , Ben Eisen at ben.eisen@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Timothy Puko, Ben Eisen and Erin Ailworth
Subject: Crude oil prices; Supply & demand; Market positioning; Cartels
Location: Switzerland Russia United States--US Saudi Arabia Iraq Oman
People: Hamm, Harold
Company / organization: Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111; Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875354273
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875354273?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
The New Exxon: Fewer Risks, Lower Returns; Exxon's Gulf Coast investment says more about the changed company than it does about new U.S. spending
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
Spending $20 billion in oil, gas and chemical infrastructure or plowing $6.5 billion into doubling acreage in the Permian Basin's shale fields in January seems like more of the same.Yet these long-lived assets, essential components of an integrated oil-and-gas company, have historically offered poorer returns across the cycle.Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team.Full text: What would Iron Ass say? Exxon Mobil Corp. got praise from the president for its $20 billion commitment to projects on the Gulf Coast . The real news was what the investment says about Exxon and other big oil companies. Also, the plans had been years in the making and account for only a fraction of the $300 billion or so the company will probably invest over the same time. For longtime observers, the announcement is another sign that the company shaped by Lee "Iron Ass" Raymond is changing, as is the industry. The predecessor to recently departed CEO Rex Tillerson, now secretary of state, Mr. Raymond is best remembered for roughly quintupling shareholders' money in the 12 years ended in 2005. His biggest contribution to Exxon, though, was a relentless focus on return on capital employed. This had two effects: It gave Exxon the financial discipline to zig when others were zagging in a boom-and-bust industry, earning it superior returns across the cycle. It also, along with Exxon's size, allowed it to make some very big, very profitable bets. Spending $20 billion in oil, gas and chemical infrastructure or plowing $6.5 billion into doubling acreage in the Permian Basin's shale fields in January seems like more of the same. It isn't. Shale may be the future, but it is problematic for Big Oil. Small competitors that could never risk billions and spend years extracting oil and gas from a field with high political, geological or technological risks regularly roll the dice on a few wells in a place like the Permian. The competition lowers Exxon's potential return, despite its superior technology and management, though it also lowers risk because it can easily scale back investment during periods of weak demand. Chemical, midstream, refining and transport infrastructure of the sort Exxon is building along the Gulf Coast, on the other hand, isn't for the commitment-shy. Yet these long-lived assets, essential components of an integrated oil-and-gas company, have historically offered poorer returns across the cycle. From the years 2000 through 2011, for example, downstream and chemicals earned Exxon a return on average capital employed of 20.5% and 19.7%, respectively. That is emblematic of Mr. Raymond's high bar for returns, but far short of the 33.4% earned over the same period by upstream oil and gas. There is good reason for the higher bar. The latter could turn up less oil than expected, get expropriated by a foreign government or fetch a lower price than projected. In the past five years, though, the returns have flipped with oil-and-gas production earning less than 12%, underperforming the rest of the business. That may improve as oil emerges from a bear market, but not by much. We may be in a new normal for Big Oil. Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Investments
Location: Permian Basin United States--US
People: Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875356543
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875356543?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with pe rmission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Buys Stake in Offshore Mozambican Natural Gas Field for $2.8 Billion; Deep water "Area 4" block contains estimated 85 trillion cubic feet of gas
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract: None available.
Full text: Exxon Mobil Corp. said Thursday that it would buy a 25% indirect interest in an offshore natural gas field near Mozambique from Eni SpA for about $2.8 billion. The deep water "Area 4" block contains an estimated 85 trillion cubic feet of natural gas. Eni currently holds a 50% indirect share in the field through a 71.4% stake in Eni East Africa, which owns 70% of the Area 4 concession. Following the deal, Eni East Africa will be co-owned by Eni with a 35.7% stake, Exxon with 35.7%, China National Petroleum Corp. with 28.6% and other investors. Eni will continue to lead the floating liquefied natural gas project and all upstream operations in Area 4, while Exxon will lead the construction and operation of natural gas liquefaction facilities onshore. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Natural gas
Location: Mozambique
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Eni SpA; NAICS: 211111, 324110; Name: China National Petroleum Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875371200
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875371200?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell's Oil-Sands Exit Puts It on Solid Ground; Shell's $7.25 billion sale of oil-sands assets helps it shed debt and reduce exposure to one of the costliest forms of oil production
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
For energy giant Royal Dutch Shell, the Canadian oil sands have mostly been a sticky business without much pay dirt.Write to Nathaniel Taplin at nathaniel.taplin@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team.Full text: For energy giant Royal Dutch Shell, the Canadian oil sands have mostly been a sticky business without much pay dirt. That makes the decision to sell most of its oil-sands assets to Canadian Natural Resources a good one, particularly in the context of still-high net debt of $73 billion and the firm's expensive 7% dividend eating up cash flow. That is true despite better prospects for the long-suffering Keystone pipeline meant to connect Canadian oil sands with U.S. Gulf Coast markets. President Donald Trump has vowed to help it move ahead. Unfortunately for Canadian oil asset owners, the problems with oil sands always went beyond transport bottlenecks. Oil sands produce heavy oil, which is a better fit for many U.S. refineries than the light sweet pouring out of shale wells, but it is expensive and dirty. Greenfield oil sands require prices per barrel on the order of $85 to $95 to break even, according to consultancy IHS. Meanwhile U.S. shale producers are happily chugging away at prices roughly half that level. Wednesday's steep fall in oil prices is a reminder of the dynamics stacked against oil sands. Shell will take an estimated $1.3 to $1.5 billion posttax impairment charge as a result of the deal, having previously written down oil-sands assets in 2015. It is a painful exit, but worth moving on. For better or worse, Shell is increasingly a natural-gas-funded dividend play . Today's deal solidifies that rarefied position. Write to Nathaniel Taplin at nathaniel.taplin@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Nathaniel Taplin
Subject: Petroleum production; Oil sands; Energy economics
People: Trump, Donald J
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875377733
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875377733?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyrig ht owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Equities: Energy Sector Pulls Down Stocks --- Oil price falls to lowest close since December; many investors await central-bank meetings
Author: Gold, Riva
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Mar 2017: B.11.
Abstract:
Many investors are focused on coming meetings of the European Central Bank on Thursday and the Federal Reserve on Tuesday and Wednesday, when the U.S. central bank is widely expected to nudge borrowing costs higher.
Full text: U.S. stocks slipped Wednesday as a decline in oil prices hit energy companies. Still, overall stock moves were muted, as they have been in recent days after major indexes rose to records last week. The Dow Jones Industrial Average lost 69.03 points, or 0.3%, to 20855.73. The S&P 500 lost 5.41 points, or 0.2%, to 2362.98, and the Nasdaq Composite rose 3.62 points, or less than 0.1%, to 5837.55. Energy shares in the S&P 500 posted their biggest daily drop since September, shedding 2.5%. The price of U.S. crude oil fell to its lowest settlement, $50.28 a barrel, since December after federal data showed the U.S. crude surplus hit a fresh record last week. Chevron fell $2.20, or 2%, to $109.61 and Exxon Mobil fell 1.49, or 1.8%, to 81.03, weighing on the Dow industrials. Urban Outfitters declined 66 cents, or 2.6%, to 24.75 after saying on Tuesday that profits fell for a third straight year. Corporate earnings have improved for S&P 500 companies overall recently, resuming growth after five consecutive quarters of contraction, according to FactSet. Many investors are focused on coming meetings of the European Central Bank on Thursday and the Federal Reserve on Tuesday and Wednesday, when the U.S. central bank is widely expected to nudge borrowing costs higher. Ultraloose monetary policy has underpinned years of stock-market gains, but shares have been relatively resilient to recent signals that the Fed may be moving faster than previously expected. "The Fed is hiking for the right reasons: growth is accelerating and inflation is approaching the central bank's target," said Valentijn Van Nieuwenhuijzen, head of multiasset at NN Investment Partners. Those factors will also continue to propel stocks and corporate earnings higher, but stretched positioning suggests that stocks may be due for a slight pullback in the very short term, he said. The ADP National Employment Report on Wednesday pointed to continued strength in the labor market ahead of Friday's monthly jobs report -- the last major piece of economic data the Fed will consider before making a call on interest rates next week. Most investors believe the figure would have to come in drastically below expectations to knock the Fed off course. The WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, edged up 0.4%, for a third straight day of gains. Higher rates tend to make the currency more attractive to yield-seeking investors. U.S. government bonds weakened for a sixth consecutive session, with the yield on the benchmark 10-year U.S. Treasury note rising to 2.552% -- its highest settlement since December -- from 2.511% Tuesday. Yields have increased as expectations have grown for the Fed to raise rates next week. Some investors also are waiting for policy details from the new U.S. administration, after hopes for tax cuts, increased government spending and deregulation helped boost shares. "U.S. markets, we believe, are in really good shape, but the danger is they've priced in a lot of good news," said Michael Thompson, managing director at S&P Global Market Intelligence. "The market won't be happy if we don't see some movement on middle-class tax cuts. People expect to see tangible plans and debate this year so something gets done in 2018." Early Thursday, Chinese stocks were hurt by news that inflation unexpectedly slowed to its lowest level in two years. Hong Kong's Hang Seng Index was down 1%, while the Shanghai Composite was off 0.8%. Credit: By Riva Gold
Subject: Stock prices; Dow Jones averages; Daily markets (wsj)
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Mar 9, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875394986
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875394986?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Oil Firms Now Favor Frugal Bets --- Exxon, BP and other energy companies are avoiding expensive engineering projects
Author: Kent, Sarah; Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Mar 2017: B.5.
Abstract:
Oil prices have made a modest comeback from the lows hit a little over a year ago, but energy companies such as Exxon Mobil Corp. and BP PLC aren't pursuing the extravagant bets they made at $100 a barrel -- like commissioning multibillion-dollar projects in Arctic waters and Kazakhstan's Caspian Sea.
Full text: The world's biggest oil companies are getting thrifty. Oil prices have made a modest comeback from the lows hit a little over a year ago, but energy companies such as Exxon Mobil Corp. and BP PLC aren't pursuing the extravagant bets they made at $100 a barrel -- like commissioning multibillion-dollar projects in Arctic waters and Kazakhstan's Caspian Sea. These companies, including Royal Dutch Shell PLC and Chevron Corp., are putting their money into cheaper, quicker ventures in Texas shale country, the Middle East and Brazil and squeezing more from existing projects world-wide. Exxon last week unveiled an ambitious plan to put its U.S. drilling opportunities in Texas, New Mexico and North Dakota at the heart of its future. By 2025, the company said, its production from these areas could more than triple to the equivalent of 750,000 barrels a day. Together with other shale production, that would amount to about a third of Exxon's current output. It is a shift away from the business model long employed by the world's largest oil companies, favoring challenging projects that had huge upfront costs that would be paid off over 20 or 30 years. To drive down costs, big oil companies are abandoning such developments in favor of standardization and bolt-on models that take advantage of existing infrastructure. They are returning to old basins to see what they can extract with new technologies and focusing on the lowest-cost prospects. The appeal of cheaper projects that can bring oil or gas to market within a few years is that it allows big companies to avoid being locked in to multibillion investments over as much as a decade, said Ryan Lance, the chief executive of ConocoPhillips, at the annual CERAWeek conference in Houston on Tuesday. "They're not just paying lip service to this," said Luke Parker, vice president of corporate analysis at Wood Mackenzie, a Scottish energy consulting firm. "They want to be in a position to future proof themselves against peak oil demand when it comes." The challenge of the strategy is that many of the big Western companies have yet to prove that they can consistently turn a profit in a time of lower prices, especially in U.S. shale fields. Increasing production may prove even more daunting because the companies have to spend billions just to replace the barrels they pump every year. Last week, BP announced plans to drive down its break-even oil price to between $35 and $40 a barrel by 2021, all while increasing production. It is a feat the British oil giant says it can pull off by maintaining strict cash discipline, driving down costs and focusing on projects that generate strong returns even at current prices. BP recently abandoned ambitious plans to explore in the Great Australian Bight -- a potentially huge source of new supply that still couldn't compete economically with other project opportunities. Instead, it invested $2 billion for a 10% stake in oil fields in the United Arab Emirates, which has some of the world's lowest oil-extraction costs. Going forward, the company is focusing on "long-lived cash bricks" of low cost oil and natural gas, said BP Chief Executive Bob Dudley during an interview at CERAWeek. Others are pursuing a similar agenda. Chevron CEO John Watson told analysts Tuesday that the company intends to invest more of its capital budget in projects that start up quickly and generate higher returns. About three-fourths of the company's $20 billion capital budget in 2017 will generate cash within two years, Mr. Watson said. Shell is focusing the bulk of its new investment on deep water projects offshore Brazil that it says break even at less than $40 a barrel. France's Total SA says reducing the break-even level on its projects is "a top priority." According to Sanford C. Bernstein, Europe's biggest oil companies have slashed capital budgets by $51 billion since their 2013 peak and are expected to keep spending at current levels of around $90 billion a year through 2020, but production volumes are on the rise.
Credit: By Sarah Kent and Bradley Olson
Subject: Petroleum industry; Petroleum production; Strategic planning
Location: Brazil Texas United Arab Emirates
Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: BP PLC; NAICS: 211111, 32 4110, 447110; Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Chevron Corp; NAICS: 211111, 324110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.5
Publication year: 2017
Publication date: Mar 9, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875395670
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875395670?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Chevron Says Climate Actions Pose Minimal Risk to Operations; In a report, the oil giant says a transition to lower-carbon energy sources wouldn't harm its assets because it is investing in lower-cost opportunities
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
The company has already announced plans to shift around 15%-20% of its capital spending to renewables and other low carbon alternatives to fossil fuels over the next decade. Australian mining conglomerate BHP Billiton Ltd., which operates extraction businesses in oil, gas and coal, in addition to other commodities, said in 2015 that a "shock event" leading to rapid emission reductions could bring about a modest reduction in potential earnings by 2030. On Wednesday, Mr. Watson expressed frustration that energy companies and investors or activists that are concerned about climate impacts "are talking past each other," saying he doesn't believe the different sides have begun a true dialogue about the potential solutions to climate change and their likely costs and trade-offs. Write to Bradley Olson at Bradley.Olson@wsj.com Read More * Oil Companies Take to Thrifty Bets (March 8) * Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge (March 7)...Full text: Chevron Corp. said in a new report that a global transition to lower-carbon energy sources poses a minimal risk to its operations, a response that follows growing shareholder demand for more disclosure on climate risks. Dramatic global action to limit the effects of warming temperatures wouldn't harm Chevron's assets because the oil giant is investing in lower-cost opportunities, according to the report, which was quietly posted on the company's website Wednesday evening. Such a scenario could render costlier projects uncompetitive, the company said. "We understand the concerns out there," Chevron Chief Executive John Watson said Wednesday in an interview, adding that the company felt a need to be responsive to shareholders. Last year, a shareholder resolution pushing Chevron to examine what the specific impacts would be on its operations in the event of a major, concerted effort to curb global emissions garnered about 40% of votes cast. The ballot measure for a so-called "climate stress test" prompted Chevron, the second-largest U.S. oil company, to produce a report detailing its views on "climate risk." Mr. Watson, a vocal proponent of free trade and free markets who opposes a carbon tax, said Wednesday that he was uncertain that some proposed interventions to respond to climate change will be effective. He questioned who will pay for some developing countries to reduce emissions as outlined in a global climate pact made in Paris in 2015. "I'm interested in policies that are going to be effective," he said. "I just don't think some of the things we're doing are going to work." The push for Chevron to make such a climate assessment, which the company resisted last year , comes as some global energy leaders have voiced skepticism this week about whether oil demand will soon peak and threaten the viability of future drilling prospects. In a public appearance Wednesday at the annual CERAWeek conference in Houston, Mr. Watson said such forecasts represent "wishful thinking." Energy demand will remain robust because billions of people around the world will in time enter the middle class, he said. Concerns that demand will peak are misguided, Khalid al-Falih, Saudi Arabia's energy minister, said Tuesday . Such a discussion could discourage "trillions of dollars of investment" that will be needed to meet supply needs in the coming decades. Other chief executives such as Hess Corp.'s John Hess made similar comments. Such views, however, weren't universal at the gathering. Ashok Belani, the executive vice president for technology at oil-services giant Schlumberger Ltd., said Monday that the rate of adoption of electric car use could "surprise to the upside." "It is definitely going to affect our lives," he said. "It's obviously a phenomenon worth watching." Some large oil and gas companies are taking a more progressive approach to the potential impact of climate change on their business. In a report published Thursday, Norway's Statoil set a target for carbon dioxide emissions reductions of 3 million tons a year by 2030. The company has already announced plans to shift around 15%-20% of its capital spending to renewables and other low carbon alternatives to fossil fuels over the next decade. Royal Dutch Shell PLC also announced plans on Thursday to bake greenhouse gas management in its operations into its executive remuneration policy. In October, Shell's Finance Chief Simon Henry said the company sees oil demand peaking in five to 15 years. The question is hotly debated among energy producers, since many point to outside forecasts such as that by the International Energy Agency that see oil demand rising through 2040 . Chevron's conclusions that its assets aren't vulnerable to climate reform efforts resemble the views of many industry players, including Exxon Mobil Corp. In 2014, Exxon found that none of its reserves "are now or will become stranded," or left untapped due to new regulation or falling demand. Even under an International Energy Agency scenario that imagines energy use as it would unfold under tighter emissions constraints, oil and natural gas will still meet 44% of global demand by 2040, according to the report. Chevron noted that the Paris-based agency also estimates that about 60% of the $44 trillion that will be invested in energy supply through 2040 will go toward fossil fuels. Those analyses point to plentiful demand, the company said. If global enforcement measures stemming from the Paris climate agreement take hold, Chevron's internal process for evaluating assets will allow them to avoid choosing any high-cost investments that new regulations or changes in energy use would make unprofitable. Some companies that have produced reports on such risks have acknowledged that drastic climate action would reduce profits. Australian mining conglomerate BHP Billiton Ltd., which operates extraction businesses in oil, gas and coal, in addition to other commodities, said in 2015 that a "shock event" leading to rapid emission reductions could bring about a modest reduction in potential earnings by 2030. On Wednesday, Mr. Watson expressed frustration that energy companies and investors or activists that are concerned about climate impacts "are talking past each other," saying he doesn't believe the different sides have begun a true dialogue about the potential solutions to climate change and their likely costs and trade-offs. Write to Bradley Olson at Bradley.Olson@wsj.com Read More * Oil Companies Take to Thrifty Bets (March 8) * Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge (March 7) * Saudi Energy Minister Says OPEC Will Remain Stabilizing Force for Oil Prices (March 7) * IEA Sees Peak Oil Demand After 2040 (Nov. 16, 2016) * Exxon, Chevron Shareholders Narrowly Reject Climate-Change Stress Tests (May 25, 2016) * Chevron Boss: Climate Change Could Help Business (May 24, 2016) * Exxon: Climate Regulations Don't Threaten the Value of its Reserves (March 31, 2014) Credit: By Bradley Olson
Subject: Stockholders; Fossil fuels; Emissions; Carbon; Energy resources; Energy industry; Natural gas utilities; Climate change; Executives
Location: United States--US Saudi Arabia
People: Hess, John
Company / organization: Name: Hess Corp; NAICS: 211111, 324110, 447110; Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875407579
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875407579?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
OPEC Faces Quandary as U.S. Oil Inventories Swell; Oil cartel's cuts are helping competitors fill their storage tanks
Author: McFarlane, Sarah; Said, Summer; Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
The brimming U.S. crude inventories that sent oil prices tumbling this week are expected to put pressure on the Organization of the Petroleum Exporting Countries and other producers to extend their historic agreement to cut output.The International Energy Agency estimates that at the end of 2016, stocks in the 35-member states of the Organization for Economic Cooperation and Development were still 286 million barrels above the average of the preceding five years.Robert McNally, the president of energy consultancy Rapidan Group and a former White House policy adviser, said OPEC and non-OPEC producers were likely to consider extending the cuts. "For every month that OPEC is scaling back their output, U.S. shale drillers get a chance to gain more market share," said Tom Pugh, a commodities analyst at Capital Economics.Full text: The brimming U.S. crude inventories that sent oil prices tumbling this week are expected to put pressure on the Organization of the Petroleum Exporting Countries and other producers to extend their historic agreement to cut output. However, OPEC members face a familiar quandary: their cuts are helping U.S. and other competitors keep those storage tanks full. OPEC and big producers like Russia agreed in December to reduce output by 1.8 million barrels a day for six months from January, in a bid to drain storage tanks around the world and push the oil price higher. That deal will be reviewed at a meeting in Vienna on May 25. The latest production data indicates OPEC members have cut, for the most part. But investors are impatient for proof that inventories are actually falling. Weekly data from the U.S. Energy Information Administration, published Wednesday, showed domestic crude stocks at a record weekly level of 528.4 million barrels. The data sent oil prices skidding by over 5%, in their biggest one-day plunge in more than a year. On Thursday, oil prices remained volatile , with Brent crude, the global benchmark, down 0.63% to $52.78 a barrel and West Texas Intermediate futures 0.72% lower at $49.92 a barrel. "We are probably losing a bit of faith in a rapid impact of these production cuts," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. OPEC data suggests that members have carried out around 86% of the agreed cuts--a higher-than-expected compliance rate for an organization with a history of not sticking to such deals. OPEC officials have estimated compliance by non-OPEC producers, including Russia, at around 50%. That might not be enough to draw down the massive glut of crude that has depressed prices for nearly three years. The International Energy Agency estimates that at the end of 2016, stocks in the 35-member states of the Organization for Economic Cooperation and Development were still 286 million barrels above the average of the preceding five years. OPEC's officials have said their agreement's success will be measured by how effectively it forces oil traders to sell off stored petroleum. The organization's secretary-general, Mohammad Barkindo, has said OPEC wants global oil inventories to reach the five-year average in 2017. If that hasn't happened by May, OPEC officials say they are open to discussing extending the cuts. Robert McNally, the president of energy consultancy Rapidan Group and a former White House policy adviser, said OPEC and non-OPEC producers were likely to consider extending the cuts. Low crude prices "scared the stuffing out of the oil industry," said Mr. McNally. "What we have now is a collection of terrified producers who fear another price bust." The energy minister of Saudi Arabia, OPEC's most influential member, sent mixed signals this week at an oil conference in Houston. Khalid al-Falih said OPEC wouldn't bail out the market and that he was concerned that production cuts "underwrite the investments of others at our own expense and long-term interests." Mr. Falih's position has shifted from January when he suggested a deal extension wasn't necessary and that the cuts were simply meant to accelerate the stockpile drawdown. However, in Houston, Mr. Falih said OPEC would look at inventory levels in May as it evaluated whether to extend the production deal. A Saudi OPEC official said it would take at least three months to ascertain the impact of the production cuts on inventories, especially in the U.S. "We have to wait and see what happens and assess how the market is responding and if there is a need for the deal to be extended, we will do," he said. This week, both Russia and OPEC member, Iraq, said it was premature to talk about extending the agreement. However, that was before the latest U.S. inventory numbers. "If OPEC doesn't extend the deal that would be price suicide, plain and simple," said Tamas Varga, analyst at London-based PVM brokerage. Still, OPEC's cuts have lifted prices to levels that make swaths of U.S. shale production economical again. Oil prices are more than 10% higher than before OPEC agreed to act. This adds to the possibility that the cartel's cuts will continue to be offset by U.S. shale producers increasing output . The EIA expects U.S. production to reach 9.5 million barrels a day in 2018--a level last seen in April 2015. That makes an extension to the deal more challenging. Much of OPEC's compliance is down to Saudi Arabia, which has reduced its output by more than it agreed to. Some analysts question how long the world's biggest oil producer will bear the brunt of the cuts. "For every month that OPEC is scaling back their output, U.S. shale drillers get a chance to gain more market share," said Tom Pugh, a commodities analyst at Capital Economics. "The Saudis might say enough is enough at some point." Neanda Salvaterra contributed to this article. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com , Summer Said at summer.said@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Sarah McFarlane, Summer Said and Georgi Kantchev
Subject: Agreements; Compliance; Cartels; Crude oil prices
Location: Russia United States--US Saudi Arabia
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New Yo rk, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875407584
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875407584?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of co pyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Repsol Discovers Major Oil Field in Alaska's North Slope; Two wells drilled with Armstrong Oil & Gas indicate that discoveries could hold as much as 1.2 billion barrels of oil
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.
Abstract:
Spanish oil company Repsol SA said on Thursday that it had discovered a giant oil field in Alaska, a potential find big enough to help stem production declines in the state. First production from the discoveries could come as soon as 2021, with output of as much as 120,000 barrels...Full text: Spanish oil company Repsol SA said on Thursday that it had discovered a giant oil field in Alaska, a potential find big enough to help stem production declines in the state. Repsol said two wells drilled this winter with Denver-based partner Armstrong Oil & Gas, Inc. indicate that recent discoveries in an area that lies between existing operations in the state's North Slope could hold as much as 1.2 billion barrels of oil. First production from the discoveries could come as soon as 2021, with output of as much as 120,000 barrels a day, Repsol said. That would represent a lifeline for Alaska, which has seen oil revenues plummet after prices crashed in 2014. The state also needs new crude to keep oil flowing on the Trans-Alaska Pipeline System. "We must all pull together to fill an oil pipeline that's three-quarters empty--and today's announcement shows measurable results of that hard work," Alaska Gov. Bill Walker said in response to the news of the discovery Thursday. In October, Caelus Energy LLC, a closely held firm backed by private-equity fund Apollo Global Management LLC, said it found as much as 2.4 billion barrels of oil in the shallow waters of Smith Bay, about 300 miles north of the Arctic Circle. That discovery will require significant investment in a pipeline and other infrastructure to develop the resource. The Repsol discovery also requires new infrastructure, but it is comparatively close to existing operations of other companies. The two significant finds represent a rare achievement in oil exploration. In recent years, the industry has found far more natural gas, which is more costly to ship to global markets and less commercially competitive. Exxon Mobil Corp.'s 2015 discovery of the equivalent of more than 1 billion barrels of oil and natural gas off the coast of Guyana was among the largest finds in the past decade. Write to Bradley Olson at Bradley.Olson@wsj.com Credit: By Bradley Olson
Subject: Oil fields; Pipelines; Natural gas
Location: North Slope Guyana Alaska
Company / organization: Name: Apollo Global Management LLC; NAICS: 523920; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Caelus Energy LLC; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 9, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875610964
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875610964?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Glut Worries Resurface, Triggering Market Tumble; Crude price falls below $50 for first time this year, in biggest two-day selloff since June
Author: Puko, Timothy; Eisen, Ben; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Mar 2017: n/a.
Abstract:
A large number of energy and mining companies are rated below investment grade, making the junk-bond market sensitive to commodity-price swings.The Organization of the Petroleum Exporting Countries and other major producers agreed late last year to cut output by around 1.8 million barrels a day, the equivalent of about 2% of global production.Hedge funds and other big money managers have also piled into bullish bets that prices would be heading higher, skewing the market in a way that can spark big selloffs.Oil volatility is likely to stay high and influence other markets through at least the rest of March, said Craig Bethune, senior portfolio manager at Manulife Asset Management, which manages $334 billion.Full text: Global markets are once again fixating on the price of oil after U.S. crude fell below $50 a barrel for the first time this year, in the biggest two-day selloff since June. Traders began selling after new data on Wednesday showed U.S. stockpiles have risen to record levels. U.S. oil futures fell another 2% to $49.28 a barrel on Thursday after tumbling 5.4% the day before. Oil had been trading in a narrow $4 range for more than two months until Wednesday, as traders anticipated that the oversupplied market was returning to balance. This week's selloff abruptly halted what had been the calmest period for oil prices in more than two years. Now there are signs that another wave of volatility from the oil market could spill over into stocks, bonds and other markets. S&P 500 energy shares fell 2.5% on Wednesday, their worst session since September, and initially an additional 1% on Thursday, making it the worst-performing sector in the stock market before a late-day rebound put the sector in the black. Oil driller Transocean Ltd. was among the five worst performers in the S&P 500, down 3.3%. A large number of energy and mining companies are rated below investment grade, making the junk-bond market sensitive to commodity-price swings. The broader high-yield benchmark suggested a premium yield of 3.79 percentage point over Treasurys on Wednesday from 3.55 percentage point on March 2, according to Merrill Lynch data. Fallout from the oil-market selloff echoes the period early last year when falling crude prices played a part in dragging the S&P 500 down more than 10% and helped push the yields on junk bonds sharply higher. At the time, some economists worried that falling oil could be signaling a slowdown in the global economy, though prices later recovered. Some analysts said they fear this week's declines could mark the beginning of a larger selloff if more evidence emerges that the global supply glut isn't shrinking as fast as the market is anticipating. Some industry executives also cautioned against ramping up production too fast. Harold Hamm, the chairman and chief executive of Continental Resources Inc., said at a conference in Houston on Wednesday that there is a danger of oversupplying the market, which could cause oil prices to fall hard again. U.S. producers, he said, "have the potential to oversupply the market and we have the great responsibility not to do so." The Organization of the Petroleum Exporting Countries and other major producers agreed late last year to cut output by around 1.8 million barrels a day, the equivalent of about 2% of global production. But the U.S. Energy Department said this week that it expects American oil production to rebound past 9.7 million barrels a day in 2018, breaking the record output level set in 1970. "For the global rebalancing to work, we will need to see it in the U.S.," said Michael Wittner, global head of oil research at Société Générale. "The markets are getting a little tired of waiting." Hedge funds and other big money managers have also piled into bullish bets that prices would be heading higher, skewing the market in a way that can spark big selloffs. In February, investors reached a record net-long position in U.S. oil for the 10 years of data collected by federal regulators. One week of surprisingly bearish data can scare traders out of the market, and that can cause other bullish traders to sell out of their positions before prices fall further. "It's pretty vulnerable," said Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC. On Wednesday, he opened new options trades that would benefit from falling prices, expecting oversupply to weigh on near-term futures, he said. "With the velocity we've come down in the last two sessions, yes I think we can easily be in the mid-40s," he said. "I think there's another round of longs to get out of the market." Zach Jonson, a portfolio manager at Icon Advisers Inc., said he was already taking a cautious approach to the high-yield-bond market, and oil's selloff introduces an additional risk. "It's not even just energy, it's the whole space," he said. "If we do see a legitimate selloff in the high-yield space--especially energy--this will be just the beginning. We'll see it pick up steam." Markets are susceptible to falling crude prices even though it usually means lower heating costs and cheaper gasoline prices for consumers. That is because the growing importance of the energy sector to the overall U.S. economy means weaker crude prices impact employment, business investment and inflation. Oil volatility is likely to stay high and influence other markets through at least the rest of March, said Craig Bethune, senior portfolio manager at Manulife Asset Management, which manages $334 billion. Many investors are closely watching for cuts to global oil output to show up and influence the data on U.S. stockpiles the government releases every week. "It's going to get swung around on a weekly basis," he added. "You do see on a weekly basis some uptick in U.S. production, and what you really haven't seen is visible impacts from the OPEC cuts on U.S. inventories." Alison Sider contributed to this article. Write to Timothy Puko at tim.puko@wsj.com , Ben Eisen at ben.eisen@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Timothy Puko, Ben Eisen and Erin Ailworth
Subject: Petroleum production; Investments; Crude oil prices; Energy industry; Executives; Crude oil
Location: United States--US
People: Hamm, Harold
Company / organization: Name: Transocean Ltd; NAICS: 213111, 213112; Name: Merrill Lynch & Co Inc; NAICS: 523110, 523120; Name: Continental Resources Inc; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875583662
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875583662?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Stocks Flat on 8th Anniversary of Crisis Low; Energy shares rebound as oil prices pare losses late in the session
Author: Gold, Riva; Driebusch, Corrie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Mar 2017: n/a.
Abstract:
The central bank left its key rates unchanged as expected and kept borrowing costs at record-low levels, but ECB President Mario Draghi indicated that the ECB probably won't need to take any fresh action to support the economy. Monetary policy has remained ultra-accommodative in Europe and Japan, helping to underpin the resilience of stock markets to a rising-rate environment in the U.S., according to Fahad Kamal, strategist at Kleinwort Hambros, the U.K. arm of Société...Full text: The S&P 500 didn't rise much Thursday, but it is up 250% from its lowest close during the financial crisis eight years ago. On March 10, 2009, shares started rising and U.S. stocks have been in a bull market ever since. Big-bank stocks have had some of the most dramatic rebounds, with the KBW Nasdaq Bank Index nearly quintupling in eight years. Stocks' most recent surge has come since the November election, though the rally has cooled this week. The Dow Jones Industrial Average rose 2.46 points, or less than 0.1%, to 20858.19 on Thursday--a far cry from the 6547.05 at which it closed on March 9, 2009. The S&P 500 added 1.89 points, or 0.1%, to 2364.87 and the Nasdaq Composite rose 1.25 points, or less than 0.1%, to 5838.81 on Thursday. Energy shares rebounded as oil prices pared losses late in the session. U.S. crude oil for April delivery fell more than 3% before ending the day down 2% at $49.28 a barrel, falling below $50 for the first time since early December. Prices fell more than 5% Wednesday in their largest one-day decline in more than a year. U.S. oil inventories are now at their highest levels since weekly stockpile data started being recorded in 1982, raising doubts over whether cuts from the Organization of the Petroleum Exporting Countries and other major producers will be enough to reduce a global glut of supply. Energy shares in the S&P 500 fell in the morning, but finished the session up 0.6%. Some companies still ended the day with losses: Transocean lost 41 cents, or 3.3%, to close at $11.99 and Halliburton fell 40 cents, or 0.8%, to 50.89. Royal Dutch Shell declined 2% in London. Bank stocks rose, with the KBW Nasdaq Bank index up 0.2%, as bond yields climbed. Rising yields tend to boost profits at lenders. The yield on the 10-year U.S. Treasury note rose to 2.596%, its highest settlement this year, from 2.552% Wednesday on continued expectations that the Federal Reserve will raise short-term interest rates at its meeting next week. Yields also got a lift after the European Central Bank meeting Thursday. The central bank left its key rates unchanged as expected and kept borrowing costs at record-low levels, but ECB President Mario Draghi indicated that the ECB probably won't need to take any fresh action to support the economy. The euro rose 0.3% against the U.S. dollar to $1.0577. The yield on the 10-year German bond increased to 0.429% from 0.376% a day earlier, according to Tradeweb. The Stoxx Europe 600 rose less than 0.1%. Monetary policy has remained ultra-accommodative in Europe and Japan, helping to underpin the resilience of stock markets to a rising-rate environment in the U.S., according to Fahad Kamal, strategist at Kleinwort Hambros, the U.K. arm of Société Générale Private Banking. Even with expectations for higher U.S. interest rates nudging Treasury yields higher, massive bond-purchase programs by global banks continue to anchor yields at historically low levels, making stocks look attractive in comparison. "People have to earn income from investment assets, and that just doesn't exist in bonds and cash, it only exists in equities" right now, Mr. Kamal said. Write to Riva Gold at riva.gold@wsj.com and Corrie Driebusch at corrie.driebusch@wsj.com Credit: By Riva Gold and Corrie Driebusch
Subject: Central banks; Bank stocks; Interest rates; Stock exchanges
Location: United States--US
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 10, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875604990
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875604990?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Stabilizes After Falling Below Key Support Level; May Brent crude on London's ICE Futures exchange rose 33 cents to $52.52 a barrel
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Mar 2017: n/a.
Abstract:
The current situation is temporary and supply and demand will rebalance eventually," she said, adding that lack of clarity in terms of real data about the global market situation had also contributed to the panic sell off.Most analysts are optimistic that members of the Organization of the Petroleum Exporting Countries won't only implement planned output cuts, but extend them further to boost oil prices.Full text: Oil prices stabilized in Asian trade on Friday, after falling below a key support level overnight as rising U.S. crude oil inventories kept prices under pressure. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $49.65 a barrel at 0304 GMT, up 37 cents in the Globex electronic session. Overnight, U.S. crude prices fell below $50 a barrel for the first time this year. May Brent crude on London's ICE Futures exchange rose 33 cents to $52.52 a barrel. The sharp selloff in the previous session came as traders, who in recent weeks had posted a record number of bets that oil prices would move higher, were caught on the wrong foot by the surprise increase in U.S. stockpiles. The U.S. Energy Information Administration on Wednesday reported an 8.2-million-barrel increase in domestic crude supplies, the ninth consecutive weekly climb, lifting total commercial inventories to a record weekly level of 528.4 million barrels. Analysts surveyed by The Wall Street Journal had forecast an inventory increase of 1.7 million barrels. In addition to rising stockpiles, U.S. crude production last week reached a more than one-year high. U.S. oil producers have lifted output on the back of stronger oil prices following the decision by OPEC and other producers to cut output. "If oil prices remain below $50, even U.S. producers will find it difficult to raise production," said Li Li, an analyst with ICIS China, adding that she expected prices to rebound soon from current levels. "The market sold off because investors probably got impatient. The current situation is temporary and supply and demand will rebalance eventually," she said, adding that lack of clarity in terms of real data about the global market situation had also contributed to the panic sell off. Most analysts are optimistic that members of the Organization of the Petroleum Exporting Countries won't only implement planned output cuts, but extend them further to boost oil prices. Energy ministers from several major oil-producing countries recently reiterated their commitment to the planned output cuts, while Russia has also promised to follow through on a similar pledge. "Should data continue to confirm that the OPEC-Russia deal is holding, we expect a gradual uptrend this year, although if inventories remain elevated a rally will be less likely," a NAB Group Economics report said. Meanwhile, oil product futures were up. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 33 points to $1.6276 a gallon. ICE gas oil for March changed hands at $465 a metric ton, up $5.50 from Thursday's settlement. Write to Biman Mukherji at biman.mukherji@wsj.com Credit: By Biman Mukherji
Subject: Futures; Crude oil
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875605013
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875605013?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil's Slide Should Grease Stock Picking; Japan is a massive oil importer. Don't assume that means cheaper oil will give growth or equities a big boost.
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Mar 2017: n/a.
Abstract:
In theory, falling oil prices should result in lower prices for things like gasoline, boosting consumer purchasing power. The same is true in the eurozone, where inflation has only recently hit the European Central Bank's 2% target after years of struggle with deflationary pressures. Japan has become far less dependent on oil imports than it used to be. Since the Fukushima nuclear disaster, the nation has diversified into coal and liquefied natural gas , where...Full text: For energy importers, the oil equation used to be simple--oil down, growth up. But falling oil can be less of an unalloyed positive than widely assumed: Investors piling into crude-guzzling nations after this week's 6% plunge in oil prices should take a second look. Take Japan, the world's third-largest economy, which gets practically all its oil from overseas. Shares there have responded well to oil's drop, with the benchmark Nikkei index up 1.5% on Friday. Yet there are reasons to be skeptical that Japan will get a big boost from lower oil prices. First, Japan has for a while been in a desperate battle to drive up inflation . In theory, falling oil prices should result in lower prices for things like gasoline, boosting consumer purchasing power. But in aging Japan, getting consumers to spend their extra savings has proven notoriously difficult. Lower inflationary pressures of any kind will be viewed with mixed feelings by Japanese policy makers. The same is true in the eurozone, where inflation has only recently hit the European Central Bank's 2% target after years of struggle with deflationary pressures. Japan has become far less dependent on oil imports than it used to be. Since the Fukushima nuclear disaster, the nation has diversified into coal and liquefied natural gas , where spot prices are increasingly untethered from crude oil as North American and Australian supplies flood the market. Petroleum, which was nearly 70% of Japan's fuel import bill in the mid 2000s, is now just 44%. The impact on Japanese companies will be more mixed than widely believed. Although chemical and auto firms celebrated Friday, Japan's commodity logistics and trading firms could be exposed to falling prices: A previous slump in commodity prices forced giant trading firms Mitsubishi Corp. and Mitsui & Co. to log their first ever net annual losses in the fiscal year ended March 2016. Last month, both raised their annual outlooks by about a third as prices recovered. A similar dynamic exists for the U.S. America is the world's largest oil consumer, but it's vying with Saudi Arabia for the top producing spot too. Weak capital expenditure from energy firms was a major factor dragging down corporate investment following the energy crash in 2014. U.S. high-yield corporate debt--much of it issued by small energy firms in the boom days--has also come under renewed pressure in recent days . The oil correction may or may not have further to run. But regardless, investors eager to play falling oil prices in the equity market should pick stocks--not nations. Write to Nathaniel Taplin at nathaniel.taplin@wsj.com Credit: By Nathaniel Taplin
Subject: Central banks; Investments
Location: Saudi Arabia Japan
Company / organization: Name: European Central Bank; NAICS: 521110; Name: Mitsubishi Corp; NAICS: 551112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 10, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875681201
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875681201?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Wavers After Sharp Selloff; Prices move between gains and losses after battering from surprisingly large rise in U.S. inventories
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Mar 2017: n/a.
Abstract:
Crude prices sold off sharply this week after rising U.S. crude inventories sent prices sliding on fears that coordinated production cuts would fail to drain the global glut. Investors have been particularly bullish on the outlook for oil prices since the Organization of the Petroleum Exporting Countries--along with producers outside the cartel including Russia--reached an agreement to cut output by 1.8 million barrels a day during the first six-months of the year to help drain...Full text: Oil prices wavered between gains and losses Friday, trading around a three month low hit earlier this week. U.S. crude futures were recently down 15 cents, or 0.3%, at $49.13 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 22 cents, or 0.42%, to $51.97 a barrel on ICE Futures Europe. Crude prices sold off sharply this week after rising U.S. crude inventories sent prices sliding on fears that coordinated production cuts would fail to drain the global glut. The sharp selloff came after investors, who in recent weeks had posted a record number of bets that oil prices would move higher, were caught off guard by the surprise increase in U.S. stockpiles. Market participants are now trying to gauge whether the market is staging a rebound or pausing before its next move lower. Investors have been particularly bullish on the outlook for oil prices since the Organization of the Petroleum Exporting Countries--along with producers outside the cartel including Russia--reached an agreement to cut output by 1.8 million barrels a day during the first six-months of the year to help drain a buildup in global stocks. But for much of the year, prices have stagnated in an unusually narrow band, despite data showing high levels of compliance with the production cut deal. "We had a pretty good pullback already--maybe we were due for that," said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. The large buildup in bullish positions by speculative investors made the market vulnerable to a cascading selloff, he said, but tightening supplies mean prices may not go much lower. "I just don't see a $40 to $45 crude market," he said. But others say the market is still vulnerable. Jim Ritterbusch, president of Ritterbusch & Associates, said he expects another big increase in crude supplies next week. And OPEC's resolve may weaken in the face of lower prices. If the deal unravels or isn't extended beyond midyear , which could prompt another wave of selling. "We feel that this liquidation phase that was set into motion by Wednesday's larger-than-expected crude build has further to run, with price levels eventually slipping to about $45 and $47 1/2 in WTI and Brent, respectively," he wrote in a note Friday. Oil got a brief boost Friday as the U.S. dollar slipped after a report showed sluggish wage growth. But it didn't last, and oil prices resumed their downward slide. The U.S. Energy Information Administration on Wednesday reported an 8.2-million-barrel increase in domestic crude supplies, the ninth consecutive weekly climb, lifting total commercial inventories to a record weekly level of 528.4 million barrels. Analysts surveyed by The Wall Street Journal had forecast an inventory increase of 1.7 million barrels. Oil prices fell more than 5% after the data were published. In addition to rising stockpiles, U.S. oil producers have lifted output in response to stronger oil prices following the decision by OPEC and other producers to cut output late last year. Many shale oil producers locked in their prices for 2017 and 2018 in the wake of the deal. "Much of the future production has already been contracted and therefore even if the prices decline it will not have much of an impact at least on the current production plans," said Eugen Weinberg, an analyst at Commerzbank. Gasoline futures fell 0.86 cent, or 0.53%, to $1.6157 a gallon. Diesel futures fell 0.87 cent, or 0.57%, to $1.5208 a gallon. Biman Mukherji contributed to this article Write to Alison Sider at alison.sider@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Alison Sider and Sarah McFarlane
Subject: Crude oil prices; Price increases; Supply & demand
Location: Russia United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875702465
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875702465?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Surge in U.S. Oil Inventories Puts Pressure on OPEC
Author: McFarlane, Sarah; Said, Summer; Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Mar 2017: B.10.
Abstract:
The brimming U.S. crude inventories that sent oil prices tumbling this week are expected to put pressure on the Organization of the Petroleum Exporting Countries and other producers to extend their historic agreement to cut output.
Full text: The brimming U.S. crude inventories that sent oil prices tumbling this week are expected to put pressure on the Organization of the Petroleum Exporting Countries and other producers to extend their historic agreement to cut output. However, OPEC members face a familiar quandary: Their cuts are prompting U.S. and other competitors to keep those storage tanks full. OPEC and big producers including Russia agreed in December to reduce output by 1.8 million barrels a day for six months from January, to drain storage tanks around the world and push the oil price higher. That deal will be reviewed at a meeting in Vienna on May 25. The latest production data indicate OPEC members have cut, for the most part. But investors are impatient for proof that inventories are actually falling. Weekly data from the U.S. Energy Information Administration, published Wednesday, showed domestic crude stocks at a record weekly high of 528.4 million barrels. The data sent oil prices skidding by more than 5%, in their biggest one-day plunge in more than a year. On Thursday, oil prices remained volatile, with Brent crude, the global benchmark, settling down 1.7% to $52.19 a barrel and West Texas Intermediate futures 2% lower at $49.28 a barrel. "We are probably losing a bit of faith in a rapid impact of these production cuts," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. OPEC data suggest that members have carried out around 86% of the agreed cuts -- a higher-than-expected compliance rate for an organization with a history of not sticking to such deals. OPEC officials have estimated compliance by non-OPEC producers, including Russia, at around 50%. That might not be enough to draw down the massive glut of crude that has depressed prices for nearly three years. The International Energy Agency estimates that at the end of 2016, stocks in the 35-member states of the Organization for Economic Cooperation and Development were still 286 million barrels above the average of the preceding five years. OPEC's officials have said the agreement's success will be measured by how effectively it forces oil traders to sell stored petroleum. The organization's secretary-general, Mohammad Barkindo, has said OPEC wants global oil inventories to reach the five-year average in 2017. If that hasn't happened by May, OPEC officials say they are open to discussing extending the cuts. Robert McNally, president of energy consultancy Rapidan Group and a former White House policy adviser, said OPEC and non-OPEC producers were likely to consider extending the cuts. Low crude prices "scared the stuffing out of the oil industry," said Mr. McNally. "What we have now is a collection of terrified producers who fear another price bust." The energy minister of Saudi Arabia, OPEC's most influential member, sent mixed signals this week at an oil conference in Houston. Khalid al-Falih said OPEC wouldn't bail out the market and that he was concerned that production cuts "underwrite the investments of others at our own expense and long-term interests." Mr. Falih's position has shifted from January when he suggested a deal extension wasn't necessary and that the cuts were simply meant to accelerate the stockpile drawdown. However, in Houston, Mr. Falih said OPEC would look at inventory levels in May as it evaluated whether to extend the production deal. A Saudi OPEC official said it would take at least three months to ascertain the impact of the production cuts on inventories, especially in the U.S. "We have to wait and see what happens and assess how the market is responding, and if there is a need for the deal to be extended, we will do," he said. "If OPEC doesn't extend the deal that would be price suicide, plain and simple," said Tamas Varga, analyst at London-based PVM brokerage. --- Neanda Salvaterra contributed to this article.
Credit: By Sarah McFarlane, Summer Said and Georgi Kantchev
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Mar 10, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875725982
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875725982?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Glut Worries Resurface, Triggering Market Tumble
Author: Puko, Timothy; Eisen, Ben; Ailworth, Erin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Mar 2017: A.1.
Abstract:
A large number of energy and mining companies are rated below investment grade, making the junk-bond market sensitive to commodity-price swings.
Full text: Global markets are once again fixating on the price of oil after U.S. crude fell below $50 a barrel for the first time this year, in the biggest two-day selloff since June. Traders began selling after new data on Wednesday showed U.S. stockpiles have risen to record levels. U.S. oil futures fell another 2% to $49.28 a barrel on Thursday after tumbling 5.4% the day before. Oil had been trading in a narrow $4 range for more than two months until Wednesday, as traders anticipated that the oversupplied market was returning to balance. This week's selloff abruptly halted what had been the calmest period for oil prices in more than two years. Now there are signs that another wave of volatility from the oil market could spill over into stocks, bonds and other markets. S&P 500 energy shares fell 2.5% on Wednesday, their worst session since September, and initially 1% on Thursday, making it the worst-performing sector in the stock market before a late-day rebound put the sector in the black. Oil driller Transocean Ltd. was among the five worst performers in the S&P 500, down 3.3%. A large number of energy and mining companies are rated below investment grade, making the junk-bond market sensitive to commodity-price swings. The broader high-yield benchmark suggested a premium yield of 3.79 percentage point over Treasurys on Wednesday from 3.55 percentage point on March 2, according to Merrill Lynch data. Fallout from the oil-market selloff echoes the period early last year when falling crude prices played a part in dragging the S&P 500 down more than 10% and helped push the yields on junk bonds sharply higher. At the time, some economists worried that falling oil could be signaling a slowdown in the global economy, though prices later recovered. Some analysts said they fear this week's declines could mark the beginning of a larger selloff if more evidence emerges that the global supply glut isn't shrinking as fast as the market is anticipating. Some industry executives also cautioned against ramping up production too fast. Harold Hamm, the chairman and chief executive of Continental Resources Inc., said at a conference in Houston on Wednesday that there is a danger of oversupplying the market, which could cause oil prices to fall hard again. U.S. producers, he said, "have the potential to oversupply the market and we have the great responsibility not to do so." The Organization of the Petroleum Exporting Countries and other major producers agreed late last year to cut output by around 1.8 million barrels a day, the equivalent of about 2% of global production. But the U.S. Energy Department said this week that it expects American oil production to rebound past 9.7 million barrels a day in 2018, breaking the record output level set in 1970. "For the global rebalancing to work, we will need to see it in the U.S.," said Michael Wittner, global head of oil research at Societe Generale. "The markets are getting a little tired of waiting." Hedge funds and other big money managers have also piled into bullish bets that prices would be heading higher, skewing the market in a way that can spark big selloffs. In February, investors reached a record net-long position in U.S. oil for the 10 years of data collected by federal regulators. One week of surprisingly bearish data can scare traders out of the market, and that can cause other bullish traders to sell out of their positions before prices fall further. "It's pretty vulnerable," said Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC. On Wednesday, he opened new options trades that would benefit from falling prices, expecting oversupply to weigh on near-term futures, he said. "With the velocity we've come down in the last two sessions, yes I think we can easily be in the mid-40s," he said. Zach Jonson, a portfolio manager at Icon Advisers Inc., said he was already taking a cautious approach to the high-yield-bond market, and oil's selloff introduces an additional risk. "It's not even just energy, it's the whole space," he said. "If we do see a legitimate selloff in the high-yield space -- especially energy -- this will be just the beginning. We'll see it pick up steam." Markets are susceptible to falling crude prices even though it usually means lower heating costs and cheaper gas for consumers. That is because the growing importance of the energy sector to the overall U.S. economy means weaker crude prices impact employment, business investment and inflation. Oil volatility is likely to stay high and influence other markets through at least the rest of March, said Craig Bethune, senior portfolio manager at Manulife Asset Management, which manages $334 billion. Many investors are watching for cuts to global oil output to show up and influence the data on U.S. stockpiles the government releases every week. "It's going to get swung around on a weekly basis," he added. "You do see on a weekly basis some uptick in U.S. production, and what you really haven't seen is visible impacts from the OPEC cuts on U.S. inventories."
Credit: By Timothy Puko, Ben Eisen and Erin Ailworth
Subject: Crude oil prices; Commodity prices; Bond markets; Petroleum production; Commodity markets
Location: United States--US
Company / organization: Name: Transocean Ltd; NAICS: 213111, 213112
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Mar 10, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875726244
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875726244?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Deals Forsake Canada's Oil Sands --- Company pulls back from high-cost source in push to cut debt and tighten its focus
Author: Amon, Michael; Kent, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Mar 2017: B.1.
Abstract:
Shell is pulling back from the Canadian oil sands only weeks after its biggest rival, Exxon Mobil Corp., signaled that some of its planned production had become unprofitable there at current prices, and removed about 3.3 billion barrels of oil from its stated reserves mostly as a result of the oil sands.
Full text: LONDON -- Royal Dutch Shell PLC is selling nearly all of its Canadian oil-sands developments in deals worth $7.25 billion, deserting a region that has come to symbolize the risks for energy companies in high-cost, carbon-intensive sources of oil. The deal marks a another milestone in an ambitious plan by the British-Dutch oil producer to sell off $30 billion of assets by next year to help pay down debt and streamline the company following its roughly $50 billion acquisition of BG Group PLC in 2016. Selling the Canadian assets also cements a shift by Shell toward deep-water oil projects and the fast-growing liquefied natural gas market. "We want to be a player that is world-class in integrated gas, world-class in deep water," Shell Chief Executive Ben van Beurden said in an interview at an oil conference in Houston. "We want to have a large petrochemical portfolio. Over time we want to be a world-class new energies player. There's only so many things you can aspire to be at scale at and put money into." Shell is pulling back from the Canadian oil sands only weeks after its biggest rival, Exxon Mobil Corp., signaled that some of its planned production had become unprofitable there at current prices, and removed about 3.3 billion barrels of oil from its stated reserves mostly as a result of the oil sands. In the deals announced Thursday, Shell is selling a host of oil-sands developments to a subsidiary of Canadian Natural Resources Ltd., a Calgary-based company with significant oil-sands interests. The deal includes Shell's Carmon Creek, a project it abandoned in 2015 with a write-down of about $2 billion as oil prices crashed. The moves by Shell and Exxon highlight a stark reversal of fortunes for Canada's oil sands. In the decade leading up to the oil-price collapse of 2014, some of the world's biggest energy companies raced to build megaprojects in northern Alberta, spending an estimated $200 billion to tap reserves of heavy oil. But the oil sands' high fixed costs and emissions levels, and the long time horizons required to deliver a return on investment, have deterred new spending there and made reserves less profitable to tap. Tough new environmental rules, including a cap on emissions and a carbon tax, are also chilling investment Canada's oil output isn't expected to fall, as projects that were already being built continue to add new barrels. But more than 17 oil-sands projects that would have added about 2.5 million barrels a day have been canceled or delayed, according to Arc Financial. In an interview before the Shell announcement, Alberta Premier Rachel Notley said she was encouraged by signs of investment returning.
Credit: By Michael Amon and Sarah Kent
Subject: Divestiture; Strategic planning; Oil sands
People: van Beurden, Ben
Company / organization: Name: BG Group PLC; NAICS: 486210, 211111, 221210; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Canadian Natural Resources Ltd; NAICS: 211111, 213112; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Mar 10, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875743745
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875743745?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by Eight; Nation's gas-rig count rose by five in the past week, Baker Hughes says
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Mar 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by eight in the past week to 617, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. However, the rig count has generally been rising since the summer months. The nation's gas-rig count rose by five to 151 in the past week, according to Baker Hughes. The U.S. offshore-rig count rose by two rigs from last week to 20, which is down seven rigs year over year. On Friday, oil prices declined in the afternoon after touching near the $50-a-barrel mark earlier in the day. Crude prices sold off sharply this week amid rising U.S. crude inventories, which came amid fears that coordinated production cuts by the world's big exporters would fail to drain the global glut. U.S. crude-oil prices were recently down 1.3% to $48.64 a barrel. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Crude oil prices; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1875902982
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875902982?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Stocks Take Breather as Energy Slumps --- S&P 500 index has its first down week since January as crude oil declines; Fed in focus
Author: Kantchev, Georgi; Otani, Akane
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Mar 2017: B.10.
Abstract:
U.S. government-bond yields and the dollar climbed during the week as investors anticipated that Federal Reserve policy makers will raise interest rates at their meeting next week.
Full text: The S&P 500 rose on Friday after the February jobs report showed robust hiring, but the index notched its first weekly decline since January. Losses in the energy sector pressured major stock-market indexes as the price of U.S. crude-oil futures tumbled back below $50 a barrel. The Dow Jones Industrial Average rose 44.79 points, or 0.2%, to 20902.98 Friday. The S&P 500 added 7.73 points, or 0.3%, to 2372.60, and the Nasdaq Composite gained 22.92 points, or 0.4%, to 5861.73. All three indexes fell for the week, with the S&P 500 slipping 0.4% and the Dow industrials losing 0.5% -- the gauges' biggest declines for a trading week so far this year. The Nasdaq fell 0.2% for the week. The declines hit several sectors, including postelection winners like financials and more defensive shares like utilities. Still, the losses didn't put much of a dent in stocks' 2017 gains. The Dow industrials and the S&P 500 are up nearly 6% this year, and the Nasdaq is up almost 9%. U.S. government-bond yields and the dollar climbed during the week as investors anticipated that Federal Reserve policy makers will raise interest rates at their meeting next week. Friday's jobs report bolstered those expectations. "Wages were up, the number of people looking for jobs dropped, and both those things point toward a stronger consumer, and potentially stronger corporate profits driven by that stronger consumer," said Eric Shenker, head of U.S. equity trading at Mizuho Securities USA. "So it bodes well for the economy." The Labor Department's report showed nonfarm payrolls rose by a seasonally adjusted 235,000 in February from the prior month, more than the 197,000 that economists surveyed by The Wall Street Journal had expected. The unemployment rate ticked down to 4.7% as workforce participation and employment rose. The monthly jobs report was the last major piece of economic data the Fed will consider before it makes its decision on rates at its policy meeting on March 14-15. Federal-funds futures, used by investors to bet on the Fed's policy outlook, showed the chances of a rate increase at 93%, according to CME Group. "The market has quickly moved from a likelihood to a certainty that the Fed will raise rates next week," said David Schiegoleit, managing director of Investments at the Private Client Reserve at U.S. Bank, which has $139 billion under management. U.S. government-bond prices advanced on Friday after seven consecutive sessions of losses. Some analysts said a March rate increase waslargely priced into the markets and investors were looking ahead to the pace of further rate increases. The yield on the 10-year Treasury note settled at 2.582%, compared with 2.596% Thursday and 2.492% a week earlier. Yields, which rise as prices fall, have climbed for two consecutive weeks. The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, declined 0.5% Friday, but rose 0.3% for the week. Energy markets posted some of the week's biggest moves, as data showing U.S. crude stockpiles at record levels sent oil prices tumbling midweek. U.S. crude oil for April delivery fell for a fifth consecutive session, losing 1.6% to $48.49 a barrel, after oil-field-services company Baker Hughes said the number of U.S. oil rigs increased to an 18-month high. Oil prices declined 9.1% for the week, marking the biggest drop since November. Crude's losses weighed on energy stocks. The energy sector of the S&P 500 shed 2.6% for the week, the biggest drop since September. The sector fell 0.1% Friday, with Hess falling 96 cents, or 2%, to $47.42, and Baker Hughes declining 1.12, or 2%, to 56.28. Dow component Chevron rose 57 cents, or 0.5%, to 110.61, but posted a weekly loss of 2.6%. The stock's declines accounted for roughly a fifth of the blue-chip index's weekly point drop. Exxon Mobil fell 6 cents, or less than 0.1%, to 81.61, and posted a 1% loss for the week. The Stoxx Europe 600 added 0.1% after stock markets ended mostly higher across Asia. Japan's Nikkei Stock Average rose 1.5%. Stocks in South Korea held steady following the Constitutional Court's upholding of the impeachment of President Park Geun-hye. The Kospi ended up 0.3% Friday. --- Corrie Driebusch contributed to this article. Credit: By Georgi Kantchev and Akane Otani
Subject: Stock prices; Dow Jones averages; Daily markets (wsj)
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Mar 11, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: Eng lish
Document type: News
ProQuest document ID: 1876020835
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876020835?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Markets & Finance: Oil Slides Further On Supply Concerns
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Mar 2017: B.9.
Abstract:
U.S. crude futures fell 79 cents, or 1.6%, to $48.49 a barrel on the New York Mercantile Exchange, their lowest level since before the Organization of the Petroleum Exporting Countries struck a deal to cut production.
Full text: Oil prices continued to slide Friday on fears that coordinated production cuts won't be enough to eliminate a glut of oil that has weighed on the market. U.S. crude futures fell 79 cents, or 1.6%, to $48.49 a barrel on the New York Mercantile Exchange, their lowest level since before the Organization of the Petroleum Exporting Countries struck a deal to cut production. Brent, the global benchmark, fell 82 cents, or 1.6%, to $51.37 a barrel on ICE Futures Europe. Crude prices sold off by more than 9% this week, after rising U.S. crude inventories sent prices sliding on fears that coordinated production cuts would fail to drain the global glut. The sharp selloff came after investors, who in recent weeks had posted a record number of bets that oil prices would move higher, were caught off guard after U.S. stockpiles rose for the ninth consecutive week to a record of 528.4 million barrels. "We had a pretty good pullback already -- maybe we were due for that," said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. The large buildup in bullish positions by speculative investors made the market vulnerable to a cascading selloff, he said, but tightening supplies mean prices may not go much lower. But others say the market is still vulnerable. If U.S. data continues to show rising inventories, or if OPEC's deal isn't extended beyond midyear, it could prompt another wave of selling. "We've got a chance of some seriously low numbers in the mid-42s," said Dean Hazelcorn, a trader at Coquest Inc. Credit: By Alison Sider and Sarah McFarlane
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.9
Publication year: 2017
Publication date: Mar 11, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876020854
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876020854?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
The Fed's Expected Rate Increase Signals Return to More Normal World; As oil stabilizes and expected inflation picks up, officials are now putting equal weight on upside and downside risks
Author: Ip, Greg
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Mar 2017: n/a.
Abstract:
Central bank officials began both 2015 and 2016 projecting three to four quarter-percentage point rate increases, and in both years delivered just one, in December. Officials also thought two years ago they had to get started raising their benchmark federal-funds rate from near zero because they had a way to go to reach the 3.75% rate appropriate for containing inflation over the long run. The second factor which had held back the Fed was a series of shocks: a collapse in the price of oil, starting in 2014; a bout of turmoil surrounding the stability of China's currency; and a vote in Britain to leave the European Union. [...]as Bill Dudley, president of the Federal Reserve Bank of New York said last month, "We do know that fiscal policy is going to move in a more stimulative direction. Write to Greg Ip at greg.ip@wsj.com More * Investors Brace for Week...Full text: A few months ago, virtually no one expected the Federal Reserve to raise interest rates this week. Now, almost everyone does. The reason for the shift? The world is looking more normal. And in a normal world, interest rates need to rise. As yet, the path of increases still looks leisurely. Yet a normal world also implies a greater risk that the Fed will respond to good news by stepping up the pace of increases or starting to shrink its large bond portfolio. In recent years, little seemed normal, and the Fed's behavior was decidedly asymmetric: bad news delayed rate increases, but good news didn't speed them up. Central bank officials began both 2015 and 2016 projecting three to four quarter-percentage point rate increases, and in both years delivered just one, in December. When the Fed began 2017 projecting three rate increases, many investors assumed it would, once again, drag its feet. Two weeks ago officials put them right with a series of public comments that were the equivalent of slapping the market in the face and screaming, "Wake up!" Two key factors explain why the increases didn't materialize as planned over the past two years. The first was a significant rethink of some fundamental features of the economy. Officials long thought unemployment could comfortably sit between 5.2% and 5.5% without generating inflation. Then actual unemployment fell below that level in mid-2015 and stayed there with no sign of inflation and little of wages picking up. The Fed responded by revising down its estimate of the "natural rate" of unemployment to between 4.7% and 5%. This meant officials thought the economy still had unused slack even as unemployment fell, weakening the case for higher rates. Now, with unemployment at the lower end of their new estimate of the natural unemployment rate and expected inflation perking up, there is less case for waiting. Officials also thought two years ago they had to get started raising their benchmark federal-funds rate from near zero because they had a way to go to reach the 3.75% rate appropriate for containing inflation over the long run. As officials turned pessimistic on the economy's growth prospects, they cut their estimate of where rates are heading in the long run to 3%. That added a cushion in which to delay rate increases. However, two years later that cushion for delay is almost gone. The second factor which had held back the Fed was a series of shocks: a collapse in the price of oil, starting in 2014; a bout of turmoil surrounding the stability of China's currency; and a vote in Britain to leave the European Union. Those events didn't change where the Fed thought growth and inflation would end up. But officials set rates not just according to their forecast but to what will happen if they're wrong. Cheap oil, China turmoil and Brexit all raised the threat that growth, inflation or both could slide toward zero and the Fed had precious little ammunition with which to respond. By contrast, they had all the rate ammo they needed if growth and inflation took off. So they chose to err on the side of raising rates too slowly than too quickly. They are no longer content with that trade-off. As oil prices stabilized and then rose, so did expected inflation. Mr. Trump's victory has raised the prospect of lower taxes, more spending on military and infrastructure, and a lower regulatory burden on business. Officials haven't seen enough evidence to mark up their forecasts much. But as Bill Dudley, president of the Federal Reserve Bank of New York said last month, "We do know that fiscal policy is going to move in a more stimulative direction. So ... the risks to the outlook are now starting to tilt to the upside." This shift in tone is difficult to explain solely with data. Things that once worried them, such as politics, no longer seem to. A year ago, fears the British would vote to leave the EU prompted officials to delay rate increases. Today, betting markets put a higher probability (30% to 40%) that Marine Le Pen, leader of the anti-euro National Front will become president of France in May than they did on Britain voting to leave the EU a year ago. A National Front victory could lead to the breakup of the euro or even the EU, a far more disruptive event than Brexit. Yet no Fed official has expressed concern yet. Officials seem buoyed by the same confidence that has washed over the market . In her speech on March 3 laying the groundwork for this week's move, Fed Chairwoman Janet Yellen used words such as "strength," "growth" and "confidence" more than any other Fed speech since 2010, according to Bianco Research, a financial research firm. So far, Fed officials still seem content with three rate increases for the year. The acceleration in job creation has been met by rising labor-force participation, evidence of more slack and less inflationary pressure than the low unemployment rate implies. Oil prices have recently dropped, which could weigh on both inflation and business investment. Still, now that Fed officials have put equal weight on upside and downside risks, the clear message for investors is that any good news they celebrate in coming months comes with an asterisk: it raises the odds of tighter money. Write to Greg Ip at greg.ip@wsj.com More * Investors Brace for Week of Events That Could Rattle Markets * Fed and Markets Align Despite Looming Interest Rate Increase * Yellen Signals Rate Increase Likely at March Fed Meeting * Federal Reserves Eyes Aggressive Rate Increases Credit: By Greg Ip
Subject: Economic conditions; Interest rates; Bond portfolios; Federal Reserve monetary policy; Inflation
Location: China United Kingdom--UK
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 12, 2017
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876217524
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876217524?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
The Fed's Expected Rate Increase Signals Return to More Normal World; As oil stabilizes and expected inflation picks up, officials are now putting equal weight on upside and downside risks
Author: Ip, Greg
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2017: n/a.
Abstract:
Officials also thought two years ago they had to get started raising their benchmark federal-funds rate from near zero because they had a way to go to reach the 3.75% rate appropriate for containing inflation over the long run. The second factor which had held back the Fed was a series of shocks: a collapse in the price of oil, starting in 2014; a bout of turmoil surrounding the stability of China's currency; and a vote in Britain to leave the European Union. [...]as Bill Dudley, president of the Federal Reserve Bank of New York said last month, "We do know that fiscal policy is going to move in a more stimulative direction. The acceleration in job creation has been met by rising labor-force participation, evidence of more slack and less inflationary pressure than the low unemployment rate implies. Write to Greg Ip at greg.ip@wsj.com Related * Week of Crucial...Full text: A few months ago, virtually no one expected the Federal Reserve to raise interest rates this week. Now, almost everyone does. The reason for the shift? The world is looking more normal. And in a normal world, interest rates need to rise. As yet, the path of increases still looks leisurely. Yet a normal world also implies a greater risk that the Fed will respond to good news by stepping up the pace of increases or starting to shrink its large bond portfolio. In recent years, little seemed normal, and the Fed's behavior was decidedly asymmetric: bad news delayed rate increases, but good news didn't speed them up. Central bank officials began both 2015 and 2016 projecting three to four quarter-percentage point rate increases, and in both years delivered just one, in December. When the Fed began 2017 projecting three rate increases, many investors assumed it would, once again, drag its feet. Two weeks ago officials put them right with a series of public comments that were the equivalent of slapping the market in the face and screaming, "Wake up!" Two key factors explain why the increases didn't materialize as planned over the past two years. The first was a significant rethink of some fundamental features of the economy. Officials long thought unemployment could comfortably sit between 5.2% and 5.5% without generating inflation. Then actual unemployment fell below that level in mid-2015 and stayed there with no sign of inflation and little of wages picking up. The Fed responded by revising down its estimate of the "natural rate" of unemployment to between 4.7% and 5%. This meant officials thought the economy still had unused slack even as unemployment fell, weakening the case for higher rates. Now, with unemployment at the lower end of their new estimate of the natural unemployment rate and expected inflation perking up, there is less case for waiting. Officials also thought two years ago they had to get started raising their benchmark federal-funds rate from near zero because they had a way to go to reach the 3.75% rate appropriate for containing inflation over the long run. As officials turned pessimistic on the economy's growth prospects, they cut their estimate of where rates are heading in the long run to 3%. That added a cushion in which to delay rate increases. However, two years later that cushion for delay is almost gone. The second factor which had held back the Fed was a series of shocks: a collapse in the price of oil, starting in 2014; a bout of turmoil surrounding the stability of China's currency; and a vote in Britain to leave the European Union. Those events didn't change where the Fed thought growth and inflation would end up. But officials set rates not just according to their forecast but to what will happen if they're wrong. Cheap oil, China turmoil and Brexit all raised the threat that growth, inflation or both could slide toward zero and the Fed had precious little ammunition with which to respond. By contrast, they had all the rate ammo they needed if growth and inflation took off. So they chose to err on the side of raising rates too slowly than too quickly. They are no longer content with that trade-off. As oil prices stabilized and then rose, so did expected inflation. Mr. Trump's victory has raised the prospect of lower taxes, more spending on military and infrastructure, and a lower regulatory burden on business. Officials haven't seen enough evidence to mark up their forecasts much. But as Bill Dudley, president of the Federal Reserve Bank of New York said last month, "We do know that fiscal policy is going to move in a more stimulative direction. So ... the risks to the outlook are now starting to tilt to the upside." This shift in tone is difficult to explain solely with data. Things that once worried them, such as politics, no longer seem to. A year ago, fears the British would vote to leave the EU prompted officials to delay rate increases. Today, betting markets put a higher probability (30% to 40%) that Marine Le Pen, leader of the anti-euro National Front will become president of France in May than they did on Britain voting to leave the EU a year ago. A National Front victory could lead to the breakup of the euro or even the EU, a far more disruptive event than Brexit. Yet no Fed official has expressed concern yet. Officials seem buoyed by the same confidence that has washed over the market . In her speech on March 3 laying the groundwork for this week's move, Fed Chairwoman Janet Yellen used words such as "strength," "growth" and "confidence" more than any other Fed speech since 2010, according to Bianco Research, a financial research firm. So far, Fed officials still seem content with three rate increases for the year. The acceleration in job creation has been met by rising labor-force participation, evidence of more slack and less inflationary pressure than the low unemployment rate implies. Oil prices have recently dropped, which could weigh on both inflation and business investment. Still, now that Fed officials have put equal weight on upside and downside risks, the clear message for investors is that any good news they celebrate in coming months comes with an asterisk: it raises the odds of tighter money. Write to Greg Ip at greg.ip@wsj.com Related * Week of Crucial Events Looms for Markets * Markets Shrug Off Political Storms * The Outlook: Fed, Markets Align Despite Rate Rise * Global Economy Week Ahead: Fed, G-20, Swiss Bank Meetings * Facing Vote, Dutch Leader Pivots * European Bond Yields Likely Head Higher Credit: By Greg Ip
Subject: Economic conditions; Interest rates; Bond portfolios; Inflation
Location: China United Kingdom--UK
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 13, 2017
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876299483
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876299483?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Drops to Near Four Month Low; May Brent crude on London's ICE Futures exchange fell $0.28 to $51.09 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2017: n/a.
Abstract:
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $48.13 a barrel at 0151 GMT, down $0.36 in the Globex electronic session. "Unless there are positive signs from non-OPEC producers on production cuts or there is a significant supply outage, the relentless pursuit of the U.S. shale production will cut into OPEC's plans," said Stuart Ive, a client manager at OM Financial.Full text: Crude futures fell to their lowest since end of November in Asia on Monday, as robust growth in U.S. oil production threatens to foil OPEC's plan to shift the market into a shortage. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $48.13 a barrel at 0151 GMT, down $0.36 in the Globex electronic session. May Brent crude on London's ICE Futures exchange fell $0.28 to $51.09 a barrel. U.S. oil prices shed more than 9% last week. U.S. shale producers added eight more active oil rigs in the week ended March 3, according to oil-field service company Baker Hughes. The additions mark an eighth successive weekly climb. In the same week, U.S. crude inventories increased by 8.2 million barrels to 528.4 million barrels. Production also climbed by 56,000 barrels a day to 9.088 million barrels. For the whole year, U.S. crude production is forecast to hit an average of 9.2 million barrels a day and go up by another 500,000 barrels a day in 2018. "With the market still digesting the big increase in inventories, oil prices are likely to remain under pressure today," said ANZ Research. The gush of U.S. supplies in the market is frustrating efforts by Organization of the Petroleum Exporting Countries and major non-cartel producers, such as Russia, to dry out the market by cutting their own productions. The landmark agreement, signed late last year, requires participants to slash their collective production by almost 1.8 million barrels a day in the first half of this year. "Unless there are positive signs from non-OPEC producers on production cuts or there is a significant supply outage, the relentless pursuit of the U.S. shale production will cut into OPEC's plans," said Stuart Ive, a client manager at OM Financial. Analysts are worried that the climb in U.S. production could lure OPEC members to abandon their output cut pledges. Such a move could wipe out any possibility for the group to extend their production agreement beyond the original six-month period. The prospect of a still-over supplied market may also prompt traders and money managers to stage another selling spree if U.S. productions continues to climb, said a Singapore-based crude trader. "When you factor in the cost of storing an unwanted cargo, it makes no sense to hold on to it," she said. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell 138 points to $1.5863 a gallon, while April diesel traded at $1.5052, 16 points higher. ICE gas oil for April changed hands at $455.00 a metric ton, down $4.75 from Friday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Petroleum production; Oil service industry
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876303481
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876303481?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Markets & Finance: Rate, Oil Fears Spur Junk-Bond Exodus
Author: Dieterich, Chris
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Mar 2017: B.8.
Abstract:
Energy and mining companies represent a disproportionately large sliver of debt issuers rated below investment grade and outflows crescendoed as oil prices, after months of stability, came under fire on Wednesday amid concerns that fast-rising oil production in the U.S. could again disrupt the global balance between supply and demand.
Full text: Investors are pulling back from junk-bond funds at the fastest pace in four months. Some $2.7 billion in assets exited from high-yield bond mutual and exchange-traded funds in the week ended March 8, only the second weekly outflow of 2017 and the biggest since November, according to EPFR Global and Bank of America Merrill Lynch. Concerns about the stability of oil prices and rising expectations for central bankers to increase interest rates are dulling demand for high-risk bonds, which entered this month with the tightest yield spread versus Treasury bonds in over two years. Investors had plowed into corporate bond funds in tandem with stocks early this year, betting on a brightening economy and a prolonged backdrop of ultra-low government-bond yields. Early-year inflows have quickly reversed ahead of what markets predict will be the first of several interest rate increases this year by the Federal Reserve. Some $1.4 billion moved out of the iShares iBoxx $ High Yield Corporate Bond ETF in the week through Friday, according to research firm XTF. An additional $879 million was pulled from the similar SPDR Bloomberg Barclays High Yield Bond ETF. Slumping oil prices this week are a prime culprit. Energy and mining companies represent a disproportionately large sliver of debt issuers rated below investment grade and outflows crescendoed as oil prices, after months of stability, came under fire on Wednesday amid concerns that fast-rising oil production in the U.S. could again disrupt the global balance between supply and demand. U.S. crude futures on Friday settled down 1.6% $48.49 a barrel and fell 9.1% last week. "Inventory levels [in oil] continued to climb all year, but crude didn't seem susceptible," said Yousef Abbasi, global market strategist, at Jones Trading Institutional Services. "That dam kind of broke this week and since crude inherently impacts assets like high-yield bonds, there's potential that this sets up for a more dramatic market unwind." The reversal in junk-bond flows appears to reflect a shift in positioning that has left traders exposed to a weakness in crude. Traders in February boosted the net-long position in U.S. oil to a record in 10 years of data collected by the Commodity Futures Trading Commission. "We did have the market leaning in one direction and that can lead to an unwinding of positions," said Henry Peabody, a portfolio manager at fund company Eaton Vance. Mr. Peabody said that he is keeping an eye on additional declines for high-yield bonds and said that he would consider stepping in to buy should they fall further. Oil prices and high-yield bond funds have traded closely together during times of duress. The correlation between West Texas Intermediate crude and the iShares iBoxx $ High Yield Corporate Bond ETF over a rolling 30-day period rose as high as 97% a year ago, as the oil market bottomed. Correlation is measured on a scale of 100% to -100%, where 0 means there is no relationship and 100% means perfect unison. The relationship between crude oil and junk broke down early this year but recently has marched higher, currently at 78%, compared with 0.02% a month ago. Credit: By Chris Dieterich
Subject: Petroleum production; Junk bonds; Exchange traded funds
Location: United States--US
Company / organization: Name: Commodity Futures Trading Commission; NAICS: 926140, 926150
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.8
Publication year: 201 7
Publication date: Mar 13, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876333749
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876333749?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Wood Group to Acquire Amec in $2.7 Billion Oil-Services Deal; All-share deal continues trend for consolidation in an industry hurt by weaker oil prices
Author: Kent, Sarah; Walker, Ian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2017: n/a.
Abstract:
LONDON--Oil-field services company John Wood Group PLC said Monday it will acquire rival Amec Foster Wheeler PLC in a £2.23 billion ($2.73 billion) all-share deal, the latest sign of consolidation in an industry that has been upended by weak oil prices. Wood Group's Chief Executive Robin Watson and Chief Financial...Full text: LONDON--Oil-field services company John Wood Group PLC said Monday it will acquire rival Amec Foster Wheeler PLC in a £2.23 billion ($2.73 billion) all-share deal, the latest sign of consolidation in an industry that has been upended by weak oil prices. It follows last year's announcement of a tie-up between General Electric Co. and Baker Hughes Inc. in a combination intended to help the companies to reduce costs and better compete with rivals as they emerge from a yearslong oil slump that forced a drop-off in activity and sharp spending cuts among the companies' clients. Signs of a tentative recovery have sparked speculation that others could follow suit. Aberdeen, Scotland-based Wood Group said its acquisition of Amec would extend its scope and provide a stronger platform for growth. It expects the combination will allow savings of around $134 million a year within three years of completion, and will bolster earnings with the first full year after the purchase. Amec shares were up 12% in London, while Wood Group rose 1.4%. The deal is a lifeline for Amec, which had been facing a £500 million rights issue next week as well as plans to suspend its dividend. Under the offer, accepting Amec shareholders will get 0.75 new Wood Group shares for every Amec share held, valuing their existing shares at 564 pence. The offer price is a 15% premium to Amec Foster's closing share price of 489.2 pence Friday. Once completed, Amec shareholders will own about 44% of the combined group. Wood Group's Chief Executive Robin Watson and Chief Financial Officer David Kemp will remain in their current roles once the deal is completed, which is expected in the second half of the year. Write to Sarah Kent at sarah.kent@wsj.com and Ian Walker at ian.walker@wsj.com Credit: By Sarah Kent and Ian Walker
Subject: Stockholders; Oil service industry; Initial public offerings; Competition
Company / organization: Name: Amec Foster Wheeler PLC; NAICS: 213114; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: General Electric Co; NAICS: 332510, 334290, 334512, 334519; Name: John Wood Group PLC; NAICS: 213112, 237130, 333132, 541330
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 13, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876428015
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876428015?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Hedge-Fund Trader Andurand Loses Big on Oil Bets; Andurand's Commodities Fund has lost about $130 million in first two months of 2017
Author: Fletcher, Laurence
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2017: n/a.
Abstract:
Hedge funds and other big money managers amassed a record number of bullish bets on Brent crude last month, according to the Intercontinental Exchange Inc. That came amid reports that the Organization of the Petroleum Exporting Countries has so far achieved around 90% of the production cuts agreed upon late...Full text: Pierre Andurand, one of the world's best-known oil traders, has suffered a large loss at the start of this year because of wrong-way bets on crude. Mr. Andurand, who runs the $1.5 billion Andurand Commodities Fund, lost 8.5%, or approximately $130 million, in the first two months of this year, according to numbers sent to investors and reviewed by The Wall Street Journal. The loss makes his fund one of the global hedge-fund industry's worst-performers in 2017. A spokeswoman for Mr. Andurand declined to comment. The France-born trader, who runs his fund out of offices opposite London luxury department store Harrods, gained 22% last year, helped by bullish bets, including buying one day after oil hit a 13-year low last January. But like many funds, his has been too positive of late, recently forecasting oil would hit $70 a barrel early this year. On Monday, Brent, the global price benchmark, was trading at $51.26 per barrel, while U.S. crude was trading at $48.30 a barrel. Hedge funds and other big money managers amassed a record number of bullish bets on Brent crude last month, according to the Intercontinental Exchange Inc. That came amid reports that the Organization of the Petroleum Exporting Countries has so far achieved around 90% of the production cuts agreed upon late last year . But, having traded in a narrow range for most of this year, oil posted its biggest two-day selloff since June last week. Oil inventories in the U.S. have recently hit a record high in a sign that the massive glut that has depressed prices for more than two years is still plaguing the market. The U.S. Energy Department expects American oil production to rebound past 9.7 million barrels a day in 2018, breaking the record output level set in 1970. Mr. Andurand's performance figures don't take account of the latest price moves, so if he was positioned for rising prices he is likely to have suffered further losses. Mr. Andurand set up Andurand Capital Management LLP four years ago from the ashes of $2.4 billion former hedge fund BlueGold Capital Management LP. Georgi Kantchev contributed to this article. Write to Laurence Fletcher at laurence.fletcher@wsj.com Credit: By Laurence Fletcher
Subject: Petroleum production; Hedge funds; Energy economics; Investment advisors
Location: United States--US France
Company / organization: Name: Andurand Capital Management LLP; NAICS: 525990
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876461133
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876461133?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 20 17-11-23
Database: The Wall Street Journal
Oil Prices Pressured by Growing U.S. Crude Supplies; Resurgence of U.S. shale undermines confidence in OPEC's ability to support prices
Author: Baxter, Kevin; Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2017: n/a.
Abstract:
The resurgence of the U.S. shale-oil sector is proving to be the main area of concern for investors despite output cuts engineered by the Organization of the Petroleum Exporting Countries and other producers over the last few months. On Monday, some profit-taking after a steep decline lent some support to oil prices, said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. "Unless there are positive signs from non-OPEC...Full text: Oil prices edged lower on Monday as investors weighed growing U.S. supply against OPEC's plan to restore market equilibrium by cutting production. Light, sweet crude for April delivery settled down 9 cents, or 0.2%, at $48.40 a barrel on the New York Mercantile Exchange, closing out the sixth consecutive session of losses. Brent, the global benchmark, was near flat at $51.36 a barrel. The resurgence of the U.S. shale-oil sector is proving to be the main area of concern for investors despite output cuts engineered by the Organization of the Petroleum Exporting Countries and other producers over the last few months. Prices have fallen to the lowest level since before the OPEC deal was announced, as U.S. inventories climbed to a new record high last week. On Monday, some profit-taking after a steep decline lent some support to oil prices, said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. U.S. oil futures traded as high as $48.68 a barrel earlier in the session. The market is "kind of getting rid of some of the oversold conditions," Mr. Navy said. However, "I don't think we've seen the lows of this move yet." On Friday, oil-field services company Baker Hughes Inc. reported an addition of eight active oil rigs in the week ended March 3, and U.S. production has now surged past nine million barrels a day. Germany's Commerzbank in a note cited the wave of new U.S. crude supply as an inevitable consequence of oil prices in the $50-$60 a barrel price window. It added that despite OPEC's best efforts, there was no evidence that global supply was coming down. "Apart from the survey-based production figures, there is little to suggest as yet that this market tightening has already begun," Commerzbank said. Some market observers are now worried that the climb in U.S. production may even spook some OPEC members enough that they abandon their output cut pledges . Such a move could wipe out any possibility for the group to extend their production agreement beyond the original six-month period. "Unless there are positive signs from non-OPEC producers on production cuts or there is a significant supply outage, the relentless pursuit of the U.S. shale production will cut into OPEC's plans," said Stuart Ive, a client manager at OM Financial. This recent drop interrupted a period of extended calm in the oil market as prices stayed range-bound for much of 2017. However, the volatility should continue this week on fresh reports from the International Energy Agency and OPEC, as well as weekly inventory data, analysts said. The Federal Reserve meeting this week may also add some uncertainty to markets, as traders await a statement from the central bank following the two-day policy meeting starting Tuesday. "Everybody's going to be sort of waiting on the Fed [to] make their plays once that statement is made," said Mark Waggoner, president of Excel Futures. Gasoline futures lost 1.2% to $1.5807 a gallon, and diesel futures fell 0.2% to $1.5006 a gallon, both closing out their fourth straight session of losses. Jenny W. Hsu contributed to this article. Write to Kevin Baxter at Kevin.Baxter@wsj.com and Stephanie Yang at stephanie.yang@wsj.com Credit: By Kevin Baxter and Stephanie Yang
Subject: Cartels; Crude oil prices; International markets; Supply & demand
Location: United States--US Germany
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876461249
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876461249?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibi ted without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Kuwait Launches $8 Billion Bond Sale; Persian Gulf state is the latest to turn to debt markets to make up for oil revenue slide
Author: Parasie, Nicolas
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2017: n/a.
Abstract:
Lower oil revenues have also pushed the Gulf nations to introduce far-reaching economic reforms such as raising taxes and cutting spending to counter widening budget deficits.Fixed-income analysts at Dubai-based Mashreq said the final amount Kuwait is raising is lower than previously announced because of a rebound in oil prices after the Organization of the Petroleum Exporting Countries agreed on a production cut in November, resulting in lower projected external financing needs for the country.Full text: DUBAI--Kuwait intends to raise $8 billion in its debut international bond sale, bankers familiar with the deal said Monday, the latest Persian Gulf state to turn to the debt markets to offset a slide in oil income. Kuwait, one of the world's largest oil exporters, launched the two-tranche bond sale after receiving about $29 billion worth of orders, the bankers said. Final pricing was tighter than the initial guidance at 0.75 percentage point above U.S. Treasurys for the 5-year, $3.5 billion tranche and 1 percentage point above U.S. Treasurys for the 10-year, $4.5 billion portion. The oil exporters of the Persian Gulf are issuing bonds at their fastest clip since last year as governments across the region seek fresh funds to shore up their coffers. Lower oil revenues have also pushed the Gulf nations to introduce far-reaching economic reforms such as raising taxes and cutting spending to counter widening budget deficits. Oman raised $5 billion earlier this month, while Saudi Arabia sold a mammoth $17.5 billion bond in 2016. Qatar, Abu Dhabi and Bahrain all tapped international markets last year. Both Kuwait and Oman tapped the debt market ahead of a U.S. Federal Reserve meeting this week where policy makers are expected to raise interest rates, lifting borrowing costs. Like its Gulf neighbors, Kuwait's government relies heavily on crude exports for its budget financing needs. Following the drop in oil prices since the middle of 2014, Kuwait last year for the first time posted a budget deficit. Government efforts at pushing through fiscal reforms have met with resistance in the country's parliament. Kuwait nevertheless boasts the lowest break-even oil price among the Gulf countries and is also home to one of the world's largest sovereign-wealth funds, the Kuwait Investment Authority. It is rated AA with stable outlook by both Standard & Poor's and Fitch. "The decision to borrow from external markets will mean less withdrawals from KIA (Kuwait Invest Authority)," said Giyas Gokkent, an economist covering the Middle East and North Africa at the Institute of International Finance. "With global interest rates still at low levels, it makes sense for Kuwait to borrow particularly since KIA could generate higher returns on its own funds," Mr. Gokkent said. Kuwait's Finance Minister Anas al-Saleh last year said the country was considering a $10 billion bond sale. Fixed-income analysts at Dubai-based Mashreq said the final amount Kuwait is raising is lower than previously announced because of a rebound in oil prices after the Organization of the Petroleum Exporting Countries agreed on a production cut in November, resulting in lower projected external financing needs for the country. Citi, Deutsche Bank, HSBC, J.P. Morgan, NBK Capital and Standard Chartered are bookrunners on Kuwait's bond sale. Write to Nicolas Parasie at nicolas.parasie@wsj.com Credit: By Nicolas Parasie
Subject: Treasuries; Economic reform; Interest rates; Budgets; Exports; Bond issues; International finance
Location: North Africa Middle East Saudi Arabia Qatar Persian Gulf Abu Dhabi United Arab Emirates Kuwait Bahrain Oman
Company / organization: Name: Standard & Poors Corp; NAICS: 511120, 523999, 541519, 561450; Name: Institute of International Finance Inc; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876604950
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876604950?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Near Flat, But Stay Under Pressure; Brent, the global benchmark, fell two cents to $51.35 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.
Abstract:
"The drama is all about U.S. inventory build up which led people to think the production deal is advantageous for U.S. oil shale producers to turn the taps back on," said Phin Ziebell, an economist with National Australia Bank.According to OPEC, commercial crude stocks in the Organization for Economic Cooperation and Development countries in January stood at 2.99 billion barrels, which was 299 million barrels above the five-year average.Full text: Crude futures were largely stable in Asia Tuesday, but market sentiment was still weighed down by deepening worries that the OPEC-Russia production cut deal is giving the U.S. fracking industry more reason to accelerate its production. Light, sweet crude for April delivery settled down four cents to $48.36 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell two cents to $51.35 a barrel. Oil prices have dropped 9% on-week so far after oil rig data indicated that U.S. shale producers are ramping up drilling activity to inject more oil into a still-bloated market. "The drama is all about U.S. inventory build up which led people to think the production deal is advantageous for U.S. oil shale producers to turn the taps back on," said Phin Ziebell, an economist with National Australia Bank. Late last year, the Organization of the Petroleum Exporting Countries signed a deal with bevy of heavyweight producers such as Russia to cut their collective production in the first half the year. Various data indicate that participants have largely fulfilled their pledges even though Saudi Arabia is shouldering most of the cuts. In January, the kingdom reported it had reduced production by 497,000 barrels a day. However, while production from the Middle East has ebbed, U.S. oil producers are increasing their production. Output there has climbed 4.5% since the OPEC-Russia deal was signed in early December. In the latest reporting week, data showed U.S. production rose above 9 million barrels a day for the third straight week and the expectation of a steady uptrend dominates market consensus. For now, traders and investors will be watching the OPEC's monthly oil report due later Tuesday. "The main goal of OPEC's production cut plan isn't just to push prices up, but to reduce the global inventories. Once they feel they have eliminated enough, the group will likely refocus on market shares," said Gao Jian, an energy analyst at SCI International. According to OPEC, commercial crude stocks in the Organization for Economic Cooperation and Development countries in January stood at 2.99 billion barrels, which was 299 million barrels above the five-year average. Market watchers will also be monitoring the outcome of the two-day Federal Open Market Committee meeting which kicks off later today. A decision to raise U.S. interest rates will strengthen the dollar which would make oil more expensive for foreign traders. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--was last at $1.5811 a gallon. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny Hsu
Subject: Price increases; Supply & demand
Location: United States--US New York
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876625436
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876625436?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall St reet Journal
Rex Tillerson Used Email Alias at Exxon to Discuss Climate Change, New York Says; Attorney general's office accuses Exxon of withholding documents in probe into what it told investors about climate change; says Rex Tillerson used pseudonym 'Wayne Tracker'
Author: Matthews, Christopher M; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.
Abstract:
Lawyers for Attorney General Eric Schneiderman's office said in court documents that Exxon hadn't disclosed that Rex Tillerson, the former chairman and chief executive, used an alias email address to discuss risk-management issues related to climate change. The New York attorney general and the U.S. Securities and Exchange Commission are also investigating how Exxon values its assets in a world of increasing climate-change regulations, a probe that could have far-reaching consequences for the oil and...Full text: The New York attorney general accused Exxon Mobil Corp. Monday of withholding documents from his office as it investigates whether the energy company misrepresented its understanding of climate change to investors and the public. Lawyers for Attorney General Eric Schneiderman's office said in court documents that Exxon hadn't disclosed that Rex Tillerson, the former chairman and chief executive, used an alias email address to discuss risk-management issues related to climate change. Mr. Tillerson, now the U.S. secretary of state, used the pseudonym "Wayne Tracker" from at least 2008 to 2015, according to the attorney general. "Despite the company's incidental production of approximately 60 documents bearing the 'Wayne Tracker' email address, neither Exxon nor its counsel have ever disclosed that this separate email account was a vehicle for Mr. Tillerson's relevant communications at Exxon," Senior Enforcement Counsel John Oleske said in a letter to New York Supreme Court Justice Barry Ostrager. Exxon said in a statement it has provided more than 2.5 million pages of documents in response to a subpoena from Mr. Schneiderman's office, and will respond to the claims in court. The company acknowledged that Wayne.Tracker@exxonmobil.com address is part of the company's email system. "[It] was put in place for secure and expedited communications between select senior company officials and the former chairman for a broad range of business-related topics," the company said. But reports "indicating that emails to or from this address were exclusively climate-related are false." A spokesman for Mr. Schneiderman's office declined to comment. A State Department spokeswoman declined to comment. Mr. Oleske said in the letter Monday that despite promising to "move heaven and earth" to comply with a subpoena, Exxon had withheld documents related to senior management, including from 34 email accounts assigned to top executives, board members and their assistants. The New York attorney general and the U.S. Securities and Exchange Commission are also investigating how Exxon values its assets in a world of increasing climate-change regulations, a probe that could have far-reaching consequences for the oil and gas industry. The Irving, Texas-based company has played down questions about its modest asset write-downs, saying it is extremely conservative in booking the value of new fields and wells. In January, Exxon said it wrote down the value of more than $2 billion in U.S. assets, departing from decadeslong practice. It is unclear at this stage what impact the investigations may have on Exxon, if any. Mr. Schneiderman has broad powers to investigate corporations under New York state's Martin Act, including civil and criminal claims against companies for securities violations. Credit: By Christopher M. Matthews and Erin Ailworth
Subject: Attorneys general; Criminal investigations; Subpoenas; Climate change; Executives
Location: United States--US
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 14, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876625870
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876625870?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distr ibution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Markets & Finance: Crude Prices Fall for a Sixth Session --- Worry about inventory levels and OPEC's planned cuts keeps pressure on oil futures
Author: Baxter, Kevin; Yang, Stephanie
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Mar 2017: B.10.
Abstract:
On Friday, oil-field services company Baker Hughes Inc. reported an addition of eight active oil rigs in the week ended March 3, and U.S. production has now surged past nine million barrels a day.
Full text: Oil prices edged lower on Monday as investors weighed growing U.S. supply against OPEC's plan to restore market equilibrium by cutting production. Light, sweet crude for April delivery fell 9 cents, or 0.2%, to $48.40 a barrel on the New York Mercantile Exchange, closing out a sixth consecutive session of losses. Brent, the global benchmark, fell 2 cents to $51.35 a barrel. The resurgence of the U.S. shale-oil sector is proving to be the main area of concern for investors despite output cuts engineered by the Organization of the Petroleum Exporting Countries and other producers over the last few months. Prices have fallen to the lowest level since before the OPEC deal was announced, as U.S. inventories climbed to a new record high last week. On Monday, some profit-taking after a steep decline lent support to oil prices, said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. U.S. oil futures traded as high as $48.68 a barrel earlier in the session. On Friday, oil-field services company Baker Hughes Inc. reported an addition of eight active oil rigs in the week ended March 3, and U.S. production has now surged past nine million barrels a day. Germany's Commerzbank in a note cited the wave of new U.S. crude supply as an inevitable consequence of oil prices in the $50-$60 a barrel price window. It added that despite OPEC's best efforts, there was no evidence that global supply was coming down. The recent price drop interrupted a period of extended calm in the oil marke. The volatility should continue this week on fresh reports from the International Energy Agency and OPEC, as well as weekly inventory data, analysts said. The Federal Reserve meeting this week may also add some uncertainty to markets. Gasoline futures lost 1.2% to $1.5807 a gallon, and diesel futures fell 0.2% to $1.5006 a gallon, marking their fourth straight session of losses. Credit: By Kevin Baxter and Stephanie Yang
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Mar 14, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876627964
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876627964?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Wood Group to Acquire Oil-Services Rival Amec
Author: Kent, Sarah; Walker, Ian
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Mar 2017: B.3.
Abstract:
Oil-field services company John Wood Group PLC said Monday it will acquire rival Amec Foster Wheeler PLC in a GBP 2.23 billion ($2.73 billion) all-share deal, the latest sign of consolidation in an industry that has been upended by weak oil prices.
Full text: LONDON -- Oil-field services company John Wood Group PLC said Monday it will acquire rival Amec Foster Wheeler PLC in a GBP 2.23 billion ($2.73 billion) all-share deal, the latest sign of consolidation in an industry that has been upended by weak oil prices. It follows last year's announcement of a tie-up between General Electric Co. and Baker Hughes Inc. in a combination intended to help the companies to reduce costs and better compete with rivals as they emerge from a yearslong oil slump that forced a drop-off in activity and spending cuts among the companies' clients. Signs of a tentative recovery have sparked speculation that others could follow suit. Aberdeen, Scotland-based Wood Group said its acquisition of Amec would extend its scope and provide a stronger platform for growth. It expects the combination will allow savings of around $134 million a year within three years of completion, and will bolster earnings with the first full year after the purchase. Amec shares were up 12% in London, while Wood Group rose 1.4%. The deal is a lifeline for Amec, which had been facing a GBP 500 million rights issue next week as well as plans to suspend its dividend. Under the offer, accepting Amec shareholders will get 0.75 new Wood Group shares for every Amec share held, valuing their existing shares at 564 pence. The offer price is a 15% premium to Amec Foster's closing share price of 489.2 pence Friday. Once completed, Amec shareholders will own about 44% of the combined group. Wood Group's Chief Executive Robin Watson and Chief Financial Officer David Kemp will remain in their current roles once the deal is completed. Credit: By Sarah Kent and Ian Walker
Subject: Acquisitions & mergers; Oil service industry; Stock prices
Company / organization: Name: Amec Foster Wheeler PLC; NAICS: 213114; Name: John Wood Group PLC; NAICS: 541330, 213112, 237130, 333132
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Mar 14, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876628047
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876628047?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Markets & Finance: Oil Trader's Bet on Crude Takes Sour Turn
Author: Fletcher, Laurence
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Mar 2017: B.10.
Abstract:
Hedge funds and other big money managers amassed a record number of bullish bets on Brent crude last month, according to Intercontinental Exchange Inc. That came amid reports that the Organization of the Petroleum Exporting Countries had so far achieved around 90% of the production cuts agreed upon late last year.
Full text: Pierre Andurand, one of the world's best-known oil traders, has suffered a large loss at the start of this year because of wrong-way bets on crude. Mr. Andurand, who runs the $1.5 billion Andurand Commodities Fund, lost 8.5%, or approximately $130 million, in the first two months of this year, according to numbers sent to investors and reviewed by The Wall Street Journal. The loss makes his fund one of the global hedge-fund industry's worst performers in 2017. A spokeswoman for Mr. Andurand declined to comment. The French-born trader, who runs his fund out of offices opposite London luxury department store Harrods, gained 22% last year, helped by bullish bets, including buying one day after oil hit a 13-year low last January. But like many funds, his has been too positive of late, recently forecasting oil would hit $70 a barrel early this year. On Monday, Brent, the global price benchmark, settled at $51.35 a barrel, while U.S. crude settled at $48.40 a barrel. Hedge funds and other big money managers amassed a record number of bullish bets on Brent crude last month, according to Intercontinental Exchange Inc. That came amid reports that the Organization of the Petroleum Exporting Countries had so far achieved around 90% of the production cuts agreed upon late last year. But, having traded in a narrow range for most of this year, oil posted its biggest two-day selloff since June last week. Oil inventories in the U.S. recently hit a record high in a sign that the glut that has depressed prices for more than two years is still plaguing the market. The U.S. Energy Department expects American oil production to rebound past 9.7 million barrels a day in 2018, breaking the record output level set in 1970. Mr. Andurand's performance figures don't take account of the latest price moves, so if he was positioned for rising prices he is likely to have suffered further losses. Mr. Andurand set up Andurand Capital Management LLP four years ago from the ashes of $2.4 billion former hedge fund BlueGold Capital Management LP. --- Georgi Kantchev contributed to this article. Credit: By Laurence Fletcher
Subject: Petroleum production; Crude oil prices; Financial performance; Hedge funds
Location: United States--US
People: Andurand, Pierre
Company / organization: Name: Andurand Capital Management LLP; NAICS: 525990
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Mar 14, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876651144
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876651144?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Stocks, Oil Slide Ahead of Fed Decision; Investors' worries that ramp-up in U.S. production could offset efforts to reduce supply glut sends oil prices down for seven consecutive sessions
Author: Gold, Riva; Otani, Akane
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.
Abstract:
Recent declines in oil prices have already started to weigh on pockets of high-yield bonds and drag down shares of oil-and-gas companies, according to Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research. The Federal Reserve is widely expected to raise interest rates Wednesday for the first time this year and offer signals on the path for monetary policy in coming months. Even though the prospect of higher borrowing costs has...Full text: U.S. stocks fell along with government-bond yields Tuesday as a selloff in the oil market deepened. Investors worrying that a ramp-up in U.S. production could offset efforts to reduce a supply glut have sent oil prices sliding for seven consecutive sessions--their longest losing streak since January 2016. That has put pressure on shares of energy companies, the worst performers in the S&P 500 so far this year. The S&P 500 energy sector dropped 1.1% Tuesday, with Marathon Oil and Southwestern Energy among the biggest decliners. U.S.-traded crude oil for April delivery fell 1.4% to $47.72 a barrel, its lowest settlement since November. Recent declines in oil prices have already started to weigh on pockets of high-yield bonds and drag down shares of oil-and-gas companies, according to Kathy Jones, chief fixed income strategist at the Schwab Center for Financial Research. "It does affect business fixed investment and economic growth if we see a continued downturn," she said. The Dow Jones Industrial Average slipped 44.11 points, or 0.2%, to 20837.37. The S&P 500 lost 8.02 points, or 0.3%, to 2365.45, and the Nasdaq Composite fell 18.97 points, or 0.3%, to 5856.82. Government bonds strengthened, with the yield on 10-year U.S. Treasurys falling to 2.595% from 2.609% Monday. Yields decline as bond prices rise. Falling oil prices can reduce expectations for inflation, which chips away at the returns of long-dated debt. In currencies, the WSJ Dollar Index edged up 0.2%. The Federal Reserve is widely expected to raise interest rates Wednesday for the first time this year and offer signals on the path for monetary policy in coming months. Higher interest rates tend to make the U.S. currency more attractive to yield-seeking investors. "It would be a surprise if they did not move at this point," said Dominic Pappalardo, a fixed income strategist at McDonnell Investment Management. Even though the prospect of higher borrowing costs has shaken stocks in the past, in recent weeks investors have reacted relatively calmly to the prospect of gradual rate rises amid signs of a firming global economy and growing corporate earnings. The S&P 500 hasn't closed down 1% or more in 105 trading days, the longest such streak since 1995, according to the WSJ Market Data Group. "Everyone's on hold right now ahead of these policy meetings," said Jimmy Chang, chief investment strategist at Rockefeller & Co. With many investors having already priced in the odds of a rate increase this week, Mr. Chang said he would be paying closer attention to comments Fed officials make Wednesday. Shares of Valeant Pharmaceuticals shed $1.22, or 10%, to $10.89 after William Ackman's Pershing Square Capital Management, formerly the company's biggest backer, sold its stake in the drugmaker. Mr. Ackman sold the stake after concluding that he couldn't recover his losses on the stock , people familiar with the matter told The Wall Street Journal late Monday. Overseas, investors backed away from risk assets after U.K. lawmakers on Monday removed the final hurdle to starting talks on exiting the European Union. The Stoxx Europe 600 declined 0.3%. Shares in Hong Kong and Japan ended fractionally lower as traders held off on big positions ahead of coming global central-bank meetings. The Shanghai Composite Index gained 0.1% after data showed industrial production and investment accelerated faster than expected in China in the first two months of the year, and Chinese housing sales growth picked up slightly. Write to Riva Gold at riva.gold@wsj.com and Akane Otani at akane.otani@wsj.com Credit: By Riva Gold and Akane Otani
Subject: Investments
Location: China North Korea Beijing China Hong Kong Florida United States--US Asia Japan South Korea
People: Xi Jinping
Company / organization: Name: Federal Open Market Committee--FOMC; NAICS: 921130; Name: Korean Air Lines; NAICS: 481111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 14, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876656334
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876656334?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Selloff Continues on Worries Over Saudi Commitment; OPEC production cuts may not be enough to thwart effect of stockpile
Author: Puko, Timothy; Salvaterra, Neanda; Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.
Abstract:
The Organization of the Petroleum Exporting Countries, and other major producers including Russia, agreed late last year to cut output by around 1.8 million barrels a day, around 2% of global production.[...]Saudi Arabia's claim that it was increasing production sent jitters through an already nervous market.[...]the kingdom had been seen as the force keeping OPEC compliant with its production-cut agreement.On Wednesday, the U.S. Department of Energy will release official weekly numbers on U.S. oil inventories.The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 531,000-barrel decline in crude supplies, a 3.9-million-barrel decrease in gasoline stocks and a 4.1-million-barrel fall in distillate inventories, according to a market participant.Full text: Oil prices fell to a new three-month low Tuesday on fears that Saudi Arabia is wavering in its commitment to cut production in order to ease oversupply. It is the latest dose of skepticism from investors who have taken oil from calm to panic in less than a week. Oil is now down 10%, or more than $5 a barrel, in just five sessions--after it spent nearly three months trading in a range of less than $5. Traders were once soothed by promises from the world's largest exporters, but now they are questioning them. The Organization of the Petroleum Exporting Countries, and other major producers including Russia, agreed late last year to cut output by around 1.8 million barrels a day, around 2% of global production. Last week, traders sold off because those cutbacks have yet to stop U.S. stockpiles from growing. And this week caution spread as Saudi output may not be falling as promised. U.S. oil has now tied its longest losing streak since January 2016, seven sessions. On Tuesday, light, sweet crude for April delivery settled down 68 cents, or 1.4%, at $47.72 a barrel on the New York Mercantile Exchange. It has lost 10.5% during its losing streak and is now at its lowest settlement since Nov. 29. Brent crude, the global benchmark, lost 43 cents, or 0.8%, to $50.92 a barrel on ICE Futures Europe. It has lost 9.1% in a six-session losing streak, its longest losing streak since the autumn of 2016. Crude prices flipped down from gains Tuesday morning after Saudi Arabia reported that it increased output in February by 263,000 barrels a day to over 10 million barrels a day overall, according to a report from OPEC. The Saudis alone have covered for many other countries that haven't met their promised production cuts, giving their output a central focus among oil traders. Some did question whether the kingdom is really backing away from that effort. Its output remains below its production target of 10.058 million barrels a day. And, using outside sources of oil-production information, OPEC determined that Saudi Arabia actually cut its output further, a discrepancy that often happens with OPEC members. But Saudi Arabia's claim that it was increasing production sent jitters through an already nervous market. Until now, the kingdom had been seen as the force keeping OPEC compliant with its production-cut agreement. "What you're seeing right now is a signaling mechanism," said Jonathan Berland, senior managing director at Gresham Investment Management, which has about $7.4 billion in commodity assets. He said the country is positioning itself for upcoming OPEC negotiations. "They don't want to carry the entire weight of OPEC at their own expense." OPEC's cuts have also yet to make a dent in global oil inventories--its stated goal in reducing production. Commercial oil stocks in industrialized nations rose in January by 20.1 million barrels to just above 3 billion barrels. But a Saudi oil official previously has said the impact of the cartel's efforts wouldn't be felt until late March because it takes 90 days for oil to reach Western markets from the moment it is pumped. Several fund managers said that likely will end the selloff soon as inventories start to fall and investors begin to see the recent fall creating bargain oil prices. "My expectation is that this is going to get bought," said Tim Pickering, president at Auspice Capital Advisors Ltd., which manages $300 million in assets out of Calgary. "This is going to turn around pretty quick." But not all are quick to dismiss the recent signs. U.S. production is rising, and the number of working rigs has doubled from last year's lows, meaning U.S. production could fill a lot of the shortfall even if OPEC does follow through on its promised cuts. "We don't see global stock even drawing significantly this year," said Robert McNally, the president of the energy consultancy the Rapidan Group. On Wednesday, the U.S. Department of Energy will release official weekly numbers on U.S. oil inventories. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 531,000-barrel decline in crude supplies, a 3.9-million-barrel decrease in gasoline stocks and a 4.1-million-barrel fall in distillate inventories, according to a market participant. The Federal Reserve meeting this week also may add some uncertainty to markets, as traders await a statement from the central bank following the two-day policy meeting starting Tuesday. Gasoline futures gained 0.28 cent, or 0.2%, to $1.5835 a gallon, snapping a four-session losing streak. Diesel futures fell 0.87 cent, or 0.6%, to $1.4919 a gallon. It is now down for five-straight sessions and at its lowest settlement since Nov. 29. Stephanie Yang contributed to this article. Write to Timothy Puko at tim.puko@wsj.com , Neanda Salvaterra at neanda.salvaterra@wsj.com and Benoit Faucon at benoit.faucon@wsj.com Credit: By Timothy Puko, Neanda Salvaterra and Benoit Faucon
Subject: Petroleum production; Inventory; Investments; Consulting firms
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Department of Energy; NAICS: 926130; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210; Name: Bank of America Merrill Lynch; NAICS: 522110, 551111; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876796381
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876796381?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. 10-Year Note Yield Slips From Two-Year High as Oil Slides; Yield declines mild as investors await key interest-rate decision from Fed
Author: Zeng, Min
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.
Abstract:
A deepening selloff in the oil market stoked demand on Tuesday for U.S. government bonds, pushing down the yield on the benchmark 10-year Treasury note from a two-year high. The 10-year break-even rate, the yield premium investors demand to hold the 10-year Treasury note relative to the 10-year TIPS, was 1.99 percentage point late Tuesday, signaling investors' expectations of an annualized 1.99% inflation rate on average over the next decade. A popular way to hedge...Full text: A deepening selloff in the oil market stoked demand on Tuesday for U.S. government bonds, pushing down the yield on the benchmark 10-year Treasury note from a two-year high. The declines in bond yields were mild as many investors were hesitant to adjust their portfolios ahead of a key interest-rate decision by the Federal Reserve on Wednesday. Investors expect the Fed to raise short-term interest rates for the third time since the financial crisis. After rising to as high as 2.63% earlier Tuesday, the yield on the benchmark 10-year note settled at 2.595%. The yield was 2.609% Monday, the highest close since September 2014. Bond yields fall as their prices rise. U.S. crude oil prices on Tuesday settled at the lowest level since November , down nearly 11% over the last seven sessions amid concerns over a supply glut. Lower oil prices reduce market expectations toward inflation, which is a big threat to long-term government bonds. Inflation chips away bonds' fixed returns over time and eats into investors' purchasing power. The inflation trade has been suffering a setback lately due to falling oil prices. One popular way for hedge funds and money managers to bet on higher inflation is to sell Treasurys and use the proceeds to buy Treasury inflation-protected securities. On Tuesday, some investors flipped the trade by selling TIPS and migrating cash into Treasurys. The 10-year break-even rate, the yield premium investors demand to hold the 10-year Treasury note relative to the 10-year TIPS, was 1.99 percentage point late Tuesday, signaling investors' expectations of an annualized 1.99% inflation rate on average over the next decade. The rate was the lowest since early Feb. The oil rout occurred at a time when the global economic backdrop has been improving and the U.S. stocks remain near a record high. Mark Cabana, head of U.S. short-rates strategy at Bank of America Merrill Lynch, said he "highly" doubts that the recent 10% decline in oil prices "would cause the Fed to shift their policy stance." The 10-year Treasury yield has jumped by more than 0.2 percentage point this month as solid economic releases and comments from a chorus of Fed officials drove investors to bring forward the timing of a rate increase from June to March. Higher interest rates from the Fed shrink the value of outstanding bonds as they make newly issued bonds more appealing to buy. A popular way to hedge against higher interest-rate risks is by selling Treasury bonds, or making bets on higher bond yields from both cash and derivative markets. Now the market's focus is turning to how many more times the Fed may raise rates this year after the expected hike Wednesday. Interest rate futures currently show that investors expect one to two more increases during the balance of this year. Bond yields may slide if the Fed continues to signal a gradual approach in raising rates. Some analysts term this scenario as a "dovish hike," which may give bond bears one excuse to book profit from some of their bets on higher yields. When investors pare these bets, they return to the bond market as a buyer. The risk for bond investors, say some traders, is that the Fed may fuel anxiety toward a more aggressive path than investors anticipate. Bond yields are likely to rise if the Fed "tilts their rhetoric towards four rate hikes this year,'' said Tom di Galoma, head of Treasury trading at Seaport Global. One factor that may contain selling pressure in the bond market is political risks in Europe, he said. The Netherlands will hold its general elections Wednesday and France's presidential race will kick off in April. Two economic releases Wednesday morning--the Consumer Price Index for February and retail sales--may also affect the bond market. Gemma Wright-Casparius, senior portfolio managers in Vanguard's fixed income group, said bond yields are likely to rise if the CPI were to rise more than expected, adding that a break above 2.65% on the 10-year yield "could see a fresh sell off for the next week or so." For now, higher Treasury bond yields are seen by many investors as a healthy sign to reflect an improving global economy, which allows the Fed to continue to normalize its interest-rate policy. Yet any policy shock could send yields swiftly higher from here, resulting a negative feedback loop for other markets and the broader economy. Write to Min Zeng at min.zeng@wsj.com Credit: By Min Zeng
Subject: Treasuries; Bond markets; Balance sheets; Interest rates; Government bonds; Hedge funds; Crude oil prices; Economic crisis; Treasury notes; Federal Reserve monetary policy
Location: United States--US
Company / organization: Name: Bank of America Merrill Lynch; NAICS: 522110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876820603
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876820603?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Lukoil Swings to Profit, Helped by Stronger Oil Prices; Net profit was $789 million for the last three months of 2016
Author: Marson, James
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.
Abstract: None available.
Full text: MOSCOW--PAO Lukoil, Russia's No. 2 oil producer, swung to a profit in the final quarter of last year, helped by the strengthening price of oil. The company posted a net profit of 46.6 billion rubles ($789 million) on Tuesday for the last three months of 2016, compared with a net loss of RUB65 billion in 2015. Net profit for 2016 was down 28% on 2015 at RUB206.8 billion, due to fluctuations in the exchange rate. Lukoil, like other Russian oil companies, has been somewhat protected from the slump in oil prices in the past two years as the ruble weakened against the dollar and some taxes fell along with oil prices. The company reversed a trend of falling domestic production, driven by slumping output at its core Western Siberian fields, in the fourth quarter, as it ramped up production at two new fields. Write to James Marson at james.marson@wsj.com Credit: By James Marson
Subject: Financial performance; Corporate profits; Prices
Location: Russia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 14, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876869845
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876869845?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Increasing in DOE Data; Gasoline inventories are expected to fall
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.
Abstract:
U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a...Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 10 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 3 million barrels, on average, in the week ended March 10. Nine analysts expect stockpiles to rise, while one expects them to fall. Forecasts range from a decrease of 2.7 million barrels to an increase of 6.7 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to show a decrease of 2 million barrels on average, according to analysts. Estimates range from a decrease of 3.9 million barrels to an increase of 900,000 barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 1.1 million barrels. Two analysts expect an increase and nine expect a decrease. Forecasts range from a decline of 2.6 million barrels to an increase of 1.6 million barrels. Refinery use is seen rising 0.2 percentage point for the week to 86.1% of capacity, based on EIA data. Six analysts expect an increase, three expect a decrease, and one didn't report expectations. Forecasts range from a decrease of 0.5 point to an increase of 0.9 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 531,000-barrel decline in crude supplies, a 3.9-million-barrel decrease in gasoline stocks and a 4.1-million-barrel fall in distillate inventories, according to a market participant. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Price increases; Supply & demand
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876869990
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876869990?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Explosion and Fire at Syncrude Oil Sands Plant in Alberta; Mildred Lake Upgrader is evacuated
Author: Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.
Abstract: None available.
Full text: An explosion and fire erupted at an oil sands plant in northern Alberta Tuesday afternoon, forcing an evacuation, according to the Royal Canadian Mounted Police. It was not clear if anyone had been injured in the blaze, according to RCMP Corporal Curtis Peters. The Mildred Lake Upgrader is north of Fort McMurray and about 500 miles north of Calgary. It takes bitumen mined in the oil sands and processes it into a higher-quality synthetic crude oil that can be refined into fuels like gasoline and diesel. The plant is owned by Syncrude Canada Ltd. The fire started shortly before 2 p.m. local time, and access to the plant has been restricted to Syncrude personnel, said Will Gibson, a spokesman for the company. "Our focus is on responding to the incident, including ensuring the people on our site our safe," he said. Syncrude, a joint venture company, is one of the biggest crude producers in Alberta's oil sands region. The consortium companies are Suncor Energy Inc., Imperial Oil Ltd., Canadian Oil Sands Ltd., Mocal Energy Ltd., Murphy Oil Co., Sinopec Corp. of China, and Nexen Inc., which is owned by China's Cnooc Ltd. Write to Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Erin Ailworth
Subject: Evacuations & rescues; Oil sands; Crude oil
Location: China Calgary Alberta Canada
Company / organization: Name: Royal Canadian Mounted Police; NAICS: 922120; Name: CNOOC Ltd; NAICS: 211111; Name: Nexen Inc; NAICS: 211111; Name: Imperial Oil Ltd; NAICS: 211111; Name: Syncrude Canada Ltd; NAICS: 211111, 324110; Name: Suncor Energy Inc; NAICS: 211111, 213112; Name: Canadian Oil Sands Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 14, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876891264
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876891264?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rebound But Skepticism on Planned Cuts Remain; May Brent crude on London's ICE Futures exchange rose $0.60 to $51.52 a barrel
Author: Hsu, Jenny
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Mar 2017: n/a.
Abstract:
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $48.39 a barrel at 0206 GMT, up $0.67 in the Globex electronic session. For some market watchers, this could be Saudi Arabia's tacit message to other oil producers that it is losing patience as it has been taking the lion share of the promised cut. [...]the Saudis had been seen as the force keeping OPEC compliant with its production-cut...Full text: Crude-oil futures pared losses in Asia Wednesday as investors gobbled up bargains after the recent selloffs but sentiment remains gloomy on growing doubts whether the OPEC-Russia output cut plan is delivering the expected results. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $48.39 a barrel at 0206 GMT, up $0.67 in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $0.60 to $51.52 a barrel. U.S. oil prices have fallen more than 10% this month and Brent prices have also dropped nearly 9%. The selling spree in the past five sessions was largely stoked by the strong growth of U.S. shale oil which stands to offset the continuing effort by the Organization of the Petroleum Exporting Countries to dry out the market. In December, OPEC and major oil suppliers like Russia entered a pact to cut production by 1.8 million barrels a day with the aim to revive the oil prices and whittle down global inventories. Traders and investors banked on the deal to reset the market back into a balance and Brent prices rose as high as $57.10 a barrel shortly after the deal. "Now, the OPEC-Russia is looking more like a nonevent because it is all about how fast and how much the U.S. producers will produce," said Nelson Wang, a CLSA energy analyst. He notes unless OPEC agrees to extend the production cut deal for another six months when it expires in June, the agreement would be "nothing more than a gimmick" to push prices up in the short term. Such skepticism became more pronounced overnight after OPEC's latest report showed that Saudi Arabia said its production in February rose by 263,000 barrels a day, But, based on secondary-sources, the kingdom actually trimmed its output last month. Discrepancy between two sets of data, both available in the OPEC's monthly oil report, isn't uncommon. "The lift in production heightens concerns that an OPEC-led deal to cut global oil output is floundering," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. For some market watchers, this could be Saudi Arabia's tacit message to other oil producers that it is losing patience as it has been taking the lion share of the promised cut. Until now, the Saudis had been seen as the force keeping OPEC compliant with its production-cut agreement. "The Saudi's reported that the extra crude production went into storage, yet the optics could be seen as a signal to other members of the output agreement that free-riders won't be tolerated," a Citi Research report noted. Some are pointing out that its output is still below its production target of 10.058 million barrels a day. Investors were also spooked by the latest growth in global inventories. OPEC reported that commercial stocks of Organization for Economic Cooperation and Development countries rose in January to 3 billion barrels, which is 278 million barrels above the five-year average. For today, investors will be watching out for the weekly U.S. crude production and inventories report. A rise in either will likely pound prices down another notch. The Federal Reserve meeting also may add some uncertainty to markets, as traders await a statement from the central bank later today following its two-day policy meeting. OPEC revised up its forecast for U.S. oil production growth by 100,000 barrels a day. It now believes U.S. oil flow will grow by 340,000 barrels a day based on the rising number of active oil drilling rigs in U.S. oil patches. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week ended March 10 showed a 531,000-barrel decline in crude supplies, a 3.9-million-barrel decrease in gasoline stocks and a 4.1-million-barrel fall in distillate inventories, according to a market participant. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 126 points to $1.5961 a gallon, while April diesel traded at $1.5069, 150 points higher. ICE gas oil for April changed hands at $455.50 a metric ton, up $7.50 from Tuesday's settlement. Credit: By Jenny Hsu
Subject: Futures; Crude oil
Location: United States--US Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 15, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876937578
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876937578?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Explosion and Fire at Syncrude Oil Sands Plant in Alberta; Mildred Lake Upgrader is evacuated
Author: Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Mar 2017: n/a.
Abstract: None available.
Full text: An explosion and fire erupted at an oil sands plant in northern Alberta Tuesday afternoon, forcing an evacuation, according to the Royal Canadian Mounted Police. Syncrude Canada Ltd., which owns the plant, said Tuesday night that one employee was hospitalized with unidentified injuries after the explosion. The Mildred Lake Upgrader is north of Fort McMurray and about 500 miles north of Calgary. It takes bitumen mined in the oil sands and processes it into a higher-quality synthetic crude oil that can be refined into fuels like gasoline and diesel. The fire started shortly before 2 p.m. local time, and access to the plant has been restricted to Syncrude personnel, said Will Gibson, a spokesman for the company. "Our focus is on responding to the incident, including ensuring the people on our site our safe," he said. The fire is the second to occur at the Mildred Lake upgrader in less than two years. Production was sharply reduced for about 5 weeks in 2015 after a fire damaged pipes, power and communication lines. Syncrude, a joint venture company, is one of the biggest crude producers in Alberta's oil sands region. The consortium companies are Suncor Energy Inc., Imperial Oil Ltd., Canadian Oil Sands Ltd., Mocal Energy Ltd., Murphy Oil Co., Sinopec Corp. of China, and Nexen Inc., which is owned by China's Cnooc Ltd. Credit: By Erin Ailworth
Subject: Evacuations & rescues; Oil sands; Explosions
Location: China Calgary Alberta Canada
Company / organization: Name: Royal Canadian Mounted Police; NAICS: 922120; Name: CNOOC Ltd; NAICS: 211111; Name: Nexen Inc; NAICS: 211111; Name: Imperial Oil Ltd; NAICS: 211111; Name: Syncrude Canada Ltd; NAICS: 211111, 324110; Name: Suncor Energy Inc; NAICS: 211111, 213112; Name: Canadian Oil Sands Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 15, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1876938443
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876938443?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Equities: Oil Rout Sends Yield On Treasurys Higher
Author: Zeng, Min
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]15 Mar 2017: B.17.
Abstract:
(WSJ March 21, 2017) A deepening selloff in the oil market stoked demand for U.S. government bonds Tuesday, pushing down the yield on the benchmark 10-year Treasury note from a two-year high.
Full text: Corrections & Amplifications The yield on the benchmark 10-year Treasury note declined on March 14. The headline with a Business & Finance article on March 15 about trading in Treasurys incorrectly said that the yield was higher. (WSJ March 21, 2017) A deepening selloff in the oil market stoked demand for U.S. government bonds Tuesday, pushing down the yield on the benchmark 10-year Treasury note from a two-year high. The declines in bond yields were mild as many investors were hesitant to adjust their portfolios ahead of a key interest-rate decision by the Federal Reserve on Wednesday. Investors expect the Fed to lift short-term interest rates for the third time since the financial crisis. After rising as high as 2.63%, the yield on the 10-year note settled at 2.595%. The yield was 2.609% Monday, the highest close since September 2014. Bond yields fall as their prices rise. U.S. crude oil prices settled at the lowest level since November, down nearly 11% over the last seven sessions amid concerns over a supply glut. Lower oil prices reduce market expectations of inflation, which is a big threat to long-term government bonds. Inflation chips away bonds' fixed returns over time. Mark Cabana, head of U.S. short-rates strategy at Bank of America Merrill Lynch, said he "highly" doubts that the recent 10% decline in oil prices "would cause the Fed to shift their policy stance." Credit: By Min Zeng
Subject: Treasuries; Bond markets; Credit markets (wsj)
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.17
Publication year: 2017
Publication date: Mar 15, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877022167
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877022167?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Sinks as Doubts Arise on Saudi Cuts --- U.S. crude is down 10% in past five sessions, as investors question production numbers
Author: Puko, Timothy; Salvaterra, Neanda; Faucon, Benoit
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]15 Mar 2017: B.18.
Abstract:
[...]Saudi Arabia's statement that it was increasing production sent jitters through an already nervous market. [...]the kingdom had been seen as the force keeping OPEC compliant with its production-cut agreement.
Full text: Oil prices fell to a new three-month low Tuesday on fears that Saudi Arabia is wavering in its commitment to cut production in order to ease oversupply. It is the latest dose of skepticism from investors who have taken oil from calm to panic in less than a week. Oil is now down 10%, or more than $5 a barrel, in just five sessions -- after it spent nearly three months trading in a range of less than $5. Traders were once soothed by promises from the world's largest exporters but now are questioning them. The Organization of the Petroleum Exporting Countries, and other major producers including Russia, agreed late last year to cut output by around 1.8 million barrels a day, around 2% of global production. Last week, traders sold off because those cutbacks have yet to stop U.S. stockpiles from growing. This week, caution spread as Saudi output may not be falling as promised. U.S. oil has tied its longest losing streak since January 2016, seven sessions. On Tuesday, light, sweet crude for April delivery settled down 68 cents, or 1.4%, at $47.72 a barrel on the New York Mercantile Exchange. It has lost 10.5% during its losing streak and is at its lowest settlement since Nov. 29. Brent crude, the global benchmark, lost 43 cents, or 0.8%, to $50.92 a barrel on ICE Futures Europe. It has lost 9.1% in a six-session losing streak, its longest losing streak since the autumn of 2016. Crude prices flipped down from gains Tuesday morning after Saudi Arabia reported that it increased output in February by 263,000 barrels a day to over 10 million barrels a day overall, according to a report from OPEC. The Saudis alone have covered for many other countries that haven't met their promised production cuts, giving their output a central focus among oil traders. Some did question whether the kingdom is really backing away from that effort. Its output remains below its production target of 10.058 million barrels a day. And, using outside sources of oil-production information, OPEC determined that Saudi Arabia actually cut its output further, a discrepancy that often happens with OPEC members. But Saudi Arabia's statement that it was increasing production sent jitters through an already nervous market. Until now, the kingdom had been seen as the force keeping OPEC compliant with its production-cut agreement. "What you're seeing right now is a signaling mechanism," said Jonathan Berland, senior managing director at Gresham Investment Management, which has about $7.4 billion in commodity assets. He said the country is positioning itself for coming OPEC negotiations. "They don't want to carry the entire weight of OPEC at their own expense." OPEC's cuts have also yet to make a dent in global oil inventories -- its stated goal in reducing production. Commercial oil stocks in industrialized nations rose in January by 20.1 million barrels to just above 3 billion barrels. But a Saudi oil official previously has said the impact of the cartel's efforts wouldn't be felt until late March because it takes 90 days for oil to reach Western markets from the moment it is pumped. Several fund managers said that likely will end the selloff soon as inventories start to fall and investors begin to see the recent fall creating bargain oil prices. "My expectation is that this is going to get bought," said Tim Pickering, president at Auspice Capital Advisors Ltd., which manages $300 million in assets out of Calgary, Alberta. "This is going to turn around pretty quick." But not all are quick to dismiss the recent signs. U.S. production is rising, and the number of working rigs has doubled from last year's lows, meaning U.S. production could fill a lot of the shortfall even if OPEC does follow through on its promised cuts. "We don't see global stock even drawing significantly this year," said Robert McNally, president of energy consultancy Rapidan Group. On Wednesday, the U.S. Energy Department will release official weekly numbers on U.S. oil inventories. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 531,000-barrel decline in crude supplies, a 3.9 million-barrel decrease in gasoline stocks and a 4.1 million-barrel fall in distillate inventories, according to a market participant. The Federal Reserve meeting this week also may add some uncertainty to markets, as traders await a statement from the central bank following the two-day policy meeting that started Tuesday. Gasoline futures gained 0.28 cent, or 0.2%, to $1.5835 a gallon, snapping a four-session losing streak. Diesel futures fell 0.87 cent, or 0.6%, to $1.4919 a gallon. It is now down for five-straight sessions and at its lowest settlement since Nov. 29. --- Stephanie Yang contributed to this article. Credit: By Timothy Puko, Neanda Salvaterra and Benoit Faucon
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.18
Publication year: 2017
Publication date: Mar 15, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877034662
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877034662?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Venezuela Alleges Fraud in $1.3 Billion Oil-Rig Lease; Inspector general accuses officials at state firm PdVSA of embezzlement in drilling contract with PetroSaudi
Author: Kurmanaev, Anatoly; Hope, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Mar 2017: n/a.
Abstract:
CARACAS, Venezuela--The Venezuelan government is investigating alleged corruption in a $1.3 billion contract between the state oil company and a private contractor co-founded by a Saudi prince, according to law-enforcement officials and related documents. Venezuela's inspector general's office on March 6 recommended that the Public Prosecutor's Office investigate and charge five current and former executives at Petróleos de Venezuela SA, or PdVSA, for allegedly embezzling public funds by paying inflated fees for the lease of an oil rig, according to a copy of the request seen by The Wall Street Journal. The rig, the PetroSaudi Saturn, was the second drillship leased by PdVSA from PetroSaudi International Ltd. to develop natural-gas reserves that the Venezuelan company said would make the country a global gas superpower. The law firm representing PetroSaudi on Wednesday said that the appeal in the Supreme Court was denied. PetroSaudi financed the purchase of the first rig, the Neptune Discoverer, with money it received from 1Malaysia Development Bhd. , or 1MDB, the embattled Malaysian state investment fund, according to financial records and people familiar with the transactions. PetroSaudi's lawyers said the Saturn had its required international certifications, that both rigs were in good working order and accepted by PdVSA, and that drilling delays were caused by "PdVSA's operational failures and cash-flow difficulties." Write to Anatoly Kurmanaev at Anatoly.kurmanaev@wsj.com and Bradley Hope at bradley.hope@wsj.com Related * PetroSaudi Used Funds From 1MDB to Buy Oil Rig * Venezuelan Oil Is Largely Staying in Ground or Going Up in Smoke *...Full text: Corrections & Amplifications A ferry ran into the Saturn in April 2011. An earlier version of this article incorrectly stated that the Saturn had collided with a ferry. CARACAS, Venezuela--The Venezuelan government is investigating alleged corruption in a $1.3 billion contract between the state oil company and a private contractor co-founded by a Saudi prince, according to law-enforcement officials and related documents. Venezuela's inspector general's office on March 6 recommended that the Public Prosecutor's Office investigate and charge five current and former executives at Petróleos de Venezuela SA, or PdVSA, for allegedly embezzling public funds by paying inflated fees for the lease of an oil rig, according to a copy of the request seen by The Wall Street Journal. The rig, the PetroSaudi Saturn, was the second drillship leased by PdVSA from PetroSaudi International Ltd. to develop natural-gas reserves that the Venezuelan company said would make the country a global gas superpower. The entire offshore project, Mariscal Sucre, has yet to produce any gas. "Mariscal Sucre is PdVSA's eternal white elephant," said Antero Alvarado, Caracas-based analyst at consultancy GasEnergy Latin America. "They sank billions on it with nothing to show for it." A PdVSA spokesman declined to comment on the contracts with PetroSaudi, citing legal disputes between the two companies. Mariscal Sucre's troubles are amplified by the country's economic crisis . U.S. law-enforcement officials say PdVSA wasted billions of dollars during the oil boom of the past decade . When the boom turned to bust in 2014, production crumbled, triggering the deepest recession in Venezuela's history. The meltdown has brought food shortages, rampant crime and widespread unrest . PdVSA didn't respond to accusations of waste and corruption. Venezuela's Congress launched a separate investigation into PdVSA's Saturn contract last month, according to Congress officials. The offices of inspector general, whose role is to ensure the proper use of state assets, and the public prosecutor, which would be responsible for bringing charges, didn't respond to requests to comment. The inspector general's probe is focused on state-owned PdVSA, and neither PetroSaudi nor any of its employees are accused of wrongdoing. Lawyers for PetroSaudi said they weren't aware of any investigation of their client in Venezuela. The lawyers said Venezuelan government probes into the contracts are politically motivated and aimed at damaging its client in its commercial disputes with PdVSA. A London court on Monday ordered PdVSA to pay PetroSaudi $130 million in unpaid bills, according to PetroSaudi lawyers. PdVSA had said before the decision that it would appeal the case in the U.K. Supreme Court. The law firm representing PetroSaudi on Wednesday said that the appeal in the Supreme Court was denied. Lawyers for PdVSA didn't respond to a request to comment. Separately, PdVSA is suing PetroSaudi in the United Nations arbitration court in Paris for allegedly failing to meet terms of the Saturn contract. PetroSaudi financed the purchase of the first rig, the Neptune Discoverer, with money it received from 1Malaysia Development Bhd. , or 1MDB, the embattled Malaysian state investment fund, according to financial records and people familiar with the transactions. The U.S. Justice Department alleges that $700 million that 1MDB sent in September 2009 to a joint venture with PetroSaudi was diverted, and never arrived at PetroSaudi. The Justice Department didn't accuse PetroSaudi of any crime, and PetroSaudi's lawyers said the company has done nothing wrong. The Malaysian fund hasn't been accused, denies any wrongdoing and pledged to cooperate with any lawful investigation. Lawyers for PetroSaudi, which was founded in 2005 by a member of the Saudi royal family, Turki Bin Abdullah Al Saud, and a Saudi citizen, Tarek Obaid, said no one in the company has been charged in connection to the 1MDB case. PetroSaudi entered Venezuela in 2009 when it bought the Discoverer, a ship built in 1977 that was already in use drilling for PdVSA. PetroSaudi took over the contract leasing the ship to PdVSA for $490,000 a day until 2012. The Saudi company, which at the time had no experience operating rigs, took over the operation of the Discoverer. When another of PdVSA's rigs sank in 2010, the company tapped PetroSaudi without going through a bidding process, according to the inspector general's March 6 request. A PdVSA official said the lack of a tender for the rig wasn't unusual, as the search took place a year after late President Hugo Chávez expropriated hundreds of oil barges and boats, and no major foreign drilling companies were interested in bidding for PdVSA tenders. That September, PdVSA struck a deal with PetroSaudi for the Saturn rig, which was built in 1983, at $485,000 a day for seven years, according to a copy of the contract reviewed by the Journal. Opposition lawmaker Luis Parra said in the February congressional report that the rig should have cost about $230,000 a day. "There's no reason whatsoever to justify the difference between the average price and the exorbitant price PetroSaudi charged PdVSA" for the Saturn, he said. PetroSaudi's lawyers said the rate was justified by Venezuela's difficult working conditions. The rate was almost 20% more than the average for a similar rig signed in the adjacent Gulf of Mexico that year, according to the RigLogix database. In 2010, one of the accused former executives, Romer Valdez, said PetroSaudi was the only company that was able to provide the right type of rig for the required period, according to minutes seen by the Journal of the state company's meeting on Aug. 21, 2010. Mr. Valdez has since retired from PdVSA and left Venezuela, according to company officials, and wasn't reachable to comment. PdVSA documents show five available rigs with similar characteristics in that period. The inspector general's office also recommended charges against a sixth official for allegedly peddling influence to sway PdVSA into signing the contract for the PetroSaudi Saturn. PetroSaudi had no relationship with the official, never used him to peddle influence and wasn't aware that he had any influence in the decision, its lawyers said. While PetroSaudi was negotiating the contract, it didn't have a rig to rent. It paid $260 million for the Songa Saturn 10 days before signing the contract, according to the contract and the seller's corporate filings. The Discoverer and the Saturn were "barely adequate for the job" and completed fewer than 10 wells out of about 70 planned, oil workers involved in the drilling told the Journal. The Discoverer spent most of its contract term in repairs, according to former workers. PdVSA said in the Saturn contract that the rig had been inspected and was in perfect condition. After a ferry ran into the Saturn in April 2011, the rig spent most of the following year in repairs, according to a report on the collision by PdVSA's investigation committee. The committee declared the rig to be "obsolete" and said that damage to the well resulting from the collision was caused by faulty equipment on the Saturn. The committee absolved PetroSaudi of fault in the collision but said that the company "couldn't present most of the required [safety] documents" and that the rig lacked some basic working equipment. PetroSaudi's lawyers said the Saturn had its required international certifications, that both rigs were in good working order and accepted by PdVSA, and that drilling delays were caused by "PdVSA's operational failures and cash-flow difficulties." The Saturn rig drilled three of 16 planned wells in almost seven years, slowed by repairs and lack of supplies from PdVSA, according to former workers. An average rig working in similar conditions and depths completes a well in two months, said Tony Paul, managing director of Association of Caribbean Energy Specialists. The Saturn is now laid up indefinitely off the Venezuelan coast, according to Mariscal Sucre workers. The Discoverer is being scrapped at an Indian junkyard. Venezuelan President Nicolás Maduro, facing empty public coffers and low popularity, in January started an anticorruption campaign. "The restructuring will cure from corruption all the parts that are rotten in PdVSA," he said. The purge is aimed at Mr. Maduro's detractors and will do nothing to address endemic corruption, said Anabella Abadi, a public policy analyst at Caracas-based ODH Grupo Consultor. "You can't fight corruption without transparency," she said. Mayela Armas in Caracas and Maria Ramirez in Puerto Ordaz contributed to this article. Write to Anatoly Kurmanaev at Anatoly.kurmanaev@wsj.com and Bradley Hope at bradley.hope@wsj.com Related * PetroSaudi Used Funds From 1MDB to Buy Oil Rig * Venezuelan Oil Is Largely Staying in Ground or Going Up in Smoke * Wall Street Journal coverage of 1Malaysia Development Bhd., or 1MDB Credit: By Anatoly Kurmanaev and Bradley Hope
Subject: Committees; Embezzlement; Criminal investigations; Bids; Corruption; Drilling; Natural gas; Public prosecutors
Location: United States--US Venezuela
Company / organization: Name: 1Malaysia Development Bhd; NAICS: 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 15, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877238267
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877238267?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibit ed without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Supplies Rise as OPEC and Non-OPEC Countries Pump More Crude; OPEC output hit 32 million b/d in February, says IEA
Author: Baxter, Kevin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Mar 2017: n/a.
Abstract:
Global oil supplies rose by 260,000 barrels a day in February to 96.52 million b/d, as both OPEC and non-OPEC producers pumped more crude, the International Energy Agency said on Wednesday. China, usually the global driver of oil demand, has had a slow start to 2017, with cold temperatures and...Full text: Global oil supplies rose by 260,000 barrels a day in February to 96.52 million b/d, as both OPEC and non-OPEC producers pumped more crude, the International Energy Agency said on Wednesday. In its closely watched monthly report, the agency, which advises industrialized nations on energy policies, said output from the Organization of the Petroleum Exporting Countries rose by 170,000 b/d in February to 32 million b/d. This equates to a 91% compliance rate with the oil cartel's supply cuts for February, the IEA said, adding that its revised figures for January showed an 105% compliance rate from the group's members. OPEC can achieve a more than 100% compliance rate when some countries cut more than asked--in this case, Saudi Arabia. Saudi Arabia saw the largest rise in production in February, which rose by 180,000 from January to 9.98 million barrels a day--still below its 10.06 million b/d target. January production in the world's largest oil exporter was revised to 9.8 million barrels a day. Russian oil production in February was 11.478 million b/d, according to the IEA estimate. This equates to a cut of 119,000 b/d, or a 40% compliance rate with the 300,000 b/d cut agreed between Moscow and OPEC. The IEA said that despite the decline, the production trend was upward, with estimates showing that crude production reached 9 million b/d in February in the U.S. Drilling rigs also increased, with the total U.S. rig count in early March standing at 617 rigs, compared with a low of 318 in May 2016. Despite OPEC's best efforts, inventories in the group of developed countries known as the Organisation for Economic Co-operation and Development rose for the first time in six months in January by 48 million barrels, or 1.5 million b/d, to 3.03 billion barrels. The IEA said that preliminary data for February showed a modest decline of 5 million barrels, despite the U.S. showing large weekly stock builds. Global oil demand is expected to ease to 1.4 million barrels a day in 2017, from 1.6 million b/d in 2016. China, usually the global driver of oil demand, has had a slow start to 2017, with cold temperatures and stuttering industrial demand responsible, the IEA said. Other early indicators suggest similar slowdowns in other industrialized nations such as Japan, Germany, South Korea and India. Write to Kevin Baxter at Kevin.Baxter@wsj.com Credit: By Kevin Baxter
Subject: Petroleum production; Compliance; Cartels; Industrialized nations; Supply & demand
Location: China United States--US India Saudi Arabia Germany Japan South Korea
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 15, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877241017
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877241017?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
PetroSaudi Used Funds From 1MDB Venture to Finance Venezuela Project; Saudi firm leased rig to PdVSA, Venezuelan oil company now under investigation
Author: Hope, Bradley; Kurmanaev, Anatoly
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Mar 2017: n/a.
Abstract:
The U.S. Justice Department last summer alleged in civil lawsuits that more than $1 billion was diverted from the joint venture between PetroSaudi and embattled Malaysian state fund 1Malaysia Development Bhd. , over several years. While the Venezuela investigations are unrelated to continuing probes in six countries over 1MDB's missing fortune, they focus on the decision by Petróleos de Venezuela SA, or PdVSA, to lease a ship that PetroSaudi financed with a portion of the...Full text: Corrections & Amplifications Richard Haythornthwaite is the current chairman of MasterCard Inc. An earlier version of this article incorrectly stated he was a former chairman. (March 16, 2017) Venezuela's investigation into executives of its state oil company over a contract that the firm entered into with PetroSaudi International Ltd. marks the second time that investigators are known to have scrutinized a business partner of the Riyadh-based energy-investment startup. The U.S. Justice Department last summer alleged in civil lawsuits that more than $1 billion was diverted from the joint venture between PetroSaudi and embattled Malaysian state fund 1Malaysia Development Bhd. , over several years. The Justice Department lawsuits don't target either PetroSaudi or 1MDB. Investigators from the Federal Bureau of Investigation are also conducting a criminal investigation into the alleged 1MDB frauds, according to people familiar with the matter. The Malaysian fund has denied wrongdoing and pledged to cooperate with any lawful investigation. U.S. authorities last year gave a senior PetroSaudi executive involved in the 1MDB deal, Patrick Mahony, a subpoena ordering him to testify about the alleged 1MDB fraud, and some of PetroSaudi's Swiss assets have been frozen by Swiss authorities, according to people familiar with the matter. Mr. Mahony hasn't yet testified. PetroSaudi's lawyers, responding to questions on behalf of the company and Mr. Mahony, said the firm denies any wrongdoing and "no one from PetroSaudi has had to appear before a grand jury." While the Venezuela investigations are unrelated to continuing probes in six countries over 1MDB's missing fortune, they focus on the decision by Petróleos de Venezuela SA, or PdVSA, to lease a ship that PetroSaudi financed with a portion of the funds in the joint venture with 1MDB. The Justice Department says $700 million meant for the joint venture was instead diverted to a company called Good Star Ltd. in the Seychelles, which distributed money to several beneficiaries of the alleged fraud. Part of the remaining $300 million was used by PetroSaudi to finance the purchase of the Neptune Discoverer drillship working in Venezuela in 2009, according to financial records and people familiar with the transaction. The rig was then rented to PdVSA. PetroSaudi was founded in 2005 by a Saudi citizen, Tarek Obaid, and a member of the Saudi royal family, Turki Bin Abdullah Al Saud. The Discoverer and the subsequent purchase of the Songa Saturn drillship in 2010 were among the biggest investments PetroSaudi made and constituted a major part of the company's operations. As PetroSaudi's business began picking up, it opened offices in London and Geneva and hired high-profile associates. It hired MasterCard Inc. chairman Richard Haythornthwaite as an executive in the company's London office and engaged the firm of former British prime minister Tony Blair to consult on business opportunities. "Mr. Haythornthwaite has at no point encountered any cause for concern about PetroSaudi's governance, PdVSA or otherwise," PetroSaudi's lawyers said. A spokeswoman for Mr. Blair confirmed his firm worked for PetroSaudi "for a period of months nearly seven years ago." Malaysia itself has closed all but one investigation into 1MDB, with no wrongdoing found. Write to Bradley Hope at bradley.hope@wsj.com and Anatoly Kurmanaev at Anatoly.kurmanaev@wsj.com Related * Venezuela Alleges Fraud in $1.3 Billion Oil-Rig Lease Credit: By Bradley Hope and Anatoly Kurmanaev
Subject: Joint ventures
Location: United States--US Seychelles Venezuela
People: Blair, Tony
Company / organization: Name: 1Malaysia Development Bhd; NAICS: 928120; Name: Federal Bureau of Investigation--FBI; NAICS: 922120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 15, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877241230
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877241230?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rally on Report of Drop in U.S. Inventory; Crude levels in U.S. storage fell by 237,000 barrels in the week ended Friday
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Mar 2017: n/a.
Abstract:
Storage levels are often a widely watched measure of supply and demand, but have drawn more interest in recent weeks as traders try to gauge the impact of cutbacks pledged by the world's biggest exporters. The Organization of the Petroleum Exporting Countries, and other major producers including Russia, agreed late last year to cut output by around 1.8 million barrels a day, equivalent to around 2% of global production. The WSJ Dollar Index, which measures...Full text: Oil prices rose Wednesday, snapping a week-long losing streak, as a drop in U.S. stockpiles supported a rally from Tuesday's three-month lows. Light, sweet crude for April delivery settled up $1.14, or 2.4%, at $48.86 a barrel on the New York Mercantile Exchange. That is its biggest one-day gain since Jan. 11. Brent crude, the global benchmark, gained 89 cents, or 1.7%, to $51.81 a barrel on ICE Futures Europe. Crude levels in U.S. storage fell by 237,000 barrels in the week ended Friday, the U.S. Energy Information Administration said Wednesday. That was a surprise compared with expectations of a 3-million-barrel increase in stockpiles from analysts surveyed by The Wall Street Journal. It nearly met an industry estimate of a 531,000-barrel decline that was released Tuesday and had initially sent crude prices higher. Storage levels are often a widely watched measure of supply and demand, but have drawn more interest in recent weeks as traders try to gauge the impact of cutbacks pledged by the world's biggest exporters. Oil began a slide of 10% in just five sessions last week after the same data showed an unexpectedly large increase in U.S. stockpiles at a time when many had expected production cuts would start to shrink those additions. Wednesday's report of a drain on stockpiles will help ease those concerns, said Scott Shelton, a broker at ICAP PLC. He noted that crude imports fell 9.1% to 7.4 million barrels a day, close to their 2017 lows. "At the end of the day, the bigger picture looks better after today," he said. "We need [weekly inventory declines] starting in [the second quarter] on a regular basis. So the fact we're doing it in the middle of March is a good sign." The EIA also said gasoline stockpiles fell by 3.1 million barrels, compared with analysts' expectations of a two-million-barrel decrease. The American Petroleum Institute had estimated a 3.9-million-barrel fall in gasoline stocks. Distillates in storage, including heating oil and diesel, declined by 4.2 million barrels, compared with expectations for a 1.1-million-barrel decrease. The API had estimated a 4.1-million-barrel fall in distillate stocks. Gasoline futures flipped to losses after the data release and finished down 0.01%, to $1.5834 a gallon. It is now down in five of the past six sessions. Diesel futures gained 1.4%, to $1.5124 a gallon, snapping a five-session losing streak. Inventories will have to keep dropping like this for several weeks to persuade traders that oversupply is really over, said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. "The reality is we still have high inventories," he added, noting that is a problem for traders across the oil markets. "It is still a lot of nervousness about how OPEC is going to address the future in the next 30 to 60 days." The Organization of the Petroleum Exporting Countries, and other major producers including Russia, agreed late last year to cut output by around 1.8 million barrels a day, equivalent to around 2% of global production. But many have questioned whether those producers will follow through, noting a history of producing above past limits, and recent data that suggests some are doing that again. News of a U.S. inventory decline came after the International Energy Agency released its closely watched monthly report that showed a 180,000-barrel increase in Saudi oil production in February. The report showed an increase in crude production from OPEC members and non-OPEC producers alike. "The lift in production heightens concerns that an OPEC--led deal to cut global oil output is floundering," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. But oil also got a boost from the falling dollar in afternoon trading. A weaker dollar makes dollar-traded oil less expensive for foreign buyers, a scenario that often causes prices to rise. The WSJ Dollar Index, which measures the U.S. currency against 16 others, was recently down 1%, nearly all from a fall after the Federal Reserve said it would raise short-term interest rates but indicated it will continue to tighten policy at a cautious pace. Some traders were looking for more aggressive long-term plans for interest-rate increases, and the ensuing selloff of the dollar then coincided with gains in oil in the last 30 minutes of trading after the Fed's announcement. David Hodari and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Petroleum production; Cartels; Production increases; Crude oil prices; Price increases; Crude oil
Location: Saudi Arabia
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Commonwealth Bank of Australia; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 15, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877383804
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877383804?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Inventories Surprisingly Decline
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil inventories unexpectedly declined for the week ended March 10, and gasoline stockpiles also fell, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles decreased by 237,000 barrels to 528.2 million barrels, but remain above the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 3 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 2.1 million barrels to 66.5 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 3.1 million barrels to 246.3 million barrels. Analysts were expecting gasoline inventories to fall by 2 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 4.2 million barrels to 157.3 million barrels, but are still near the upper limit of the average range, the EIA said. Earlier in the week, analysts had forecast supplies would decrease by 1.1 million barrels from a week earlier. Refining capacity utilization surprisingly fell by 0.8 percentage point from the previous week to 85.1%. Analysts were expecting utilization levels to rise by 0.2 percentage point from the previous week. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Petroleum products; Price increases; Supply & demand
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 15, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877481287
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877481287?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Citgo Reaches Deal to Keep Iconic Sign Near Boston's Fenway Park; Landlord Related Cos. and Venezuelan oil company agree to terms, city's mayor says
Author: Kamp, Jon
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Mar 2017: n/a.
Abstract:
Citgo Petroleum Corp.'s huge sign will continue to light up the Boston skyline near Boston's Fenway Park after the oil company and its landlord struck a deal, Boston Mayor Martin Walsh said Wednesday. Related Cos.' recent purchase of several Boston buildings, including the one with the sign, and an ensuing...Full text: Citgo Petroleum Corp.'s huge sign will continue to light up the Boston skyline near Boston's Fenway Park after the oil company and its landlord struck a deal, Boston Mayor Martin Walsh said Wednesday. Related Cos.' recent purchase of several Boston buildings, including the one with the sign, and an ensuing dispute over how much Citgo should pay to advertise there raised worries by some Bostonians that the sign could come down. The electronic sign has hovered over Boston's Kenmore Square neighborhood since 1965 in its current design and is highly visible from Fenway Park. Mr. Walsh said the two parties reached a deal at City Hall Wednesday afternoon, and that the sign will stay put. "The Citgo sign has become an important part of the community and I am delighted that both sides were able to agree on terms that will allow the sign to stay where it is," Mr. Walsh said in a statement. The city didn't announce financial terms of the deal. A spokeswoman for Related declined to comment on the terms, and Citgo representatives didn't immediately respond to an email seeking comment. In a statement, Kimberly Sherman Stamler, president of Related Beal, a local Related affiliate that plans to redevelop Kenmore Square, said the deal will keep the sign in place for decades to come. The neighborhood includes many older buildings near both Fenway Park and Boston University, which formerly owned the building in question. While the sign itself advertises a unit of a state-owned, foreign oil company, Petróleos de Venezuela SA, Bostonians have come to see it as something else. It shines over the Green Monster left-field wall at Fenway and Boston Marathon runners consider it an unofficial mile marker as they enter the home stretch. Spurred on by redevelopment worries, fans have been pushing to make the ad an official Boston landmark. Write to Jon Kamp at jon.kamp@wsj.com Credit: By Jon Kamp
Subject: Marathons
Company / organization: Name: Boston University; NAICS: 611310; Name: Citgo Petroleum Corp; NAICS: 324110, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 15, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877624931
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877624931?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Petrobras Cleared to Proceed With Asset Sales; Brazil audit court's order removes major roadblock to state-run oil company's plan to reduce massive debt load
Author: Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Mar 2017: n/a.
Abstract:
RIO DE JANEIRO--Brazil's federal auditing court overturned a preliminary ruling Wednesday that had frozen asset sales by Petróleo Brasileiro SA since December, removing a major roadblock to the state-run oil company's plan to reduce its massive debt load.Full text: RIO DE JANEIRO--Brazil's federal auditing court overturned a preliminary ruling Wednesday that had frozen asset sales by Petróleo Brasileiro SA since December, removing a major roadblock to the state-run oil company's plan to reduce its massive debt load. The court, known as the TCU, said in a statement late Wednesday that Petrobras had presented documentation showing that "risks" in the company's divestment program had been corrected. With the decision, Petrobras may proceed toward its goal of dumping $21 billion in assets by the end of 2018. Executives say meeting the target is crucial for Petrobras, the world's most indebted oil company, to pay down its $123 billion in debt. "This decision is fundamental for the company to move forward with its partnership and divestment plan," Petrobras said in a statement, adding that it will now be able to finish selling stakes in the Baúna and Tartaruga Verde oil fields in Brazil and the Saint Malo field in the U.S. Gulf of Mexico. The most sweeping of several legal challenges to Petrobras' asset sales, the Dec. 7 preliminary ruling questioned the company's negotiation of deals behind closed doors rather than a more open bidding process. In it, the TCU said that secrecy could allow "illegal acts" to occur, citing the wave of corruption scandals that have engulfed Petrobras in recent years. During deliberations over whether to overturn the ruling, TCU members requested that Petrobras adopt measures to prevent fraud and corruption in its asset sales, and improve its internal controls. "The divestment system is subject to continuous improvement, always observing the best practices in the market for acquisitions and divestments," Petrobras said. Write to Paul Kiernan at paul.kiernan@wsj.com Credit: By Paul Kiernan
Subject: Acquisitions & mergers; Debt restructuring; Divestments
Location: Brazil
Company / organization: Name: Petroleos Brasileiro SA; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 16, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877648104
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877648104?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Extends Gains in Asia Trading
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Mar 2017: n/a.
Abstract:
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $45.15 a barrel at 0134 GMT, up $0.26 in the Globex electronic session. "The EIA expects higher U.S. oil output because the number U.S. oil rigs operating has nearly doubled from the low set last May," said Vivek Dhar, a commodities strategist for Commonwealth Bank of Australia. "Combined to the shale ramp up and greater visibility on the majors...Full text: Oil prices extended gains in Asia Thursday as an unexpected drop in U.S. stockpiles boosted market sentiment. Opportunistic investors also helped by swooping up bargains after recent weakness. On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $45.15 a barrel at 0134 GMT, up $0.26 in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose $0.44 to $46.59 a barrel. Crude levels in U.S. storage fell by 237,000 barrels in the week ended Friday, the U.S. Energy Information Administration said Wednesday. The reduction was larger than most estimates and was largely in line with the 530,000-barrel drop forecast by industry group American Petroleum Institute. "This week's stats were bullish across the board, with crude drawing for the first time this year and product stocks continuing their seasonal decline," said analysts at Société Générale. The draw was mainly due to the drop in imports, particularly those from members of the Organization of the Petroleum Exporting Countries who are cutting production to comply with an agreement they signed with Russia last year. Despite the pullback in imports and stockpiling, inventory levels remain near record highs. This comes at a time when U.S. producers are eagerly taking advantage of rising prices to crank up production. EIA data shows in the latest week, U.S. output hit a 13-month high at 9.1 million barrels a day. Year-to-date, U.S. production has risen by almost 2%. EIA also raised its latest forecast on U.S. production, tipping production there will reach 9.2 million barrels and 9.7 million barrels this and next year respectively. "The EIA expects higher U.S. oil output because the number U.S. oil rigs operating has nearly doubled from the low set last May," said Vivek Dhar, a commodities strategist for Commonwealth Bank of Australia. The data, he added, also suggests that oil prices around $50 a barrel are encouraging the restart of idled U.S. shale oil output. The rise in U.S. stocks and output spells a headache for OPEC and Russia who have sacrificed their output to normalize global inventories. Nearly three months after the deal took effect, crude stocks in industrialized nations haven't fallen much and Brent oil prices have mostly remained within a $52-$56 a barrel range. Commercial inventories in Organization for Economic Cooperation and Development countries rose in January for the first time in six months, by 1.5 million barrels a day to 3.03 billion barrels. "Preliminary data show a modest draw of 5 million in February despite further builds in U.S. crude," according to the latest report by International Energy Agency, the world's top energy watchdog. Some market watchers say if OPEC fails to extend the production cutback agreement for months, prices could snap back to the $30 a barrel range. However, Goldman Sachs believes it is not in OPEC's interest to renew the agreement, saying further production cuts will be followed by new production highs. "Combined to the shale ramp up and greater visibility on the majors shifting focus to future growth, we see potential for long-dated oil prices to continue to decline below our $50 a barrel long term price forecast," said the bank. Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 41 points to $1.3751 a gallon, while December diesel traded at $1.4507, 101 points higher. ICE gasoil for November changed hands at $425.00 a metric ton, up $7.25 from Wednesday's settlement. Tim Puko contributed to this article. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Price increases
Location: New York
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877656850
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877656850?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
World News: Venezuela Alleges Fraud in $1.3 Billion Oil-Rig Lease
Author: Kurmanaev, Anatoly; Hope, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]16 Mar 2017: A.10.
Abstract:
The Venezuelan government is investigating alleged corruption in a $1.3 billion contract between the state oil company and a private contractor co-founded by a Saudi prince, according to law-enforcement officials and related documents. Venezuela's inspector general's office on March 6 recommended that the Public Prosecutor's Office investigate and charge five current and former executives at Petroleos de Venezuela SA, or PdVSA, for allegedly embezzling public funds by paying inflated fees for the lease of an oil rig, according to a copy of the request seen by The Wall Street Journal.
Full text: CARACAS, Venezuela -- The Venezuelan government is investigating alleged corruption in a $1.3 billion contract between the state oil company and a private contractor co-founded by a Saudi prince, according to law-enforcement officials and related documents. Venezuela's inspector general's office on March 6 recommended that the Public Prosecutor's Office investigate and charge five current and former executives at Petroleos de Venezuela SA, or PdVSA, for allegedly embezzling public funds by paying inflated fees for the lease of an oil rig, according to a copy of the request seen by The Wall Street Journal. The rig, the PetroSaudi Saturn, was the second drillship leased by PdVSA from PetroSaudi International Ltd. to develop natural-gas reserves that the Venezuelan company said would make the country a global gas superpower. The entire offshore project, Mariscal Sucre, has yet to produce any gas. "Mariscal Sucre is PdVSA's eternal white elephant," said Antero Alvarado, Caracas-based analyst at consultancy GasEnergy Latin America. "They sank billions on it with nothing to show for it." A PdVSA spokesman declined to comment on the contracts with PetroSaudi, citing legal disputes between the two companies. Mariscal Sucre's troubles are amplified by the country's economic crisis. U.S. law-enforcement officials say PdVSA wasted billions of dollars during the oil boom of the past decade. When the boom turned to bust in 2014, production crumbled, triggering the deepest recession in Venezuela's history. PdVSA didn't respond to accusations of waste and corruption. Venezuela's Congress launched a separate investigation into PdVSA's Saturn contract last month, according to Congress officials. The offices of inspector general, whose role is to ensure the proper use of state assets, and the public prosecutor, which would be responsible for bringing charges, didn't respond to requests to comment. The inspector general's probe is focused on state-owned PdVSA, and neither PetroSaudi nor any of its employees are accused of wrongdoing. Lawyers for PetroSaudi said they weren't aware of any investigation of their client in Venezuela. The lawyers said Venezuelan government probes into the contracts are politically motivated and aimed at damaging its client in its commercial disputes with PdVSA. A London court on Monday ordered PdVSA to pay PetroSaudi $130 million in unpaid bills, according to PetroSaudi lawyers. PdVSA had said before the decision that it would appeal the case in the U.K. Supreme Court. The law firm representing PetroSaudi on Wednesday said that the appeal in the Supreme Court was denied. Lawyers for PdVSA didn't respond to a request to comment. Separately, PdVSA is suing PetroSaudi in the United Nations arbitration court in Paris for allegedly failing to meet terms of the Saturn contract. PetroSaudi financed the purchase of the first rig, the Neptune Discoverer, with money it received from 1Malaysia Development Bhd., or 1MDB, the embattled Malaysian state investment fund, according to financial records and people familiar with the transactions. The U.S. Justice Department alleges that $700 million that 1MDB sent in September 2009 to a joint venture with PetroSaudi was diverted, and never arrived at PetroSaudi. The Justice Department didn't accuse PetroSaudi of any crime, and PetroSaudi's lawyers said the company has done nothing wrong. The Malaysian fund hasn't been accused, denies any wrongdoing and pledged to cooperate with any lawful investigation. Lawyers for PetroSaudi, which was founded in 2005 by a member of the Saudi royal family, Turki Bin Abdullah Al Saud, and a Saudi citizen, Tarek Obaid, said no one in the company has been charged in connection to the 1MDB case. PetroSaudi entered Venezuela in 2009 when it bought the Discoverer, a ship built in 1977 that was already in use drilling for PdVSA. PetroSaudi took over the contract leasing the ship to PdVSA for $490,000 a day until 2012. The Saudi company, which at the time had no experience operating rigs, took over the operation of the Discoverer. When another of PdVSA's rigs sank in 2010, the company tapped PetroSaudi without going through a bidding process, according to the inspector general's March 6 request. A PdVSA official said the lack of a tender for the rig wasn't unusual, as the search took place a year after late President Hugo Chavez expropriated hundreds of oil barges and boats, and no major foreign drilling companies were interested in bidding for PdVSA tenders. That September, PdVSA struck a deal with PetroSaudi for the Saturn rig, which was built in 1983, at $485,000 a day for seven years, according to a copy of the contract reviewed by the Journal. Opposition lawmaker Luis Parra said in the February congressional report that the rig should have cost about $230,000 a day. "There's no reason whatsoever to justify the difference between the average price and the exorbitant price PetroSaudi charged PdVSA" for the Saturn, he said. PetroSaudi's lawyers said the rate was justified by Venezuela's difficult working conditions. The rate was almost 20% more than the average for a similar rig signed in the adjacent Gulf of Mexico that year, according to the RigLogix database. In 2010, one of the accused former executives, Romer Valdez, said PetroSaudi was the only company that was able to provide the right type of rig for the required period, according to minutes seen by the Journal of the state company's meeting on Aug. 21, 2010. Mr. Valdez has since retired from PdVSA and left Venezuela, according to company officials, and wasn't reachable to comment. PdVSA documents show five available rigs with similar characteristics in that period. The inspector general's office also recommended charges against a sixth official for allegedly peddling influence to sway PdVSA into signing the contract for the PetroSaudi Saturn. PetroSaudi had no relationship with the official, never used him to peddle influence and wasn't aware that he had any influence in the decision, its lawyers said. While PetroSaudi was negotiating the contract, it didn't have a rig to rent. It paid $260 million for the Songa Saturn 10 days before signing the contract, according to the contract and the seller's corporate filings. The Discoverer and the Saturn were "barely adequate for the job" and completed fewer than 10 wells out of about 70 planned, oil workers involved in the drilling told the Journal. The Discoverer spent most of its contract term in repairs, according to former workers. PdVSA said in the Saturn contract that the rig had been inspected and was in perfect condition. After a ferry ran into the Saturn in April 2011, the rig spent most of the following year in repairs, according to a report on the collision by PdVSA's investigation committee. The committee declared the rig "obsolete" and said damage to the well resulting from the collision was caused by faulty equipment on the Saturn. The committee absolved PetroSaudi of fault in the collision but said that the company "couldn't present most of the required [safety] documents" and that the rig lacked some basic working equipment. PetroSaudi's lawyers said the Saturn had its required international certifications, that both rigs were in good working order and accepted by PdVSA, and that drilling delays were caused by "PdVSA's operational failures and cash-flow difficulties." The Saturn is now laid up indefinitely off the Venezuelan coast, according to Mariscal Sucre workers. The Discoverer is being scrapped at an Indian junkyard. --- Mayela Armas and Maria Ramirez contributed to this article. --- PetroSaudi Used Funds From 1MDB To Buy Oil Rig Venezuela's probe into executives of its state oil company over a contract it entered into with PetroSaudi International Ltd. marks the second time investigators are known to have scrutinized a business partner of the Riyadh-based energy-investment startup. The U.S. Justice Department last summer alleged in civil lawsuits that more than $1 billion was diverted from the joint venture between PetroSaudi and Malaysian state fund 1Malaysia Development Bhd., over several years. The Justice Department lawsuits don't target either PetroSaudi or 1MDB. Investigators from the Federal Bureau of Investigation are also conducting a criminal investigation into the alleged 1MDB frauds, according to people familiar with the matter. The fund has denied wrongdoing and pledged to cooperate with any lawful investigation. U.S. authorities last year gave a senior PetroSaudi executive involved in the 1MDB deal, Patrick Mahony, a subpoena ordering him to testify about the alleged 1MDB fraud, according to people familiar with the matter. Mr. Mahony hasn't yet testified. PetroSaudi's lawyers, responding to questions on behalf of the company and Mr. Mahony, said the firm denies any wrongdoing and "no one from PetroSaudi has had to appear before a grand jury." While the Venezuela investigations are unrelated to continuing probes in six countries of 1MDB, they focus on the decision by Petroleos de Venezuela SA, or PdVSA, to lease a ship that PetroSaudi financed with a portion of the funds in the joint venture with 1MDB. The Justice Department says $700 million meant for the venture was diverted to a company in the Seychelles, which distributed money to beneficiaries of the alleged fraud. Part of the remaining $300 million was used by PetroSaudi to finance the purchase of the Discoverer drillship, according to financial records and people familiar with the transaction. The rig was then rented to PdVSA. -- Bradley Hope and Anatoly Kurmanaev Credit: By Anatoly Kurmanaev and Bradley Hope
Subject: Criminal investigations; Offshore oil exploration & development; Government contracts; Corruption in government; Fraud
Location: Venezuela
Company / organization: Name: 1Malaysia Development Bhd; NAICS: 928120; Name: Petroleos de Venezuela SA; NAICS: 211111; Name: PetroSaudi International Ltd; NAICS: 211120
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.10
Publication year: 2017
Publication date: Mar 16, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877709379
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877709379?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil's Losing Streak Ends as Stockpile Falls
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]16 Mar 2017: B.11.
Abstract:
[...]the International Energy Agency's monthly report for February showed an increase in crude production from OPEC members and non-OPEC producers alike. ---
Full text: Oil prices rose Wednesday, snapping a week-long losing streak, as a drop in U.S. stockpiles supported a rally from Tuesday's three-month lows. Light, sweet crude for April delivery settled up $1.14, or 2.4%, at $48.86 a barrel on the New York Mercantile Exchange. That is its biggest one-day gain since Jan. 11. Brent crude, the global benchmark, gained 89 cents, or 1.7%, to $51.81 a barrel on ICE Futures Europe. Crude levels in U.S. storage fell by 237,000 barrels in the week ended Friday, the U.S. Energy Information Administration said Wednesday. That was a surprise compared with expectations of a 3-million-barrel increase in stockpiles from analysts surveyed by The Wall Street Journal. It nearly met an industry estimate of a 531,000-barrel decline that was released Tuesday and had initially sent oil prices higher. Storage levels have drawn more interest in recent weeks as traders try to gauge the impact of cutbacks pledged by the world's biggest exporters. Oil began a slide of 10% in just five sessions last week after the same data showed an unexpectedly large increase in U.S. stockpiles at a time when many had expected production cuts would start to shrink those additions. Wednesday's report of a drain on stockpiles will help ease those concerns, said Scott Shelton, a broker at ICAP PLC. He noted that crude imports fell 9.1% to 7.4 million barrels a day, close to their 2017 lows. "At the end of the day, the bigger picture looks better after today," he said. "We need [weekly inventory declines] starting in [the second quarter] on a regular basis. So the fact we're doing it in the middle of March is a good sign." The EIA said gasoline stockpiles fell by 3.1 million barrels, compared with analysts' expectations of a two-million-barrel decrease. The American Petroleum Institute had estimated a 3.9-million-barrel fall. Gasoline futures flipped to losses after the data release and ended down just 0.01% at $1.5834 a gallon. They fell in five of the past six sessions. Inventories will have to keep dropping like this for several weeks to persuade traders that oversupply is really over, said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. "The reality is we still have high inventories," he added, noting that is a problem for traders across the oil markets. "It is still a lot of nervousness about how OPEC is going to address the future in the next 30 to 60 days." The Organization of the Petroleum Exporting Countries, and other major producers including Russia, agreed late last year to cut output by around 1.8 million barrels a day, equivalent to around 2% of global production. But the International Energy Agency's monthly report for February showed an increase in crude production from OPEC members and non-OPEC producers alike. --- David Hodari and Jenny W. Hsu contributed to this article. Credit: By Timothy Puko
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Mar 16, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877714340
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877714340?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Weighs Extending Supply Cuts; Cartel's de facto chief says oil-producing countries have shown 'impressive performance' in cutting supply
Author: Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Mar 2017: n/a.
Abstract:
Oil-producing countries inside and outside the Organization of the Petroleum Exporting Countries have shown "impressive performance" in throttling the flow of crude oil since reaching a deal late in 2016 to reduce its total output by 1.2 million barrels a day, Khalid al-Falih, the de facto leader of OPEC, said in a Wednesday interview. A glut, including from U.S. shale production, led to a collapse in oil prices in 2014, and even as producers have...Full text: OPEC members have "a strong willingness" to extend their production-cutting deal when they meet in May, Saudi Arabia's powerful energy minister said in an interview. Oil-producing countries inside and outside the Organization of the Petroleum Exporting Countries have shown "impressive performance" in throttling the flow of crude oil since reaching a deal late in 2016 to reduce its total output by 1.2 million barrels a day, Khalid al-Falih, the de facto leader of OPEC, said in a Wednesday interview. Mr. Falih said he and others are closely watching oil-inventory levels before deciding whether to extend the cuts. A glut, including from U.S. shale production, led to a collapse in oil prices in 2014, and even as producers have reduced output, stored inventories continue to hang over the market and have helped to keep the price of oil mired below $50, close to precut levels. Inventories haven't fallen as OPEC members hoped, though there is still time for that to change before the cartel's next meeting. Mr. Falih said members believe that the deal, which was supported by a consortium of non-OPEC countries including Russia, is working well and leading to steep output cuts. "My conversation with colleagues from OPEC and outside OPEC gives me a high degree of confidence that the impressive performance we have seen will improve" in terms of compliance with the production cuts, he said. OPEC members have been privately debating extending the cuts for the past few weeks, said people familiar with the matter. Kuwait became the first Persian Gulf ally of Saudi Arabia to call for extending the cuts recently. OPEC member Iran had also called for an extension, though it wasn't asked to cut. Some OPEC members have fallen short of their commitments to reduce output, while Saudi Arabia has cut more than its share. According to OPEC, the kingdom has cut 800,000 barrels a day since October, about 300,000 barrels a day more than it promised. That is putting pressure on Saudi Arabia's finances. Even with its $524 billion in foreign reserves, the kingdom isn't in a position to support the output cuts indefinitely. In January, the IMF cited the production cut when it slashed its expectation for Saudi Arabia's economic growth this year to 0.4%--the slowest rate since the global financial crisis--from a forecast of 2% made last October. Privately, Mr. Falih has been less sanguine. At a meeting last week in Houston during a weeklong industry conference, Mr. Falih took aside his Russian and Iraqi counterparts and expressed his frustration with their slow progress in reducing production, people familiar with the matter said. Iraq, a fellow OPEC member, and Russia both agreed to cut output but haven't fully made the cuts. "He was really fed up," said a person familiar with the meeting, speaking of Mr. Falih. Russia's energy minister, Alexander Novak, and Iraq's top oil official, Jabar Ali al-Luaibi, both reassured Mr. Falih that their countries were committed to cutting, said people familiar with the meeting. A Russian energy ministry spokesman and Mr. Luaibi didn't respond to requests for comment. Mr. Falih last week used CERAWeek, one of the world's biggest oil conferences, to warn that his country wouldn't "bear the burden of free riders." This week, some oil traders seized on Saudi oil production statistics as a signal the kingdom wouldn't cut more for long. While most information sources showed Saudi Arabia actually cut output in February, the kingdom itself told OPEC that its output had risen by 263,000 barrels a day last month compared with January. The kingdom, in a news release, later clarified that it was committed to the cut and blamed the statistical discrepancy on "operational factors." But oil prices fell on the news, as traders worried that kingdom was sending a message to rivals: Without Saudi Arabia's massive cuts, the market is headed down. If OPEC decides to cut production again at its May 25 meeting in Vienna, it will have a precedent for its move. The cartel cut output three times in 2008 after the financial crisis and spread out several decisions to trim output following the Asian financial collapse the late 1990s. Write to Benoit Faucon at benoit.faucon@wsj.com and Summer Said at summer.said@wsj.com Related Stories * Oil Selloff Continues on Worries Over Saudi Commitment * OPEC Cut Back Crude Output Amid Rebound in U.S. Shale Supply * Heard on the Street: Slippery Logic to Russia's Oil-Cut Claim (Jan. 4) * Russia Committed to Oil Production Cut Credit: By Benoit Faucon and Summer Said
Subject: Petroleum production; Profits; Cartels; Crude oil prices; Market shares
Location: Russia Saudi Arabia Iraq
People: Mohamed bin Salman, Prince of Saudi Arabia Novak, Alexander
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877774919
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877774919?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Wavers on Fears OPEC Production Cuts Won't Be Enough to Raise Prices; Prices down to their lowest levels since OPEC and other producers agreed late last year to cut output by 1.8 million barrels a day for six months
Author: Sider, Alison; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Mar 2017: n/a.
Abstract:
Oil prices edged lower Thursday, resuming a downward slide as market participants continued to grapple with fears that OPEC's production cuts won't be enough to lift prices. Stephen Schork, editor of energy trade publication the Schork Report, said Wall Street's confidence in the Organization of the Petroleum Exporting Countries is crumbling. "The EIA expects higher U.S. oil output because the number of U.S. oil rigs operating has nearly doubled from the low set last May,"...Full text: Oil prices edged lower Thursday, resuming a downward slide as market participants continued to grapple with fears that OPEC's production cuts won't be enough to lift prices. U.S. crude futures settled down 11 cents, or 0.23%, at $48.75 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 7 cents, or 0.14%, to $51.74 a barrel on ICE Futures Europe. Oil prices had traded within a $4 range since the start of the year until last week, when doubts over whether production cuts were achieving their aim of draining a global glut sent prices tumbling. Stephen Schork, editor of energy trade publication the Schork Report, said Wall Street's confidence in the Organization of the Petroleum Exporting Countries is crumbling. "If crude oil cannot rally now--at the outset of the strongest demand portion of the year--then when can it rally?" he said. "The market is now at its make-or-break point." Oil prices have dropped in 11 of the last 13 sessions, and are down nearly 10.5% from the one-year high reached in February. Prices turned higher on Wednesday after the U.S. Energy Information Administration reported that crude inventories fell for the first time this year. But now U.S. crude prices are struggling to reach $50 a barrel, a level that has been a lower bound for much of the year. "We got into a new range," said Tariq Zahir, managing member of Tyche Capital Partners. "You would need to see something to get some sustained buying." Oil prices have dropped back to their lowest levels since OPEC and other producers including Russia agreed late last year to cut production by 1.8 million barrels a day for six months. Investors who made big bets that the cuts would lift oil prices are starting to have doubts. Saudi Arabia has so far borne the brunt of the cuts, making up for other producers that haven't fully complied--a situation that some worry is becoming increasingly precarious. Saudi Arabia has warned both publicly and privately that it won't keep cutting unless other producers also stick to the agreement. At the same time, U.S. producers are eagerly taking advantage of higher prices by cranking up production. Data from the U.S. Energy Information Administration shows that in the latest week, U.S. output hit a 13-month high at 9.1 million barrels a day. Year-to-date, U.S. production has risen by almost 2%. The EIA also revised up its latest forecast on U.S. production, tipping production there will reach 9.2 million barrels and 9.7 million barrels this and next year, respectively. "The EIA expects higher U.S. oil output because the number of U.S. oil rigs operating has nearly doubled from the low set last May," said Vivek Dhar, a commodities strategist for Commonwealth Bank of Australia. The data, he added, also suggest that oil prices around $50 a barrel are encouraging the restart of idled U.S. shale-oil output. Gasoline futures rose 1.08 cents, or 0.68%, to $1.5942 a gallon. Diesel futures rose 0.81 cents, or 0.54%, to $1.5043 a gallon. Write to Alison Sider at alison.sider@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Sarah McFarlane and Jenny W. Hsu
Subject: Stocks; Cartels; Crude oil prices; Supply & demand
Location: Russia Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: Englis h
Document type: News
ProQuest document ID: 1877775017
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877775017?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Cargill to Sell Oil Trading Business to Macquarie; The agricultural giant is refocusing on its core food operations and higher-profit products
Author: Bunge, Jacob
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Mar 2017: n/a.
Abstract:
Cargill Inc. will sell its petroleum-trading business to Macquarie Group, part of a yearslong campaign by the agricultural giant to refocus its sprawling business portfolio toward its core food operations and higher-profit products. Cargill said its financial division will continue to sell energy risk-management services in petroleum-related products, which help...Full text: Cargill Inc. will sell its petroleum-trading business to Macquarie Group, part of a yearslong campaign by the agricultural giant to refocus its sprawling business portfolio toward its core food operations and higher-profit products. The deal, announced Thursday, will shift to Macquarie a nearly 140-person group that trades crude oil and related products from offices in Europe, North America and Asia, Cargill said. Terms of the deal weren't disclosed, and the companies expect it to close later this year. Cargill, based in suburban Minneapolis, has been streamlining its operations and corporate structure amid a protracted slump in agricultural commodity markets, brought on by rising overseas production and a series of bumper crops in North America. Massive grain supplies have muted volatility in commodity markets, leaving traders like Cargill with fewer opportunities to capture profits. Cheap grain has also encouraged poultry and livestock producers to expand, contributing to lower meat prices. In Cargill's most-recent fiscal year, the company sold about $2.4 billion worth of assets, ranging from pork-processing plants to a steelmaking venture and its crop insurance business. The company meanwhile spent $3 billion on acquisitions and investments, including a salmon feed maker and beef processing plants. Cargill, the largest U.S. private company in terms of sales, last summer was considering a sale of its metals and energy businesses as part of the broader revamp. Macquarie's commitment to growing in energy trading made it a good owner for the business, said David Dines, Cargill's head of energy, transportation and metals, in a statement Thursday. Macquarie employs about 240 people in its energy trading operations, working with energy producers, refiners, airlines and shipping companies. Cargill said its financial division will continue to sell energy risk-management services in petroleum-related products, which help clients shield themselves against swings in commodity prices. Write to Jacob Bunge at jacob.bunge@wsj.com Credit: By Jacob Bunge
Subject: Corporate profits; Agricultural commodities; Commodity markets
Location: United States--US Asia North America Europe
Company / organization: Name: Macquarie Group; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 16, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877882034
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877882034?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
The Sponge That Cleans Oil Spills; Scientists say they have treated common household foam so that it will rapidly suck up oil from water--even below the surface
Author: Akst, Daniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Mar 2017: n/a.
Abstract: None available.
Full text: Oil and water don't mix, the saying goes, but in the event of a big oil spill, they do a pretty good imitation. That is one reason offshore crude-oil cleanups can be so tough. One option is corralling the oil so that it can be skimmed or suctioned, which is difficult in roiling seas. Other options have serious environmental trade-offs--including burning the oil in place, dispersing it with chemicals or spreading various disposable materials to soak it up. Offshore drilling mishaps can be especially troublesome, producing not just a large surface slick but also masses of droplets suspended in a towering plume below. Enter Oleo Sponge, a new invention meant to remedy these shortcomings. It is the brainchild of scientists at Argonne National Laboratory, operated by the University of Chicago for the U.S. Energy Department. They have developed a way to treat common household foam--used in cushions and the like--so that it will rapidly suck up oil from water, even below the surface. In addition, a hunk of Oleo Sponge can be wrung out and used again and again. Oil squeezed from the sponge also can be reused, which makes it a potential asset instead of a hazardous waste problem. The results, while still preliminary, have been encouraging. The scientists report that their invention takes in--the technical term is "adsorbs"--up to 90 times its weight in oil. Oleo Sponge has performed not just in the lab but also in tests at the National Oil Spill Response Research and Renewable Energy Test Facility in Leonardo, N.J. Operated by a contractor for the Interior Department, the facility's centerpiece is a huge tank filled with 2.6 million gallons of saltwater, enabling equipment to be tested on something like a real-world scale. At the facility, large segments of foam were used and squeezed out repeatedly, with no significant degradation. In its ordinary state, a piece of common foam will soak up fluid indiscriminately. How to make it especially attractive to oil? It depends on a process called "sequential infiltration synthesis," which the Argonne scientists had previously invented for other purposes. This is a way of getting inorganic materials such as metal oxides into polymers such as polyurethane. In this case, the researchers adapted the technique so they could bind aluminum oxide to the fibers within the foam. Thus primed, the foam was treated with carbon-based chemicals to make it oleophilic, or "oil loving." Seth Darling, a co-inventor of the Oleo Sponge, notes that in this second step, he and his colleagues could also easily treat the foam with a different chemical to make it soak up some other unwanted substances, such as heavy metals, pesticide-laden runoff or waste pharmaceuticals. From there, it is just a matter of getting the sponge into contact with oily water. Surface spills could be handled by towing a large sponge through the spill; once contact is made, oil's property of "cohesion" encourages the molecules to pull one another in. For underwater oil, Dr. Darling envisions fishing trawlers dragging net-mounted sponges through oily waters. Saturated sponges could be hauled aboard and wrung out, the oil could be collected, and the process could be repeated as needed. Depending on their long-term durability, precautionary arrays of the sponges might even be used to surround offshore oil wells as protection against a spill. "Advanced Oil Sorbents Using Sequential Infiltration Synthesis," Edward Barry, Anil U. Mane, Joseph A. Libera, Jeffrey W. Elam and Seth B. Darling, Journal of Materials Chemistry A (Jan. 11) Credit: By Daniel Akst
Subject: Chemical spills; Oil spills
Company / organization: Name: Argonne National Laboratory; NAICS: 541711; Name: University of Chicago; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 16, 2017
Section: Life
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877903536
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877903536?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Gain Traction
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.
Abstract:
Crude futures gained some traction in Asia on Friday, though resilient output from the U.S. and uncertainty over the oil cartel's commitment to production cuts have kept investors sidelined. "While U.S. oil output is unlikely to fully replace the cuts to global oil production this year, we remain open to the possibility that U.S. oil supply could surprise to the upside," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. [...]with oil prices...Full text: Crude futures gained some traction in Asia on Friday, though resilient output from the U.S. and uncertainty over the oil cartel's commitment to production cuts have kept investors sidelined. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April were last up $0.08 at $48.83 a barrel in the Globex electronic session. May Brent crude on London's ICE Futures exchange gained $0.04 to $51.78 a barrel. Oil prices have crept up from near four-month lows earlier in the week, thanks to bargain hunters and a weakening dollar. But potential downside risks remain as the market is still overbought, said Tim Evans, a Citi Futures analyst. If U.S. oil continues to remain in the sub-$50 rut, producers there may dial back production, analysts say. "While U.S. oil output is unlikely to fully replace the cuts to global oil production this year, we remain open to the possibility that U.S. oil supply could surprise to the upside," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. "However, with oil prices now under $50 a barrel for WTI crude oil, U.S. oil supply growth may start to slow." An oil glut has depressed prices for more than two years, affecting a number of oil-dependent countries, including Saudi Arabia. Last year, the Organization of the Petroleum Exporting Countries and a consortium of producers, including Russia, agreed to cut output by 1.8 million barrels a day to boost flagging prices. Oil prices rose, but the upswing didn't last as it prompted more U.S. shale oil producers to return to the oil patches. U.S. production breached the 9-million- barrel-a-day threshold for four straight weeks, recent data showed. Elevated U.S. crude stockpiles have dragged prices down by around 9% so far this week. Analysts say the OPEC deal may be at stake if U.S. producers continue to pose a threat to the oil cartel's market share. Still, Capital Economics said the chances of further reductions later this year "have certainly improved from this time last month." Saudi Energy Minister Khalid al-Falih said in an interview Wednesday that OPEC has a "strong willingness" to extend the deal when members meet in late May. "My conversation with colleagues from OPEC and outside OPEC gives me a high degree of confidence that the impressive performance we have seen will improve," he said, referring to members' compliance with the production cuts. Data on the weekly U.S. oil rig count is due later in the day. The number of active oil rigs in the U.S. rose for the eighth straight week to 617 last week. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell $1.5926 a gallon, while diesel traded unchanged at $1.5043 points higher. ICE gasoil for June changed hands at $456.25.00 a metric ton, up $1.25 from Thursday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Crude oil
Location: United States--US
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1877998570
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1877998570?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon Rejects New York's Accusations in Climate Case; Oil major acknowledges more of Tillerson's emails could emerge because of technical issue with his alias account
Author: Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.
Abstract: None available.
Full text: Exxon Mobil Corp. called accusations that it withheld documents relating to climate change from the New York attorney general an attempt to discredit the energy company, but disclosed a newly discovered technical issue that could mean it will soon release more of its former chairman's emails. Attorney General Eric Schneiderman's office has been investigating whether Exxon misrepresented its understanding of climate change to investors and the public. Earlier this week, lawyers for Mr. Schneiderman's office said in court documents that Exxon had not disclosed that Rex Tillerson, Exxon's former chief executive, had used an alias email--wayne.tracker@exxonmobil.com --to discuss the issue. Exxon rebutted that claim in a letter to the court on Thursday, saying that the accusations were about "obtaining publicity, not information." The company has produced more than 2.5 million pages of documents in connection with Mr. Schneiderman's investigation, including emails from the Wayne Tracker account , as well as the primary Exxon email address used by Mr. Tillerson, who is now U.S. secretary of state. "Mr. Tillerson's use of the Wayne Tracker account was entirely proper," Exxon said in its letter. "It allowed a limited group of senior executives to send time-sensitive messages to Mr. Tillerson that received priority over the normal daily traffic that crossed the desk of a busy CEO. The purpose was efficiency, not secrecy." But a re-examination of Mr. Tillerson's Wayne Tracker account--prompted by Mr. Schneiderman's accusations--revealed a technical issue with the system Exxon uses to protect and save emails that are under a litigation hold, the company said. "Despite the company's intent to preserve the relevant emails in both of Mr. Tillerson's accounts, due to the manner in which email accounts had been configured years earlier and how they interact with the system, these technological processes did not automatically extend to the secondary email account," Exxon said in the letter to the court. That means more emails associated with the Wayne Tracker email address could surface and be released to the AG's office. But because many of the emails sent to the Wayne Tracker account were also sent to Mr. Tillerson's primary email, or were sent from senior executives whose communications fall under Mr. Schneiderman's subpoena, Exxon said it expects the impact of the technical issue "will not be significant." Mr. Schneiderman's office has known about the alias email account since February 2016, the company said. A spokeswoman for the attorney general said he looked forward to addressing the issues raised in Exxon's letter in court. "More than 16 months after receiving our subpoena, Exxon is just now admitting it may not have preserved or produced the emails of its former CEO, who used an alias email account," said Amy Spitalnick, press secretary for Mr. Schneiderman. Mr. Tillerson has been traveling in Asia this week. The State Department declined comment. Credit: By Erin Ailworth
Subject: Electronic mail systems; Attorneys general; Subpoenas; Climate change
Location: United States--US
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 17, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878007433
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878007433?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall as OPEC Fears Persist
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 Mar 2017: B.10.
Abstract:
Stephen Schork, editor of energy trade publication the Schork Report, said Wall Street's confidence in the Organization of the Petroleum Exporting Countries is crumbling.
Full text: Oil prices edged lower Thursday, as market participants continued to grapple with fears that OPEC's production cuts won't be enough to lift prices. U.S. crude futures settled down 11 cents, or 0.2%, at $48.75 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell seven cents, or 0.1%, to $51.74 a barrel on ICE Futures Europe. Oil prices had traded within a $4 range since the start of the year until last week, when prices tumbled on doubts on whether production cuts were achieving their aim of draining a global glut. Stephen Schork, editor of energy trade publication the Schork Report, said Wall Street's confidence in the Organization of the Petroleum Exporting Countries is crumbling. "If crude oil cannot rally now -- at the outset of the strongest demand portion of the year -- then when can it rally?" he said. "The market is now at its make-or-break point." Oil prices have dropped in 11 of the past 13 sessions and are down more than 10% from the one-year high reached in February. Credit: By Alison Sider and Sarah McFarlane
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Mar 17, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878040736
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878040736?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Weighs Extending Supply Cuts; Cartel's de facto chief says oil-producing countries have shown 'impressive performance' in cutting supply
Author: Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.
Abstract:
Oil-producing countries inside and outside the Organization of the Petroleum Exporting Countries have shown "impressive performance" in throttling the flow of crude oil since reaching a deal late in 2016 to reduce its total output by 1.2 million barrels a day, Khalid al-Falih, the de facto leader of OPEC, said in a Wednesday interview. A glut, including from U.S. shale production, led to a collapse in oil prices in 2014, and even as producers have...Full text: OPEC members have "a strong willingness" to extend their production-cutting deal when they meet in May, Saudi Arabia's powerful energy minister said in an interview. Oil-producing countries inside and outside the Organization of the Petroleum Exporting Countries have shown "impressive performance" in throttling the flow of crude oil since reaching a deal late in 2016 to reduce its total output by 1.2 million barrels a day, Khalid al-Falih, the de facto leader of OPEC, said in a Wednesday interview. Mr. Falih said he and others are closely watching oil-inventory levels before deciding whether to extend the cuts. A glut, including from U.S. shale production, led to a collapse in oil prices in 2014, and even as producers have reduced output, stored inventories continue to hang over the market and have helped to keep the price of oil mired below $50, close to precut levels. Inventories haven't fallen as OPEC members hoped, though there is still time for that to change before the cartel's next meeting. Mr. Falih said members believe that the deal, which was supported by a consortium of non-OPEC countries including Russia, is working well and leading to steep output cuts. "My conversation with colleagues from OPEC and outside OPEC gives me a high degree of confidence that the impressive performance we have seen will improve" in terms of compliance with the production cuts, he said. OPEC members have been privately debating extending the cuts for the past few weeks, said people familiar with the matter. Kuwait became the first Persian Gulf ally of Saudi Arabia to call for extending the cuts recently. OPEC member Iran had also called for an extension, though it wasn't asked to cut. Some OPEC members have fallen short of their commitments to reduce output, while Saudi Arabia has cut more than its share. According to OPEC, the kingdom has cut 800,000 barrels a day since October, about 300,000 barrels a day more than it promised. That is putting pressure on Saudi Arabia's finances. Even with its $524 billion in foreign reserves, the kingdom isn't in a position to support the output cuts indefinitely. In January, the IMF cited the production cut when it slashed its expectation for Saudi Arabia's economic growth this year to 0.4%--the slowest rate since the global financial crisis--from a forecast of 2% made last October. Privately, Mr. Falih has been less sanguine. At a meeting last week in Houston during a weeklong industry conference, Mr. Falih took aside his Russian and Iraqi counterparts and expressed his frustration with their slow progress in reducing production, people familiar with the matter said. Iraq, a fellow OPEC member, and Russia both agreed to cut output but haven't fully made the cuts. "He was really fed up," said a person familiar with the meeting, speaking of Mr. Falih. Russia's energy minister, Alexander Novak, and Iraq's top oil official, Jabar Ali al-Luaibi, both reassured Mr. Falih that their countries were committed to cutting, said people familiar with the meeting. A Russian energy ministry spokesman and Mr. Luaibi didn't respond to requests for comment. Mr. Falih last week used CERAWeek, one of the world's biggest oil conferences, to warn that his country wouldn't "bear the burden of free riders." This week, some oil traders seized on Saudi oil production statistics as a signal the kingdom wouldn't cut more for long. While most information sources showed Saudi Arabia actually cut output in February, the kingdom itself told OPEC that its output had risen by 263,000 barrels a day last month compared with January. The kingdom, in a news release, later clarified that it was committed to the cut and blamed the statistical discrepancy on "operational factors." But oil prices fell on the news, as traders worried that kingdom was sending a message to rivals: Without Saudi Arabia's massive cuts, the market is headed down. If OPEC decides to cut production again at its May 25 meeting in Vienna, it will have a precedent for its move. The cartel cut output three times in 2008 after the financial crisis and spread out several decisions to trim output following the Asian financial collapse the late 1990s. Write to Benoit Faucon at benoit.faucon@wsj.com and Summer Said at summer.said@wsj.com Related Stories * Oil Selloff Continues on Worries Over Saudi Commitment * OPEC Cut Back Crude Output Amid Rebound in U.S. Shale Supply * Heard on the Street: Slippery Logic to Russia's Oil-Cut Claim (Jan. 4) * Russia Committed to Oil Production Cut Credit: By Benoit Faucon and Summer Said
Subject: Petroleum production; Cartels; Crude oil prices; International finance; Economic crisis; Quotas
Location: Kuwait Russia United States--US Saudi Arabia Iraq Persian Gulf
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: Uni ted States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878069224
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878069224?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Why Oil Demand May Be Higher Than Expected; Oil prices may be boosted as demand is consistently underestimated, according to a Wall Street Journal analysis
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.
Abstract: None available.
Full text: Investors fretting about too much oil supply may get some cheer from demand, or at least the statistics that consistently underestimate it. The International Energy Agency's closely watched annual estimates of global crude demand have been revised up for the past seven years by an average of 880,000 barrels a day, according to a Wall Street Journal analysis. Investors and analysts believe that the IEA will have also underestimated demand this year, suggesting that more oil is being bought than the market currently believes. "In recent years, we've seen oil demand being constantly revised higher and by the looks of it this year shouldn't be any different," said Rob Thummel, portfolio manager at Tortoise Capital Advisors, which manages $17 billion in energy assets. "This is a clear positive for oil prices ." U.S. oil prices last week fell around 9% on data that showed American inventories were still rising. The history of discrepancies underscores how oil markets often trade on incomplete data. The demand revisions have amounted, on average, to less than 1% of a giant market in which about 97 million barrels of oil are sold daily. But the difference, if repeated this year, is important. The oversupply that has pressured oil prices for almost three years was estimated at around 1% to 2% of the market in 2016. To be sure, the IEA may get its prediction right this year, and others release demand predictions that are used by investors. Still, there is little evidence that those other forecasts are more accurate. The U.S. Energy Information Administration's forecasts have underestimated consumption over the past seven years, with the annual figures being revised up by an average of 2.3 million barrels a day, according to an analysis by The Wall Street Journal. A spokesman for the agency said the underestimation is due to lags in historical data and the lack of data from some countries, among other reasons. The IEA's data, though, is the most closely watched and is often used by oil analysts in their own reports. The agency estimates global oil demand based on data and statistical models. It then revises the statistics in monthly reports as more data become available. The Journal compared the IEA's predictions for annual demand made in January of each of the past seven years with latest available estimates for those years. Looking at predictions made in March and September over the seven years painted a similar picture of consistent underestimates. Revisions of oil supply estimates are typically much smaller than for demand--and are often about correcting overestimates for crude production. The IEA's supply data has been revised down 60,000 barrels a day on average over the last seven years, according to the Journal analysis. That means the oversupply usually ends up being smaller than initially thought, another positive for those wanting higher oil prices. Matt Parry, a senior oil market analyst at the IEA, said that demand is harder to estimate than supply. It involves "billions of consumers world-wide and many millions of companies of all sizes, whereas supply can be estimated from the pre-announced expansion plans of a much, much smaller number of companies," he said. "Our accuracy has improved recently but there are so many moving parts in the market," he added. The IEA has already raised its 2017 demand forecast once this year, by 200,000 barrels a day. But going by past examples--and with an upturn in global growth--the number could still be increased substantially, analysts said. "Continued upgrades to historic demand figures are particularly frustrating," analysts at Swiss bank UBS wrote in a recent report. The bank estimates that for 31 of the past 35 quarters, IEA data revisions have shown a tighter oil market than it initially estimated. UBS believes that demand is also harder to pin down because around half of global oil consumption now comes from countries outside the Organization for Economic Cooperation and Development, where statistical gathering isn't well developed. The U.S., an OECD member state and the world's biggest crude consumer, produces weekly demand estimates--and they are often later revised. Data revisions don't just happen in the oil market. A lot of official economic statistics are subject to regular changes as more data become available. The U.S. gross domestic product, for example, is often revised in updates. But data revisions are particularly important for the oil industry now, given that the market appears finally on the verge of sapping its persistent glut. The Organization of the Petroleum Exporting Countries and big producers such as Russia agreed in December to reduce their production in a bid to drain storage tanks around the world and push the oil price higher. While most market participants are currently focused on supply changes--from OPEC output cuts to U.S. shale growth--they should also look for changes in demand. "If the market players become more aware of the strong demand-numbers and the constant upward revisions to demand, it could be very supportive to prices," said Torbjorn Kjus, oil analyst at Norway-based DNB Bank. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Prices; Revisions; Estimates; Oil consumption; Economic growth; Economic statistics; Gross Domestic Product--GDP
Location: United States--US
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878114553
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878114553?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further re production or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Settles Slightly Higher as Rising U.S. Supply Weighs; Crude futures settle slightly higher as resilient output from the U.S. and uncertainty over OPEC's commitment to cuts keeps investors cautious
Author: Sider, Alison; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.
Abstract: None available.
Full text: Crude futures settled slightly higher Friday, following a turbulent period when resilient output from the U.S. and uncertainty over OPEC's commitment to production cuts kept investors cautious. U.S. crude futures settled up 3 cents, or 0.06%, at $48.78 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, was unchanged at $51.74 a barrel on ICE Futures Europe. While oil prices haven't regained the ground they lost during last week's dramatic selloff, they have steadied, posting a 0.6% increase this week and snapping a two-week losing streak. "We're muddling around," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates. "It looks like the bulls are trying to stay in charge." Still, prices remained near a 3½ month low hit earlier in the week, even as major producers tried to reassure the market that they are committed to cutting production until the global glut of oil has been worked down. Saudi Energy Minister Khalid al-Falih said in an interview Wednesday that the Organization of the Petroleum Exporting Countries has a "strong willingness" to extend its production cut deal beyond the initial six-months when members meet in late May. That oil prices have failed to sustain a rally after similar statements may be a bearish signal, said Citi Futures analyst Tim Evans. "Neither a weaker dollar nor Saudi talk of doing 'whatever it takes' to bring inventories down to healthier levels is inspiring much buying, which may feed back to the market as a failure to rally on bullish news, further weakening market sentiment," Mr. Evans wrote in a research note. In recent days, oil prices have traded in a lower range amid doubts that global inventories would diminish as quickly as OPEC and other producers had hoped. "Focus remains on the continued high global inventories which according to OPEC's latest report remain 278 million barrels above the five-year average in January," said Michael Poulsen, oil risk manager at Global Risk Management. And the higher prices triggered by OPEC's decision late last year to cut output in coordination with other major exporters, like Russia, has enticed producers outside of the agreement to increase their output. Analysts say the OPEC deal may be at stake if U.S. producers continue to pose a threat to the oil cartel's market share. Earlier this week the Energy Information Administration said U.S. output had already eclipsed 9 million barrels a day and would reach 9.7 million barrels within a year. "While U.S. oil output is unlikely to fully replace the cuts to global oil production this year, we remain open to the possibility that U.S. oil supply could surprise to the upside," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. "However, with oil prices now under $50 a barrel for WTI crude oil, U.S. oil supply growth may start to slow." The number of active oil rigs in the U.S. rose for the ninth-straight week to 631 last week--an increase of 14 rigs, according to oil-field-services firm Baker Hughes Inc. "The number of active drilling rigs has increased steadily for months as oil prices inched upward--now with the recent oil price drops, it will be interesting to see if shale oil drillers will start shutting some oil taps as production becomes less lucrative," Mr. Poulsen said. Gasoline futures rose 0.47 cent, or 0.29%, to $1.5989 a gallon. Diesel futures rose 0.42 cent, or 0.28%, to $1.5085 a gallon. Write to Alison Sider at alison.sider@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Sarah McFarlane and Jenny W. Hsu
Subject: Petroleum production; Futures; Crude oil prices; Supply & demand
Location: Russia United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878124549
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878124549?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil Prices Remain Below $50; Crude futures gained some traction in Asia, though resilient output from the U.S. and uncertainty over the oil cartel's commitment to production cuts have kept investors sidelined.
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.
Abstract:
Crude futures gained some traction in Asia on Friday, though resilient output from the U.S. and uncertainty over the oil cartel's commitment to production cuts have kept investors sidelined. "While U.S. oil output is unlikely to fully replace the cuts to global oil production this year, we remain open to the possibility that U.S. oil supply could surprise to the upside," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. [...]with oil prices...Full text: Crude futures gained some traction in Asia on Friday, though resilient output from the U.S. and uncertainty over the oil cartel's commitment to production cuts have kept investors sidelined. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April were last up $0.08 at $48.83 a barrel in the Globex electronic session. May Brent crude on London's ICE Futures exchange gained $0.04 to $51.78 a barrel. Oil prices have crept up from near four-month lows earlier in the week, thanks to bargain hunters and a weakening dollar. But potential downside risks remain as the market is still overbought, said Tim Evans, a Citi Futures analyst. If U.S. oil continues to remain in the sub-$50 rut, producers there may dial back production, analysts say. "While U.S. oil output is unlikely to fully replace the cuts to global oil production this year, we remain open to the possibility that U.S. oil supply could surprise to the upside," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. "However, with oil prices now under $50 a barrel for WTI crude oil, U.S. oil supply growth may start to slow." An oil glut has depressed prices for more than two years, affecting a number of oil-dependent countries, including Saudi Arabia. Last year, the Organization of the Petroleum Exporting Countries and a consortium of producers, including Russia, agreed to cut output by 1.8 million barrels a day to boost flagging prices. Oil prices rose, but the upswing didn't last as it prompted more U.S. shale oil producers to return to the oil patches. U.S. production breached the 9-million- barrel-a-day threshold for four straight weeks, recent data showed. Elevated U.S. crude stockpiles have dragged prices down by around 9% so far this week. Analysts say the OPEC deal may be at stake if U.S. producers continue to pose a threat to the oil cartel's market share. Still, Capital Economics said the chances of further reductions later this year "have certainly improved from this time last month." Saudi Energy Minister Khalid al-Falih said in an interview Wednesday that OPEC has a "strong willingness" to extend the deal when members meet in late May. "My conversation with colleagues from OPEC and outside OPEC gives me a high degree of confidence that the impressive performance we have seen will improve," he said, referring to members' compliance with the production cuts. Data on the weekly U.S. oil rig count is due later in the day. The number of active oil rigs in the U.S. rose for the eighth straight week to 617 last week. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell $1.5926 a gallon, while diesel traded unchanged at $1.5043 points higher. ICE gasoil for June changed hands at $456.25.00 a metric ton, up $1.25 from Thursday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com (END) Dow Jones Newswires March 17, 2017 00:24 ET (04:24 GMT) Copyright (c) 2017 Dow Jones & Company, Inc. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Petroleum production; Cartels; Crude oil prices
Location: Russia United States--US Asia Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 17, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878124872
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878124872?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Statoil Says Business Resilient to Tougher Climate-Change Rules; Norwegian oil giant sees value rising in stress test for stringent emissions rules
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.
Abstract: None available.
Full text: Norway's state-owned oil giant Statoil ASA said it was rebalancing its business model so far toward renewables and cleaner fossil fuels that the company's value would rise even if the world's governments took drastic actions to limit carbon emissions. In a stress test the company published in its sustainability report Friday, Statoil found it was planning for a tougher future than the one suggested by mainstream forecasts regarding the impact on the energy industry from more stringent action on climate change. Statoil's assessment reflects the continuing pressure on big oil companies from investors and governments to adapt, ahead of tougher regulations on climate change. The company is amid a shift away from the dirtiest oil extraction techniques, has applied tough internal assumptions on oil and carbon prices and is trying to reduce its own emissions. The company is preparing for strict new government regulations based on a framework world leaders agreed to in Paris in December 2015. The agreement between more than 200 countries pledged to cap emissions and limit the global rise in temperature. While it remains unclear how governments will achieve the agreement, Statoil believes its "net present value" will rise 6% under the core scenario to limit global warming envisioned by the International Energy Agency. In this scenario, the Paris-based energy monitor envisions governments removing fossil fuel subsidies and, in many places, implementing a carbon price of $100 a ton by 2030 to help keep global temperatures from rising more than 2 degrees Celsius by the end of the century. In 2016, Statoil said a similar climate-change scenario would reduce the company's value by about 5% compared with expectations based on its own internal planning outlook. Net present value is a way of analyzing company's potential profitability based on the estimated current value of its investments and future cash flows. "We believe that we're in a period of energy transformation over the next decade," said Bjørn Otto Sverdrup, Statoil's head of sustainability. "The winners in the industry will be the ones that are able to provide energy with the lowest cost and carbon footprint possible." Mr. Sverdrup said the assessment reflected the company's recent moves. In 2016, it exited Canadian oil sands projects, which are known for high carbon emissions. It has set a goal of increasing its spending on renewables to 15% to 20% of its overall capital spending by 2030 and reducing its carbon dioxide emissions by 3 million tons a year over the same period. By contrast, Royal Dutch Shell PLC said last week in its annual report that "policies and regulations designed to limit the increase in global temperatures to well below 2 degrees Celsius could have a material adverse impact"--though based on the current trajectory of policy change, the company said its portfolio was resilient. Last week, Chevron Corp. published a report that played down the risk a transition to lower-carbon energy sources might pose, highlighting the company's investment in lower-cost opportunities that would remain competitive even if consumption weakens. Statoil has been among the most progressive of the big oil companies in tackling the challenges presented by a potential transition away from high-carbon fuels like oil, making significant commitments to invest more in renewables and reduce emissions. "What we've done now is quite a distinct step forward," Mr. Sverdrup said. "This is how we make it fit for the future." Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Emissions; Carbon; Capital expenditures; Present value
Location: Norway
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Statoil ASA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 17, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878146882
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878146882?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 14; The nation's gas-rig count rises by six to 157
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by 14 in the past week to 631, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. However, the rig count has generally been rising since last summer. The nation's gas-rig count rose by six to 157 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell by one rig from last week to 19, which is down eight rigs year over year. U.S.-traded crude-oil prices have gained back 0.5% this week, after falling more than 9% the prior week because of concerns about resilient output from the U.S. and uncertainty over how much the Organization of the Petroleum Exporting Countries will cut production. On Friday, U.S.-traded crude oil fell 0.1% to $48.71 a barrel. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878209581
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878209581?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
REVIEW --- R&D: The Foam That Cleans Oil Spills
Author: Akst, Daniel
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Mar 2017: C.4.
Abstract:
In this case, the researchers adapted the technique so they could bind aluminum oxide to the fibers within the foam. [...]primed, the foam was treated with carbon-based chemicals to make it oleophilic, or "oil loving."
Full text: Oil and water don't mix, the saying goes, but in the event of a big oil spill, they do a pretty good imitation. That is one reason offshore crude-oil cleanups can be so tough. One option is corralling the oil so that it can be skimmed or suctioned, which is difficult in roiling seas. Other options have serious environmental trade-offs -- including burning the oil in place, dispersing it with chemicals or spreading various disposable materials to soak it up. Offshore drilling mishaps can be especially troublesome, producing not just a large surface slick but also masses of droplets suspended in a towering plume below. Enter Oleo Sponge, a new invention meant to remedy these shortcomings. It is the brainchild of scientists at Argonne National Laboratory, operated by the University of Chicago for the U.S. Energy Department. They have developed a way to treat common household foam -- used in cushions and the like -- so that it will rapidly suck up oil from water, even below the surface. In addition, a hunk of Oleo Sponge can be wrung out and used again and again. Oil squeezed from the sponge also can be reused, which makes it a potential asset instead of a hazardous waste problem. The results, while still preliminary, have been encouraging. The scientists report that their invention takes in -- the technical term is "adsorbs" -- up to 90 times its weight in oil. Oleo Sponge has performed not just in the lab but also in tests at the National Oil Spill Response Research and Renewable Energy Test Facility in Leonardo, N.J. Operated by a contractor for the Interior Department, the facility's centerpiece is a huge tank filled with 2.6 million gallons of saltwater, enabling equipment to be tested on something like a real-world scale. At the facility, large segments of foam were used and squeezed out repeatedly, with no significant degradation. In its ordinary state, a piece of common foam will soak up fluid indiscriminately. How to make it especially attractive to oil? It depends on a process called "sequential infiltration synthesis," which the Argonne scientists had previously invented for other purposes. This is a way of getting inorganic materials such as metal oxides into polymers such as polyurethane. In this case, the researchers adapted the technique so they could bind aluminum oxide to the fibers within the foam. Thus primed, the foam was treated with carbon-based chemicals to make it oleophilic, or "oil loving." Seth Darling, a co-inventor of the Oleo Sponge, notes that in this second step, he and his colleagues could also easily treat the foam with a different chemical to make it soak up some other unwanted substances, such as heavy metals, pesticide-laden runoff or waste pharmaceuticals. From there, it is just a matter of getting the sponge into contact with oily water. Surface spills could be handled by towing a large sponge through the spill; once contact is made, oil's property of "cohesion" encourages the molecules to pull one another in. For underwater oil, Dr. Darling envisions fishing trawlers dragging net-mounted sponges through oily waters. Saturated sponges could be hauled aboard and wrung out, the oil could be collected, and the process could be repeated as needed. Depending on their long-term durability, precautionary arrays of the sponges might even be used to surround offshore oil wells as protection against a spill. "Advanced Oil Sorbents Using Sequential Infiltration Synthesis," Edward Barry, Anil U. Mane, Joseph A. Libera, Jeffrey W. Elam and Seth B. Darling, Journal of Materials Chemistry A (Jan. 11) Credit: By Daniel Akst
Subject: Oil spills
Company / organization: Name: University of Chicago; NAICS: 611310; Name: Argonne National Laboratory; NAICS: 541711
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: C.4
Publication year: 2017
Publication date: Mar 18, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878355864
Document URL: https://login.ezpro xy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878355864?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Demand Proves a Slippery Stat
Author: Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Mar 2017: B.9.
Abstract:
The U.S. Energy Information Administration's forecasts have underestimated consumption over the past seven years, with the annual figures being revised up by an average of 2.3 million barrels a day, according to an analysis by The Wall Street Journal.
Full text: Investors fretting about too much oil supply may get some cheer from demand, or at least the statistics that consistently underestimate it. The International Energy Agency's annual estimates of global crude demand have been revised up for the past seven years by an average of 880,000 barrels a day, according to a Wall Street Journal analysis. Investors and analysts believe that the IEA will have also underestimated demand this year, suggesting that more oil is being bought than the market currently believes. "In recent years, we've seen oil demand being constantly revised higher and by the looks of it this year shouldn't be any different," said Rob Thummel, portfolio manager at Tortoise Capital Advisors, which manages $17 billion in energy assets. "This is a clear positive for oil prices." U.S. oil prices last week fell 9.1% on data that showed American inventories were still rising. The history of discrepancies underscores how oil markets often trade on incomplete data. The demand revisions have amounted, on average, to less than 1% of a giant market in which about 97 million barrels of oil are sold daily. But the difference, if repeated this year, is important. The oversupply that has pressured oil prices for almost three years was estimated at about 1% to 2% of the market in 2016. To be sure, the IEA may get its prediction right this year, and others release demand predictions that are used by investors. Still, there is little evidence that those other forecasts are more accurate. The U.S. Energy Information Administration's forecasts have underestimated consumption over the past seven years, with the annual figures being revised up by an average of 2.3 million barrels a day, according to an analysis by The Wall Street Journal. A spokesman for the agency said the underestimation is due to lags in historical data and the lack of data from some countries, among other reasons. The IEA's data, though, is the most closely watched and is often used by oil analysts in their own reports. The agency estimates global oil demand based on data and statistical models. It then revises the statistics in monthly reports as more data become available. The Journal compared the IEA's predictions for annual demand made in January of each of the past seven years with latest available estimates for those years. Looking at predictions made in March and September over the seven years painted a similar picture of consistent underestimates. Revisions of oil supply estimates are typically much smaller than for demand -- and are often about correcting overestimates for crude production. The IEA's supply data have been revised down 60,000 barrels a day on average over the past seven years, according to the Journal analysis. That means the oversupply usually ends up being smaller than initially thought, another positive for those wanting higher oil prices. Matt Parry, a senior oil market analyst at the IEA, said demand is harder to estimate than supply. It involves "billions of consumers world-wide and many millions of companies of all sizes, whereas supply can be estimated from the preannounced expansion plans of a much, much smaller number of companies," he said. "Our accuracy has improved recently, but there are so many moving parts in the market," he said. On Friday, oil for April delivery on the New York Mercantile Exchange rose less than 0.1%, to $48.78 a barrel. Brent crude, the global benchmark, also gained less than 0.1%, to $51.76 on ICE Futures Europe. The IEA has already raised its 2017 demand forecast once this year, by 200,000 barrels a day. But going by past examples -- and with an upturn in global growth -- the number could still be increased substantially, analysts said. "Continued upgrades to historic demand figures are particularly frustrating," analysts at Swiss bank UBS Group AG wrote in a recent report. The bank estimates that for 31 of the past 35 quarters, IEA data revisions have shown a tighter oil market than it initially estimated. UBS believes that demand is also harder to pin down because about half of global oil consumption comes from countries outside the Organization for Economic Cooperation and Development, where statistical gathering isn't well developed. The U.S., an OECD member state and the world's biggest crude consumer, produces weekly demand estimates, and they are often later revised.
Credit: By Georgi Kantchev
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.9
Publication year: 2017
Publication date: Mar 18, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878356484
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878356484?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Drifts Lower on Higher U.S. Output
Author: Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Mar 2017: n/a.
Abstract: None available.
Full text: Oil prices drifted lower on Monday in Asia trade as increased drilling activity in the U.S. weighed on market sentiment. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at $48.42 a barrel at 0255 GMT, down 36 cents in the Globex electronic session. May Brent crude on London's ICE Futures Exchange fell 25 cents to $51.50 a barrel. "Prices are struggling at these levels. Nobody was expecting U.S. shale-oil production to pick up so much and so quickly," said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. On Friday, Baker Hughes data showed that the number of active U.S. rigs drilling for oil rose by 14 to 631 rigs this week, rising for the ninth straight week to the highest level since September. However, talk of the Organization of the Petroleum Exporting Countries extending a six-month pact to cut production beyond June helped to temper the negative sentiment briefly on Friday, resulting in a small increase in prices. Russia's energy minister also said his country would reduce output by 160,000 barrels a day in March under OPEC's agreement with other producers, without making his position clear about a deal extension. A slight decline in U.S. crude-oil stockpiles also contributed to the sentiment at the end of last week. Investors are expected to recalibrate their expectations this week, with the market still awash with excess crude-oil supplies, Mr. Thiagarajan said. That is why a weaker dollar, which is typically supportive of crude-oil prices, isn't helping investor sentiment, he said. Oil-product futures were down. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--fell 81 points to $1.5908 a gallon. ICE gasoil for April changed hands at $456.25 a metric ton, down $0.50 from Friday's settlement. Write to Biman Mukherji at biman.mukherji@wsj.com Credit: By Biman Mukherji
Subject: Petroleum production; Futures; Crude oil prices; Price increases; Crude oil
Location: Russia United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878657305
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878657305?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Falls on Growing U.S. Drilling Activity; Rising U.S. output offsets talk of extension to cuts by OPEC and other major producers
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Mar 2017: n/a.
Abstract: None available.
Full text: Oil prices extended losses on Monday to trade near a four-month low after increased drilling activity in the U.S. indicated a strong rise in production was coming. U.S. crude futures settled down 56 cents, or 1.15%, at $48.22 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 14 cents, or 0.27%, at $51.62 a barrel on ICE Futures Europe. Oil prices have fallen by around 10% since the start of the month as doubts have grown over whether cuts by the Organization of the Petroleum Exporting Countries are achieving their goal of draining global inventories. Previously bullish investors have liquidated their positions rapidly as the selloff spiraled. "You really do have to get this oil inventory overhang solved. It's pretty clear that thus far, OPEC's efforts to make a dent in it haven't really worked," said Bill O'Grady, chief market strategist at Confluence Investment Management. Already a large number of bullish bets have been unwound during the recent downturn in price. Hedge funds and other speculative investors slashed their net bullish position in U.S. crude futures by 23% last week. "The week to (March 14) saw a downright exodus of financial investors, who slashed their net long positions," said Commerzbank. Talk of extending the deal beyond its initial six-month period, which expires in June, has helped temper negative sentiment at times. But prices have continued to slide as confidence in the deal has waned. "The production-cut agreement that was supposed to tighten the market--it's not occurring at nearly the pace people expected," said Gene McGillian, research manager for Tradition Energy. "The idea that this is only a six-month agreement is starting to creep back," Mr. McGillian said. Meanwhile, investors are increasingly concerned that rising U.S. output will offset declines from OPEC and other countries, including Russia. "Nobody was expecting U.S. shale-oil production to pick up so much and so quickly," said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. On Friday, Baker Hughes Inc. data showed the number of active U.S. rigs drilling for oil had increased by 14 to reach 631 rigs, rising for the ninth straight week. The rig count is at its highest level since September. "With this kind of growth pace that we're seeing, the price has to soften in the second half of the year in order to moderate the additions of rigs," said Bjarne Schieldrop chief commodities analyst at SEB Markets. Earlier this month, the U.S. Energy Information Administration revised its production forecast upward to 9.2 million barrels a day in 2017 and 9.7 million barrels in 2018. Mr. Schieldrop said SEB Markets forecasts U.S. output will be significantly higher at 10.7 million barrels a day in 2018. Gasoline futures rose 1.24 cents, or 0.78%, to $1.6113 a gallon. Diesel futures or 0.56 cent, or 0.37%, to $1.5141 a gallon. Write to Alison Sider at alison.sider@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Alison Sider and Sarah McFarlane
Subject: Petroleum production; Prices; Oil service industry; Supply & demand
Location: Russia
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878760122
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878760122?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Crude Oil Production, Exports Fall in January; Saudi Arabia's crude oil exports fell to 7.713 million barrels a day in January, while crude oil production dropped by 717,000 barrels a day to 9.748 million barrels a day.
Author: Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Mar 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia's crude oil exports fell to 7.713 million barrels a day in January, while crude oil production dropped by 717,000 barrels a day to 9.748 million barrels a day, official data showed on Monday. The kingdom's exports rose sharply in November to 8.258 million barrels a day as refineries processed less crude, but started to drop in December and reached 8.014 million barrels a day, according to data from the Joint Organizations Data Initiative (JODI). In November, Saudi Arabia led the Organization of the Petroleum Exporting Countries and producers outside the group to reach their first deal since 2001 to trim output to boost prices. The cartel controls over a third of the world's daily oil production and has been trying to lift the oil market out of a two-year funk by bringing supply in line with demand. The kingdom's domestic refineries processed 2.127 million barrels a day in January, down from 2.155 million barrels a day in December. Saudi Arabia's domestic crude inventories fell to 261.963 million barrels a day in January, compared with 272.621 million barrels in December, according to the JODI data. The kingdom's oil inventories reached a record high in October 2015 at 329.430 million barrels, but the country has been steadily drawing down its stockpiles since last year as the kingdom wrestles with soaring domestic demand while trying to maintain exports. In January, the Gulf state burnt 252,000 barrels a day of crude to generate electricity, down from 353,000 barrels a day a month earlier as the temperature cooled and demand for air conditioning dropped. Write to Summer Said at summer.said@wsj.com Credit: By Summer Said
Subject: Petroleum production; Petroleum refineries; Crude oil; Supply & demand
Location: Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 20, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878762756
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878762756?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Plenty of Cash Lies Buried on Canada's Oil Sands; Bargains can be found for companies and investors with patience
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Mar 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Statoil made a big oil-sands disposal last year at a loss. An earlier version of this article incorrectly stated Statoil made a big oil-sands purchase at a loss. (March 20, 2017) Earlier this month, Marathon Oil agreed to spend more than $1 billion on acreage in the Permian Basin, the very hottest place on the planet to drill for oil. On the same day, it announced the sale of other properties 2,000 miles due north in Canada's oil sands, a significantly less popular place to invest right now. Shareholders applauded, sending Marathon's shares up 8% on the news, but the price of the company buying its unwanted assets rose even more that day. Who is right? The buyer was Canadian Natural Resources, which on the same day also made a big oil sands purchase from Royal Dutch Shell. Not surprisingly, Marathon said it got an attractive price for the assets, but by some measures, Canadian Natural Resources got the best of the deal. Both oil sands and oil from shale from basins like the Permian are expensive to produce and became unprofitable when prices collapsed. The difference is that oil sands demand massive upfront investments that require companies to believe that oil prices will remain healthy over the very long term. Exxon Mobil wrote down the value of 3.6 billion barrels of oil sands reserves it co-owns just after ConocoPhillips took over a billion barrels off of its books. Norway's Statoil also made a big oil sands disposal last year at a big loss. Shale has much smaller upfront costs but, since production rises and falls faster, producers have to keep investing. The beauty of shale is that if oil prices fall, companies can ease up on the throttle. But someone else's sunk costs are sometimes a bargain. Today shale offers the prospect of growth but also safety for oil companies still licking their wounds from the recent slump. By contrast, new investments in oil sands are prohibitively expensive, as much as $45 a barrel above current prices, but cash returns on existing ones could be vastly superior if oil prices meet analyst expectations. Canadian Natural and Suncor, the two big Canadian producers, are expected to throw off free cash flow of $7.9 billion combined in 2018, according to analysts polled by FactSet. With a combined market value just under $90 billion, their combined free cash flow yield is nearly 9%. By contrast, shale behemoth EOG Resources, worth $57 billion, is seen producing just $1 billion in free cash flow in 2018 as it is forced to plow much of its cash into sustaining and growing production. Its free cash flow yield would be less than 2%. The key is the distinction between fixed and variable costs. While the fixed investment in new oil sands projects is prohibitive, variable costs can be in the low $20 range per barrel. Not only do oil sands projects generate lots of cash at current prices but those costs are very stable and fields don't require much investment to keep output steady for several years. Recent buyers of oil sands not only got great deals but they will benefit disproportionately if oil prices rise. For investors truly bullish on crude in the long run, the best place to invest may be the unpopular fields north of the border. Write to Spencer Jakab at spencer.jakab@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Prices; Oil sands; Energy economics
Location: Permian Basin Canada Norway
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Marathon Oil Corp; NAICS: 211111, 213112, 324110, 486110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 20, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878803918
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878803918?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Shell's Titanic Bet: Can Deep-Water Drilling Be Done on the Cheap? Facing low oil prices for the foreseeable future, Royal Dutch Shell is learning to rein in costs and squeeze more production out of big offshore platforms by using drilling techniques from onshore
Author: Cook, Lynn; Kent, Sarah; Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Mar 2017: n/a.
Abstract: None available.
Full text: MARS OIL PLATFORM--Royal Dutch Shell PLC is trying to reinvent its business with a concept that sounds oxymoronic: budget deep-water drilling. Here on a hulking steel behemoth 130 miles southeast of New Orleans, more than 170 roughnecks and engineers are working to quickly wring more oil out of a massive old field--and keep it profitable even if oil sinks to $15 a barrel. Shell, the world's second-largest publicly traded energy company, is making a high-stakes bet that it can take highly efficient technology and processes perfected onshore and deploy it in deep-sea production. It hopes to squeeze more oil out of existing undersea wells, like those that ring the platform, which weighs 82 million pounds and floats in 3,000 feet of water over the Mars oil field in the Gulf of Mexico. It also wants to make new deep-water projects cheaper and faster, especially in Brazil, where it acquired a bevy of offshore prospects as part of its $50 billion purchase of BG Group PLC last year. It is a strategy born of necessity. Big oil companies have traditionally needed prices of $70 a barrel or more just to break even on new deep-water projects, which take years to begin paying off. But with onshore shale oil flooding the market, Shell executives aren't sure when crude, currently around $50 a barrel, will fetch more again. And with electric cars and other technologies threatening to eat into demand, they believe the world's thirst for oil may peak as soon as the end of next decade. So while Shell's top executives stop short of saying the megadrill era is gone forever, they aren't comfortable spending $10 billion to $20 billion on moonshot projects. Shell is going lean, focusing on smaller-scale projects that produce "first oil" faster. The company's longstanding objective of increasing production and replenishing reserves, costs be damned, has taken a back seat to delivering returns to shareholders on every single barrel pumped. That means deep-water projects have to be able to compete on price with opportunities Shell has in shale and in onshore basins around the world. Chief Executive Ben Van Beurden predicts the company can end the decade with double-digit returns as it upends its deep-water drilling model, so long as oil prices rebound to $60. Shell estimates it is now drilling new deep water wells around 30% faster than it used to, and has cut drilling costs 50%. "If the world needs deep-water oil, which it does, it's going to obviously economically make sense to develop the lowest-development-cost oil first," Mr. Van Beurden said in an interview. To do this, Shell is shaking up its corporate culture, appointing "chief irritants" to each division, individuals whose only role is to challenge old ways of doing business. In weekly team meetings, managers have to justify how they are running their units. The result: simpler deep-water operations. In the Gulf division that has meant some 200 changes, such as dialing down the amount of equipment Shell will take out to a deep-water rig, now down 40% compared to a couple of years ago. The company is also adopting techniques from smaller upstart firms and onshore fracking operations for its deep-water projects, such as drilling horizontal water-injection wells to help maximize oil recovery in fields once thought to be played out. It is also cutting costs. In the Gulf and Brazil, Shell slashed 25% of its workforce and cut the number of support ships ferrying equipment, food and other supplies to platforms to 16 from 61. If equipment breaks, replacement can now take two weeks to arrive, a far cry from the days when offshore managers thought nothing of overnighting parts on a fast boat, or even the occasional $10,000 helicopter trip, to keep a rig running. The marine logistics measures will save an estimated $300 million a year. "This is not a cut-and-cope exercise," said Kevin McMahon, operations manager for Mars. "This is our new reality." When Shell initially discovered Mars in 1989, it was the largest find in the U.S. since oil was struck in Alaska's Prudhoe Bay in the 1960s. It took Shell seven years of engineering work before it pumped its first oil from the site, and more than $1 billion--several times more than NASA spent on its Pathfinder probe to the actual Red Planet. Shell brought in BP PLC as a minority investor to help defray costs. Mars eventually became a big cash cow. But Mars's production, which peaked at more than 225,000 barrels a day in 2002, fell to around 60,000 barrels a day. Now the company's goal is to capitalize on its extensive infrastructure in the area and squeeze more barrels out of the field, using new know-how and technology. The Mars platform has recently rebounded to pump 75,000 barrels a day. Onshore, the shale fields of Texas' Permian Basin are known for having multiple layers of oil-rich rock, likened to stacks of pancakes. Companies have discovered that they can tap several layers, raising the total amount of oil the acreage can yield. Conventional wisdom held that deep-water geology was different. But Mr. McMahon said studies show the area around Mars also has many stacked layers of oil, and Shell is now using techniques pioneered on land to quickly drain them. Shell is going back into old, deep wells and using them to drill out horizontally into shallower layers of oil-bearing rock. It is also using water to flood reservoirs once thought to be played out, hoping to flush more crude to the surface. Shell can also produce oil for $10 to $15 a barrel by reopening old wells and using water and chemicals to flush more fuel out of the ground, Mr. McMahon said. The company is retapping a dozen wells near Mars in the first half of 2017, with another dozen tentatively scheduled for the second half of the year. But the effort carries risks. Hydrogen sulfide, a colorless gas that has been known to kill workers at drill sites, can build up inside old offshore wells that have been shut down and sealed off. Tensions can mount between Shell's technical experts, armed with big ideas about how to squeeze more crude through the aging Mars platform, and the offshore supervisors on the massive steel erector set who actually have to oversee the projects. Every weekday at 3 p.m., the two sides meet via a video feed connecting Shell's New Orleans skyscraper with the platform. During one recent meeting, Dale Toups, a chemical engineer at the skyscraper, was adamant about deploying sensitive monitoring equipment on a well whose geology suggested potential problems with hydrogen sulfide. Other engineers warned that testing could slow down work on nearby wells, delaying the other projects, and thus costing Shell money. Howard Hill, the offshore installation manager of Mars, sided with Mr. Toups. Mr. McMahon, the ultimate say, chose caution: The monitoring system got deployed at the start of February. BP's Deepwater Horizon rig disaster and oil spill, which killed 11 workers, released 3.2 million barrels of oil into the Gulf and has cost the company nearly $63 billion so far, occurred less than 100 miles from Mars. Expensive federal safety regulations are going into effect seven years after that deadly accident, calling for better real-time monitoring of equipment and more-frequent inspections, among other things. Shell executives said they aren't worried about the additional costs because their internal safety protocols are already tougher than what the regulations require. Still, dangers abound in deep water, and Shell has had its share of missteps. The company's recent foray into the Arctic waters off the coast of Alaska was marred when a drilling rig ran aground while traveling back to the Port of Seattle. The company pulled the plug on the project two years ago after the $7 billion endeavor resulted in a dry hole--one of the most expensive in the history of oil exploration. Last March, Shell narrowly avoided an environmental disaster off the east coast of Canada when intense waves made a supply ship list so far to one side that a piece of heavy machinery in tow snapped loose and plunged to the sea floor, landing a few yards from an underwater oil well head. Shell said the incident posed no risk to the well's integrity. "We are a high-risk business," said Wael Sawan, Shell's vice president for deep water in Houston. "This is just the nature of deep water." But Shell, like other major oil companies, has little choice but to adapt its methods. Despite high crude prices over much of the past decade, big oil companies have struggled after plowing billions of dollars into megaprojects from Africa to Australia. A survey of Shell, Exxon Mobil Corp. and Chevron Corp. found that their combined return on capital plunged from 21.5% in 2007 to almost nothing over the past decade, according to a Wall Street Journal analysis of data from S&P Global Market Intelligence. Exxon and Chevron say the formulas they use to calculate returns show higher results. Shell's BG acquisition was the industry's largest since Exxon merged with Mobil in 1999. The deal propelled Shell ahead of Chevron Corp. to become the world's No. 2 energy company by market value and a huge producer of liquefied natural gas, increasingly used to generate electricity. Most important for its growth prospects, it acquired a host of new deep-water targets in Brazil that it believes it can develop economically even when oil sells for $40 a barrel. Brazil's offshore geology is so rich that experts rank it as one of the lowest-cost places to develop new oil finds. Shell plans to invest $10 billion in Brazil over the next five years, making it the largest foreign investor, according to Mr. Sawan. But Brazil remains a politically challenging place to operate, with complex environmental licensing procedures and requirements that a lot of equipment and labor be made and hired locally. Oil companies were rattled in 2011 when a minor oil spill by Chevron prompted Brazilian prosecutors to seek nearly $20 billion in damages and file criminal charges against executives. The charges were ultimately dropped, and Chevron agreed to pay $42 million to settle the suits in 2013. Shell points to its 103-year presence in Brazil as evidence it can navigate the nation's risks. Its partner in dozens of deep-water prospects is Brazil's state-controlled oil company Petróleo Brasileiro SA, also known as Petrobras. The company has been mired in a sweeping corruption scandal for almost three years. Now, burdened with the global oil industry's largest debt pile, it has been forced to cut capital spending by more than two-thirds for the 2017-2021 period. Even so, Petrobras has steadily brought down development costs, an important consideration for Shell as it looks to capitalize on its Brazilian assets on the cheap. The first well Petrobras drilled in the oil-rich pre-salt layer on Brazil's continental shelf took 310 days. Now it can drill and develop a well in fewer than 90. Rigs can cost around $400,000 a day. "It is huge savings," Petrobras Chief Executive Pedro Parente said in an interview. Shell executives note that Petrobras brought more than a million barrels a day of oil-pumping capacity online within a decade of discovering reserves--something no other company has done. "They are the leading deep-water operator in the world," Mr. Van Beurden said. "We are No. 2, but they are No. 1." Shell is part of a consortium developing the giant Libra discovery in 6,500 feet of water 105 miles southeast of Rio de Janeiro, estimated to hold up to 12 billion barrels of oil. Instead of tackling it and other enormous oil deposits with a 20-year view to their lifespan, Shell and its partners are plotting how fields can be pumped in stages as a way to produce oil faster. Since Brazil's colossal deep-water potential is already surpassing expectations--wells in the most-promising areas are yielding around 30% more than predicted--fewer wells need to be drilled. Rather than erecting a giant steel platform to pump new wells there, Shell is helping fund half a dozen midsize floating platforms that will start to launch later this year. Mr. Van Beurden said he is optimistic that Shell's Brazilian oil output can help boost the company's world-wide deep-water production past 900,000 barrels a day by around 2020. The company's drive for more oil in the Gulf has already helped boost deep-water production by 50% since the end of 2015 to 725,000 barrels a day. "We are sitting on the best acreage in the world," he said. "These are the cash engines for the next decade." Write to Lynn Cook at lynn.cook@wsj.com , Sarah Kent at sarah.kent@wsj.com and Paul Kiernan at paul.kiernan@wsj.com Credit: Lynn Cook, Sarah Kent, Paul Kiernan
Subject: Oil recovery; Prices; Offshore; Capital expenditures; Cost control
Location: Brazil
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 20, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879089313
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879089313?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with per mission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Up But Still Near Four-Month Low
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Mar 2017: n/a.
Abstract: None available.
Full text: Crude futures rebounded in early Asia trade Tuesday but continued to hover around a four-month low, weighed by strong inventories and accelerating production in the U.S. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April last traded up $0.18, or 0.37%, at $48.83 a barrel in the Globex electronic session. May Brent crude on ICE Futures Europe gained $0.25, or 0.48%, to $51.78 a barrel. Oil prices have slumped more than 10% year-to-date, dragged lower by rising shale-oil production and inventories in the U.S., which have nearly wiped out all the gains reaped since the Organization of the Petroleum Exporting Countries and Russia last year consented to cut 1.8 million barrels of their daily production in the first half of 2017. The prospect of a still-oversupplied market has prompted oil bears to flee. In the week ended March 14, speculative short positions in WTI crude futures held by money managers almost doubled to 128,947 contracts, based on data from the U.S. Commodity Futures Trading Commission. "The switch from long to short positions shows that fund managers are losing confidence in the OPEC deal," said Jonathan Chan, an analyst at Phillip Futures. The recent selloff has reduced downside risks and opened the door wider for bargain-hunters to push prices up, but appetite for oil is expected to stay weak in the near term, said Tim Evans, a Citi Futures analyst. "We don't think money managers will be so quick to rebuild the record long position from Feb. 21 all that soon," he said. A major factor behind the bearish sentiment is the recovery in U.S. shale production after a two-year lull. Latest data showed U.S. output remained above 9 million barrels for the past four weeks while inventories rose to 528.2 million barrels. This means the U.S. increased its output by 412,000 barrels a day since the OPEC-Russia was signed, based on S&P Global Platts calculation. S&P Global Platts said it expects U.S. crude stocks to balloon by another 2 million barrels in the week ended March 17. If official data from the Energy Information Administration due Wednesday show a rise, it would be the 10th consecutive weekly increase. Rising production elsewhere is also weighing on prices. Libya's state-owned National Oil Corp. reportedly said loading at its two major oil ports is set to resume following recent conflicts with local insurgents, Reuters reported. Strong flow oil from the U.S. and Africa could encourage OPEC to extend the agreement beyond the initial six-month period, but if Russia bails, the deal could flop, said Stuart Ive, a client manager at OM Financial. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose to $1.6196 a gallon, while diesel traded higher at $1.5226. ICE gasoil for June changed hands at $458.00 a metric ton, down $0.50 from Monday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Supply & demand
Location: United States--US Asia
Company / organization: Name: National Oil Corp; NAICS: 211111; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1878913847
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1878913847?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall as Data Show Increased Drilling in U.S.
Author: Sider, Alison; McFarlane, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Mar 2017: B.11.
Abstract:
Oil prices have fallen about 10% since the start of the month as doubts have grown over whether cuts by the Organization of the Petroleum Exporting Countries are achieving their goal of draining global inventories.
Full text: Oil prices extended losses on Monday to trade near a four-month low after increased drilling activity in the U.S. indicated a strong rise in production is coming. U.S. crude futures settled down 56 cents, or 1.15%, at $48.22 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 14 cents, or 0.3%, to $51.62 a barrel on ICE Futures Europe. Oil prices have fallen about 10% since the start of the month as doubts have grown over whether cuts by the Organization of the Petroleum Exporting Countries are achieving their goal of draining global inventories. Previously bullish investors have liquidated their positions rapidly as the selloff spiraled. "You really do have to get this oil inventory overhang solved," said Bill O'Grady, chief market strategist at Confluence Investment Management. "It's pretty clear that thus far, OPEC's efforts to make a dent in it haven't really worked." Already a large number of bullish bets have been unwound during the recent downturn. Hedge funds and other speculative investors slashed their net bullish position in U.S. crude futures by 23% last week. "The week to [March 14] saw a downright exodus of financial investors, who slashed their net long positions," said Commerzbank. Talk of extending OPEC's deal beyond its initial six-month period, which expires in June, has helped temper negative sentiment at times. But prices have continued to slide as confidence in the deal has waned. "The production-cut agreement that was supposed to tighten the market -- it's not occurring at nearly the pace people expected," said Gene McGillian, research manager for Tradition Energy. "The idea that this is only a six-month agreement is starting to creep back." Meanwhile, investors are increasingly concerned that rising U.S. output will offset declines from OPEC and other countries, including Russia. "Nobody was expecting U.S. shale-oil production to pick up so much and so quickly," said Gnanasekar Thiagarajan, director of Commtrendz Risk Management. On Friday, Baker Hughes Inc. data showed the number of active U.S. rigs drilling for oil had increased by 14 to reach 631 rigs, rising for the ninth straight week. Credit: By Alison Sider and Sarah McFarlane
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Mar 21, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879004392
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879004392?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Arabia's Oil Supremacy Falters; The world's biggest crude exporter is rejiggering its long-held strategy of clinging to market share
Author: McFarlane, Sarah; Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Mar 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia is losing its grip on big oil markets it once dominated amid a deep production cut that has reshaped global petroleum trade routes and benefited rivals like Iran, Russia and the U.S. As it pursues a steep production cut aimed at putting a floor under oil prices, the world's biggest crude exporter is conceding ground to American shale producers and hastening a retreat from the U.S., people familiar with current Saudi policy said. Saudi Arabia's crude exports to the U.S. for the week ended March 10 fell by 426,000 barrels a day compared with the previous week, according to the latest U.S. data. That represents the sharpest weekly drop in the time since the Organization of the Petroleum Exporting Countries decided in late November to cut production to raise oil prices. The drop was by design, the people said, as the kingdom is looking instead to Asia for growth. But Saudi Arabia is falling behind Russia when it comes to supplying China, China's General Administration of Customs data shows. China is one of the world's fastest-growing major oil consumers. Elsewhere, the Saudi oil machine has been outmaneuvered by Iran and Iraq among big European customers in France, Spain and Italy, according to data from the International Energy Agency. The Saudi retreat from an all-out battle for these markets reflects the compromises the kingdom is now making to achieve a higher oil price, as it faces fiscal pressures from a burgeoning population and as the planned offering of its state oil company, Saudi Arabian Oil Co., or Saudi Aramco, nears. "Saudi Arabia is under extraordinary pressure both internally and externally," said Dr. Jean-Marc Rickli, head of risks analysis at the Geneva Centre for Security Policy. For years, maintaining market share was a major priority for Saudi Arabia. In 2014, when the price of oil plunged , the Saudis opted against an OPEC output cut to avoid surrendering its share of key markets. Now, that strategy has changed in ways that would have been unimaginable just a few years ago. Since Saudi Arabia and OPEC decided to cut production last November , American shale companies have taken advantage of the resulting higher prices to launch a comeback, adding 412,000 barrels a day of new output, according to the U.S. Energy Information Administration. While some of that oil has gone to satisfy the U.S. market, American crude exports have surged to more than 1 million barrels a day this year. In an interview, Saudi energy minister Khalid al-Falih said the return of U.S. production was "good"--as long as it doesn't throw global supply and demand out of balance. "Extremes are not good," Mr. Falih said. "Saudi Arabia is for balance." Saudi Arabia--which throttled output to record levels to compete with a flood of U.S. oil two years ago--is now pulling back amid the renewed onslaught. The kingdom has cut its production by nearly 800,000 barrels a day since October. That is 60% more than it promised as part of the OPEC deal and signals its seriousness about stabilizing the oil market. "This stabilization has meant sacrificing market share," said Alan Gelder, vice president of refining, chemicals and oil markets at Wood Mackenzie, an energy consulting firm. The cuts in exports to the U.S. are the latest in a long series of pullbacks in what was once the kingdom's most lucrative market. In the 1990s, Saudi Arabia accounted for almost a third of all American crude imports, but it represented only 12% in November, according to the EIA. To be sure, Saudi Arabia remains the world's dominant oil producer, able to influence prices because, as it says, the kingdom pumps about 2 million barrels a day below capacity. That means the country has the ability to quickly ramp output up and down, swaying prices in the process. The Saudi pullback has allowed rivals to pounce. Russia, which isn't part of OPEC but agreed to cut output anyway, is pumping near post-Soviet highs. The group's second-biggest producer, Iraq, remains at near-record output levels. OPEC member Iran was allowed to keep increasing a certain amount of output. Iraq and Russian officials say they are committed to cutting production and not taking advantage of the Saudis. Iran's oil ministry declined to comment. Even before the OPEC production cuts were announced, there had been a clear drop in imports of Saudi oil by major European economies. Shipments of Saudi oil to Spain, Italy and France fell by 11% between July and October, according to International Energy Agency data. At the same time, Iran sent stored oil to the export market, with a sweetener: a 3% discount against crude from OPEC rivals, according to a rival producer. The result: Iranian oil shipments to Europe surged 45% in December compared with August, according to ship tracker Clipper Data. "The Saudis are impacted by the OPEC cuts and not the Iranians, so that is helping Iranians to keep pushing a little bit against the Saudi crude," said Alfonso Mingarro, the head of trading at Spanish refiner Cepsa, which buys from both the Iranians and Saudis. Saudi Arabia also has been bruised in Asia. In China, the kingdom accounted for 13% of imports in 2016, down from 15% in 2015, Energy Aspects said. The kingdom has sought to shore up its Asian market after Russia flexed its muscles there. Last year, Russian state-owned oil company OAO Rosneft outbid Aramco for the second-largest Indian refinery, Essar Oil. King Salman is on a monthlong Asian tour to promote the Aramco initial public offering and to secure outlets for Saudi crude, including a $7 billion refining agreement with Malaysia. Mr. Gelder of Wood Mackenzie said Saudi Arabia was working to nail down future market share, even as it pulls back today. Saudi Arabia is trying to become more flexible to capture new demand. Saudi Aramco has revamped its Chinese operations, selling more to independent refineries there that prefer buying individual cargoes to sealing long-term contracts. The kingdom is also accelerating plans to rely more on refined products like gasoline, which are more profitable than crude. "They are becoming more proactive," said a Saudi oil-industry executive. Justin Scheck contributed to this article. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com , Benoit Faucon at benoit.faucon@wsj.com and Summer Said at summer.said@wsj.com Related * Saudi Oil Customers Are Tapping Other Wells * Oil Falls on Accelerating U.S. Production * Plenty of Cash Lies Buried on Canada's Oil Sands * OPEC Weighs Extending Supply Cuts (March 16) * OPEC and Resilient Shale Companies Learning to Coexist (March 7) * Saudi Arabia Cuts Output in Accordance With OPEC Deal (Jan. 5) Credit: By Sarah McFarlane, Benoit Faucon and Summer Said
Subject: Crude oil prices; Cartels; Exports; Market shares; Crude oil; Competition
Location: Italy Spain Russia United States--US Saudi Arabia Iraq Iran China France Asia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111; Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879081918
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879081918?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Retreats on Oversupply Fears; Accelerating production in the U.S. and large global inventories are driving prices of crude futures lower
Author: Puko, Timothy; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. crude futures fell to a four-month low Tuesday, with stubbornly large global inventories and accelerating production in the U.S. reigniting a selloff. Oil prices have slumped more than 11% in just two weeks, dragged lower by rising shale-oil production and inventories in the U.S. The downward movement has wiped out some of the gains reaped since the Organization of the Petroleum Exporting Countries and Russia last year agreed to cut
1.8 million barrels of their daily production in the first half of 2017. Without falling U.S. inventories, many commodity traders have started to bail out of the market. That selloff gained more momentum Tuesday, following equities lower, as political conflict in Washington
caused traders to become more skeptical of high hopes for new legislation to stoke economic growth and energy demand. Light, sweet crude for April delivery settled down 88 cents, or 1.8%, at $47.34 a barrel on the New York Mercantile Exchange. That is the lowest settlement since Nov. 14. U.S. prices fell 13 times in the last 16 sessions. The April contract expired at settlement. The more actively traded May contract settled down 67 cents, or 1.4%, to $48.24 a barrel. Brent crude, the global benchmark, lost 66 cents, or 1.3%, to $50.96 a barrel on ICE Futures Europe. It is down nine of the past 11 sessions and at its second-lowest settlement of the year. Traders and analysts are broadly questioning whether OPEC and other big exporters are coming through on their plans to cut output. ING Bank put compliance in OPEC outside of Saudi Arabia at just around 70% and outside of OPEC at just 43%. There is also concern those countries will abandon quotas to compete with rising production coming out of the U.S. Mizuho Securities USA Inc. trimmed its price forecast Tuesday, citing those concerns. It forecasts U.S. crude at $54 a barrel this year, down from $55. "We believe the resurgence of U.S. production and uncertainty on U.S. oil inventories and OPEC's quota adherence will continue to weigh on global oil markets," Mizuho analyst Timothy Rezvan wrote in a note. Oil also joined a broader selloff that put stocks on course for their worst day since October
. Investors and analysts say the prospect that House Republicans will be unable to gather the votes they need this week to dismantle the Affordable Care Act is adding to doubts that Mr. Trump will be able to push through tax cuts. That could put further pressure on stocks that have been trading near records and at historically high valuations "It brings into doubt the rosy demand expectations" for oil, said Bart Melek, head of commodity strategy at TD Securities in Toronto. "If America is growing as fast as hoped, they're probably not going to import as much stuff." In the week ended March 14, speculative short positions -- a bet that prices will fall -- in WTI crude futures held by money managers almost doubled to 128,947 contracts, based on data from the U.S. Commodity Futures Trading Commission. "The switch from long to short positions shows that fund managers are losing confidence in the OPEC deal," said Jonathan Chan, an analyst at Phillip Futures. A major factor behind the bearish sentiment is the recovery in U.S. shale production after a two-year lull. The most recent data showed U.S. output remained above 9 million barrels for the past four weeks while inventories rose to 528.2 million barrels. This means the U.S. increased its output by 412,000 barrels a day since the OPEC-Russia production cut agreement was signed. Analysts and traders surveyed Tuesday by The Wall Street Journal said they expect U.S. crude stocks to balloon by another 2.1 million barrels in the week ended March 17. If data from the U.S.'s Energy Information Administration due Wednesday shows a rise, it would be the 10th consecutive weekly increase. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 4.5 million-barrel rise in crude supplies, a 4.9-million-barrel decrease in gasoline stocks and an 883,000-barrel fall in distillate inventories, according to a market participant. Rising production elsewhere is also weighing on prices. Libya's state-owned National Oil Corp. reportedly said loading at its two major oil ports is set to resume following recent conflicts with local insurgents, Reuters reported. A strong flow of oil from the U.S. and Africa could encourage OPEC to extend the agreement beyond the initial six-month period, but if Russia bails, the deal could flop, said Stuart Ive, a client manager at OM Financial. But traders have been overly concerned about recent rhetoric and falling sales prices out of Saudi Arabia, Citigroup Inc. analysts wrote in a note Tuesday. They said a lot of the recent losses are just from speculators bailing out of a crowded trade and that oil prices can move up again once the OPEC cuts really start to affect inventories, driving them lower, over the next three months. "We believe the Saudis remain committed to supporting prices through the end of this year and recent comments from other OPEC producers implying expectations for the cuts to be extended support this view," said the group, led by Ed Morse. Gasoline futures fell 0.61 cent, or 0.4%, to $1.6052 a gallon. Diesel futures fell 1.08 cents, or 0.7%, to $1.5033 a gallon. Akane Otani contributed to this article. Write to Timothy Puko at tim.puko@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com
and Jenny W. Hsu at jenny.hsu@wsj.com
Credit: By Timothy Puko, Sarah McFarlane and Jenny W. Hsu
Subject: Petroleum production; Futures; Supply & demand; Crude oil
Location: Africa Switzerland Russia United States--US Libya
Company / organization: Name: National Oil Corp; NAICS: 211111; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210; Name: Republican Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879090795
Document URL: ht tps://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879090795?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
U.S. Crude-Oil Supplies Seen Increasing in DOE Data; Inventories projected to have increased by 2.1 million barrels
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 13 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 2.1 million barrels, on average, in the week ended March 17. Eleven analysts expect stockpiles to grow and two expect them to shrink. Forecasts range from a decrease of 2.8 million barrels to an increase of 5.1 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to show a decrease of 2 million barrels on average, according to analysts. One analyst expects them to rise and 12 expect them to fall. Estimates range from a fall of 3.2 million barrels to an increase of 768,423 barrels. Stocks of distillates, which include heating oil and diesel, are expected to shrink by 1.7 million barrels. One analyst expects an increase, 11 expect a decrease and one expects no change. Forecasts range from a decline of 3.2 million barrels to an increase of 500,000 barrels. Refinery use is seen gaining 0.2 percentage point to 85.3% of capacity, based on EIA data. Six analysts expect an increase, two expect a decrease, two expect no change and three didn't report expectations. Forecasts range from a decrease of 0.3 percentage point to an increase of 1 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 4.5 million-barrel rise in crude supplies, a 4.9-million-barrel decrease in gasoline stocks and an 883,000-barrel fall in distillate inventories, according to a market participant. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Price increases; Supply & demand
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879374236
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879374236?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Brazil's Petrobras Swings to Profit, Cuts Debt Load; The state-controlled oil company benefited from higher oil prices in the last quarter of 2016
Author: Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Mar 2017: n/a.
Abstract: None available.
Full text: RIO DE JANEIRO--Brazilian state-controlled oil company Petróleo Brasileiro SA turned a profit and chipped away at its massive debt load in the fourth quarter, helped by higher oil prices. Petrobras said Tuesday it made a net profit of 2.51 billion Brazilian reais ($813 million) in the October to December period, reversing a 36.94 billion real loss a year earlier due to heavy asset write-downs. The result was well below market expectations, with analysts surveyed by FactSet forecasting 3.7 billion reais in profit. Company executives trumpeted what they said were strong operational results, such as record oil production and cash generation. Possibly thanks to the pro-market regime of Brazilian President Michel Temer, who took office in May 2016, Petrobras has been allowed to sell fuel at a profit to Brazilian consumers. That has practically guaranteed positive cash flow, with earnings before interest, taxes, depreciation and amortization, or Ebitda, rising 31% in the fourth quarter to 24.79 billion reais. That came despite a 17% drop in revenue to 70.49 billion reais. "The fact that we have operational numbers like these that we mentioned, and the fact that we closed the fourth quarter with very important numbers is without a doubt something to celebrate," Chief Executive Pedro Parente told reporters Friday. But three years of corruption investigations, a downturn in global oil prices and Brazil's worst recession on record have taken their toll on Petrobras. The company has cut investments by about two-thirds, to about $15.9 billion last year from almost $49 billion in 2013. Despite the fourth-quarter uptick, Petrobras posted a net loss of 14.82 billion reais for 2016 due to heavy impairment charges on assets earlier in the year. That came on top of a 34.84 billion real loss in 2015. The company remains the most indebted oil major in the world. Petrobras' total debt load closed 2016 at $118.37 billion, down 6.3% from a year earlier. The cornerstone of Petrobras' plan to reduce that burden is a massive divestment program, which was delayed from December until last week by a temporary suspension from Brazil's federal auditing court. Still, Mr. Parente reiterated on Tuesday Petrobras' goal of selling $21 billion in assets in 2017 and 2018. Write to Paul Kiernan at paul.kiernan@wsj.com Credit: By Paul Kiernan
Subject: Regions; Financial performance; Debt restructuring
Location: Brazil
People: Temer, Michel
Company / organization: Name: Petroleos Brasileiro SA; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 21, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879382683
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879382683?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Makes a Titanic Bet on Offshore Oil --- To fight falling prices, energy giant is borrowing cheaper onshore methods to drill in deep water
Author: Cook, Lynn; Kent, Sarah; Kiernan, Paul
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Mar 2017: A.1.
Abstract:
Shell, the world's second-largest publicly traded energy company, is making a high-stakes bet that it can take highly efficient technology and processes perfected onshore and deploy it in deep-sea production. The company is also adopting techniques from smaller upstart firms and onshore fracking operations for its deep-water projects, such as drilling horizontal water-injection wells to help maximize oil recovery in fields once thought to be played out.
Full text: MARS OIL PLATFORM -- Royal Dutch Shell PLC is trying to reinvent its business with a concept that sounds oxymoronic: budget deep-water drilling. Here on a hulking steel behemoth 130 miles southeast of New Orleans, more than 170 roughnecks and engineers areworking to quickly wring more oil out of a massive old field -- and keep it profitable even if oil sinks to $15 a barrel. Shell, the world's second-largest publicly traded energy company, is making a high-stakes bet that it can take highly efficient technology and processes perfected onshore and deploy it in deep-sea production. It hopes to squeeze more oil out of existing undersea wells, like those that ring the platform, which weighs 82 million pounds and floats in 3,000 feet of water over the Mars oil field in the Gulf of Mexico. It also wants to make new deep-water projects cheaper and faster, especially in Brazil, where it acquired a bevy of offshore prospects as part of its $50 billion purchase of BG Group PLC last year. It is a strategy born of necessity. Big oil companies have traditionally needed prices of $70 a barrel or more just to break even on new deep-water projects, which take years to begin paying off. But with onshore shale oil flooding the market, Shell executives aren't sure when crude, currently around $50 a barrel, will fetch more again. And with electric cars and other technologies threatening to eat into demand, they believe the world's thirst for oil may peak as soon as the end of next decade. So while Shell's top executives stop short of saying the megadrill era is gone forever, they aren't comfortable spending $10 billion to $20 billion on moonshot projects. Shell is going lean, focusing on smaller-scale projects that produce "first oil" faster. The company's longstanding objective of increasing production and replenishing reserves, costs be damned, has taken a back seat to delivering returns to shareholders on every single barrel pumped. That means deep-water projects have to be able to compete on price with opportunities Shell has in shale and in onshore basins around the world. Chief Executive Ben Van Beurden predicts the company can end the decade with double-digit returns as it upends its deep-water drilling model, so long as oil prices rebound to $60. Shell estimates it is now drilling new deep water wells around 30% faster than it used to, and has cut drilling costs 50%. "If the world needs deep-water oil, which it does, it's going to obviously economically make sense to develop the lowest-development-cost oil first," Mr. Van Beurden said in an interview. To do this, Shell is shaking up its corporate culture, appointing "chief irritants" to each division, individuals whose only role is to challenge old ways of doing business. In weekly team meetings, managers have to justify how they are running their units. The result: simpler deep-water operations. In the Gulf division that has meant some 200 changes, such as dialing down the amount of equipment Shell will take out to a deep-water rig, now down 40% compared to a couple of years ago. The company is also adopting techniques from smaller upstart firms and onshore fracking operations for its deep-water projects, such as drilling horizontal water-injection wells to help maximize oil recovery in fields once thought to be played out. It is also cutting costs. In the Gulf and Brazil, Shell slashed 25% of its workforce and cut the number of support ships ferrying equipment, food and other supplies to platforms to 16 from 61. If equipment breaks, replacement can now take two weeks to arrive, a far cry from the days when offshore managers thought nothing of overnighting parts on a fast boat, or even the occasional $10,000 helicopter trip, to keep a rig running. The marine logistics measures will save an estimated $300 million a year. "This is not a cut-and-cope exercise," said Kevin McMahon, operations manager for Mars. "This is our new reality." When Shell initially discovered Mars in 1989, it was the largest find in the U.S. since oil was struck in Alaska's Prudhoe Bay in the 1960s. It took Shell seven years of engineering work before it pumped its first oil from the site, and more than $1 billion -- several times more than NASA spent on its Pathfinder probe to the actual Red Planet. Shell brought in BP PLC as a minority investor to help defray costs. Mars eventually became a big cash cow. But Mars's production, which peaked at more than 225,000 barrels a day in 2002, fell to around 60,000 barrels a day. Now the company's goal is to capitalize on its extensive infrastructure in the area and squeeze more barrels out of the field, using new know-how and technology. The Mars platform has recently rebounded to pump 75,000 barrels a day. Onshore, the shale fields of Texas' Permian Basin are known for having multiple layers of oil-rich rock, likened to stacks of pancakes. Companies have discovered that they can tap several layers, raising the total amount of oil the acreage can yield. Conventional wisdom held that deep-water geology was different. But Mr. McMahon said studies show the area around Mars also has many stacked layers of oil, and Shell is now using techniques pioneered on land to quickly drain them. Shell is going back into old, deep wells and using them to drill out horizontally into shallower layers of oil-bearing rock. It is also using water to flood reservoirs once thought to be played out, hoping to flush more crude to the surface. Shell can also produce oil for $10 to $15 a barrel by reopening old wells and using water and chemicals to flush more fuel out of the ground, Mr. McMahon said. The company is retapping a dozen wells near Mars in the first half of 2017, with another dozen tentatively scheduled for the second half of the year. But the effort carries risks. Hydrogen sulfide, a colorless gas that has been known to kill workers at drill sites, can build up inside old offshore wells that have been shut down and sealed off. Tensions can mount between Shell's technical experts, armed with big ideas about how to squeeze more crude through the aging Mars platform, and the offshore supervisors on the massive steel erector set who actually have to oversee the projects. Every weekday at 3 p.m., the two sides meet via a video feed connecting Shell's New Orleans skyscraper with the platform. During one recent meeting, Dale Toups, a chemical engineer at the skyscraper, was adamant about deploying sensitive monitoring equipment on a well whose geology suggested potential problems with hydrogen sulfide. Other engineers warned that testing could slow down work on nearby wells, delaying the other projects, and thus costing Shell money. Howard Hill, the offshore installation manager of Mars, sided with Mr. Toups. Mr. McMahon, the ultimate say, chose caution: The monitoring system got deployed at the start of February. BP's Deepwater Horizon rig disaster and oil spill, which killed 11 workers, released 3.2 million barrels of oil into the Gulf and has cost the company nearly $63 billion so far, occurred less than 100 miles from Mars. Expensive federal safety regulations are going into effect seven years after that deadly accident, calling for better real-time monitoring of equipment and more-frequent inspections, among other things. Shell executives said they aren't worried about the additional costs because their internal safety protocols are already tougher than what the regulations require. Still, dangers abound in deep water, and Shell has had its share of missteps. The company's recent foray into the Arctic waters off the coast of Alaska was marred when a drilling rig ran aground while traveling back to the Port of Seattle. The company pulled the plug on the project two years ago after the $7 billion endeavor resulted in a dry hole -- one of the most expensive in the history of oil exploration. Last March, Shell narrowly avoided an environmental disaster off the east coast of Canada when intense waves made a supply ship list so far to one side that a piece of heavy machinery in tow snapped loose and plunged to the sea floor, landing a few yards from an underwater oil well head. Shell said the incident posed no risk to the well's integrity. "We are a high-risk business," said Wael Sawan, Shell's vice president for deep water in Houston. "This is just the nature of deep water." But Shell, like other major oil companies, has little choice but to adapt its methods. Despite high crude prices over much of the past decade, big oil firms have struggled after plowing billions of dollars into megaprojects from Africa to Australia. A survey of Shell, Exxon Mobil Corp. and Chevron Corp. found that their combined return on capital plunged from 21.5% in 2007 to almost nothing over the past decade, according to a Wall Street Journal analysis of datafrom S&P Global Market Intelligence. Exxon and Chevron say the formulas they use to calculate returns show higher results. Shell's BG acquisition was the industry's largest since Exxon merged with Mobil in 1999. The deal propelled Shell ahead of Chevron Corp. to become the world's No. 2 energy company by market value and a huge producer of liquefied natural gas, increasingly used to generate electricity. Most important for its growth prospects, it acquired a host of new deep-water targets in Brazil that it believes it can develop economically even when oil sells for $40 a barrel. Brazil's offshore geology is so rich that experts rank it as one of the lowest-cost places to develop new oil finds. Shell plans to invest $10 billion in Brazil over the next five years, making it the largest foreign investor, according to Mr. Sawan. But Brazil remains a politically challenging place to operate, with complex environmental licensing procedures and requirements that a lot of equipment and labor be made and hired locally. Oil companies were rattled in 2011 when a minor oil spill by Chevron prompted Brazilian prosecutors to seek nearly $20 billion in damages and file criminal charges against executives. The charges were ultimately dropped, and Chevron agreed to pay $42 million to settle the suits in 2013. Shell points to its 103-year presence in Brazil as evidence it can navigate the nation's risks. Its partner in dozens of deep-water prospects is Brazil's state-controlled oil company Petroleo Brasileiro SA, also known as Petrobras. The company has been mired in a sweeping corruption scandal for almost three years. Now, burdened with the global oil industry's largest debt pile, it has been forced to cut capital spending by more than two-thirds for the 2017-2021 period. Even so, Petrobras has steadily brought down development costs, an important consideration for Shell as it looks to capitalize on its Brazilian assets on the cheap. The first well Petrobras drilled in the oil-rich pre-salt layer on Brazil's continental shelf took 310 days. Now it can drill and develop a well in fewer than 90. Rigs can cost around $400,000 a day. "It is huge savings," Petrobras Chief Executive Pedro Parente said in an interview. Shell executives note that Petrobras brought more than a million barrels a day of oil-pumping capacity online within a decade of discovering reserves -- something no other company has done. "They are the leading deep-water operator in the world," Mr. Van Beurden said. "We are No. 2, but they are No. 1." Shellis part of a consortium developing the giant Libra discovery in 6,500 feet of water 105 miles southeast of Rio de Janeiro, estimated to hold up to 12 billion barrels of oil. Instead of tackling it and other enormous oil deposits with a 20-year view to their lifespan, Shell and its partners are plotting how fields can be pumped in stages as a way to produce oil faster. Since Brazil's colossal deep-water potential is already surpassing expectations -- wells in the most-promising areas are yielding around 30% more than predicted -- fewer wells need to be drilled. Rather than erecting a giant steel platform to pump new wells there, Shell is helping fund half a dozen midsize floating platforms that will start to launch later this year. Mr. Van Beurden said he is optimistic that Shell's Brazilian oil output can help boost the company's world-wide deep-water production past 900,000 barrels a day by around 2020. The company's drive for more oil in the Gulf has already helped boost deep-water production by 50% since the end of 2015 to 725,000 barrels a day. "We are sitting on the best acreage in the world," he said. "These are the cash engines for the next decade."
Credit: Lynn Cook, Sarah Kent, Paul Kiernan
Subject: Petroleum industry; Offshore drilling
Location: Brazil
Company / organization: Name: BG Group PLC; NAICS: 486210, 211111, 221210; Name: Shell Oil Co; NAICS: 211111, 324110; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Mar 21, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
Document feature: Graphs
ProQuest document ID: 1879585360
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879585360?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Jour nal
U.S. Oil Hovers at Four-Month Low; The increasing flow of U.S. oil has dragged oil prices lower than the level seen in late November
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Mar 2017: n/a.
Abstract: None available.
Full text: Oil prices continued to face heavy selling pressure in Asia Wednesday as investors continued to dump their risky assets after data revealed U.S. crude stockpiles likely grew further. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $48.16 a barrel at 0215 GMT, down $0.08 in the Globex electronic session. May Brent crude on London's ICE Futures exchange fell $0.05 to $50.91 a barrel. U.S. oil prices hit a fresh four-month low overnight after industry group American Petroleum Institute said U.S. commercial crude inventories likely rose by 4.5 million barrels in the week ended March 17. If confirmed by the U.S. Energy Information Administration later today, it would be the 10th consecutive weekly growth. "The selloff in commodity markets looks likely to continue today, as the easing of supply side disruptions sees investors lighten their long positions built up over the past month," said ANZ Research. Market watchers will also be scrutinizing the U.S. production data which has stayed above the 9-million barrels level the past four weeks. Analysts say thanks to hefty investment in technology over the past two years, U.S. oil operations have become more efficient both in time and cost, strengthening American producers competitiveness against their Middle Eastern and Russia rivals. In fact, the increasing flow of U.S. oil has dragged oil prices lower than the level seen in late November when the Organization of the Petroleum Exporting Countries and Russia agreed to sideline 1.8 million barrels of their cumulative daily output. Now, the looming question is whether the group will extend the deal beyond the original six-month time frame. "The recent selloff will inevitably invite some bargain hunters, but the rebound will be marginal because the fundamentals are bearish," said Gao Jian, an energy analyst at SCI International, adding that there are signs some OPEC members are cheating while letting Saudi Arabia take on bulk of the cuts. The kingdom has indicated it would support stretching out the deal for more months if necessary, but Russia's noncommittal stance to an extension is stoking some concerns. The world's biggest energy producer had agreed to slash its production by 300,000 barrels a day by the end of the agreement period. A Russian news agency, Tass, earlier this week reported that the country slashed its oil production by 161,000 barrels a day as of March 19 against the October 2016 level, the baseline used by the participants of the output cut deal. Another data point that will be closely watched is China's February oil figures due Thursday. The data will include China's exports of products which has surged in recent months amid softening domestic demand. Preliminary data released earlier this month showed the country's crude imports rose 3.5% on year in February to 8.3 million barrels a day. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 43 points to $1.6095 a gallon, while April diesel traded at $1.5035, 2 points higher. ICE gas oil for April changed hands at $452.75 a metric ton, down $0.50 from Tuesday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Petroleum production; Crude oil prices; Price increases; Crude oil
Location: United States--US Libya Asia
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879418293
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879418293?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permissi on.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudis' Oil-Market Clout Falls As Rivals Muscle In
Author: McFarlane, Sarah; Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 Mar 2017: B.1.
Abstract:
Saudi Arabia is losing its grip on big oil markets it once dominated amid a deep production cut that has reshaped global petroleum trade routes and benefited rivals including Iran, Russia and the U.S. As it pursues a steep production cut aimed at putting a floor under oil prices, the world's biggest crude exporter is ceding ground to American shale producers and hastening a retreat from the U.S., according to people familiar with current Saudi policy. Saudi Arabia's crude exports to the U.S. for the week ended March 10 fell by 426,000 barrels a day from the previous week, according to the latest U.S. data. That represents the sharpest weekly drop in the time since the Organization of the Petroleum Exporting Countries decided in late November to cut production to raise oil prices.
Full text: Saudi Arabia is losing its grip on big oil markets it once dominated amid a deep production cut that has reshaped global petroleum trade routes and benefited rivals including Iran, Russia and the U.S. As it pursues a steep production cut aimed at putting a floor under oil prices, the world's biggest crude exporter is ceding ground to American shale producers and hastening a retreat from the U.S., according to people familiar with current Saudi policy. Saudi Arabia's crude exports to the U.S. for the week ended March 10 fell by 426,000 barrels a day from the previous week, according to the latest U.S. data. That represents the sharpest weekly drop in the time since the Organization of the Petroleum Exporting Countries decided in late November to cut production to raise oil prices. The decline was by design, the people said, as the kingdom is looking instead to Asia for growth. But Saudi Arabia is falling behind Russia when it comes to supplying China, China's General Administration of Customs data show. China is one of the world's fastest-growing major oil consumers. Elsewhere, the Saudi oil machine has been outmaneuvered by Iran and Iraq among big European customers in France, Spain and Italy, according to data from the International Energy Agency. The Saudi retreat from an all-out battle for these markets reflects the compromises the kingdom is now making to achieve a higher oil price as it faces fiscal pressures from a burgeoning population and as the planned offering of its state oil company, Saudi Arabian Oil Co., or Saudi Aramco, nears. "Saudi Arabia is under extraordinary pressure both internally and externally," said Dr. Jean-Marc Rickli, head of risks analysis at the Geneva Centre for Security Policy. For years, maintaining market share was a major priority for Saudi Arabia. In 2014, when the price of oil plunged, the Saudis opted against an OPEC output cut to avoid surrendering its share of key markets. Now, that strategy has changed in ways that would have been unimaginable just a few years ago. Since Saudi Arabia and OPEC decided to cut production last November, American shale companies have taken advantage of the resulting higher prices to launch a comeback, adding 412,000 barrels a day of output, according to the U.S. Energy Information Administration. While some of that oil has gone to satisfy the U.S. market, American crude exports have surged to more than 1 million barrels a day this year. In an interview, Saudi energy minister Khalid al-Falih said the return of U.S. production was "good" -- as long as it doesn't throw global supply and demand out of balance. "Extremes are not good," Mr. Falih said. "Saudi Arabia is for balance." Saudi Arabia -- which throttled output to record levels to compete with a flood of U.S. oil two years ago -- has cut its production by nearly 800,000 barrels a day since October. That is 60% more than it promised to cut as part of the OPEC deal and signals its seriousness about stabilizing the oil market. "This stabilization has meant sacrificing market share," said Alan Gelder, vice president of refining, chemicals and oil markets at Wood Mackenzie, an energy consulting firm. The cuts in exports to the U.S. are the latest in a series of pullbacks in what was once the kingdom's most lucrative market. In the 1990s, Saudi Arabia accounted for almost one-third of all American crude imports, but it represented only 12% in November, according to the EIA. To be sure, Saudi Arabia remains the world's dominant oil producer, able to influence prices because, as it says, the kingdom pumps about 2 million barrels a day below capacity. That means the country has the ability to quickly ramp output up and down, swaying prices. The Saudi pullback has allowed rivals to pounce. Russia, which isn't part of OPEC but agreed to cut output anyway, is pumping near post-Soviet highs. The group's second-biggest producer, Iraq, remains at near-record output levels. OPEC member Iran was allowed to keep increasing a certain amount of output. Iraqi and Russian officials say they are committed to cutting production and not taking advantage of the Saudis. Iran's oil ministry declined to comment. Even before the OPEC production cuts were announced, there had been a clear drop in imports of Saudi oil by major European economies. Shipments of Saudi oil to Spain, Italy and France fell by 11% between July and October, according to International Energy Agency data. At the same time, Iran sent stored oil to the export market, with a sweetener: a 3% discount against crude from OPEC rivals, according to a rival producer.The result: Iranian oil shipments to Europe surged 45% in December compared with August, according to ship tracker Clipper Data. "The Saudis are impacted by the OPEC cuts and not the Iranians, so that is helping Iranians to keep pushing a little bit against the Saudi crude," said Alfonso Mingarro, the head of trading at Spanish refiner Cepsa, which buys from both the Iranians and Saudis. Saudi Arabia also has been bruised in Asia. In China, the kingdom accounted for 13% of imports in 2016, down from 15% in 2015, Energy Aspects said. The kingdom has sought to shore up its Asian market after Russia flexed its muscles there. Last year, Russian state-owned oil company OAO Rosneft outbid Aramco for the second-largest Indian refinery, Essar Oil. King Salman is on a monthlong Asian tour to promote the Aramco initial public offering and to secure outlets for Saudi crude, including a $7 billion refining agreement with Malaysia. Mr. Gelder of Wood Mackenzie said Saudi Arabia is working to nail down future market share, even as it pulls back today. Saudi Aramco has revamped its Chinese operations, selling more to independent refineries there that prefer buying individual cargoes to sealing long-term contracts. The kingdom is also accelerating plans to rely more on refined products like gasoline, which are more profitable than crude. --- Justin Scheck contributed to this article.
Credit: By Sarah McFarlane, Benoit Faucon and Summer Said
Subject: Supply & demand; Market shares; Exports; Petroleum production; Crude oil prices
Location: Saudi Arabia
Company / organization: Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Mar 22, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879585424
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879585424?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Continue to Fall on Glut Worries; Concern over a buildup of U.S. crude stockpiles
Author: Sider, Alison; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Mar 2017: n/a.
Abstract: None available.
Full text: Oil prices edged lower Wednesday after weekly data showed U.S. crude stockpiles surged to a fresh record. U.S. crude for May delivery settled down 20 cents, or 0.41%, at $48.04 a barrel on the New York Mercantile Exchange on its first day as the front month contract. Brent, the global benchmark, fell 32 cents, or 0.63%, to $50.64 a barrel on ICE Futures Europe. Crude futures dropped sharply just after the U.S. Energy Information Administration reported that crude-oil supplies rose by 4.95 million barrels last week, surging to a record 533.1 million barrels. But the downward momentum lost steam, and crude prices pared losses throughout the day as market participants focused on indications of stronger gasoline demand. "The whipsaw reaction we've seen suggests to me that there's no clear direction," said Mark Anderle, director of supply and trading at TAC Energy. The increase in the amount of crude oil in storage was roughly in line with the 4.5 million barrel build that the industry group American Petroleum Institute reported Tuesday night. However, the forecast was more than double the 2.1 million barrel increase that analysts and traders surveyed by The Wall Street Journal were anticipating. Swelling U.S. inventories and rising output from U.S. producers will continue to challenge efforts by the Organization of the Petroleum Exporting Countries to chip away at a global supply glut that has weighed on prices since 2014. U.S. oil output rose for a fifth straight week to nearly 9.13 million barrels per day -- a 13-month high and a 20,000 barrel-a-day increase from the previous week. Imports also rose by 902,000 barrels a day. Market participants have been watching both those figures closely, waiting for signals that OPEC's cuts are being felt in the U.S., and trying to gauge whether rising U.S. production will offset those cuts. Still, Mark Waggoner, president of Excel Futures, said he doesn't expect the data to cause oil prices to fall much further. "I would consider this report fairly neutral," he said. "I think crude is going to hold this range and start edging higher." Gasoline stockpiles dropped by 2.8 million barrels--something that helped rebound from the low of $47.01 a barrel touched earlier in the day. Mr. Anderle, of TAC, said the data marked "a pretty good recovery" from record inventory levels earlier this year. Gasoline futures fell 0.33 cent, or 0.21%, to settle at $1.6019 a gallon. Diesel futures fell 0.65 cent, or 0.43%, to $1.4968 a gallon. Analysts say OPEC and major producers like Russia need to extend output cuts if they hope to make a dent in the global glut. "Even if for the time being it may be seen differently, it's not OPEC which is setting the price, it's very much the U.S. oil production," said Eugen Weinberg, an analyst at Commerzbank. "OPEC are not anymore in the driving seat and the sooner they realize it, the better." Saudi Arabia, the world's largest oil exporter, has said it would support stretching out the deal if necessary, but analysts are concerned that Russia may not commit. Russia had agreed to slash its production by 300,000 barrels a day by the end of the agreement period. Russian news agency, Tass, earlier this week reported that the country slashed its oil production by 161,000 barrels a day as of March 19 compared with the October 2016 level, the baseline used by the participants of the output cut deal. But several of the country's biggest firms, including state-controlled oil giant PAO Rosneft, have announced plans to step up their production during the year, analysts note. Dan Molinski contributed to this article Write to Alison Sider at alison.sider@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Alison Sider and Neanda Salvaterra
Subject: Petroleum production; Futures; Crude oil prices; Crude oil
Location: China Russia United States--US Saudi Arabia
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879601870
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879601870?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Inventories Rise More Than Expected
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil inventories jumped by more than two times what analysts were forecasting for the week ended March 17, while gasoline stockpiles fell, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles climbed by 5 million barrels to 533.1 million barrels, and are now at the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 2.1 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 1.4 million barrels to 68 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 2.8 million barrels to 243.5 million barrels. Analysts were expecting gasoline inventories to fall by 2 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 1.9 million barrels to 155.4 million barrels, and are in the upper half of the average range, the EIA said. Earlier in the week, analysts had forecast supplies would decrease by 1.7 million barrels from a week earlier. Refining capacity utilization rose by 2.3 percentage points from the previous week to 87.4%. Analysts were expecting utilization levels to rise by just 0.2 percentage point from the previous week. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Price increases; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879619267
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879619267?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Fitch Cuts Saudi Arabia's Credit Rating; Ratings firm raises concerns on Kingdom's planned economic measures in response to oil-price declines
Author: Parasie, Nicolas
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Mar 2017: n/a.
Abstract: None available.
Full text: DUBAI--Ratings agency Fitch on Wednesday downgraded Saudi Arabia's credit rating by one notch on concerns that the oil-exporter will struggle to fully implement its ambitious economic measures to wean the country off its oil dependence. Fitch lowered the kingdom's long-term foreign and local currency ratings to A+ from AA- with a stable outlook. It noted the "continued deterioration of public and external balance sheets" as a reason for the cut. The downgrade underlines the difficulties the Persian Gulf economies are still facing since oil prices started declining in the middle of 2014, curtailing these countries' main source of income. Saudi Arabia and its Gulf neighbors have responded with far-reaching economic reforms, including raising taxes and cutting subsidies, in an effort to diversify their economies and become less dependent on oil-price fluctuations. Saudi Arabia has also tapped international debt markets and is working to sell shares in state-owned oil giant Saudi Arabian Oil Co., better known as Saudi Aramco. Despite the economic reforms, oil exporters like Saudi Arabia have posted budget deficits and had to draw down foreign reserves to support their finances. Fitch said the economic measures Saudi Arabia is introducing will help contain the country's fiscal downfall but said "it is unlikely that they will all be achieved." "The scale of the reform agenda risks overwhelming the government's administrative capacity," it said. The ratings agency also warned that the country's economy, and in particular energy-dependent sectors, may suffer from a rise in energy costs. In a response to the downgrade, Saudi Arabia's Minister of Finance Mohammed Al-Jadaan said "The fundamentals of the Saudi economy remain strong." Mr. Al-Jadaan said the country still possessed sufficient foreign and domestic reserves. The government had also made progress in tackling wasteful spending, one of the main issues plaguing the country in the past years, the minister said. Saudi Arabia's foreign assets have declined 7.7% to $555 billion between June 2016 and January 2017, according to Fitch. Saudi Arabia last year raised $17.5 billion from the international debt markets to help plug its budget deficit. The kingdom is expected to sell more bonds later this year, bankers have said. Mr. Al Jadaan defended the country's oil policy on Wednesday. Saudi Arabia--which throttled output to record levels to compete with a flood of U.S. oil two years ago--led the Organization of the Petroleum Exporting Countries and producers outside the group in November to reach their first deal since 2001 to trim output to boost prices. The kingdom has cut its production by nearly 800,000 barrels a day since October. "The Kingdom's oil policy has borne fruit, resulting in a more stable global oil price environment," Mr. Al Jadaan said. Fitch last year already had cut its rating for Saudi Arabia to AA- on lower oil price expectations. Fellow ratings firms Standard & Poor's and Moody's last year also cut Saudi Arabia's credit rating over the country's fiscal deterioration. Write to Nicolas Parasie at nicolas.parasie@wsj.com Credit: By Nicolas Parasie
Subject: Ratings & rankings; Bond issues; International finance
Location: United States--US
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879674051
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879674051?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Lifted by Dip in U.S. Oil Products Stocks; Gasoline stocks fell by 2.8 million barrels in the week ended March 17, marking a fifth straight drawdown
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Mar 2017: n/a.
Abstract: None available.
Full text: Crude futures rebounded in Asia trade Thursday after data showed U.S. gasoline and distillates stocks declined in the latest reporting week, signaling that refiners have returned from maintenance and crude demand in the U.S. is set to rise. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $48.35 a barrel at 0124 GMT, up $0.31 in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $0.30 to $50.94 a barrel. Data by the U.S. Energy Information Administration showed U.S. gasoline stocks fell by 2.8 million barrels in the week ended March 17, marking a fifth straight drawdown. Gasoline demand is expected to march higher as U.S. approaches the summer driving season. Distillate stocks also fell by 1.9 million barrels. Crude supplies, however, swelled by 5 million barrels, bringing the total to a record high of 533.1 million barrels. Apart from domestic production which rose for the fourth week to 9.13 million barrels a day, strong imports also contributed to the growth, analysts said. The data offered mixed messages to the market. On one hand, the rise in U.S. refinery utilization rate indicates the annual maintenance season is now past and refiners will lap up more crude, said Société Générale. But the accelerating crude output by upstream players means the U.S. is well positioned to crimp the Organization of the Petroleum Exporting Countries' effort to pare down the still-bloated global crude inventories. Last year, OPEC and a handful of heavyweight producers such as Russia, clinched a deal to cut their combined daily productions by 1.8 million barrels. Cartel officials have said the main objective of the pact is to push global inventories down to the five-year average level this year. "Last week's increase in U.S. production and stocks will do little to assuage fears that the OPEC output cuts will not be enough to draw down stocks," said Thomas Pugh, a commodities economist at Capital Economics. Some say the gush of new U.S. oil in the market, combined with rising production out of Libya, will leave OPEC little choice but to prolong the production cut plan beyond the initial January-June period. "True, prices are falling now but these producers must take a long-term view and cutting production will help tighten the oil market in the long run," said Barnabas Gan, an economist at Singapore-based OCBC bank. Describing the recent above-10% fall in oil prices as a mere "blink", Mr. Gan still bets both WTI and Brent prices to rebound to $65 a barrel by the end of the year, driven by robust crude demand by developing economies such as India and China, as crude production in Asia dwindles. China's crude output, Asia's largest crude producer accounting for 47% of region's total production, fell 8% on-year in the first two months to 3.9 million barrels. Meanwhile, its crude imports rose 3.5% on-year in February to 8.4 million barrels a day. Indonesia and Malaysia are also poised to see long term declines due to a dearth of new large-scale projects beyond 2018, said BMI Research. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 26 points to $1.6045 a gallon, while April diesel traded at $1.5030, 62 points higher. ICE gas oil for April changed hands at $452.50 a metric ton, up $5.50 from Wednesday's settlement. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Futures; Price increases; Supply & demand
Location: China Russia United States--US Libya Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Languageof publication: English
Document type: News
ProQuest document ID: 1879762607
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879762607?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Falls On Jump In U.S. Stockpile
Author: Sider, Alison; Salvaterra, Neanda
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]23 Mar 2017: B.13.
Abstract:
Swelling U.S. inventories and rising output from U.S. producers will continue to challenge efforts by the Organization of the Petroleum Exporting Countries to chip away at a global supply glut that has weighed on prices since 2014.
Full text: Oil prices edged lower Wednesday after weekly data showed U.S. crude stockpiles surged to a record. U.S. crude for May delivery settled down 20 cents, or 0.4%, at $48.04 a barrel on the New York Mercantile Exchange on its first day as the front- month contract. Brent, the global benchmark, fell 32 cents, or 0.6%, to $50.64 a barrel on ICE Futures Europe. Crude futures dropped sharply just after the U.S. Energy Information Administration reported that crude-oil supplies rose 4.95 million barrels last week, surging to a record 533.1 million barrels. But the downward momentum lost steam, and crude prices pared losses throughout the day as market participants focused on indications of stronger gasoline demand. "The whipsaw reaction we've seen suggests to me that there's no clear direction," said Mark Anderle, director of supply and trading at TAC Energy. The increase in the amount of crude oil in storage was roughly in line with the 4.5 million barrel build that the industry group American Petroleum Institute reported Tuesday night. However, the forecast was more than double the 2.1 million barrel increase that analysts and traders surveyed by The Wall Street Journal were anticipating. Swelling U.S. inventories and rising output from U.S. producers will continue to challenge efforts by the Organization of the Petroleum Exporting Countries to chip away at a global supply glut that has weighed on prices since 2014. U.S. oil output rose for a fifth straight week to nearly 9.13 million barrels a day -- a 13-month high and a 20,000 barrel-a-day increase from the previous week. Imports rose by 902,000 barrels a day. Market participants have been watching both those figures closely, waiting for signals that OPEC's cuts are being felt in the U.S., and trying to gauge whether rising U.S. production will offset those cuts. Still, Mark Waggoner, president of Excel Futures, said he doesn't expect the data to cause oil prices to fall much further. "I would consider this report fairly neutral," he said. "I think crude is going to hold this range and start edging higher." Gasoline stockpiles dropped 2.8 million barrels -- something that helped crude rebound from the low of $47.01 a barrel touched earlier in the day. Mr. Anderle said the data marked "a pretty good recovery" from record inventory levels earlier this year. Gasoline futures fell 0.33 cent, or 0.2%, to settle at $1.6019 a gallon. Diesel futures fell 0.65 cent, or 0.4%, to $1.4968 a gallon. Analysts say OPEC and major producers like Russia need to extend output cuts if they hope to make a dent in the global glut. "Even if for the time being it may be seen differently, it's not OPEC which is setting the price, it's very much the U.S. oil production," said Eugen Weinberg, an analyst at Commerzbank AG. OPEC is "not anymore in the driving seat and the sooner they realize it, the better." Russia had agreed to slash production by 300,000 barrels a day by the end of the agreement period. Russian news agency Tass this week reported that the country slashed oil production by 161,000 barrels a day as of March 19 compared with the October 2016 level, the baseline used by the participants of the output cut deal. --- Dan Molinski contributed to this article. Credit: By Alison Sider and Neanda Salvaterra
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.13
Publication year: 2017
Publication date: Mar 23, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879853476
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879853476?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Latest Threat to U.S. Oil Drillers: The Rocketing Price of Sand; The market for a key ingredient in fracking is again surging
Author: Matthews, Christopher M; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Mar 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Fracking a West Texas well in some sweet spots now takes 10 million pounds of sand, which requires 200 truckloads of the stuff. An earlier version of this article incorrectly stated that the amount of sand needed to frack a typical well required 200,000 trucks. Also, Evercore ISI is an independent investment bank. The bank was incorrectly described as an energy investment bank in an earlier version of this article. (March 24) The market for sand--a key ingredient in fracking--is surging once again as U.S. oil production rebounds, and the rising price of the tiny grains threatens to cut into energy companies' profits. Now that crude oil is selling for just less than $50 a barrel, American shale companies have rushed back into the oil patch , and they are using more sand to help supersize their wells. Sand props open underground fissures, which allows oil and gas to escape to the surface. But the millions of pounds of sand being poured down wells is pushing up sand prices, eroding some of the profits that energy companies have managed to regain since the oil bust ended. Some are concerned sand supplies, diminished during a two-year oil-price downturn, could stall the drilling renaissance. "Companies are worried about it," said James West, a managing director at Evercore ISI, an independent investment bank. "I think the threat of a bottleneck, at this point, is probably understated." The tightening market has already sent prices marching toward $40 a ton or more, by some estimates, up from $15 to $20 a ton in the second half of 2016. Increasing sand orders are also raising demand for railcars and trucks to transport it from mines in states like Wisconsin to shale fields in Texas and Oklahoma. Some predict that demand for sand may outstrip supply by next year, creating a shortage that could linger for most of 2018. Tudor, Pickering, Holt & Co. estimates the sector will need 120 million tons of sand by next year, more than double the demand in 2014 at the height of the U.S. drilling boom. Demand for sand has already returned to pre-bust levels, said George O'Leary, director of oil-field services research at Tudor Pickering, a Houston-based energy investment bank. Sand accounted for between 5% and 7% of the cost of a well last fall, and Mr. O'Leary expects that percentage to rise as exploration and production companies use more of it this year. He thinks the price of sand could hit $50 a ton before year-end, though that is still below the $60 to $70 a ton being paid in the third quarter of 2014, before the bust really took hold. In the quest to find efficiencies of scale during the two-year downturn, producers have been drilling megawells, which run underground for more than a mile horizontally, and blasting larger quantities of sand down them to unleash more fossil fuels. The biggest U.S. shale fields get fracked with about 30% more sand every year, according to Phillip Dunning, a technical adviser at Drillinginfo, which tracks oil-field supply use. Frack sand use in the Delaware, one of the hottest parts of the Permian Basin in West Texas, has more than tripled since the start of 2012. By the end of 2016, producers put an average 1,919 pounds per foot down wells that measured 5,500 feet, according to Drillinginfo data. In Louisiana, Chesapeake Energy Corp. recently pumped a record 50.2 million pounds of sand into a horizontal well roughly 1.8 miles long, piquing the interest of some rivals who are now weighing whether they can do the same. A handful of oil producers, including Pioneer Natural Resources Co., have purchased their own sand mines to insulate themselves from bottlenecks. Pioneer, a prolific driller in the Permian Basin, plans to nearly triple its Texas sand production by the end of 2019. Pioneer's sand use has surged 70% since 2013 to 1,700 pounds a foot. The company will test wells this year using 3,000 pounds a foot. The expense is compounded by the logistics of moving sand from mines to well sites thousands of miles away. Drillers don't use sand found on a beach. They prefer fine white silica, much of it found in northern Midwest states. Shipping 5 million tons of sand can require 200,000 truck loads, according to a 2013 study by the University of Wisconsin. Fracking a West Texas well in some sweet spots now takes 10 million pounds of sand, which requires 200 truckloads of the stuff. David Adams, the head of Halliburton Co.'s well completion and production division, said sand costs break down into thirds, equally divided into the cost of sand, the cost of rail transport and the cost to truck the sand to the well. He expects a short-term bottleneck because during the protracted downturn, sand-mining companies slowed production and some canceled plans to open new mines. Many sand producers are ramping back up, but expanding operations take time. U.S. Silica, which is fetching 20% more for its sand today than it did in October, plans to double its mining capacity to more than 20 million tons in 2018. Halliburton is trying to keep costs for its clients down by investing in its own train depots and storage facilities in major shale basins from Colorado to North Dakota. It also signed a deal with U.S. Silica in January to use its Sandbox trucks, which use a forklift to load and unload containers from a customized chassis in seconds. Write to Christopher M. Matthews at christopher.matthews@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Christopher M. Matthews and Erin Ailworth
Subject: Petroleum production; Mines; Profits; Energy industry; Supply & demand
Location: Permian Basin Wisconsin United States--US West Texas Oklahoma
Company / organization: Name: Tudor Pickering Holt & Co LLC; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 23, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879937529
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879937529?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Tumble Again on Oversupply; U.S. inventories, production undermining OPEC output cuts
Author: Puko, Timothy; Salvaterra, Neanda; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Mar 2017: n/a.
Abstract: None available.
Full text: Oil prices fell for the fourth-straight session as oversupply concerns continue to weigh on the market. It has lost 11% in just two weeks as rising U.S. inventories have caused traders to question whether the world's exporters are following through on promises of production cuts, or if those cuts even matter. That selloff is continuing this week because the U.S. government reported another unexpectedly large increase in stockpiles. "There's a large undertone of caution and lack of convincing" from the Organization of the Petroleum Exporting Countries, said Donald Morton, senior vice president at Herbert J. Sims & Co. Light, sweet crude for May settled down 34 cents, or 0.7%, at $47.70 a barrel on the New York Mercantile Exchange. It is the second-lowest settlement of the year. Brent crude, the global benchmark, lost 8 cents, or 0.2%, to $50.56 a barrel on ICE Futures Europe. It is down in 11 of 13 sessions and at its lowest settlement since Nov. 30. One particular concern is the near-record-high storage levels at the delivery point for the benchmark U.S. West Texas Intermediate oil contract, brokers said. Stockpiles there, at Cushing, Okla., rose by about 672,000 barrels in the week ended Tuesday, data provider Genscape Inc. said Thursday morning, according to a person who saw the report. Some fear rhetoric from Saudi Arabia suggests it won't hold or extend support for output cuts, and that has caused a selloff lowering near-term prices a lot more than long-term prices, said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. If oil is more expensive in later months, it encourages suppliers to sock it away in storage for now and sell it at those higher prices later. "There's still giant size coming down the pipe. And they're just jacking it into Cushing," Mr. Yawger said. The U.S. Energy Information Administration had said Wednesday that U.S. crude inventories and production both grew last week. Jittery investors caused Brent to briefly dip below the $50 mark Wednesday for the first time in 2017. Crude supplies swelled by 5 million barrels, bringing the total to a record of 533.1 million barrels. Apart from domestic production, which rose for the fourth week to 9.13 million barrels a day, strong imports also contributed to the growth, analysts said. "Inventories are still a huge overhang. That's not going away overnight," said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. Some did see mixed messages in the data. On one hand, a rising U.S. refinery utilization rate indicates the annual maintenance season has ended and refiners will lap up more crude, said Société Générale. But the accelerating crude output by upstream players means the U.S. is well-positioned to crimp OPEC's effort to pare down the lingering global crude overhang. Last year, OPEC and a handful of producers including Russia clinched a deal to cut their combined daily productions by 1.8 million barrels. Cartel officials have said the main objective of the pact is to push global inventories down to the five-year average level this year. "Last week's increase in U.S. production and stocks will do little to assuage fears that the OPEC output cuts will not be enough to draw down stocks," said Thomas Pugh, a commodities economist at Capital Economics. Gasoline futures lost 1.23 cents, or 0.8%, to $1.5896 a gallon, the third-straight losing session. Diesel futures lost 0.67 cent, or 0.4%, to $1.4901 a gallon, its lowest settlement since Nov. 29. Write to Timothy Puko at tim.puko@wsj.com , Neanda Salvaterra at neanda.salvaterra@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Timothy Puko, Neanda Salvaterra and Jenny W. Hsu
Subject: Stocks; Inventory; Seasons; Supply & demand
Location: China Russia United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1879956011
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1879956011?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Cnooc Manages to Book Annual Profit Amid Cost Cutting; Company blames 97% slide in profit on lower oil prices
Author: Spegele, Brian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Mar 2017: n/a.
Abstract: None available.
Full text: BEIJING--Chinese offshore oil explorer Cnooc Ltd. (0883.HK) said it eked out a 637 million ($92.5 million) yuan net profit last year, staving off its first annual loss through aggressive cost cutting. Cnooc said it earned 46.49 billion yuan in revenue, down 14.6% versus a year earlier. Net profit slid 97%, which the company blamed on lower oil prices worldwide. The company said its average realized price declined nearly 20% in 2016 versus 2015. "In 2016, the Company has maintained a strong cost competitiveness despite low oil prices and sluggish global economic growth," Cnooc CEO Yang Hua said. Cnooc said its capital expenditures fell 26.3% on year to 49 billion yuan. Amid rebounding oil prices, the company says it will target higher spending of 60 billion to 70 billion yuan this year. For the year, total oil and gas production fell about 4% to 476.9 million barrels of oil equivalent (MMBOE). Domestic production fell to 311.1 MMBOE from 323.4 MMBOE in 2015. Write to Brian Spegele at brian.spegele@wsj.com Credit: By Brian Spegele
Subject: Financial performance; Corporate profits; Prices
People: Yang Hua
Company / organization: Name: CNOOC Ltd; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 23, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880062755
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880062755?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Shell Oil Spills Led to 'Astonishingly High' Pollution in Nigeria; Stalled cleanup of leaks from faulty pipeline in 2008 is endangering locals, letter warns
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Mar 2017: n/a.
Abstract: None available.
Full text: Royal Dutch Shell PLC oil spills that haven't been cleaned up for over eight years have contributed to "astonishingly high" levels of pollution in a Nigerian community, according to a consultant who helped produce a confidential damage assessment for Shell and its partners in the cleanup. Shell admitted liability for two large oil spills from a broken pipeline in 2008 in Bodo, a Niger Delta fishing community that, according to U.K. court claims, was inundated with over 500,000 barrels of oil--roughly twice the amount when the Exxon Valdez ran aground in Alaska in 1989. Shell disputed the volume of the spills but reached an out-of-court settlement with the community for £55 million in 2015 --or around $80 million at the time--after facing a lawsuit in London. An environmental damage study was also conducted that year as part of efforts to clean up the area under the Bodo Mediation Initiative, which included Shell's Nigerian subsidiary, civil society groups, and members of the local community and government. The study found that "astonishingly high" levels of pollution remained in Bodo's mangroves and creeks years after the spill, endangering the community, wrote Kay Holtzmann, the former director of the cleanup project, in a Jan. 26 letter to the Bodo Mediation Initiative, which was seen by The Wall Street Journal. "The soil in the mangroves is literally soaked with hydrocarbons," wrote Mr. Holtzmann, who oversaw the study but no longer works for the initiative. "Whoever is walking in the creeks cannot avoid contact with toxic substances." Mr. Holtzmann wrote that the study dictated a need for health screenings and should be widely publicized. He wrote that Shell has denied him permission to publish the study's results in a scientific journal and exposed Bodo, an expanse of Niger Delta swamp and mangroves, to dangerous levels of toxins. "SPDC has no right to conceal data important for the public although they might be unpleasant," the letter said, referring to Shell Petroleum Development Co. of Nigeria, the Anglo-Dutch company's Nigerian subsidiary. Shell said the analysis didn't reveal any information that hadn't been previously established by a United Nations Environment Program report on pollution levels in Ogoniland, the part of the Niger Delta where Bodo is located. The 2011 report revealed high levels of contamination that could take as long as 30 years to fully clean up. In an interview, UNEP's executive director Erik Solheim described the current situation in Ogoniland as "one of the biggest environmental scandals and catastrophes anywhere in the world." According to people familiar with the matter, complex disputes between the company and the local community have stalled cleanup efforts in Bodo and attempts to communicate findings from the assessment, though they were shared with local representatives and government agencies. The environmental damage caused by the 2008 spills has also been compounded by illegal refining in the area, the people said. The oil-rich Niger Delta has been a center for Shell's oil production for decades, but aging infrastructure and widespread sabotage and theft have resulted in regular oil spills that ravaged the local environment. Shell maintains that the bulk of the oil spills in the Niger Delta are caused by sabotage , theft and illegal refining. Efforts to improve the situation in Bodo have been plagued by mistrust, local power struggles, and disputes over how money for the work would be distributed, according to Inemo Samiama, chairman of the Bodo Mediation Initiative. In late 2015, the camp where cleanup contractors were staying was attacked, effectively halting work until now, the people said. In response to the concerns raised in Mr. Holtzmann's letter, Mr. Samiama said: "The number one solution to dealing with the health consequences is to start the cleanup." Leigh Day, the law firm that represented the Bodo community, wrote to Shell in January to request clarification after receiving a copy of Mr. Holtzmann's letter. The law firm said it had yet to receive a response. "We're extremely concerned," said Daniel Leader, a partner at Leigh Day who worked on the Bodo case. "We have been asking for health testing and to check the water supply for many years and they have simply not done it." Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Petroleum production; Settlements & damages; Community; Oil spills; Environmental cleanup; Mediation; Law firms; Pipelines
Location: Alaska Nigeria Niger Delta United Kingdom--UK
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 23, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880103364
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880 103364?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Italy's Eni Strikes Oil Off Mexican Shores; Firm drills successful well in block that it won in a Mexican government auction
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Mar 2017: n/a.
Abstract: None available.
Full text: Italian oil company Eni SpA said Thursday that it is considering plans to speed up development of oil fields in the southern Gulf of Mexico after drilling a successful well in a block that it won in a Mexican government auction. The Amoca-2 shallow-water well in the Bay of Campeche is the first drilled by an international oil major since Mexico opened oil exploration and production to the private sector in a 2013 overhaul of energy laws , the company said. The well, in 25 meters of water, was drilled to a depth of about 3,500 meters and confirmed the presence of deposits of both heavy and light crude. The light crude was found in deeper, newly discovered formations. "Reserves are still being assessed, but the well indicates a meaningful upside to the original estimates," Eni said. The company said it would drill additional wells this year to appraise existing discoveries and target new pools. The production-sharing contract is for an area off the coast of Mexico's Tabasco state, with three oil fields which combined were estimated to contain proven and probable reserves of 122 million barrels of oil equivalent. Mexico changed its Constitution in 2013 to bring foreign investment and know-how into the industry, where state oil company Petróleos Mexicanos has seen its output decline for more than a decade. In its first four auctions, the government awarded 38 blocks, including onshore and deep water areas, and has so far scheduled three auctions for this year. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Subject: Auctions; Oil fields; Offshore oil wells
Location: Italy Mexico
Company / organization: Name: Eni SpA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 23, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880176732
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880176732?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Riverstone, Retired Energy Executive Get Billion-Dollar Check to Shop in Oil Patch; Investors betting on second act of James Hackett, former Anadarko Petroleum CEO
Author: Dezember, Ryan; Farrell, Maureen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Mar 2017: n/a.
Abstract: None available.
Full text: Investors Thursday handed a blank check for nearly $1 billion to a New York investment firm and a retired energy CEO turned theology student so they can hunt for an oil business to buy. In staking Silver Run Acquisition Corp. II, investors are hoping that Riverstone Holdings LLC, the energy-focused investment firm, can repeat the success of a similarly named entity it launched last year with another big-name oil executive. That blank-check company, led by Mark Papa, who earlier built an Enron Corp. castoff into one of the largest U.S. oil producers, last year raised $500 million. It put the cash toward buying a pair of closely held West Texas oil producers. Now known as Centennial Resource Development Inc., its shares have been among the energy industry's best performers, up 71% since the February 2016 listing . Investors in the latest Riverstone endeavor are betting on the second-act of James Hackett, who transformed Anadarko Petroleum Corp. from an oil patch also-ran into one of the world's largest energy explorers before retiring in 2013 to pursue a theology degree at Harvard Divinity School. Thursday's stock sale, which raised $900 million, was the largest of its kind in a decade, according to Dealogic. It will exceed $1 billion and tie the record for the largest blank-check offering if the banks managing the deal exercise options to buy shares, which they often do in such transactions. Blank-check companies, also called special-purpose acquisition companies, or SPACs, start with no assets and sell shares to raise cash that they then use to make acquisitions. They've traditionally attracted hedge funds willing to make speculative bets on specific deal makers, but these days bankers say they're pitched to a broader swath of investors. Centennial's surging shares have made energy investors particularly bullish on this style of deal making. Kayne Anderson Capital Advisors LP, a Los Angeles private-equity firm focused on pipelines, filed paperwork earlier this month to raise as much as $402 million for a blank-check company. Last month NGP, a Dallas firm known for staking wildcatters, said in filings it would seek $460 million. In a SPAC that could rival those of Riverstone for star power, TPG is in talks to launch a blank check company headed by former Occidental Petroleum Corp. CEO Stephen Chazen, according to people familiar with the discussions. Riverstone's Thursday offering more than doubled in size from the $400 million the deal makers first proposed in securities filings three weeks ago, showing investor enthusiasm but also raising a question about how much demand will remain. SPACs were a hallmark of the frothy days before the financial crisis, but fizzled in its wake. Some big blank-check companies, such as Nelson Peltz's Trian Acquisition I Corp., which raised $920 million in 2008, were unable to make acquisitions within the customary two-year time period, forcing them to fold and give cash back to investors. SPACs have come back in recent years, though. Since 2015, investors have given nine-figure blank checks to well-known deal makers to pursue acquisitions in consumer products, tech and chemicals. Last year, a SPAC acquired Twinkie-maker Hostess Brands Inc. after it went public . Earlier this month a blank-check company launched by TPG acquired a chain of Caribbean resorts. SPACs have their risks beyond the uncertainty of what businesses they'll buy. Investors face the possibility that their cash will be locked up for two years with no results. Energy investors face particular challenges with oil prices hovering around $50 a barrel: The number of regions where drilling is economical are limited and prices for assets, such as drilling land in the Permian Basin in West Texas, have soared. SPACs offer some advantages to big energy investors, bankers say. For one, they give private-equity firms the cash to pursue large purchases without risking too much of their fund investors' cash in any one deal. They are also a quick way to list closely held companies and businesses carved out of big corporations on stock exchanges where they can then raise additional cash to grow. And sellers sometimes are willing to take discounts to cash out of investments completely, rather than risk slower exits through their own IPOs. Write to Ryan Dezember at ryan.dezember@wsj.com and Maureen Farrell at maureen.farrell@wsj.com Credit: By Ryan Dezember and Maureen Farrell
Subject: Acquisitions & mergers; Private equity; Investments; Energy industry
Location: New York United States--US Los Angeles California West Texas
People: Papa, Mark
Company / organization: Name: Harvard Divinity School; NAICS: 611310; Name: Riverstone Holdings LLC; NA ICS: 523910; Name: Occidental Petroleum Corp; NAICS: 211111, 324110; Name: Anadarko Petroleum Corp; NAICS: 211111; Name: Enron Corp; NAICS: 211111, 221210, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 23, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880193753
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880193753?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Flat Ahead of Monitoring Committee Meeting; Analysts have blamed the U.S. for the recent selling pressure
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Mar 2017: n/a.
Abstract: None available.
Full text: Global crude futures were flat in Asia on Friday amid growing concerns the oil cartel's pledge to reduce global inventories is encouraging the U.S. to boost production. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $47.76 a barrel at 0206 GMT, up $0.06 in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $0.02 to $50.58 a barrel. Analysts blamed the U.S. for the recent selling pressure, saying rising production and growing stockpiles there are foiling efforts by the Organization of the Petroleum Exporting Countries to drain the global oil glut. The oil cartel and a group of non-OPEC heavyweights have agreed to cut output by 1.8 million barrels a day. The deal was struck in early December, around the time U.S. production began gathering steam. U.S. shale-oil production has climbed nearly 5% since the first week of December, data showed, and it has stayed above the 9-million-barrel-a-day threshold for the past four weeks. In the same period, Brent prices have dropped as much as 13%, falling below $50 earlier this week. Still, the production-cut agreement appears to be working, albeit slowly. "[Investors] are probably underestimating just how high the starting point for inventories is," said Energy Aspects. "As long as the market is patient, there should be enough price upside waiting in the summer," it said. Data compiled by consultancy FGE showed global stockpiles of refined products such as gasoline fell by 5.7 million barrels in the past five weeks. Even crude inventories are expected to show some drawdown. Stockpiles in developed economies are estimated to have dropped by 5 million barrels in February, the International Energy Agency said in its recent report. The monitoring committee comprising Kuwait, Algeria, Venezuela, as well as non-OPEC nations Russia and Oman will meet this weekend to discuss the effectiveness of the production-cutting deal. Investors will be looking for hints on whether the group will extend the cuts. Saudi Arabia, which is shouldering the bulk of the cuts, will likely lobby to extend the plan, especially after ratings company Fitch cut the kingdom's credit rating to A+ from AA- and lowered the outlook to negative from stable, citing a worsening government deficit caused by declining oil prices, said Stuart Ive, a client manager at OM Financial. "OPEC is feeling the pressure. It may pay to go into the weekend long with a tight stop or look at optionality to reflect a spike come Monday," he said. Market players will also be watching the weekly U.S. rig count before placing bets. In the week ended March 17, U.S. drillers activated 14 more rigs, the ninth straight week of additions. Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--edged lower to $1.5890 a gallon, while April diesel traded at $1.4919. ICE gas oil for April changed hands at $448.75 a metric ton, down $1.50 from Thursday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Crude oil prices; Quotas; Supply & demand
Location: Kuwait United States--US
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880183212
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880183212?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Latest Threat to U.S. Oil Drillers: The Rocketing Price of Sand; The market for a key ingredient in fracking is again surging
Author: Matthews, Christopher M; Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Mar 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Fracking a West Texas well in some sweet spots now takes 10 million pounds of sand, which requires 200 truckloads of the stuff. An earlier version of this article incorrectly stated that the amount of sand needed to frack a typical well required 200,000 trucks. An earlier version of this article incorrectly stated. (March 23) The market for sand--a key ingredient in fracking--is surging once again as U.S. oil production rebounds, and the rising price of the tiny grains threatens to cut into energy companies' profits. Now that crude oil is selling for just less than $50 a barrel, American shale companies have rushed back into the oil patch , and they are using more sand to help supersize their wells. Sand props open underground fissures, which allows oil and gas to escape to the surface. But the millions of pounds of sand being poured down wells is pushing up sand prices, eroding some of the profits that energy companies have managed to regain since the oil bust ended. Some are concerned sand supplies, diminished during a two-year oil-price downturn, could stall the drilling renaissance. "Companies are worried about it," said James West, a managing director at Evercore ISI, an energy investment bank. "I think the threat of a bottleneck, at this point, is probably understated." The tightening market has already sent prices marching toward $40 a ton or more, by some estimates, up from $15 to $20 a ton in the second half of 2016. Increasing sand orders are also raising demand for railcars and trucks to transport it from mines in states like Wisconsin to shale fields in Texas and Oklahoma. Some predict that demand for sand may outstrip supply by next year, creating a shortage that could linger for most of 2018. Tudor, Pickering, Holt & Co. estimates the sector will need 120 million tons of sand by next year, more than double the demand in 2014 at the height of the U.S. drilling boom. Demand for sand has already returned to pre-bust levels, said George O'Leary, director of oil-field services research at Tudor Pickering, a Houston-based energy investment bank. Sand accounted for between 5% and 7% of the cost of a well last fall, and Mr. O'Leary expects that percentage to rise as exploration and production companies use more of it this year. He thinks the price of sand could hit $50 a ton before year-end, though that is still below the $60 to $70 a ton being paid in the third quarter of 2014, before the bust really took hold. In the quest to find efficiencies of scale during the two-year downturn, producers have been drilling megawells, which run underground for more than a mile horizontally, and blasting larger quantities of sand down them to unleash more fossil fuels. The biggest U.S. shale fields get fracked with about 30% more sand every year, according to Phillip Dunning, a technical adviser at Drillinginfo, which tracks oil-field supply use. Frack sand use in the Delaware, one of the hottest parts of the Permian Basin in West Texas, has more than tripled since the start of 2012. By the end of 2016, producers put an average 1,919 pounds per foot down wells that measured 5,500 feet, according to Drillinginfo data. In Louisiana, Chesapeake Energy Corp. recently pumped a record 50.2 million pounds of sand into a horizontal well roughly 1.8 miles long, piquing the interest of some rivals who are now weighing whether they can do the same. A handful of oil producers, including Pioneer Natural Resources Co., have purchased their own sand mines to insulate themselves from bottlenecks. Pioneer, a prolific driller in the Permian Basin, plans to nearly triple its Texas sand production by the end of 2019. Pioneer's sand use has surged 70% since 2013 to 1,700 pounds a foot. The company will test wells this year using 3,000 pounds a foot. The expense is compounded by the logistics of moving sand from mines to well sites thousands of miles away. Drillers don't use sand found on a beach. They prefer fine white silica, much of it found in northern Midwest states. Shipping 5 million tons of sand can require 200,000 truck loads, according to a 2013 study by the University of Wisconsin. Fracking a West Texas well in some sweet spots now takes 10 million pounds of sand, which requires 200 truckloads of the stuff. David Adams, the head of Halliburton Co.'s well completion and production division, said sand costs break down into thirds, equally divided into the cost of sand, the cost of rail transport and the cost to truck the sand to the well. He expects a short-term bottleneck because during the protracted downturn, sand-mining companies slowed production and some canceled plans to open new mines. Many sand producers are ramping back up, but expanding operations take time. U.S. Silica, which is fetching 20% more for its sand today than it did in October, plans to double its mining capacity to more than 20 million tons in 2018. Halliburton is trying to keep costs for its clients down by investing in its own train depots and storage facilities in major shale basins from Colorado to North Dakota. It also signed a deal with U.S. Silica in January to use its Sandbox trucks, which use a forklift to load and unload containers from a customized chassis in seconds. Write to Christopher M. Matthews at christopher.matthews@wsj.com and Erin Ailworth at Erin.Ailworth@wsj.com Credit: By Christopher M. Matthews and Erin Ailworth
Subject: Petroleum production; Profits; Mines; Energy industry; Supply & demand
Location: Permian Basin Wisconsin United States--US West Texas Oklahoma
Company / organization: Name: Tudor Pickering Holt & Co LLC; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 24, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880214587
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880214587?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Fracking Sand Mounts a Costly Comeback --- Shale-oil drillers face higher prices for key ingredient as demand hits pre-bust levels
Author: Matthews, Christopher M; Ailworth, Erin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]24 Mar 2017: B.1.
Abstract:
The market for sand -- a key ingredient in fracking -- is surging once again as U.S. oil production rebounds, and the rising price of the tiny grains threatens to cut into energy companies' profits. To achieve efficiencies of scale during the two-year downturn, producers drilled megawells, which run underground for more than a mile horizontally, blasting larger quantities of sand down them to unleash more fossil fuels.
Full text: Corrections & Amplifications Evercore ISI is an independent investment bank. A Business & Finance article on Friday about the cost of sand used in fracking incorrectly said it was an energy investment bank. (WSJ March 27, 2017) The market for sand -- a key ingredient in fracking -- is surging once again as U.S. oil production rebounds, and the rising price of the tiny grains threatens to cut into energy companies' profits. Now that crude oil is selling for about $50 a barrel, American shale companies have rushed back into the oil patch, and they are using more sand to help supersize their wells. Sand props open underground fissures, which allows oil and gas to escape to the surface. But the millions of pounds of sand being poured down wells is pushing up sand prices, eroding some of the profits that energy companies have managed to regain since the oil bust ended. Some are concerned sand supplies, diminished during a two-year oil-price downturn, could stall the drilling renaissance. "Companies are worried about it," said James West, a managing director at Evercore ISI, an energy investment bank. "I think the threat of a bottleneck, at this point, is probably understated." The tightening market has already sent prices marching toward $40 a ton or above, by some estimates, up from $15 to $20 a ton in the second half of 2016. Increasing sand orders are also raising demand for railcars and trucks to transport it from mines in states like Wisconsin to shale fields in Texas and Oklahoma. Some predict that demand for sand may outstrip supply by next year, creating a shortage that could linger for most of 2018. Tudor, Pickering, Holt & Co. estimates the sector will need 120 million tons of sand by next year, more than double the demand in 2014 at the height of the U.S. drilling boom. Demand for sand has already returned to pre-bust levels, said George O'Leary, director of oil-field services research at Tudor Pickering, a Houston-based energy investment bank. Sand accounted for between 5% and 7% of the cost of a well last fall, and Mr. O'Leary expects that percentage to rise as exploration and production companies use more of it this year. He thinks the price of sand could hit $50 a ton before year end, though that is still below the $60 to $70 a ton paid in the third quarter of 2014, before the bust really took hold. To achieve efficiencies of scale during the two-year downturn, producers drilled megawells, which run underground for more than a mile horizontally, blasting larger quantities of sand down them to unleash more fossil fuels. The biggest U.S. shale fields get fracked with about 30% more sand every year, according to Phillip Dunning, a technical adviser at Drillinginfo, which tracks oil-field supply use. Frack sand use in the Delaware, one of the hottest parts of the Permian Basin in West Texas, has more than tripled since the start of 2012. By the end of 2016, producers were putting an average 1,919 pounds per foot down wells that measured 5,500 feet, according to Drillinginfo data. In Louisiana, Chesapeake Energy Corp. recently pumped a record 50.2 million pounds of sand into a horizontal well roughly 1.8 miles long, piquing the interest of some rivals who are now weighing whether they can do the same. A handful of oil producers, including Pioneer Natural Resources Co., have purchased their own sand mines to insulate themselves from bottlenecks. Pioneer, a prolific driller in the Permian Basin, plans to nearly triple its Texas sand production by the end of 2019. Pioneer's sand use has surged 70% since 2013 to 1,700 pounds a foot. The company will test wells this year using 3,000 pounds a foot. The expense is compounded by the logistics of moving sand from mines to well sites thousands of miles away. Drillers don't use sand found on a beach. They prefer fine white silica, much of it found in northern Midwest states. Shipping 5 million tons of sand can require 200,000 truck loads, according to a 2013 study by the University of Wisconsin. Fracking a West Texas well in some sweet spots now takes 10 million pounds of sand, which requires 200 truckloads of the stuff. David Adams, the head of Halliburton Co.'s well completion and production division, said sand costs break down into thirds, equally divided into the cost of sand, the cost of rail transport and the cost to truck the sand to the well. He expects a short-term bottleneck because during the protracted downturn, sand-mining companies slowed production and some canceled plans to open new mines. Many sand producers are ramping back up, but expanding operations take time. U.S. Silica Holdings Inc., which is fetching 20% more for its sand today than it did in October, plans to double its mining capacity to more than 20 million tons in 2018. Halliburton is trying to keep costs for its clients down by investing in its own train depots and storage facilities in major shale basins from Colorado to North Dakota. It also signed a deal with U.S. Silica in January to use its Sandbox trucks, which use a forklift to load and unload containers from a customized chassis. Credit: By Christopher M. Matthews and Erin Ailworth
Subject: Petroleum production; Energy industry; Hydraulic fracturing; Oil sands
Location: United States--US
Company / organization: Name: Chesapeake Energy Corp; NAICS: 211111; Name: Tudor Pickering Holt & Co LLC; NAICS: 523110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Mar 24, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880277824
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880277824?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
David Rockefeller Overcame Youthful Shyness and Insecurities; Grandson of oil tycoon fought for the top job at Chase Manhattan
Author: Hagerty, James R
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Mar 2017: n/a.
Abstract: None available.
Full text: As a boy, David Rockefeller idolized his big brother Nelson, a self-assured bon vivant who didn't let the family name stand in the way of a good time--and sometimes furtively shot rubber bands at his siblings during the morning prayer periods imposed by their austere father. David, by contrast, was shy, insecure and often lonely, retreating into his hobby of collecting beetles and reliant on tutors for companionship. Yet he gradually overcame his diffidence to become a leader in banking, philanthropy and international relations. Mr. Rockefeller, who died Monday in Pocantico Hills, N.Y., at age 101, crisscrossed the world incessantly, adding to his collection of VIP contacts. As a child, he met Richard Byrd and Charles Lindbergh. Passing through Vienna at age 20, he dropped in on Sigmund Freud. Pablo Picasso was at an intimate lunch he attended in Paris near the end of World War II. Henry Ford attended his wedding reception in 1940, and Nelson Mandela became a cherished friend. He had more than 100,000 cards in his Rolodex files. They often proved useful for his public duties, which included running Chase Manhattan Bank and chairing the Council on Foreign Relations. "I am always open to and aware of the potential of a new relationship," he wrote in his 2002 book "Memoirs." David Rockefeller was born June 12, 1915, the youngest of the six children of John D. Rockefeller Jr., heir to the oil baron. He remembered breakfasts with his grandfather, who "invariably ate oatmeal, but with butter and salt rather than cream and sugar" and ingested slowly to improve digestion. "He said one should even chew milk," the grandson recalled. Too young to be taken seriously by his brothers, he found his own amusements. He started collecting beetles after taking a class in natural history. The family's nine-floor house on 54th Street in Manhattan included a gymnasium and an infirmary. His father preferred discussing important matters with the children through letters, even when they lived in the same house. On a bicycling trip in Britain at age 17, he looked forward to adventure far from family. Then a friend of the family, alerted to his presence, insisted on whisking him off to a dinner dance with royalty at St. James's Palace. "My day was ruined," he later wrote. At Harvard University, he initially felt like a misfit with few social skills. Then he began his lifetime habit of networking and traveled to Europe with new friends. The only A he received during his four years at Harvard was for a course in entomology, where his knowledge of beetles paid off. A family friend advised him that studying economics would dispel the idea that any job he obtained was due to his family's influence. He took graduate courses at Harvard, including an introduction to economics from Joseph Schumpeter. He furthered his studies at the London School of Economics, where his tutor was Friedrich von Hayek, a future Nobel laureate. He won a doctorate in economics from the University of Chicago in 1940 after writing a dissertation on overcapacity in industrial plants. When the U.S. entered World War II, he "felt more than a few misgivings about how I would handle military service." Prodded by his mother, he enlisted in the Army and served as an intelligence-gathering officer in North Africa and France. During basic training, he won praise for carefully painting a mess hall. "I wasn't as inept as I had feared," he wrote. After the war, his Uncle Winthrop Aldrich, chairman of Chase, suggested a career there, and he became an assistant manager in the foreign department, riding the subway to work. Though he remained at Chase for 35 years, he established himself as the bank's unquestioned leader only as he neared retirement. An early mistake was using his doctorate in economics as an excuse to skip the bank's credit-training program. "It meant I never spoke the same language" as many colleagues, he wrote. Still, he rose to head operations in Latin America and later oversaw New York City branches. His rise put him on a collision course with George Champion, a star of Chase's corporate-lending business. After the board made them co-chief executives in 1961, they clashed over everything from international expansion to the bank's art collection. Mr. Champion resisted a sculpture made of car bumpers, but Mr. Rockefeller found a way to install it in the headquarters. In 1969, Mr. Rockefeller finally became sole CEO but Mr. Champion remained on the board for two years to second-guess him. Just as Mr. Rockefeller was starting to assert full control, Chase stumbled in the mid-1970s amid computer breakdowns, accounting lapses and losses on real estate lending. For a time, Mr. Rockefeller appeared in danger of being fired, but he managed to produce rising earnings before stepping down as CEO in 1980 and chairman in 1981. Meanwhile, Nelson Rockefeller served as governor of New York and vice president under Gerald Ford before his political career sputtered out. The Rockefeller brothers sometimes squabbled over the family businesses and philanthropic projects. David Rockefeller no longer worshiped his big brother. Even so, David Rockefeller wrote, "he taught me how to loosen up, to enjoy, to take pleasure in the great game of life." Mr. Rockefeller is survived by five children, 10 grandchildren and 10 great-grandchildren. His wife, Peggy, died in 1996, and his son Richard in 2014. Write to James R. Hagerty at bob.hagerty@wsj.com Credit: By James R. Hagerty
Subject: International relations; World War II; Families & family life
Location: United Kingdom--UK Europe
People: Picasso, Pablo (1881-1973) Lindbergh, Charles A (1902-74) Mandela, Nelson Freud, Sigmund (1856-1939)
Company / organization: Name: Harvard University; NAICS: 611310; Name: Council on Foreign Relations; NAICS: 541720, 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 24, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880357145
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880357145?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Creeps Higher; Focus turns to committee meeting monitoring OPEC production cuts
Author: McFarlane, Sarah; Sider, Alison; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Mar 2017: n/a.
Abstract: None available.
Full text: Global crude futures edged higher Friday as traders turned their attention to a meeting of a committee monitoring OPEC's production cuts, amid growing concerns that the group's efforts haven't been enough to drain a world-wide glut. U.S. crude futures settled up 27 cents, or 0.57%, at $47.97 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 24 cents, or 0.47%, to $50.80 a barrel on ICE Futures Europe. Market participants have become increasingly anxious that an agreement by the Organization of the Petroleum Exporting Countries and a group of non-OPEC heavyweights to cut output by 1.8 million barrels a day isn't having an effect on the overhang of oil that has weighed on prices since 2014. Crude prices have tumbled around 11% this month, as rising U.S. production has undercut OPEC's efforts and swelling inventories in the U.S. have raised doubts about whether the cutbacks are working. Despite the uptick Friday, crude ended the week down 2.72%. "There's a lot of uncertainty about whether the cut is going to be in place long enough to alter the fundamental picture," said Gene McGillian, research manager for Tradition Energy. Investors are now focusing on a meeting this weekend of a committee tasked with overseeing compliance with the production cut agreement, watching for signals that the deal will be extended when OPEC meets in May. The prospect of bullish commentary from oil ministers in the coming days likely helped pause crude's fall after four straight days of losses, analysts and traders said. "You've got an OPEC meeting--there's always a surprise potential out of it," said Donald Morton, senior vice president senior vice president at Herbert J. Sims & Co., who runs an energy trading desk. "It could go either way very quickly from here." The market shook off data showing that the number of rigs working in the U.S. rose for a 10th straight week, with 21 additional oil rigs, according to oilfield services firm Baker Hughes Inc. But persistently high levels of crude inventories in the U.S. coupled with relentlessly growing output have shaken the market in recent weeks. "[The] U.S. is acting as a bellwether for the global stock overhang. With little sign of an imminent rebalancing in U.S. crude inventories, the near-term risks for oil prices remain skewed to the downside," said brokerage PVM. That will put more pressure on the monitoring committee overseeing compliance with the production-cut agreement as it meets in Kuwait this weekend. "I think that they know they are going to be under pressure, prices aren't much higher than when the first deal was struck, and stocks are not much lower, so for every reason that you had to do the original deal, all those reasons are still valid," said Tom Pugh, a commodities analyst at Capital Economics. "The sticking point is going to be Iran, Saudi will want them to join in any cuts, I think that will probably result in a compromise where Iran agrees to freeze its production at current levels," he added. The original deal among OPEC members agreed on Nov. 30 allowed Iran a limited output increase. Saudi Arabia, which is shouldering the bulk of the cuts, will likely lobby to extend the plan, especially after ratings company Fitch cut the kingdom's credit rating to A+ from AA- and lowered the outlook to negative from stable, citing a worsening government deficit caused by declining oil prices, said Stuart Ive, a client manager at OM Financial. Gasoline futures rose 1.5 cents, or 0.82%, to $3.0760 a gallon Friday. Diesel futures rose 0.75 cent, or 0.5%, to $1.4976 a gallon. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com , Alison Sider at alison.sider@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Sarah McFarlane, Alison Sider and Jenny W. Hsu
Subject: Petroleum production; Futures; Stocks; Investments; Crude oil prices; Supply & demand
Location: Iran United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880384234
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880384234?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 21; Nation's gas-rig count fell by two to 155 in the past week
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Mar 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by 21 in the past week to 652, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After the count peaked at 1,609 in October 2014, low oil prices put downward pressure on production and the number receded. However, the oil rig count has generally been rising since the summer. The nation's gas-rig count fell by two to 155 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell by one from last week to 18, which is down 10 year over year. On Friday, crude futures wavered between gains and losses amid growing concerns that OPEC's pledge to reduce global inventories was encouraging the U.S. to boost production. U.S. crude-oil prices edged up 0.3% to $47.84 a barrel in afternoon trading. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880525333
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880525333?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Investors Tap Deep Cash Well --- Riverstone, ex-energy CEO raise $1 billion in largest such stock sale in a decade
Author: Dezember, Ryan; Farrell, Maureen
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]25 Mar 2017: B.1.
Abstract:
Investors handed a blank check for $1 billion to a New York investment firm and a retired-energy-CEO-turned-theology-student so they can hunt for an oil business to buy. In staking Silver Run Acquisition Corp. II, investors are hoping that Riverstone Holdings LLC, the energy-focused investment firm, can repeat the success of a similarly named entity it launched last year with another big-name oil executive. That blank-check company, led by Mark Papa, who earlier built an Enron Corp. castoff into one of the largest U.S. oil producers, last year raised $500 million. It put the cash toward buying a pair of closely held West Texas oil producers. Now known as Centennial Resource Development Inc., its shares have been among the energy industry's best performers, up 72% since the February 2016 listing. .
Full text: Investors handed a blank check for $1 billion to a New York investment firm and a retired-energy-CEO-turned-theology-student so they can hunt for an oil business to buy. In staking Silver Run Acquisition Corp. II, investors are hoping that Riverstone Holdings LLC, the energy-focused investment firm, can repeat the success of a similarly named entity it launched last year with another big-name oil executive. That blank-check company, led by Mark Papa, who earlier built an Enron Corp. castoff into one of the largest U.S. oil producers, last year raised $500 million. It put the cash toward buying a pair of closely held West Texas oil producers. Now known as Centennial Resource Development Inc., its shares have been among the energy industry's best performers, up 72% since the February 2016 listing. Investors in the latest Riverstone endeavor are betting on the second-act of James Hackett, who transformed Anadarko Petroleum Corp. from an oil patch also-ran into one of the world's largest energy explorers before retiring in 2013 to get a theology degree at Harvard Divinity School. The stock sale, which launched Thursday and raised a little over $1 billion, including shares that the banks managing the deal bought, tied the record for the largest blank-check offering set a decade ago, according to Dealogic. The Silver Run shares gained 3.6% in their stock-market debut Friday, an unusual move in the early days of such a company. Blank-check companies, also called special-purpose acquisition companies, or SPACs, start with no assets and sell shares to raise cash that they then use to make acquisitions. They traditionally have attracted hedge funds willing to make speculative bets on specific deal makers, but these days bankers say they are pitched to a broader swath of investors. Centennial's surging shares have made energy investors particularly bullish on this style of deal making. Kayne Anderson Capital Advisors LP, a Los Angeles private-equity firm focused on pipelines, filed paperwork earlier this month to raise as much as $402 million for a blank-check company. Last month NGP, a Dallas firm known for staking wildcatters, said in filings it would seek $460 million. In a SPAC that could rival those of Riverstone for star power, TPG is in talks to launch a blank-check company headed by former Occidental Petroleum Corp. Chief Executive Stephen Chazen, according to people familiar with the discussions. Riverstone's Thursday offering more than doubled in size from the $400 million the deal makers first proposed in securities filings three weeks ago, showing investors' enthusiasm but also raising a question about how much demand will remain. Mr. Hackett joined Riverstone as a partner right after leaving Anadarko, juggling his studies with his duties as a member of the committee that vets deals and makes investment decisions for the firm. In an interview Friday, he said the SPAC will look for acquisitions in the U.S. and Canada, favor oil over natural gas and consider pipeline businesses. He said he might be the CEO, but he is also open to being chairman if the acquired company comes with strong management that wants to stay on. Oil prices, roughly double what they were at the depths of the bust, are in a sweet spot for deal making, Mr. Hackett said. "If people feel the price is much too low and it will recover quickly, which is where we were a year and a half ago, the bid-offer spread gets too wide and activity starts to drop," the 63-year-old said. In those circumstances, he said, "people want to hold onto things." SPACs were a hallmark of the frothy days before the financial crisis, but fizzled in its wake. Some big blank-check companies, such as Nelson Peltz's Trian Acquisition I Corp., which raised $920 million in 2008, were unable to make acquisitions within the customary two-year time period, forcing them to fold and give cash back to investors. In recent years, though, SPACs have come back. Since 2015, investors have given nine-figure blank checks to well-known deal makers to pursue acquisitions in consumer products, technology and chemicals. Last year, a SPAC acquired Twinkie-maker Hostess Brands Inc. after it went public. Earlier this month, a blank-check company launched by TPG bought a chain of Caribbean resorts. SPACs have their risks beyond the uncertainty of what businesses they would buy. Investors face the possibility that their cash will be locked up for two years with no results. Energy investors face particular challenges with oil prices hovering around $50 a barrel: The number of regions where drilling is economical are limited and prices for assets, such as drilling land in the Permian Basin in West Texas, have soared. SPACs offer some advantages to big energy investors, bankers say. For one, they give private-equity firms the cash to pursue large purchases without risking too much of their fund investors' cash in any one deal. They are also a quick way to list closely held companies and businesses carved out of big corporations on stock exchanges where they can then raise additional cash to grow. And sellers sometimes are willing to take discounts to cash out of investments completely, rather than risk slower exits through their own initial public offerings of stock. Banks that worked on the deal included Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG and Goldman Sachs Group Inc.
Credit: By Ryan Dezember and Maureen Farrell
Subject: Acquisitions & mergers; Energy industry
Location: United States--US
People: Hackett, James T
Company / organization: Name: Silver Run Acquisition Corp; NAICS: 221122; Name: Riverstone Holdings LLC; NAICS: 523910
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Mar 25, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: Eng lish
Document type: News
ProQuest document ID: 1880659382
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880659382?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
In the Era of Cheap Oil, Gulf Producers Are Forced to Borrow; Bankers say there has been a surge of interest in pre-export finance deals with the fall in the price of crude oil
Author: McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Mar 2017: n/a.
Abstract: None available.
Full text: Some Middle Eastern oil producers are considering taking money upfront against future production, as the fall in the price of crude pushes them to look at new ways to plug budget holes. In this type of pre-export finance, companies or countries pledge revenues from future sales to banks and trade houses that lend money to them. Oman recently closed its first crude-export finance, in which banks paid the country $4 billion in exchange for revenues from future oil production over five years, according to bankers familiar with the matter. Last month the Abu Dhabi National Oil Co., or Adnoc, said it had signed a pre-export financing deal for the supply of liquefied petroleum gas over the next 10 years. And the world's top exporter of oil, Saudi Arabia, also is considering such finance, bankers said. Middle Eastern governments have spent extravagantly for years as the high price of oil filled coffers. But after almost three years of a weaker price, regional governments now need to borrow. Bankers say there has been an increase in interest for such export finance. "Ten to 15 years ago, you didn't see Middle Eastern producers coming into the structured trade commodities finance market to raise financing, but now they are," said Irfan Afzal, a director of syndication and agency at African Export-Import Bank. Representatives from Oman and Saudi Arabia didn't immediately respond to requests for comment. Such deals, particularly a potential Saudi Arabian deal, could be large. "If they go ahead, it would have to be big if it was to be meaningful for the budget," said Kris Van Broekhoven, head of commodity trade finance at Citibank. Still, some countries may be reluctant to use this type of finance because it entails handing over future royalties from a national resource. "It's the crown jewels of the country, and you don't pledge your crown jewels as a matter of principle," Mr. Van Broekhoven said. Since 1992, Ghana has borrowed hundreds of millions of dollars in pre-export financing from banks each year so it can buy the local cocoa crop from farmers. Angola's state-owned oil producer Sonangol also has used pre-export finance. But for oil-rich Middle Eastern nations, it is a novel tactic. Oil producers in the region so far have mostly used public bond markets. Last year, after oil prices fell below $30 a barrel, the governments of Saudi Arabia, Qatar, Abu Dhabi, Bahrain and Oman raised around $39 billion on international bond markets, up from around $2.5 billion in 2015, according to Moody's Investors Service. The 2016 sum included $17.5 billion in bonds that Saudi Arabia sold last October, the largest-ever emerging-market debt issue. Kuwait has launched its debut international bond sale earlier this month to raise $8 billion. Pre-export finance is one way oil producers can diversify their funding. Such deals tend to be cheaper than an unsecured bond, bankers say. That is because banks can typically take comfort in a producer's record of exporting fuel, they say. The risk to the borrower is that if the price of oil falls dramatically, they may have to either extend the repayment term or pump more oil. "The Middle Eastern producers have relatively low political risk...banks would rather finance Qatar, Oman or Saudi then they would Venezuela or indeed some of the emerging countries in Africa," said Mr. Afzal from the African Export-Import Bank. Rating company Moody's expects the six Gulf Cooperation Council countries--Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates--to raise almost as much again this year, after their combined balance sheet for 2015-2016 swung to a deficit equivalent to 9% of combined gross domestic product, compared with a combined surplus of around 5% of their GDP in 2014 when oil traded above $100 a barrel. But that may not be enough. Saudi Arabia's $17.5 billion bond covered only 22% of its 2016 fiscal deficit. Moody's estimates that oil accounts for around 25% of GDP in Gulf Cooperation Council countries, and around two-thirds of government revenue. "If oil prices were to fall back to $40, we would see much larger deficits to finance," said Mathias Angonin, analyst at Moody's. On Friday the price of Brent, the international benchmark, was at $50.80 a barrel, while West Texas Intermediate, its U.S. equivalent, was trading at $47.97. Summer Said contributed to this article. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Sarah McFarlane
Subject: Petroleum production; Cooperation; Economic development; Crude oil prices; Trade finance; International finance
Location: Saudi Arabia Qatar Angola Abu Dhabi United Arab Emirates Kuwait Bahrain Ghana Oman
Company / organization: Name: Moodys Investors Service Inc; NAICS: 522110, 523930, 561450; Name: Abu Dhabi National Oil Co; NAICS: 211111; Name: Citibank; NAICS: 551111; Name: African Export-Import Bank; NAICS: 522293
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 25, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880716619
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880716619?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
OPEC Warns Members to Comply With Oil-Production Cuts; Kuwaiti oil minister says 'more has to be done' to comply with last year's agreements
Author: Amon, Mic hael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Mar 2017: n/a.
Abstract: None available.
Full text: OPEC officials on Sunday urged member nations to cut their oil production in line with an agreement last year , warning that the petroleum market would remain depressed if they didn't. Members of the Organization of the Petroleum Exporting Countries, the 13-nation oil cartel that controls a third of global production, need to take compliance with a cut of 1.2 million barrels a day "very seriously," said Kuwaiti Oil Minister Issam A. Almarzooq, chairman of the group's committee overseeing compliance. "More has to be done," Mr. Almarzooq said in a speech distributed by OPEC. "We need to see conformity across the board. We assured ourselves--and the world--that we would." Oil prices rose 20% initially after OPEC's production-cut deal was announced Nov. 30 and those gains were sustained when 11 countries outside the cartel, including Russia, the world's largest producer, joined the effort with pledges to cut a total of 558,000 barrels a day. But oil prices have fallen in recent weeks as doubts grow among oil traders that OPEC's cuts are enough to bring a vast oversupply of petroleum back in line with demand. On Friday, the price of Brent, the international benchmark, was at $50.80 a barrel, while West Texas Intermediate, its U.S. equivalent, was trading at $47.97. Overall, OPEC has cut 94% of its target of 1.2 million barrels a day, but individual countries have fallen short of their pledges. The United Arab Emirates, for instance, has pledged to cut 139,000 barrels a day but in February had only reached 87,000 barrels a day of cuts. OPEC has said non-OPEC producers have been even less compliant. Russia, which pledged 300,000 barrels a day in cuts, has delivered only about a third of that, according to the International Energy Agency. Russia has said it would reduce its output gradually this year. Saudi Arabia, OPEC's biggest producer, has picked up the slack, cutting about 800,000 barrels a day--far more than the 486,000 barrels a day it promised. But the kingdom's energy minister, Khalid al-Falih, has said it won't support "free riders" indefinitely. OPEC said its compliance committee will meet again in late April and make a recommendation to the cartel about whether the cuts need to be extended for another six months. That decision will officially be taken on May 25, and Mr. Falih and other OPEC officials have said they won't decide on cuts until they have fresh data on vast amounts of oil in storage--a proxy for the global glut. OPEC officials have said they want stored oil levels to fall by about 300 million barrels. Instead, U.S. inventories have been rising, a trend that has pushed oil prices down. OPEC Secretary-General Mohammad Barkindo blamed low seasonal demand for the high inventory levels. He also acknowledged that big oil producers pumped flat out in the last months of 2016 just before cutting, increasing supply by 2.3 million barrels a day when demand went up only 200,000 barrels a day. "This supply growth is now working its way through the system. It will take time for the market to fully absorb," Mr. Barkindo said in a speech in Kuwait released by OPEC. He said OPEC members needed to fully implement their production cuts to counter the trends pushing prices down. "We expect 100% conformity," Mr. Barkindo said. Mr. Almarzooq of Kuwait said OPEC's cuts could bring the oil market back into balance by this summer or early fall, though he warned that if members didn't all work together toward a "common objective...this date may be pushed further out." Write to Michael Amon at michael.amon@wsj.com Related * Stock Retreat Has Its Fans * In the Era of Cheap Oil, Gulf Producers Are Forced to Borrow * OPEC's Oil-Production Cut Faring Worse than 2008-09 Effort * Saudi Arabia's Oil Supremacy Falters Credit: By Michael Amon
Subject: Petroleum production; Compliance; Cartels; Crude oil prices; Supply & demand
Location: Kuwait Russia United States--US Saudi Arabia United Arab Emirates
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 26, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1880878175
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1880878175?accountid=711 7
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Exporters Nearly Back to Square One on Deal; OPEC, Russia could feel pressure to cut output further now that most of the post-November gains have faded
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Mar 2017: n/a.
Abstract: None available.
Full text: You don't need a fancy degree in petroleum engineering to figure out what has been weighing on oil prices--grade school math will do the trick. U.S. benchmark prices rallied from around $47 a barrel before the late November meeting of oil exporters to more than $54 a month ago on two perceived successes: First, Saudi Arabia and Iran, rivals in the Organization of the Petroleum Exporting Countries, managed to make a compromise while others, notably Russia, pitched in. Second, compliance within OPEC is surprisingly good , although the cartel warned Sunday that members need to do better. But if one subtracts the number of barrels taken off the market since the November meeting and adds back growth in output from the U.S. and elsewhere, the market is hardly being squeezed. Prices have nearly fallen back to their pre-agreement level. Russia's oil production is down by a little over 150,000 barrels a day since November, about half of the amount it agreed to cut by June. But it set the starting bar as high as possible, at a post-Soviet record for output. A year ago Russian output was around 150,000 barrels a day lower than today, or right around the level it has pledged to reach as part of the agreement. Meanwhile, U.S. oil output is rising rapidly, led by shale producers that responded to last year's price recovery. Production most recently was about 440,000 barrels a day higher than in mid-November. Meanwhile, Nigeria and Libya, OPEC members exempted from cuts, also have seen output rebound. By the time the agreement's renewal is debated at OPEC's annual meeting in May , the celebratory mood may have shifted to a debate over more and deeper cuts. Write to Spencer Jakab at spencer.jakab@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Petroleum production; Agreements; Prices; Cartels; Supply & demand
Location: Iran Russia United States--US Libya Saudi Arabia Nigeria
Company / organization: Name: Square One; NAICS: 541810
Publication title: Wall St reet Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 26, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881095639
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Dragged by Rising U.S. Output, Despite Expected OPEC Cuts; Crude production in the U.S. has been rising steadily since the beginning of the year
Author: Hsu, Jenny W; Amon, Michael
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Mar 2017: n/a.
Abstract: None available.
Full text: Crude prices were lower in Asia Monday, weighed by rising U.S. oil output despite expectations that nearly two dozen non-American producers may hold back production again in the second half of the year. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $47.84 a barrel at 0139 GMT, down $0.14 in the Globex electronic session. May Brent crude on London's ICE Futures exchange slipped $0.08 to $50.72 a barrel. Over the weekend, a five-member oversight committee of a multiproducer production cut agreement, which excludes the U.S., said global oil supply is still outstripping demand and production must be further curtailed before a market rebalance can be achieved. The committee will reconvene again in late April to finalize their recommendation and if the suggestion is accepted by the wider group, the decision will officially be taken on May 25. Officials from the Organization of the Petroleum Exporting Countries have said they won't decide on cuts until they have fresh data on vast amounts of oil in storage-a proxy for the global glut. The agreement, which stipulates OPEC and 11 other outside suppliers cut their cumulative supply by 1.8 million barrels a day in the first six months of this year, was struck in December after prices had been stuck in a two-year long trough. The pact faced a high degree of skepticism given OPEC members are notorious for turning their backs on production quotas. However, various data indicates compliance level among signatories has reached 94% so far. "More has to be done," said Kuwaiti Oil Minister Issam A. Almarzooq, chairman of the group's committee overseeing compliance, in a speech distributed by OPEC. "We need to see conformity across the board. We assured ourselves-and the world-that we would." The outcome of the meeting wasn't surprising to many market watchers given prominent oil producers, such as Saudi Arabia, in past weeks have publicly touted the need to remove more barrels from the market in order to shrink still-bloated global inventories. "The OPEC and Co. message is clear and if the rollover and compliance is adhered to, [U.S.] oil price should return above $50 fairly promptly," said Stuart Ive, a client manager at OM Financial. The latest development which in theory should cheer the oil bulls, has failed to lift the prices significantly. The reason: rising U.S. production. "The agility of the U.S. oil producers to increase production has caused a heartburn for OPEC," said Michael McCarthy, an analyst at CMC Markets. "This means the agreement might not be extended after all because some members would see it as a risk of losing more market shares to their U.S. competitors." Crude production in the U.S. has been rising steadily since the beginning of the year. Data shows production there has stayed above the 9-million-barrel mark for the past four weeks. Future production also appears to be well on track. In the week ending March 24, U.S. drillers activated 21 more oil rigs, marking the 10th straight week they have increased, to a total of 652. Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract-edged higher to $1.6080 a gallon, while April diesel traded at $1.4495. ICE gas oil for April changed hands at $451.25 a metric ton, up $2.25 from Friday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com and Michael Amon at michael.amon@wsj.com Credit: By Jenny W. Hsu and Michael Amon
Subject: Agreements
Location: United States--US Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881006734
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881006734?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-25
Database: The Wall Street Journal
China Tanked Oil Once, It Can Do It Again; In late 2013, oil was range trading, U.S. drillers were ramping up and China was entering a tightening cycle--much like today. Six months later, the oil market collapsed
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Mar 2017: n/a.
Abstract: None available.
Full text: China has a knack for putting stars in commodity executives' eyes , and then knocking them out. With oil once again under pressure--global benchmark Brent is down 10% since the beginning of March--investors are firmly focused on buoyant U.S. supply as the main risk factor for further declines. But as with a few years ago, it is weaker demand from China that could deliver a punch to staggering oil markets . Late 2013 and most of 2014 witnessed flatlining demand from the biggest marginal consumer of oil. High oil prices, tighter domestic credit and a peaking business cycle put a major damper on Chinese consumption. Meanwhile, the American tight-oil revolution was at its peak--U.S. production rose by nearly 2 million barrels a day in just 12 months. Eventually the old swing producer, Saudi Arabia, watching supplies rise everywhere, concluded it needed to defend market share and cut prices. The rest is history: Oil fell over 60% in the next 18 months. Rip-roaring industrial growth in late 2016 pushed Chinese oil demand to a record high in December. But a quarterly central-bank survey of 5,000 businesses published last week showed profitability and growth in new orders weakening in the early months of 2017. Any cyclical pullback could deal a nasty blow to shaky global energy markets. Another ephemeral boost last year: state buyers taking advantage of low prices to fill China's strategic petroleum reserve, which J.P. Morgan and others suggest may be near capacity. If strategic-reserve demand ebbs and factory activity levels off, as gradually tightening credit suggests it eventually will, oil demand will also start getting wobbly . In early 2017, the picture is different from late 2013 in one key respect: Global growth is looking more durable and widespread . That will likely help prevent a catastrophic collapse of the 2014 variety. But with U.S. wildcatters ramping up output at a pace not seen since 2014, another blip on the demand side from China could have strong reverberations. Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Nathaniel Taplin
Subject: Demand; Strategic petroleum reserve; Cartels
Location: China United States--US Saudi Arabia
Company / organization: Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 27, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881043686
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881043686?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Gulf Oil Producers Are Forced To Borrow
Author: McFarlane, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 Mar 2017: B.1.
Abstract:
Since 1992, Ghana has borrowed hundreds of millions of dollars in pre-export financing from banks each year so it can buy the local cocoa crop from farmers.
Full text: Some Middle Eastern oil producers are considering taking money upfront against future production, as the fall in the price of crudepushes them to look at new ways to plug budget holes. In this type of pre-export finance, companies or countries pledge revenues from future sales to banks and trade houses that lend money to them. Oman recently closed its first crude-export finance, in which banks paid the country $4 billion in exchange for revenues from future oil production over five years, according to bankers familiar with the matter. Last month the Abu Dhabi National Oil Co., or Adnoc, said it had signed a pre-export financing deal for the supply of liquefied petroleum gas over the next 10 years. And the world's top exporter of oil, Saudi Arabia, also is considering such finance, bankers said. Middle Eastern governments have spent extravagantly for years as the high price of oil filled coffers. But after almost three years of a weaker price, regional governments now need to borrow. Bankers say there has been an increase in interest for such export finance. "Ten to 15 years ago, you didn't see Middle Eastern producers coming into the structured trade commodities finance market to raise financing, but now they are," said Irfan Afzal, a director of syndication and agency at African Export-Import Bank. Representatives from Oman and Saudi Arabia didn't immediatelyrespond to requests for comment. Such deals, particularly a potential Saudi Arabian deal, could be large. "If they go ahead, it would have to be big if it was to be meaningful for the budget," said Kris Van Broekhoven, head of commodity trade finance at Citibank. Still, some countries may be reluctant to use this type of finance because it entails handing over future royalties from a national resource. "It's the crown jewels of the country, and you don't pledge your crown jewels as a matter of principle," Mr. Van Broekhoven said. Since 1992, Ghana has borrowed hundreds of millions of dollars in pre-export financing from banks each year so it can buy the local cocoa crop from farmers. Angola's state-owned oil producer Sonangol also has used pre-export finance. But for oil-rich Middle Eastern nations, it is a novel tactic. Oil producers in the region so far have mostly used public bond markets. Last year, after oil prices fell below $30 a barrel, the governments of Saudi Arabia, Qatar, Abu Dhabi, Bahrain and Oman raised around $39 billion on international bond markets, up from around $2.5 billion in 2015, according to Moody's Investors Service. The 2016 sum included $17.5 billion in bonds that Saudi Arabia sold last October, the largest-ever emerging-market debt issue. Kuwait has launched its debut international bond sale earlier this month to raise $8 billion. Pre-export finance is one way oil producers can diversify their funding. Such deals tend to be cheaper than an unsecured bond, bankers say. That is because banks can typically take comfort in a producer's record of exporting fuel, they say. The risk to the borrower is that if the price of oil falls dramatically, they may have to either extend the repayment term or pump more oil. "The Middle Eastern producers have relatively low political risk. . .banks would rather finance Qatar, Oman or Saudi then they would Venezuela or indeed some of the emerging countries in Africa," said Mr. Afzal from the African Export-Import Bank. Rating company Moody's expects the six Gulf Cooperation Council countries -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- to raise almost as much again this year, after their combined balance sheet for 2015-2016 swung to a deficit equivalent to 9% of combined gross domestic product, compared with a combined surplus of around 5% of their GDP in 2014 when oil traded above $100 a barrel. But that may not be enough. Saudi Arabia's $17.5 billion bond covered only 22% of its 2016 fiscal deficit. Moody's estimates that oil accounts for around 25% of GDP in Gulf Cooperation Council countries, and around two-thirds of government revenue. "If oil prices were to fall back to $40, we would see much larger deficits to finance," said Mathias Angonin, analyst at Moody's. On Friday the price of Brent, the international benchmark, was at $50.80 a barrel, while West Texas Intermediate, its U.S. equivalent, was trading at $47.97. --- Summer Said contributed to this article. Credit: By Sarah McFarlane
Subject: International finance; Trade finance; Petroleum production
Location: Middle East
Company / organization: Name: Abu Dhabi National Oil Co; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Mar 27, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881067705
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881067705?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Declines on Skepticism Over Extension of OPEC Output Cut; With rising U.S. production, investors are waiting to see if OPEC will extend the supply cuts
Author: Salvaterra, Neanda; Hsu, Jenny; Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Mar 2017: n/a.
Abstract: None available.
Full text: Crude prices inched lower Monday, weighed down by investor skepticism that major oil producers will extend a deal to curtail global supply beyond June. Light, sweet crude for May settled down 24 cents, or 0.5%, at $47.73 a barrel on the New York Mercantile Exchange. Its intraday low of $47.08 a barrel was within 10 cents of a low dating back to late November, but it pared losses in the late morning. Brent crude, the global benchmark, lost 5 cents, or 0.1%, to $50.75 a barrel on ICE Futures Europe. Both benchmarks have lost ground in five of six sessions. Over the weekend, a monitoring committee that oversees the Organization of the Petroleum Exporting Countries' compliance with a deal to cut global production by 1.2 million barrels a day issued a statement directing oil producers to "review the oil market conditions," regarding the possible extension of the cuts. Several OPEC members announced support for an extension. Market participants may have expected the committee to immediately recommend an extension of the supply cut amid rising global inventories and soft oil prices. OPEC's ability to reign in its own high production, and counteract rising inventories and output in the U.S. are in question, according to the Chicago brokerage iiTrader. "Maybe the committee realized, as we have stated, how catastrophic it will be for the market to begin talking about further cuts and fail to follow through," it said in a note to clients Monday. "We remain bearish and believe $40 is in the cards." The committee will reconvene again in late April to complete their recommendation for a possible extension of OPEC's supply action. The final decision will be taken by the oil cartel on May 25. The five-member oversight committee also urged OPEC members to fully comply with their pledges to cut oil supply from the market. "More has to be done," said Kuwaiti Oil Minister Issam A. Almarzooq, chairman of the group's compliance committee, in a speech distributed by OPEC. "We need to see conformity across the board. We assured ourselves--and the world--that we would." The deal, which stipulates OPEC and 11 other outside suppliers cut their cumulative supply by 1.8 million barrels a day in the first six months of this year, was struck late last year after prices had been stuck in a two-year slump. The pact faced a high degree of skepticism given OPEC members are notorious for turning their backs on production quotas. However, various data indicate compliance levels among signatories has reached 94% so far. But oil prices have continued to sag . The reason: rising U.S. production. Crude production in the U.S. has been rising steadily since the beginning of the year. Data shows production there has stayed above the 9-million-barrel mark for the past four weeks. Future production also appears to be well on track. In the week ended March 24, U.S. drillers activated 21 more oil rigs, marking the 10th straight week they have increased, to a total of 652. Amid rising U.S. production, market participants are increasingly skeptical "that either a rollover of the cuts can be agreed or that it would have a lasting and significant impact on balances," said JBC analysts in a recent report. That isn't true across the board, however. Goldman Sachs Group Inc. sent a note late Sunday saying it didn't think current supply and demand warrants an extension barring sharply slowing demand growth or sharply rebounding production in Libya or Nigeria. OPEC compliance has been high and global economic growth is strong enough to support strong demand growth, the bank's commodity research team said. "We believe that the rebalancing of the oil market is in fact making progress despite the record high U.S. crude inventories," Goldman analyst Damien Courvalin wrote. "Further, we forecast that OECD inventories on a days of demand cover will reach their 5-year average level by year-end even with OPEC bringing production back online in" the second half of 2017. Gasoline futures gained 1.41 cents, or 0.9%, to $1.6189 a gallon, highest settlement in a week. Diesel futures gained 0.49 cent, or 0.3%, to $1.5025 a gallon. Michael Amon contributed to this article Write to Neanda Salvaterra at neanda.salvaterra@wsj.com , Jenny Hsu at jenny.hsu@wsj.com and Timothy Puko at tim.puko@wsj.com Credit: By Neanda Salvaterra, Jenny Hsu and Timothy Puko
Subject: Skepticism; Committees; Compliance; Crude oil prices; Supply & demand
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881095869
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881095869?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11 -24
Database: The Wall Street Journal
Saudi Arabia Drops Tax Rates for Oil Firms Ahead of Aramco IPO; Tax change addresses a potential concern for would-be Aramco investors
Author: Said, Summer; Stancati, Margherita
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Mar 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia on Monday lowered the tax rate on its oil industry, laying the groundwork for a highly anticipated initial public offering of state-owned energy company Saudi Aramco and a broader overhaul of the kingdom's petroleum-focused economy. Under changes announced by a royal decree, Saudi Arabian Oil Co., as the company is formally known, said its tax rate would fall to 50% from 85%, bringing the company "in line with international benchmarks." The decree didn't address the additional 20% royalty Aramco pays the kingdom on oil sales. Cutting the tax rate marks a significant step toward the planned IPO, which the company has targeted for the second half of 2018. The new rate is retroactive to Jan. 1. The new tax rules vary based on company size. A 50% tax rate applies to hydrocarbon companies in the kingdom with capital of more than 375 billion riyals ($100 billion). A higher rate applies to companies with smaller investments, reaching 85% for firms with capital of less than 225 billion riyals. It isn't clear how many companies, if any, other than Aramco could be affected by the new rules. Establishing a tax regime that would make Aramco more comparable to big publicly traded oil companies and boost its appeal to investors emerged as one of several hurdles as bankers and consultants began working with company and government officials to prepare for the listing. The company is expected to raise tens of billions of dollars, if not more, by listing 5% of its shares. The tax rate is one of the government's main levers in influencing the valuation of the company, with a lower rate working to boost the price. Other important variables, like oil prices, are tougher to control. Moving to reduce Aramco's tax burden is a major, and potentially painful, step for the kingdom, since oil sales contributed 62% of government revenue last year, according to official data. Oil income allowed the ruling monarchy to spend lavishly on benefits for its citizens, who don't pay tax. The slump in crude prices that began in 2014 has already forced the kingdom to cut back on capital expenditures and reduce subsidies on water, fuel and electricity. It has also highlighted the pitfalls of relying so heavily on the oil industry and added urgency to the economic diversification plan, which has at its center the planned Aramco IPO and its proceeds. The government is balancing the IPO and its push to change the economy with cuts that affect businesses and consumers. In an emailed statement, the country's minister of energy, industry and mineral resources, Khalid al-Falih, emphasized that the tax break for the oil sector doesn't mean the government would forfeit all of the moneys it is giving up with the move. "It is very important to make it clear that the hydrocarbon resources of the Kingdom of Saudi Arabia remain sovereign and that any reduction in tax revenues arising from this royal order is replaced by stable dividend payments and other sources of revenue from hydrocarbon producers to the government," Mr. Falih said. While Mr. Falih said the 50% tax rate is aligned with international benchmark, it isn't clear what such a benchmark might be since taxation levels vary widely, said Patrick Heller, director of legal and economic programs for the Natural Resource Governance Institute, a nonprofit that studies how countries use resource wealth. The decision to lower Aramco's tax rate "is likely to have little impact on the kingdom's day-to-day public finances," Jason Tuvey, an economist at London-based Capital Economics, said in a note. "While the government will now receive less tax revenue from Aramco, the bulk of this will be replaced by greater dividend payments by Aramco to the government." Mr. Tuvey said the move appears designed to raise the valuation of Aramco shares because "the lower tax rate that is now in place means that the company will have a greater share of its profit available to pay out as dividends to shareholders." Saudi Finance Minister Mohammed Al-Jadaan said the tax change would support the kingdom as it becomes a "global investment powerhouse." Proceeds from the Aramco listing are to be transferred to the kingdom's sovereign-wealth fund, known as the Public Investment Fund. That fund, along with making investments in Saudi industries, is intended to make mostly non-oil investments abroad. Last year, the PIF invested $3.5 billion in Uber Technologies Inc. and teamed up with Japan's SoftBank Group Corp. to create a technology investment fund that could eventually be worth up to $100 billion. Saudi Arabia is also trying to persuade global investors to bring their money to the kingdom. King Salman recently concluded a weekslong trip to China, Japan and elsewhere in Asia partly aimed at broadening the kingdom's commercial ties beyond crude. At stake for the monarchy is also the reputation of the king's son, Deputy Crown Prince Mohammed bin Salman, the architect of the bold plan for economic transformation. During a trip to Washington, D.C. earlier this month , the prince and U.S. President Donald Trump agreed to develop a joint plan for economic cooperation with potential investments in industry, infrastructure and other sectors worth more than $200 billion. Justin Scheck and Sarah Kent contributed to this article. Write to Summer Said at summer.said@wsj.com and Margherita Stancati at margherita.stancati@wsj.com Credit: By Summer Said and Margherita Stancati
Subject: Tax reform; Tax rates; Royalty
Location: Riyadh Saudi Arabia Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881109790
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881109790?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
There Is Coconut Everywhere; Consumers lap up the tropical plant in water, milk, flour, oil and snacks
Author: Chaker, Anne Marie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Mar 2017: n/a.
Abstract: None available.
Full text: If you feel like everything is starting to taste like a piña colada, it isn't just you. Coconut is in everything. Packaged soups, baby foods and snack foods are made with coconut oil, flour and shavings. Gyms are stocking coconut water. For some, coconut oil is a substitute for butter on popcorn, and coffee shops are spooning it liberally in blended lattés. The flavorful ingredient went from a garnish on a cake to a base in foods in part because consumers no longer worry about its fat content. It is also increasingly promoted as healthful: Coconut sugar has a lower glycemic index than ordinary sugar, nutritionists say, meaning it can cause blood sugar to spike less, which may help stave hunger. Consumers seek such plant-based foods because they can help them stick to popular diets, such as dairy-free or gluten-free. "Coconut water put it on the map," says Lu Ann Williams, director of innovation at Innova Market Insights, which tracks food introductions. Coconut's association with water, she says "makes everything [coconut] seem healthy." Coconut water took off a few years ago as a natural sports drink high in electrolytes such as sodium and potassium. Then it became a darling of the dairy case, sold alongside soy milk and almond milk. The number of coconut-containing product launches increased an average of 21% a year in the last five years, according to Innova. Coconut follows in the footsteps of foods that have seen their names in lights before falling out of favor, from kale to broccoli rabe and sun-dried tomatoes. Such trends typically last two to five years and may be influenced by factors such as plentiful supply or scientific studies that demonstrate health benefits. "It's going to wane," says Liz Moskow, culinary director at Sterling-Rice Group, a Boulder, Colo.-based food consultancy. "I don't think everything coconut is tasty." Bhavna Lee, a 39-year-old real-estate developer in Washington, D.C., says that since having her daughter Saara , 5, and son Ian, 4, she has turned to coconut oil as the go-to ingredient in fried foods and treats. "They both like it so much they ask for a spoon of coconut oil before bed every night," she says. Coconut pieces are a popular alternative to potato chips. Bare Snacks, based in San Francisco, has more than doubled the number of its coconut-containing products in the last year to 10, including new coffee bean and sweet ginger flavored chips. This month it is launching a new line of coconut bites with chia seeds in 2.8-ounce bags for $4. Berkeley, Calif.-based Dang Foods says its coconut chips are selling far more this year than last, and they contain "as much fiber, less sugar than an apple." Founder Vincent Kitirattragarn says people tend to have strong feelings about coconut: About 80% of his coconut chip consumers are women. "I attribute that to the prevalence of coconut in beauty care," so it is more familiar to them. A common complaint is the mealy texture of coconut, which often gets stuck between teeth. "Getting to a smoother mouth feel is one big technical area" of development, says John Ghingo, president of plant-based foods and beverages for WhiteWave Foods, which markets So Delicious coconut milks and yogurts. For others, the flavor is too strong. "I am a strong and vocal hater of coconut," says Lexa Lemieux, a 36-year-old executive operations manager at a trade association in Washington, D.C. "It tastes like suntan lotion and everyone tries to convince you to like it." Where does all the coconut come from, consumers may wonder. Three-fourths of global production comes from Indonesia, India and the Philippines, which are benefiting from the demand surge. In the Republic of Indonesia alone, coconut exports doubled to bring in $1.65 billion in 2014, up from $800 million in 2010, says Samit Chowdhury, who heads the Singapore-based Coconut Knowledge Center for Tetra Pak International, a Swiss-based food packaging company. Coconut prices nearly doubled in that time in India, and have gone up elsewhere as well, he says. Tetra Pak packaged over 800 million liters of coconut-based products in 2016, up from 710 million liters a year earlier. Coconut products became such an important business for the company that Tetra Pak launched a Coconut Knowledge Centre in Singapore in 2012 to research the supply chain in response to growing demand, including running product and processing tests with regional universities. Hain Celestial, a top maker of coconut oil, says drought conditions and typhoons that blew into the Philippines, its main supplier, have affected commodity prices for coconut oil, which are up between 5% and 7% from a year ago. The company didn't raise it is pricing, however. Its 14-ounce unrefined coconut oil is $8.42, down 12% from a year ago, says Leah Dunmore, vice president of marketing. This year, Hain Celestial's Jason line launched a Simply Coconut line of toothpastes and touts "made with coconut oil" on packages of its Terra Plaintain Chips. Coconut is a featured ingredient in 77 of the company's products compared with just 20 five years ago. Bob's Red Mill Natural Foods says its coconut flour has risen to rank eighth in its lineup of over 60 flours. One of its appeals to dieters is that it is lower in carbohydrates than regular all-purpose flour and has more fiber, says marketing director Amanda Carter, though it has more calories and fat. The company's coconut flour contains 14g of fat, 57 grams of carbs and 36 grams of fiber per 100 grams, according to the U.S. Agriculture Department's National Nutrient Database. Its unbleached white all-purpose flour contains 1.5 grams of fat, 73.5 grams of carbs and 3 grams of fiber per 100 grams. One caveat: Coconut flour is very absorbent and tends to create a dense consistency when baked, says Amanda Carter, marketing manager. The company recommends replacing just 20% of a typical recipe's flour content with coconut flour. Write to Anne Marie Chaker at anne-marie.chaker@wsj.com Credit: By Anne Marie Chaker
Subject: Marketing; Recipes; Water shortages
Location: India Philippines San Francisco California Washington DC
Company / organization: Name: Sterling-Rice Group; NAICS: 541810
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 27, 2017
Section: Life
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881133975
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881133975?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Saudi Arabia Puts U.S. Energy Producers to a Test--and They Ace It; It's entirely feasible for America to become a far bigger oil exporter, even one of the biggest.
Author: Mills, Mark P
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Mar 2017: n/a.
Abstract: None available.
Full text: Only a few years ago America's policy makers were wringing their hands about "peak oil" and dependence on imported fuels. Now headlines feature the return of oil gluts. What happened? Saudi Arabia undertook a "stress test" of America's oil-and-gas industry that produced unintended consequences. We're witnessing the first signs of a new normal in oil markets. Call it Shale 2.0, characterized by a potent combination: eager and liquid capital markets funding hundreds of experienced (now-lean) small to midsize companies that can respond to modest upticks in price with a velocity unseen in oil markets in eons--all using shale technology that is shockingly better than before and poised to keep improving. This year sees the U.S. not only filling storage tanks to the brim but also exporting more than a million barrels of crude oil a day. Exports are at the highest level in American history, twice the previous crude export peak in 1958. The U.S. is exporting more oil than five of the Organization of the Petroleum Exporting Countries' 13 members. The stress test that brought this about began two years ago, when Saudi Arabia decided it would try to tame American shale oil and gas production. The technology of hydraulic fracturing, which began to emerge barely over a decade ago, led to the fastest and largest increase in hydrocarbon production in history. Oil prices started to collapse in 2014 because American shale businesses oversupplied markets. The Saudis responded by increasing production, which drove prices even lower. Their theory was that this would wreak havoc on small and midsize petroleum upstarts in states from Texas and Oklahoma to Pennsylvania and North Dakota. The fall from the $120-a-barrel stratosphere to under $30 did take a toll on producers everywhere. Businesses reduced investments and staffing, and many went bankrupt. It also deprived OPEC member states--and Russia, it bears noting--of hundreds of billions of dollars in revenues, forcing them to tap sovereign-wealth funds and cut domestic budgets. Something else happened. Little noticed outside the petroleum cognoscenti, shale technologies kept getting better. The productivity--output per shale drilling rig--has been rising by more than 20% a year. That means every 3½ years the average rig produces twice as much oil or gas. No other energy technology of any kind is improving at that rate. Put another way, the cost to produce shale oil keeps falling. As a result, with an assist from the recent modest increase in oil prices, shale investors and drillers are returning. Bad as that is for OPEC, the really frightening prospect is that software tools and techniques will now start to invade the shale domain, one of the least-computerized industrial sectors. "The cloud" will be just as much of an economic accelerant for shale as it has been for other complex and distributed industries. Established tech companies such as Microsoft, IBM, Teradata and Splunk see the opportunity. The digital oilfield is also the animating logic of the huge merger of oil services giant Baker Hughes with General Electric's "industrial internet" and oil-and-gas business. Even more portentous, a new ecosystem of tech startups is chasing the prize of unlocking value in petabytes of untapped shale data. Venture capitalists like to talk about "unmet needs" in "big markets." Oil is the world's biggest market in a traded commodity, and America's shale market went from near zero to $150 billion in a decade, largely without help from software. For the Saudis and other oil oligarchs, the worrisome feature of Shale 2.0 is that software enhances the most remarkable feature of shale production: velocity. The thousands of small to midsize shale operators and investors make rapid individual decisions, each involving a tiny fraction of capital per decision compared with the supermajors. This fluid, chaotic, very American entrepreneurial environment operates in private markets, largely on private land, and can expand or pull back with a volume and velocity unseen in oil markets in a century. Of course the U.S. still imports oil (for now), but net imports have declined by half. America is now the world's biggest natural-gas producer and has become a net exporter. Other places can gush hydrocarbons into markets. But they're all slow-moving, in some cases monopolistic, leviathans. As Ed Morse, Citi's head of global commodities, recently observed, OPEC "has lost its clout." With all the hype over energy alternatives, one might conclude that hydrocarbons don't matter much. You can be sure that neither Russia nor OPEC thinks that. Nor does the Energy Information Administration or the International Energy Agency, whose forecasts see hydrocarbon demand rising for decades regardless of subsidies for alternatives. It's hard to imagine a more potent combination than huge markets, willing investors and galloping software technology. It's entirely feasible for America to become a far bigger oil exporter, even one of the biggest. Such is the power of shale and software. It's not what the Saudis had in mind when they launched that stress test. Mr. Mills is a senior fellow at the Manhattan Institute. Credit: By Mark P. Mills
Subject: Oil shale; Hydrocarbons; Crude oil prices; Natural gas
Location: Pennsylvania Texas North Dakota Russia United States--US Saudi Arabia Oklahoma
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 27, 2017
Section: Opinion
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881312652
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881312652?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Up But Uncertainty Over OPEC Deal Looms; May Brent crude on London's ICE Futures exchange rose $0.20 to $50.95 a barrel
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Mar 2017: n/a.
Abstract: None available.
Full text: Crude futures clawed back some overnight losses in Asia Tuesday, thanks to a weaker dollar but strong U.S. production and uncertainty over the effectiveness of OPEC's production cut deal will likely limit the gains. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $47.97 a barrel at 0221 GMT, up $0.24 in the Globex electronic session. May Brent crude on London's ICE Futures exchange rose $0.20 to $50.95 a barrel. The greenback was last down 0.03% to 89.64 according to the WSJ Dollar Index which pits the dollar against 16 currencies. As oil is traded in the dollar, a weaker greenback means cheaper oil for foreign traders. The decline in dollar reflects investors' doubts over U.S. President Donald Trump's ability to deliver on his pro-growth campaign promises, said Barnabas Gan, an economist at Singapore bank OCBC. Oil prices have been facing selling pressure lately as rising crude production in the U.S. threatens to frustrate a continuing effort to reduce global crude stockpiles. Analysts surveyed by S&P Global Platts estimate U.S. crude stockpiles rose by 300,000 barrels in the week ended March 24. The firm also expects gasoline and distillates stocks to show a drawdown of 2.1 million barrels and 1.1 million barrels, respectively. Official figures, including production rate, will be released on Wednesday by the U.S. Energy Information Administration. "Even if U.S. crude oil stocks start to show a drawdown, other aspects of the oil market, which have received less attention, show the physical market is struggling in terms of rebalancing," the firm warned. Surging U.S. production comes at a time when the Organization of the Petroleum Exporting Countries and 11 other producers are cutting their output to pare down global inventories. The success of the deal so far has garnered mixed reviews. While some believe these producers should extend the cuts into the second half of the year to reset the market back into a balance, others say cutting more output gives U.S. shale oil producers more impetus to ramp up their production. Moreover, market watchers say a new gush of U.S. oil into the market could entice OPEC members to forsake their pledges to curb production. "OPEC members are known for saying one thing and doing another," said Ben Le Brun, market analyst at Sydney's optionsXpress. If OPEC agrees to prolong the cut deal, "the cartel would essentially be shooting themselves in the foot", he said. The committee that monitors the deal will meet in late April to present its recommendation on the fate of the pact. A final decision will be taken by the oil cartel on May 25. Oil investors are also watching the rising oil production and exports out of Libya, an OPEC member exempted from the output cut deal. Platts reported that Libya's National Oil Corp. on Sunday shipped out its first crude oil cargo of around 1 million barrels from the Es Sider oil terminal, a facility that recently resumed operation after conflicts between the government and the insurgents had forced it to shut-down. Russia is another wild card that could thwart OPEC's plan to dry out the market. Even though the world's biggest energy producer agreed to cut its production by 300,000 barrels a day as part of the deal, its energy minister Alexander Novak over the weekend confirmed production has only declined by 185,000 barrels a day so far, and will hit 200,000 barrels by the end of the month. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 2 points to $1.6191 a gallon, while April diesel traded at $1.5032, 7 points higher. ICE gas oil for April changed hands at $453.25 a metric ton, up $2.00 from Monday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Cartels; Price increases
Location: Russia United States--US Asia
People: Trump, Donald J
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881316984
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881316984?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permis sion.
Last updated: 2017-11-24
Database: The Wall Street Journal
ProShare Advisors Rolls Out Crude-Oil ETFs
Author: Loder, Asjylyn
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Mar 2017: B.11.
Abstract:
To capitalize on the troubles of two popular exchange-traded oil products, ProShare Advisors LLC has created two new funds that use leverage to triple the return of oil. ProShare is stepping into a gap left after the two most successful leveraged oil products, from competitor VelocityShares, were delisted late last year. While VelocityShares immediately launched nearly identical replacements, they have yet to capture the same assets as their predecessors.
Full text: To capitalize on the troubles of two popular exchange-traded oil products, ProShare Advisors LLC has created two new funds that use leverage to triple the return of oil. ProShare is stepping into a gap left after the two most successful leveraged oil products, from competitor VelocityShares, were delisted late last year. While VelocityShares immediately launched nearly identical replacements, they have yet to capture the same assets as their predecessors. Like VelocityShares, ProShare is offering one fund that profits if oil rises and another that profits when crude falls. "This is a very popular strategy for a lot of knowledgeable tactical investors who want to make a play on oil," said ProShare Advisors Chief Executive Michael Sapir. The ETFs are named the ProShares UltraPro 3x Crude Oil ETF and the ProShares UltraPro 3x Short Crude Oil ETF. The key difference between the competing products is the legal structure. The ProShare listings are exchange-traded funds, whereas VelocityShares offers exchange-traded notes. ETNs and ETFs are nearly identical. Both trade on exchanges, like any other company stock. Both track the price of a basket of stocks, bonds or commodities in a form that is relatively easy to trade. But ETFs own the underlying assets that they track, such as oil futures; if the ETF issuer goes bankrupt, the fund's assets aren't affected. ETNs, on the other hand, are debt issued by a bank, similar to a corporate bond. If the issuing bank goes broke, investors can be left with nothing. And if the issuing bank decides to pull out of the business, even successful products can be yanked from the market, like Credit Suisse Group AG, the issuer of the VelocityShares products, did last year. "Some investors are suspicious of crude-oil ETNs as a result of the delisting, and many investors are more comfortable with ETFs," said Mr. Sapir. The two defunct VelocityShares 3x long and short crude oil ETNs had a combined $1.9 billion in assets in October, before Credit Suisse announced the delistings, according to FactSet. The two replacement products, which have the same name and slightly different tickers, now have a combined $475 million, according to VelocityShares' website. "ETNs are a proven structure, with 10 years of market testing. Investors have found them particularly useful for futures-based exposure," said Nick Cherney, chief investment officer for VelocityShares, which is owned by Janus Capital Group Inc. Credit: By Asjylyn Loder
Subject: Crude oil; Mutual funds; Exchange traded funds
Company / organization: Name: ProShare Advisors LLC; NAICS: 523110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Mar 28, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881358516
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881358516?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Falls As Doubts On OPEC Pact Grow
Author: Salvaterra, Neanda; Hsu, Jenny; Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Mar 2017: B.12.
Abstract:
Over the weekend, a monitoring committee that oversees the Organization of the Petroleum Exporting Countries' compliance with a deal to cut global production by 1.2 million barrels a day issued a statement directing oil producers to "review the oil market conditions," regarding the possible extension of the cuts.
Full text: Crude prices inched lower Monday, weighed down by investor skepticism that major oil producers will extend a deal to curtail global supply beyond June. Light, sweet crude for May settled down 24 cents, or 0.5%, at $47.73 a barrel on the New York Mercantile Exchange. Its intraday low of $47.08 a barrel was within 10 cents of a low dating to late November, but it pared losses in the late morning. Brent crude, the global benchmark, lost 5 cents, or 0.1%, to $50.75 a barrel on ICE Futures Europe. Both benchmarks have lost ground in five of six sessions. Over the weekend, a monitoring committee that oversees the Organization of the Petroleum Exporting Countries' compliance with a deal to cut global production by 1.2 million barrels a day issued a statement directing oil producers to "review the oil market conditions," regarding the possible extension of the cuts. Several OPEC members announced support for an extension. Market participants may have expected the committee to immediately recommend an extension of the supply cut amid rising global inventories and soft oil prices. OPEC's ability to rein in its own high production and counteract rising inventories and output in the U.S. are in question, according to Chicago brokerage iiTrader. The committee will reconvene in late April to complete its recommendation. The final decision will be taken by the oil cartel May 25. Credit: By Neanda Salvaterra, Jenny Hsu and Timothy Puko
Subject: Committees; Crude oil prices; Crude oil; Price increases
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2017
Publication date: Mar 28, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881372678
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881372678?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Don't Forget Risk China Poses to Oil
Author: Taplin, Nathaniel
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Mar 2017: B.12.
Abstract:
Another ephemeral boost last year came from state buyers taking advantage of low prices to fill China's strategic petroleum reserve, which observers suggest may be near capacity.
Full text: [Financial Analysis and Commentary] China has a knack for putting stars in commodity executives' eyes and then knocking them out. With oil once again under pressure, investors are firmly focused on buoyant U.S. supply as the main risk for further declines. But it is again weaker demand from China that could deliver a punch to staggering oil markets. Late 2013 and most of 2014 saw flatlining demand from the biggest marginal consumer of oil. High prices, tighter credit and a peaking business cycle put a damper on Chinese consumption. Meanwhile, the shale revolution was at its peak. Eventually Saudi Arabia concluded it needed to defend market share and cut prices. The rest is history: Oil fell over 60% over 18 months. Rip-roaring industrial growth in late 2016 pushed Chinese oil demand to a record high in December. But a quarterly central-bank survey of 5,000 businesses published last week showed profitability and growth in new orders weakening in early 2017. Another ephemeral boost last year came from state buyers taking advantage of low prices to fill China's strategic petroleum reserve, which observers suggest may be near capacity. If strategic-reserve demand ebbs and factory activity levels off, oil demand will suffer. In early 2017, the picture is different from late 2013 in one key respect: Global growth looks more durable and widespread. That should prevent a catastrophic collapse of the 2014 variety. But with U.S. wildcatters ramping up output, another blip from China could have strong reverberations. Credit: By Nathaniel Taplin
Subject: Demand; Strategic petroleum reserve; Price increases
Location: China United States--US Saudi Arabia
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2017
Publication date: Mar 28, 2017
column: Heard on the Street
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881384390
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881384390?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Banking & Finance: Saudi Arabia Cuts Oil Taxes Ahead Of Aramco's Debut
Author: Said, Summer; Stancati, Margherita
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Mar 2017: B.10.
Abstract:
Saudi Arabia lowered the tax rate on its oil industry, laying the groundwork for a highly anticipated initial public offering of state-owned energy company Saudi Aramco and a broader overhaul of the kingdom's petroleum-focused economy. Under changes announced by a royal decree, Saudi Arabian Oil Co., as the company is formally known, said its tax rate would fall to 50% from 85%, bringing the company "in line with international benchmarks."
Full text: Saudi Arabia lowered the tax rate on its oil industry, laying the groundwork for a highly anticipated initial public offering of state-owned energy company Saudi Aramco and a broader overhaul of the kingdom's petroleum-focused economy. Under changes announced by a royal decree, Saudi Arabian Oil Co., as the company is formally known, said its tax rate would fall to 50% from 85%, bringing the company "in line with international benchmarks." The decree didn't address the additional 20% royalty Aramco pays the kingdom on oil sales. Cutting the tax rate marks a significant step toward the planned IPO, which the company has targeted for the second half of 2018. The new rate is retroactive to Jan. 1. The new tax rules vary based on company size. A 50% tax rate applies to hydrocarbon companies in the kingdom with capital of more than 375 billion riyals ($100 billion). A higher rate applies to companies with smaller investments, reaching 85% for firms with capital of less than 225 billion riyals. It isn't clear how many companies, if any, other than Aramco could be affected by the new rules. Establishing a tax regime that would make Aramco more comparable to big publicly traded oil companies and boost its appeal to investors emerged as one of several hurdles as bankers and consultants began working with company and government officials to prepare for the listing. The company is expected to raise tens of billions of dollars, if not more, by listing 5% of its shares. The tax rate is one of the government's main levers in influencing the valuation of the company, with a lower rate working to boost the price. Other important variables, like oil prices, are tougher to control. Moving to reduce Aramco's tax burden is a major, and potentially painful, step for the kingdom, since oil sales contributed 62% of government revenue last year, according to official data. Oil income allowed the ruling monarchy to spend lavishly on benefits for its citizens, who don't pay tax. The slump in crude prices that began in 2014 has already forced the kingdom to cut back on capital expenditures and reduce subsidies on water, fuel and electricity. It has also highlighted the pitfalls of relying so heavily on the oil industry and added urgency to the economic diversification plan, which has at its center the planned Aramco IPO and its proceeds. The government is balancing the IPO and its push to change the economy with cuts that affect businesses and consumers. In an emailed statement, the country's minister of energy, industry and mineral resources, Khalid al-Falih, emphasized that the tax break for the oil sector doesn't mean the government would forfeit all of the moneys it is giving up with the move. "It is very important to make it clear that the hydrocarbon resources of the Kingdom of Saudi Arabia remain sovereign and that any reduction in tax revenues arising from this royal order is replaced by stable dividend payments and other sources of revenue from hydrocarbon producers to the government," Mr. Falih said. While Mr. Falih said the 50% tax rate is aligned with international benchmark, it isn't clear what such a benchmark might be since taxation levels vary widely, said Patrick Heller, director of legal and economic programs for the Natural Resource Governance Institute, a nonprofit that studies how countries use resource wealth. The decision to lower Aramco's tax rate "is likely to have little impact on the kingdom's day-to-day public finances," Jason Tuvey, an economist at London-based Capital Economics, said in a note. Credit: By Summer Said and Margherita Stancati
Subject: Capital expenditures; Hydrocarbons; Initial public offerings; Tax rates; Petroleum industry
Location: Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Mar 28, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881385530
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881385530?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11- 24
Database: The Wall Street Journal
Oil Prices Rise as Libya Supply Disrupted; Militia shuts key pipelines connected to Libyan oil fields
Author: Sider, Alison; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Mar 2017: n/a.
Abstract: None available.
Full text: Crude-oil prices rose Tuesday as conflict in Libya interrupted oil production there, providing some relief to investors worried about an oversupply of crude. U.S. crude futures rose 64 cents, or 1.34%, to $48.37 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, gained 58 cents, or 1.14%, to $51.33 a barrel on London's ICE Futures Exchange. Prices rose after Libyan officials said Tuesday that a militia has shut key pipelines connected to oil fields there, choking off some 250,000 barrels of oil a day amid a dispute over wage arrears. The supply disruption comes as investors are weighing whether production cuts by the Organization of the Petroleum Exporting Countries and 11 outside suppliers are helping shrink the oil glut that has weighed on prices. Libya was exempt from the cuts, and its output had returned to about 700,000 barrels a day--partly offsetting cutbacks by other producers. Oil prices have faced selling pressure lately as rising crude production in the U.S. threatens to frustrate a continuing effort to reduce global stockpiles. "I think we're just in a new trading range," said Tariq Zahir, managing member of Tyche Capital Partners. "If it wasn't for Libya we wouldn't be up at these prices now." Data show U.S. production has remained above 9 million barrels a day for the past four weeks, and the number of drilling rigs at work has steadily risen this year, reaching its highest level since September 2015. "We now forecast U.S. crude-oil production to reach a multidecade high by December, within sight of the all-time high reached in 1970," said Barclays analysts in a recent note. But investors haven't abandoned all hope that OPEC's cuts will be successful. Data from ICE showed that traders are largely holding on to their record-high speculative position that Brent prices will rise. According to ICE figures, speculative net long positions in Brent declined 8,200 to 397,700 contracts in the week to March 21. "We've been working steadily higher since the middle of last night," said John Saucer, vice president of research and analysis at Mobius Risk Group. While crude prices ended Monday lower, they settled at the upper end of the day's range--a signal to would-be buyers. Still, Mr. Saucer said the prices may face resistance on their way back up, as U.S. producers take advantage of any rally to lock in higher prices for their output by selling futures. "This market will have some work to do to locate support to move back above $50," he said. Some analysts said OPEC is at risk of failing to make a dent in global inventories unless the cartel decides to extend its cuts into the second half of 2017 at its meeting May 25. Analysts and traders surveyed by The Wall Street Journal forecast that U.S. crude stockpiles rose by 1 million barrels last week. But they expect gasoline and distillates stocks to show drawdowns of 1.9 million barrels and 1 million barrels, respectively. The anticipated declines in refined product inventories have helped boost crude prices, analysts said. Official figures, including production rate, will be released on Wednesday by the U.S. Energy Information Administration. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 1.9 million-barrel rise in crude supplies, a 1.1-million-barrel decrease in gasoline stocks and a 2-million-barrel fall in distillate inventories, according to a market participant. Gasoline futures rose 1.6 cents, or 0.99%, to $1.6349 a gallon. Diesel futures rose 1.42 cents, or 0.95%, to $1.5167 a gallon. Benoit Faucon and Jenny W. Hsu contributed to this article Write to Alison Sider at alison.sider@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Alison Sider and Neanda Salvaterra
Subject: Petroleum production; Crude oil prices; American dollar; Crude oil; Supply & demand
Location: United States--US Libya
People: Trump, Donald J
Company / organization: Name: National Oil Corp; NAICS: 211111; Name: New York Mercantile Exchange; NAICS: 52321 0
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881427291
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881427291?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Major Oil Traders Don't See Banks Returning to the Commodity Markets They Left; Even if Donald Trump's administration rolls back regulation, it is unclear if banks will want to re-enter
Author: McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Mar 2017: n/a.
Abstract: None available.
Full text: Some of the world's largest oil traders doubt that banks will return to commodity markets, even if U.S. President Donald Trump's administration follows through on its promise to reduce the sort of regulation that helped push them out. Many banks said the 2010 Dodd-Frank financial law encouraged them to stop trading physical commodities, given it meant higher capital requirements and limits on trading activity. Mr. Trump has said he intends to roll back these and other financial regulations from the post-financial crisis era. Trading houses expanded into the space that banks vacated and some in the sector aren't convinced they will return, saying banks used regulation as an excuse to leave markets where were already struggling to make money. "At some of these institutions, it really was the management that drove the exit from the commodities business and not so much the regulation," said William Reed, chief executive of Castleton Commodities International, speaking at the FT Commodities Global Summit. Some banks did remain in the sector, including Goldman Sachs and Citigroup. "The banks who have been profitable in commodities have stayed and if anything, have reinforced their activities," said Marco Dunand, Chief Executive of Mercuria Energy Group Inc. "I think it's tough for banks to trade physical commodities, it's not just Dodd-Frank." Banks had been big providers of liquidity in some commodity markets and acted as middlemen, or market makers, between traders. "We are seeing in some markets a significant drop off in liquidity, particularly in domestic gas and power markets in the U.S., because of what's happened with the banks' trading businesses," said Mr. Reed. Many banks sold their business to trading houses. Morgan Stanley sold its oil trading and storage business to U.S.-based Castleton in 2015 and J.P. Morgan unloaded its physical commodities business to Mercuria Energy Group Inc. in 2014. "The risk-reward ratios for banks means they will stay away to a large extent," said Torbjörn Törnqvist, chief executive of trade house Gunvor Group. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Sarah McFarlane
Subject: Regulation of financial institutions; Commodity markets
Location: United States--US
People: Trump, Donald J Dunand, Marco
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: Morgan Stanley; NAICS: 523110, 523120, 523920
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881489457
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881489457?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
West Virginia Bill Would Ease Requirements for Drilling Approval; Proposal backed by state GOP leaders would allow oil and gas companies to drill with approval of 75% of mineral-rights owners
Author: Maher, Kris
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Mar 2017: n/a.
Abstract: None available.
Full text: A bill that would make it easier for oil and gas companies to use modern drilling techniques has pitted West Virginia's Republican-led legislature against farmers and other groups. A vote was expected Tuesday on the bill, known as the Mineral Efficiency Act, in the state Senate. Republicans in the chamber, whose leaders back the proposal, hold a 22-12 majority over Democrats. Under current state law, a single owner of mineral rights can block companies from drilling on a property by withholding approval. The bill under consideration would allow companies to drill with the approval of 75% or more of mineral-rights owners. (In West Virginia, mineral rights are typically owned separately from surface property rights. Owners of mineral rights can sell or lease those rights to companies to extract the natural resources beneath a property.) The bill would also permit companies to drill through multiple contiguous properties when the relevant rights owners all have leases with the same company. In other states such as Pennsylvania, companies can drill without the approval of all mineral-rights owners when rights are shared among multiple parties through so-called cotenancy. Experts say mineral rights are more fragmented in West Virginia than in many other states, partly because rights are divided and passed along to heirs over decades. The dispute comes as coal mining continues to struggle and West Virginia looks for ways to boost revenue from energy development of the Marcellus Shale in particular. West Virginia's natural-gas production has lagged behind neighboring states benefiting more from the shale boom. Last year, West Virginia produced 1.4 trillion cubic feet of natural gas, slightly behind the 1.5 tcf produced by Ohio, but far less than the 5.2 tcf produced by Pennsylvania, according to the Energy Information Administration. The industry argues that the bill would enable companies to drill fewer wells and disturb properties less because they would be allowed to drill through adjacent properties. According to proponents, drillers need the proposed changes to tap large oil and natural gas deposits with the longer and more productive horizontal wells made possible by hydraulic fracturing, or fracking. Groups opposing the bill say it limits the rights of mineral-rights owners too severely. Some argue the bill doesn't give property owners enough say in where drill sites are located, among other things, or do enough to improve royalty rates paid by gas producers. "It gives us a lot of heartburn," Steven Butler, administrator of the West Virginia Farm Bureau, said of the bill. "We're not against oil and gas development in this state. But we feel that these royalty monies ought to be a fair negotiation." The farm bureau, which represents 22,000 family farms in the state, wants mineral-rights owners to be able to negotiate royalty fees. Under one proposal being considered, a landowner could be paid $100,000 for a well drilled on their property but not be able to negotiate its location. Farmers worry this could take prime farmland out of production, Mr. Butler said. Democratic Gov. Jim Justice lent his support to the bill last week at a rally for oil and natural-gas jobs held at the state capitol in Charleston, saying gas development is often hampered because companies have difficulty getting permission from all mineral-rights owners. "We need to develop this resource that God has given us in West Virginia to create thousands of jobs," Mr. Justice said. The West Virginia Oil & Natural Gas Association said the bill will boost investment, job creation and revenue for state and local governments. "The current law denies the majority of the mineral interest owners their right to develop this abundant resource and forces oil and gas companies to look at other, more development-friendly, states to do business," said Anne Blankenship, executive director of the group. The use of mineral rights is a sensitive topic for many in West Virginia, given the state's long history of coal companies controlling mineral rights after big out-of-state corporations began buying up rights in the 19th century. "We look at the coal industry and we say, we don't want to do that again," Mr. Butler said. "I think we have to be careful here or we might be steering down that road and might be doing the same thing." James Brink, an attorney in Pittsburgh who represents landowners in Pennsylvania, said it was reasonable to allow companies to drill after getting approval from 75% of mineral-rights owners. "I think the concept is sound, and I just hope that it's applied soundly," he said. He recalled that in the 1980s when he represented natural-gas companies, he unsuccessfully lobbied the West Virginia legislature to allow firms to drill without approval from 100% of mineral-rights owners. "You see how long that's been brewing," he said. Write to Kris Maher at kris.maher@wsj.com Credit: By Kris Maher
Subject: Hydraulic fracturing; Licensing; Bills; Natural gas utilities; Mineral rights; Coal; Farms
Location: West Virginia
People: Justice, Jim
Company / organization: Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 28, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881505370
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881505370?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Increasing in DOE Data
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show an increase in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 10 analysts and traders surveyed showed that U.S. oil inventories are projected to have increased by 1 million barrels, on average, in the week ended March 24. Seven analysts expect stockpiles to grow and three expect them to shrink. Forecasts range from a decrease of 3 million barrels to an increase of 3.9 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to show a decrease of 1.9 million barrels on average, according to analysts. All 10 analysts expect them to fall. Estimates range from a decrease of 3 million barrels to a decrease of 198,000 barrels. Stocks of distillates, which include heating oil and diesel, are expected to shrink by 1 million barrels. One analyst expects an increase and nine expect a decrease. Forecasts range from a decline of 2 million barrels to an increase of 754,000 barrels. Refinery use is seen gaining 0.3 percentage point to 87.7% of capacity, based on EIA data. Six analysts expect an increase, one expects a decrease, one expects no change and two didn't report expectations. Forecasts range from a decrease of 1.5 percentage points to an increase of 1 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 1.9 million-barrel rise in crude supplies, a 1.1 million-barrel decrease in gasoline stocks and a 2 million-barrel fall in distillate inventories, according to a market participant. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Price increases; Supply & demand
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881511811
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881511811?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Maintain Bounce Amid Libya Supply Disruption; Prices ended up more than 1% higher as of the New York close Tuesday
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Mar 2017: n/a.
Abstract: None available.
Full text: Oil futures added to overnight gains in Asia trading Wednesday, as the market got a lift from ongoing supply disruptions in Libya. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May were recently up 6 cents in the Globex electronic session at $47.76 a barrel, while May Brent crude on London's ICE Futures exchange rose 2 cents to $50.58. Prices ended up more than 1% higher as of the New York close Tuesday after Libya reported the closure of key pipelines as tension between the government and a militia flared up again, choking off some 250,000 barrels a day of oil. The country's "March output will show a decline, and the intermediate-term plan to increase output is at least somewhat less certain than before," said Tim Evans, a Citi Futures energy analyst. Bulls were also cheered by the latest rhetoric from members of the Organization of the Petroleum Exporting Countries, who are showing a stronger willingness to cut more of their supplies until global inventories return to a more-manageable level. Not seemingly impacting prices in Asia was the American Petroleum Institute's weekly reading on U.S. oil inventories. It said late Tuesday that supplies rose 1.9 million barrels in the week ended March 24. A survey by The Wall Street Journal has analysts anticipating the U.S. Energy Information Administration will on Wednesday report a 1-million-barrel increase in its count but declines in refined-product inventories. Such drops would help support crude prices. Meanwhile, market players are eyeing the reshaping of U.S. energy policy under President Donald Trump, who on Tuesday signed an executive order to roll back environmental protection measures implemented by his predecessor. The move underscores Mr. Trump's resolve to revitalize traditional energy sectors such as oil and coal as part of his campaign promises. While the move may provide some incentives for major energy companies to drill more, the fate of the proposed policy remains opaque. Still, "OPEC will definitely take" U.S. policy steps "under consideration when deciding whether to extend" its production-cut deal past May, said Gao Jian, an energy analyst at SCI International. "But no matter what, the cartel must find a way to shrink the inventories," though "OPEC is faced with the tough choice between gaining market share and pushing prices higher." Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--edged lower to $1.6318 a gallon while April diesel traded at $1.5222. Meanwhile, ICE gas oil for April was recently down $1.25 from Tuesday's settlement at $58.50 a metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Political campaigns; Futures; Crude oil prices; Energy industry; Supply & demand
Location: Libya Asia
People: Trump, Donald J
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 29, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881554760
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881554760?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is proh ibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon Harnesses Computing Power
Author: Castellanos, Sara
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Mar 2017: n/a.
Abstract:
In the past five years, oil-and-gas companies have begun to explore using high-cost supercomputing technology for more complex problems such as reservoir simulations, said Jan E. Odegard, executive director at the Ken Kennedy Institute for Information Technology at Rice University.
Full text: A supercomputing record claimed earlier this year by Exxon Mobil Corp. is about more than bragging rights. The energy giant says the computational power could revolutionize the way that it models and predicts production over the life of an oil or gas field. Exxon conducted the record-breaking feat last month with the National Center for Supercomputing Applications' Blue Waters supercomputer, running a reservoir simulation using 716,800 processors. That is more than four times the number of processors previously used in the oil-and-gas industry on such simulations, according to staff at the NCSA. Using more than 700,000 processors is similar to harnessing the power of 22,400 computers with 32 processors per computer. "It's orders of magnitude faster than what we could do previously, which is allowing us to optimize our (oil and gas field) development plans," said Carol Lloyd, engineering vice president of Exxon Mobil Upstream Research, which is the research arm tied to the exploration, development and production of oil and gas. A single such reservoir model traditionally takes days to produce results, Ms. Lloyd said. With this reservoir simulation breakthrough, the simulation can be done in a few minutes or hours, she said. For years, energy companies such as Exxon have used supercomputers to analyze seismic data and assemble a map of geologic formations, which can shape decisions about where to drill. Creating a model that predicts production of a reservoir over time is more complicated, and Exxon said its latest supercomputing effort in this area has yielded faster and more detailed modeling. New approaches to supercomputing made that possible. In a highly competitive and capital-intensive industry, in which prices fluctuate constantly, crisper and more detailed images and better predictions with less guesswork and the least environmental impact are critical to the business, according to Ms. Lloyd and energy analysts. She called the latest computational feat a breakthrough. In the past five years, oil-and-gas companies have begun to explore using high-cost supercomputing technology for more complex problems such as reservoir simulations, said Jan E. Odegard, executive director at the Ken Kennedy Institute for Information Technology at Rice University. Reservoir simulations are computer models that simulate how geological rock and fluid will behave over time as an oil or gas field is drilled. The models are based on massive amounts of seismic data, historical production data and other information, and are used to design and develop the most efficient strategies to maximize the recovery of oil and gas. Reservoir simulations are far more complex than seismic imaging to scale across many computer processors, because they require the computers to constantly share and exchange data in a way that seismic imaging doesn't. In traditional seismic imaging, the algorithms used permit each computer to work independently of each other on a small part of the problem, without needing to communicate constantly, Mr. Odegard said. This constant communication between different computational elements is part of a technique called parallelism, which is at the heart of Exxon's supercomputing feat. Parallelism refers to the ability to split a specific computer problem to perform evenly across many computational elements, such as computer cores which process the information. Supercomputing experts say parallelism in high-performance computing is similar to distributed computing, used in data storage and analytic frameworks such as Hadoop. In both parallel and distributed computing, computational components located on networked computers coordinate actions by communicating with one another. Parallelism is more complex because it requires tighter coordination and frequent communication in the exchanging of data between the elements, Mr. Odegard said. "It's like managing a symphony orchestra, where everything has to be carefully coordinated," said Dr. Bill Gropp, director of the National Center for Supercomputing Applications. Exxon initiated the supercomputing project with the NCSA in June 2015 and is the only oil-and-gas company to work with the organization. Credit: By Sara Castellanos
Subject: Computers; Orchestras; Simulation; Energy industry; Natural gas utilities
Company / organization: Name: Rice University; NAICS: 611310; Name: National Center for Supercomputing Applications; NAICS: 541711; Nam e: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 29, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881639130
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881639130?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rises as Inventory Data Signal Strong Demand; U.S. figures show stockpiles increased less than analysts expected
Author: Yang, Stephanie; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Mar 2017: n/a.
Abstract: None available.
Full text: Oil prices closed at a three-week high on Wednesday, boosted by signs of strong demand for crude products and renewed commitments by major oil producers to rein in production. Light, sweet crude for May delivery gained $1.14, or 2.4%, to $49.51 a barrel on the New York Mercantile Exchange, up three of the past four sessions. Brent crude, the global oil benchmark, rose $1.09, or 2.1%, to $52.42 a barrel. On Wednesday, data from the U.S. Energy Information Administration showed a larger-than-expected decline in gasoline and distillate stocks, while refiners processed crude oil at a higher rate. Crude inventories rose 900,000 barrels in the week ended March 24, lower than the average forecast from analysts and traders surveyed by The Wall Street Journal. The positive data helped oil recoup losses, after previous reports that showed inventories rising to record levels sent prices tumbling below $50 a barrel in early March. Signs of healthy demand have also eased concerns that an increase in U.S. production will keep supply elevated, even as the Organization of the Petroleum Exporting Countries has cut production to help end a global supply glut. "The market was starting to turn a corner," said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. "I think people are feeling just that much more comfortable buying into it again." Strong gasoline consumption was a highlight of the Wednesday data, analysts said. Gasoline stockpiles fell by 3.7 million barrels, compared to expectations for a 1.9 million barrel decline. Distillates dropped by 2.5 million barrels compared to estimates for a fall of 1 million barrels. Increasing demand should help chip away at high levels of crude inventories, said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. "Gasoline is really starting to assert its influence here in the market on a broad scale," he said. The drop in oil products has brought inventories to a 21-month low, according to analysts at Standard Chartered. As refinery activity increases, that could further suppress crude inventories, helping oil rally, the bank said in a Wednesday note. Investors also welcomed comments from OPEC members who are showing a willingness to cut more of their supplies to make a dent in global inventories. United Arab Emirates announced plans to reduce its production by about 200,000 barrels from March to May, "which is actually more than was agreed," said Commerzbank analysts in a recent note. Crude prices received support after Libya reported the closure of key pipelines, as tension between the government and a militia flared up again, removing about 250,000 oil barrels a day from the market. "We are seeing tighter supply and this is very likely to continue well into April," said Georgi Slavov, the global head of energy research at Marex Spectron. Gasoline futures rose 2.3%, to $1.6720 a gallon, and diesel futures gained 1.7%, to $1.5425 a gallon, taking prices for both to three-week highs. Jenny W. Hsu contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Stephanie Yang and Neanda Salvaterra
Subject: Political campaigns; Price increases; Coal
Location: Africa United States--US Libya United Arab Emirates
People: Trump, Donald J
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210; Name: Marex Spectron; NAICS: 523140
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 29, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881733233
DocumentURL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881733233?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Inventories Rise Near Expectations
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil inventories increased close to expectations for the week ended March 24, while gasoline stockpiles declined much more than forecast, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles rose by 867,000 barrels to 534 million barrels, and are at the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would rise by 1 million barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, decreased by 220,000 barrels to 67.7 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 3.7 million barrels, to 239.7 million barrels. Analysts were expecting gasoline inventories to fall by 1.9 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 2.5 million barrels, to 152.9 million barrels, but are in the upper half of the average range, the EIA said. Earlier in the week, analysts had forecast supplies would decrease by 1 million barrels from a week earlier. Refining capacity utilization rose by 1.9 percentage points from the previous week, to 89.3%. Analysts were expecting utilization levels to rise by a modest 0.3 percentage point from the previous week. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Petroleum products; Price increases; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 29, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881806867
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881806867?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Aramco Plans to Raise $2 Billion With First Bond Offering; Planned riyal-denominated sukuk bond from kingdom's state-owned oil company will be open to foreign investment
Author: Cui, Carolyn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Mar 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia's giant state-owned oil company is preparing to raise about $2 billion with its first bond offering, according to investors who have reviewed the prospectus. Saudi Arabian Oil Co., known as Aramco, plans to issue a 7.5 billion riyal-denominated sukuk bond that is in compliant with Islamic law but can be purchased by foreigners, according to these investors. A sukuk is a bondlike instrument designed for Islamic investors to be non-interest-bearing. Issuance of sukuk bonds has grown strongly in recent years to meet investment demands of Islamic investors, mainly from the Gulf countries and Asia. "This will be the first monetization of Saudi Aramco," said Patrick Drum, a portfolio manager at Saturna Capital, which runs a sukuk bond fund. The proceeds will be used for general corporate purposes, according to the prospectus, which hasn't disclosed any financial information on the oil company. The bonds have yet to be priced and the exact timing of the offering is unclear, according to people familiar with the matter. The Saudi government last year raised $17.5 billion with its first global bond , an effort to shore up finances after oil prices plummeted. That deal was widely marketed around the globe. By contrast, Saudi Aramco chose to sell its first Islamic bond in the local currency rather than in dollars, a sign that the debt offering is aimed primarily at locals, some investors said. Mr. Drum, based in Bellingham, Wa., said he is looking at the bonds closely. He said the debt would offer some diversification for his holdings and Saudi corporate bonds are hard to come by. "I do have a heightened interest but I need more information," Mr. Drum said. Alinma Investment Company, HSBC Saudi Arabia Ltd., NCB Capital Company and Riyad Capital are among the banks that are underwriting the bond sale, according the prospectus which was published on March 27. The Saudi government has estimated that Aramco is worth more than $2 trillion, and the kingdom is preparing to sell shares to the public as early as next year, according to people familiar with the matter. The offering could raise $100 billion or more, analysts say. On Monday, Saudi Arabia lowered the tax rate on Aramco to 50% from 85%. Write to Carolyn Cui at carolyn.cui@wsj.com Credit: By Carolyn Cui
Subject: Islamic financing; Bond issues
Location: Asia Saudi Arabia
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 29, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881864515
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881864515?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
ConocoPhillips to Sell Chunk of Canadian Oil-Sands Assets For $13.3 Billion; Sale to Cenovus Energy would double its Canadian production and reserves
Author: Armental, Maria
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Mar 2017: n/a.
Abstract: None available.
Full text: ConocoPhillips is selling a large chunk of its Canadian oil-sands assets to Cenovus Energy Inc. to pay down debt and significantly increase stock buybacks, marking the latest exit from the oil sands by non-Canadian player. The $13.3 billion cash-and-stock deal would turn over to Alberta-based Cenovus the majority of ConocoPhillips's western Canada Deep Basin gas assets along with its joint stake in the Foster Creek Christina Lake oil sands, in which Cenovus and ConocoPhillips each own 50% and which Cenovus operates. "This means we will not only accelerate, but exceed, the three-year plan we laid out in November 2016, ConocoPhillips Chief Executive Ryan Lance said Wednesday in a prepared statement. The deal, which would double Cenovus's Canadian production and reserves, is expected to close in the second quarter and is subject to regulatory approval. If approved, ConocoPhillips, one of the largest U.S. shale producers, would still own a 50% stake in Canada's Surmont oil sands, which it runs, and full ownership in the Blueberry-Montney unconventional acreage position. ConocoPhillips' daily net production from the oil sands totaled 183,000 barrels of crude oil equivalent, of which Foster Creek accounted for 70,000 barrels a day, according to the company. The remainder came from its stake in another Cenvous-run project called Christina Lake, which made up 78,000 barrels a day of oil equivalent, and its 35,000 barrel a day oil equivalent share of Surmont. ConocoPhillips is the operator at Surmont, in which France's Total SA owns a 50% stake The Houston-based company plans to use the cash proceeds to cut its debt burden to about $20 billion, from $27.28 billion as of Dec. 31. It also plans to triple the amount allotted for stock buybacks this year to $3 billion and double the overall amount set aside to buy back stock through 2019 to $6 billion. Cenovus also agreed to make extra payments to Conoco if the price of oil rises above a certain threshold. Canada's oil sands have been losing out to cheaper U.S. shale oil as the energy industry's supplier of choice for higher cost barrels of oil. Royal Dutch Shell is selling nearly all of its Canadian oil-sands developments, while Norway's Statoil ASA exited its Canadian oil-sands operations last year. ConocoPhillips shares, up 16% over the past 12 months, rose 6% to $48.90 in after-hours trading while Cenovus's stock fell 7.49% to $12.10. Chester Dawson contributed to this article. Write to Maria Armental at maria.armental@wsj.com Credit: By Maria Armental
Subject: Energy industry; Oil sands; Regulatory approval
Location: United States--US France Norway
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: ConocoPhillips Co; NAICS: 211111; Name: Statoil ASA; NAICS: 211111, 324110; Name: Cenovus Energy Inc; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 29, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881929704
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881929704?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
ConocoPhillips to Sell Chunk of Canadian Oil-Sands Assets For $13.3 Billion; Sale to Cenovus Energy would double its Canadian production and reserves
Author: Armental, Maria
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2017: n/a.
Abstract: None available.
Full text: ConocoPhillips is selling a large portion of its Canadian oil-sands assets to Cenovus Energy Inc. to pay down debt and significantly increase stock buybacks, marking the latest exit from the oil sands by a non-Canadian player. The $13.3 billion cash-and-stock deal would turn over to Alberta-based Cenovus the majority of ConocoPhillips's western Canada Deep Basin gas assets along with its stake in the Foster Creek Christina Lake oil sands, in which Cenovus and ConocoPhillips each own 50% and that Cenovus operates. The deal, Chief Executive Ryan Lance said in a conference call, would "supercharge" the company's three-year financial plan laid out in November, exceeding targets in less than a year, and boosting planned dispositions to more than $16 billion. ConocoPhillips had initially targeted $5 billion to $8 billion. That leaves the company with "the same priorities as November, except bigger and faster," said Alan Hirshberg, executive vice president for production, drilling and projects. As part of the deal, the Houston energy company would take an equity stake in Cenovus of 208 million shares, which ConocoPhillips officials said they intend to sell after a 6 month lockup period. "We are drillers, we are not natural equity investors," Chief Financial Officer Don Wallette said Wednesday. Cenovus also agreed to make additional payments to ConocoPhillips if the price of oil rises above a certain threshold. The deal, which is expected to close in the second quarter and is subject to regulatory approval, would double Cenovus's Canadian production and reserves. But rating firms DBRS and S&P Global Ratings on Wednesday warned the deal could result in a downgrade for Cenovus. If the sale goes through, ConocoPhillips, one of the largest U.S. shale producers, would still keep a presence in Canada with a 50% stake in the Surmont oil sands-project, which it runs and where it targets a 50% production increase, and full ownership in the Blueberry-Montney unconventional acreage position. ConocoPhillips plans to use the cash proceeds to cut debt to about $20 billion this year and about $15 billion by 2019. As of Dec. 31., ConocoPhillips's debt stood at more than $27 billion, according to a regulatory filing. ConocoPhillips also plans to triple the amount allotted for stock buybacks this year to $3 billion and double the overall amount set aside to buy back stock through 2019 to $6 billion. Canada's oil sands, which have fueled Canada's growth, have been losing out to cheaper U.S. shale oil. Western Canadian heavy crude costs more to extract because it must be separated from deposits of sand and trades at a discount, in part because of the distance it must be transported from remote boreal forests in Alberta. Norway's Statoil ASA exited its Canadian oil-sands operations last year, and Royal Dutch Shell said this month it would sell nearly all of its oil-sands developments. ConocoPhillips shares, up 16% over the past 12 months, rose 6% to $48.55 in after-hours trading while Cenovus's stock fell 8% to $12. Chester Dawson and Lynn Cook contributed to this article. Credit: By Maria Armental
Subject: Acquisitions & mergers; Equity stake; Production increases; Oil sands; Regulatory approval
Location: United States--US
Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Cenovus Energy Inc; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 30, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881929710
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881929710?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Retreat as Dollar Climbs; Prices were also propelled by declining U.S. oil imports and rising exports
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2017: n/a.
Abstract: None available.
Full text: Oil prices eased slightly in Asian trade Thursday amid a rising dollar after crude witnessed some of its biggest gains in nearly two months during the U.S. session. That bounce, which allowed futures to settle at three-week highs overnight, was stoked by data from the U.S. Energy Information Administration showing a larger-than-expected decline in gasoline and distillate supplies as well as refiners processing oil at a higher rate. "The big falls in gasoline inventories, coming near the end of the refinery-maintenance season, suggest crude-oil inventories are on the cusp of declining," said ANZ Research. Crude-oil stockpiles rose a less-than-expected 900,000 barrels last week by the government's count. Prices were also propelled by declining U.S. oil imports and rising exports. "The trending combination of higher crude runs and lower net crude imports should result in U.S. crude stocks flattening and then starting to decline by the end of April," said Société Générale. Futures initially built on those gains in Asia, but reversed that move as the dollar climbed Thursday morning on expectation that U.S. central bank may increase the frequency of interest rate increases this year. A stronger dollar often deters crude buying for traders holding foreign currencies. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May recently traded down 4 cents at $49.47 a barrel in the Globex electronic session. May Brent crude on London's ICE Futures exchange fell 11 cents to $52.31. The WSJ Dollar Index which compares the greenback to 16 currencies was recently up 0.2% to 92.91. However, the ongoing strong uptrend in U.S. crude production is keeping investors from placing bullish bets. Data showed that despite the recent pullback in prices, domestic output rose for a fifth-straight week. JBC Energy said that given prices have been bobbing in a narrow range, the growth in U.S. oil-drilling activity seen so far this year may lose steam over the next few months. But that doesn't mean less production because new rigs are much-more efficient as they can drill more oil in less time. "Rising U.S. oil output remains the key downside risk to oil prices over the next year," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. This, of course, as the market continues to await whether recent production cuts led by the Organization of the Petroleum Exporting Countries will be extended beyond the initial six-month term when the cartel meets to review at the end of May, and to what degree they are cutting into bloated global supplies. "With plenty of supportive OPEC chatter on rolling over the oil-production restrictions and a production accord between Russia and Iran, the consensus view that the physical market should tighten in the latter half of the year is building," said Stuart Ive, a client manager at the Wellington-based OM Financial. Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--eased 0.38 cent to $1.6682 a gallon, April diesel dropped 0.33 cent to $1.5392 and ICE gas oil for April rose $1 from Wednesday's settlement to $464.75 a metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Futures; Gasoline; Crude oil prices; Price increases; Crude oil
Location: United States--US Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 30, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881929860
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881929860?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Jumps on Inventory Data
Author: Yang, Stephanie; Salvaterra, Neanda
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]30 Mar 2017: B.11.
Abstract:
Oil prices closed at a three-week high, boosted by signs of strong demand for crude products and renewed commitments by major oil producers to rein in production. Light, sweet crude for May delivery gained $1.14, or 2.4%, to $49.51 a barrel on the New York Mercantile Exchange, up three of the past four sessions. Brent crude, the global oil benchmark, rose $1.09, or 2.1%, to $52.42 a barrel.
Full text: Oil prices closed at a three-week high, boosted by signs of strong demand for crude products and renewed commitments by major oil producers to rein in production. Light, sweet crude for May delivery gained $1.14, or 2.4%, to $49.51 a barrel on the New York Mercantile Exchange, up three of the past four sessions. Brent crude, the global oil benchmark, rose $1.09, or 2.1%, to $52.42 a barrel. On Wednesday, data from the U.S. Energy Information Administration showed a larger-than-expected decline in gasoline and distillate stocks, while refiners processed crude oil at a higher rate. Crude inventories rose 900,000 barrels in the week ended March 24, lower than the average forecast from analysts and traders surveyed by The Wall Street Journal. The positive data helped oil recoup losses, after previous reports that showed inventories rising to records sent prices tumbling below $50 a barrel in early March. Signs of healthy demand have also eased concerns that an increase in U.S. production will keep supply elevated, even as the Organization of the Petroleum Exporting Countries has cut production to help end a global supply glut. "The market was starting to turn a corner," said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. "I think people are feeling just that much more comfortable buying into it again." Strong gasoline consumption was a highlight of the Wednesday data, analysts said. Gasoline stockpiles fell by 3.7 million barrels, compared with expectations for a 1.9 million barrel decline. Distillates dropped by 2.5 million barrels, compared with estimates for a drop of one million barrels. Increasing demand should help chip away at high levels of crude inventories, said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. "Gasoline is really starting to assert its influence here in the market on a broad scale," he said. The drop in oil products has brought inventories to a 21-month low, according to analysts at Standard Chartered. As refinery activity increases, that could further suppress crude inventories, helping oil rally, the bank said in a note on Wednesday. Investors also welcomed comments from OPEC members who are showing a willingness to cut more of their supplies to make a dent in global inventories. United Arab Emirates announced plans to reduce its production by about 200,000 barrels from March to May, "which is actually more than was agreed," said Commerzbank analysts in a recent note. Crude prices received support after Libya reported the closure of key pipelines, as tension between the government and a militia flared up again, removing about 250,000 oil barrels a day from the market. "We are seeing tighter supply, and this is very likely to continue well into April," said Georgi Slavov, the global head of energy research at Marex Spectron. Gasoline futures rose 2.3% to $1.6720 a gallon and diesel futures gained 1.7% to $1.5425 a gallon, taking prices for both to three-week highs. --- Jenny W. Hsu contributed to this article. Credit: By Stephanie Yang and Neanda Salvaterra
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Mar 30, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881937961
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881937961?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Traders Expect Oil Producers May Keep Output Lower for Longer; U.S. stockpiles 'stubbornly high,' traders say
Author: McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2017: n/a.
Abstract: None available.
Full text: Oil producers' efforts to cut production have fallen short of draining the overhang of stocks to the level they were targeting, meaning cuts are likely to go on longer, oil traders said. The Organization of the Petroleum Exporting Countries is facing a familiar dilemma: limiting its own production to bolster world prices enough that the sacrifice is compensated sufficiently and stored oil is sold, while knowing that rival producers outside the deal are pumping more in response. "Wrestling with that equilibrium, balance, is something that is going to prove testing for those OPEC producers which need a high oil price to balance their budgets," said Mike Muller, vice president of crude-oil trading at Royal Dutch Shell. OPEC's members will meet on May 25 and decide whether a deal to cut 1.2 million barrels a day of output for the first six months of this year should be extended. The cartel had said they wanted stored oil levels to drop by about 300 million barrels. But U.S. stocks, seen as a bellwether for global inventories, reached an all-time high on Wednesday, weekly data published by the U.S.'s Energy Information Administration showed. Oil prices soared about 20% in the weeks following OPEC's announcement of planned cuts on Nov. 30, only to drop back to around $50 a barrel this month as doubts grew over the cartel's effectiveness in reducing global stock levels. On Thursday, Brent crude futures, the global benchmark, gained 54 cents a barrel, or 1%, to $52.96 on ICE Futures Europe. U.S. crude futures rose 84 cents, or 1.7%, to $50.35 a barrel on the New York Mercantile Exchange, settling above $50 for the first time in three weeks. Traders speaking at the FT Commodities Global Summit said that although some oil was being sold out of the most expensive storage, such as oil stored on ships at sea, U.S. supplies remained stubbornly high. "If we're anywhere around here on price, I think they're likely to continue their current strategy of cuts," said Ben Luckock, co-head of Group Market Risk at Trafigura Pte. Ltd. U.S. shale-oil producers have proven quick to respond to higher prices, ramping up output to the highest level in 13 months at more than 9.1 million barrels a day, EIA data showed. This is also capping the market. "At $50, there's a lot of incentive for a lot of people to continue with the current policy, and obviously at $60 there's a lot less incentive to carry on with the existing policy, so I think it is going to be price dependent at the time of those meetings," said Russell Hardy, chief executive for the EMEA region at Vitol Group. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Sarah McFarlane
Subject: Strategic petroleum reserve; Crude oil
Location: United States--US
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 30, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1881999807
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881999807?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Settles Above $50 Amid Slowdown in Stockpile Growth; Prices also supported by optimism that OPEC will continue production cuts and reports of declining U.S. oil imports
Author: Sider, Alison; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2017: n/a.
Abstract: None available.
Full text: Oil prices picked up steam Thursday and settled above $50 a barrel for the first time in three weeks as traders and investors became more optimistic that OPEC will continue cutting production and U.S. crude stocks will soon fall from record highs. U.S. crude futures have had their biggest three-day run since December, increasing 5.49% over the last three sessions. On Thursday, U.S. crude futures rose 84 cents, or 1.7%, to $50.35 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 54 cents, or 1.03%, to $52.96 a barrel on ICE Futures Europe. Oil prices traded in a $52 to $55 range for much of the year but sold off sharply earlier this month amid concerns that the world remains awash in crude despite efforts by the Organization of the Petroleum Exporting Countries to curtail output . Prices have languished near four-month lows since then. Speculative investors rapidly retreated from their record number of bets on rising prices as doubts crept in about whether OPEC's cuts will be enough to work off the glut of crude and whether rising U.S. production will undermine OPEC's efforts. The data released Wednesday helped assuage some of those worries. The U.S. Energy Information Administration's reported a larger-than-expected decline in gasoline and diesel supplies and said refiners coming out of seasonal maintenance have started to ramp up their crude processing -- signs of strong demand for fuel. Crude-oil stockpiles in the U.S. rose close to 900,000 barrels last week by the government's count--less than expected. And analysts said there were signals that the relentless weekly increases may soon reverse. "I believe the huge build up in stockpiles is basically coming to an end," said Peter Cardillo, chief market economist for First Standard Financial Co. "From a technical perspective, I think this market puts us back in that range of $52 to $55 as we await concrete signs that the market is beginning to rebalance," he said. The market continues to watch whether OPEC's recent production cuts will be extended beyond the initial six-month term when the cartel meets to review the arrangement at the end of May. Reports of comments by Kuwait's oil minister indicating that Kuwait and other countries support extending the cuts bolstered confidence that the deal will be continued. In a TV interview, Russian Energy Minister Alexander Novak said that Russia has cut 200,000 barrels a day and is planning to cut more in order to comply with its agreement to cut 300,000 barrels a day in coordination with OPEC. But some say the recent price gains will only be sustained if OPEC renews its commitment to curtailing output. "I really think we'll spend the next four or five weeks batting back and forth on perceptions of whether that production cut will be extended," said Gene McGillian, research manager at Tradition Energy, adding that "the market is on thin ice" at these price levels. Gasoline futures rose 0.92 cent, or 0.55%, to $1.6812 a gallon. Diesel futures rose 1.57 cents, or 1.02%, to $1.5582 a gallon. Write to Alison Sider at alison.sider@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Sarah McFarlane and Jenny W. Hsu
Subject: Futures; Price increases; Supply & demand
Location: Iran Russia United States--US Asia
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 30, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882063068
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882063068?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
In Rebuke to Trump Policy, GE Chief Says 'Climate Change Is Real'; Exxon Mobil CEO, in his own blog post, says 'climate risks warrant action'
Author: Gryta, Thomas; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2017: n/a.
Abstract: None available.
Full text: General Electric Co. CEO Jeffrey Immelt defended efforts to reduce emissions and fight climate change, after President Donald Trump reversed rules that pushed U.S. utilities to use cleaner-burning fuels. In a blog post to employees Wednesday, Mr. Immelt highlighted the administration's move and said climate change "should be addressed on a global basis through multinational agreements" such as the 2015 Paris Agreement. The U.S. hasn't withdrawn from that agreement, but the executive order on Tuesday fed concerns that the pact's targets will be hard to reach . "We believe climate change is real and the science is well accepted," Mr. Immelt wrote. "We hope that the United States continues to play a constructive role in furthering solutions to these challenges." The U.S. Chamber of Commerce has voiced support for President Trump's new policy, saying fewer regulations would lower domestic energy costs and spur economic growth. But many big U.S. corporations, from candy maker Mars Inc. to oil giant Exxon Mobil Corp., have pledged continued support for the Paris Agreement and efforts to reduce emissions. "The science is clear and unambiguous: Climate change is real and human activity is a factor," closely held Mars said in a statement this week, adding it was "disappointed the administration has decided to roll back climate regulations." On Tuesday, the world's biggest brewer, Anheuser-Busch InBev, committed to get 100% of its global electricity from renewable sources by 2025. "Cutting back on fossil fuels is good for the environment and good for business," CEO Carlos Brito said. GE's Mr. Immelt has managed to avoid conflict with President Trump, who has been known to lash out at companies, especially on Twitter. The GE leader, who visited the White House in February, supports some administration policy plans, such as revising the tax code. At the same time, he has defended globalization amid nationalistic and protectionist trends in many countries. In the post, Mr. Immelt said companies have to "have their own 'foreign policy'" and "learn to adjust to political volatility all over the world." GE sells turbines for coal- and gas-fired power plants as well as wind turbines. It has a business unit called Current that is focused on energy savings. He said the conglomerate has spent $20 billion on research into reducing emissions, improving energy efficiency and cutting cost since 2005. Mr. Trump's order begins a review of former President Barack Obama's Clean Power Plan , which would have required utilities to reduce carbon-dioxide emissions from power plants to 32% below 2005 levels by 2030. Exxon Chief Executive Darren Woods has also publicly supported the Paris climate deal. Shortly after taking over from Rex Tillerson, who stepped down to become U.S. secretary of state, Mr. Woods wrote in a blog post that "climate risks warrant action and it's going to take all of us--business, governments and consumers--to make meaningful progress." The Paris deal is "an effective framework" for dealing with rising emissions, he said. Days before the executive order, Exxon reiterated this position in a letter to White House energy adviser George David Banks. Exxon supports the deal in part because it includes pledges to reduce emissions from most of the world's countries, unlike the 1997 Kyoto Protocol climate deal, the letter said. "We believe that the United States is well positioned to compete within the framework of the Paris Agreement, with abundant low-carbon resources such as natural gas," Peter Trelenberg, an Exxon manager of environmental policy and planning, said in the March 22 letter. A number of bigger oil and gas companies have given at least tacit support to the Paris deal because they foresee natural gas benefitting from a possible carbon tax or similar steps to put a price on carbon. Smaller U.S. energy producers have praised the administration's steps to roll back limits on the emission of methane--a greenhouse gas believed to be more potent than carbon dioxide--during oil and gas production. Annie Gasparro and Jennifer Maloney contributed to this article. Write to Thomas Gryta at thomas.gryta@wsj.com and Bradley Olson at Bradley.Olson@wsj.com Credit: By Thomas Gryta and Bradley Olson
Subject: Electric utilities; Industrial plant emissions; Climate change
Location: United States--US
People: Obama, Barack
Company / organization: Name: Twitter Inc; NAICS: 519130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 30, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882089150
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882089150?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Fracking 2.0: Shale Drillers Pioneer New Ways to Profit in Era of Cheap Oil; Texas producer EOG has led the industry in finding ways to extract oil faster and less expensively from shale. If more can follow its lead and ramp up output even at lower prices, the sector could become a lasting force that challenges OPEC's ability to control market prices
Author: Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2017: n/a.
Abstract: None available.
Full text: MIDLAND, Texas--Using a proprietary app called iSteer, Brian Tapp, a geologist for EOG Resources Inc., dashed off instructions to a drilling rig 100 miles away. This tool is among the reasons the little-known Texas company says it pumps more oil from the continental U.S. than Exxon Mobil Corp.--or any other producer. A rig worker received Mr. Tapp's iPhone alert and tweaked the trajectory of a drill bit thousands of feet underground, to land more squarely in a sweet spot of rock filled with West Texas crude. U.S. shale drillers transformed the energy industry over the past decade with hydraulic fracturing and horizontal drilling, in the early days using brute force to unleash a torrent of oil and gas that altered the balance of power among oil-producing nations and triggered a global glut. Now, with oil currently trading near $50 a barrel, these producers are trying to unleash fracking 2.0 , the next step in the technological transformation of the sector that is aimed at extracting oil even faster and less expensively to eke out profits at that level. The promise of this new phase is potentially as significant as the original revolution. If more producers can follow EOG's lead and profitably ramp up output from shale drilling even at lower prices, the sector could become a lasting force that challenges OPEC's ability to control market prices. For a sector in which the previous era's success was tied to the rapid expansion of output , the shift toward finding more cost-effective ways to get to that oil and gas is full of challenges. When oil prices dropped, critics wondered if the shale industry--rife with heavily indebted companies that had never turned a profit--would collapse . EOG, with its longtime focus on low-cost production, is the producer many hope to emulate, thanks to the iSteer app and dozens of other homegrown innovations. Dubbed the "Apple of oil" by one analyst, EOG made its name as a pioneer in horizontal drilling and in finding ways to get oil out of shale--often dense layers of rock that hold oil and gas in tiny pores--a feat many once believed impossible. Competitors such as Chesapeake Energy Corp. and Pioneer Natural Resources Co. also are finding new ways to profit amid low energy prices. Many are experimenting with longer, supersize wells, and fracking them with millions of pounds of sand . Other producers, however, have said the industry needs oil prices of at least $55 to $60 to truly rebound. The price of oil plunged about 75% from its peak of more than $100 a barrel in mid-2014, and the natural-gas price sank by half in the same period. More than 420,000 oil and gas jobs world-wide have been lost, according to energy consulting firm Graves & Co., and, since the start of 2015, over 200 U.S. energy companies have filed for bankruptcy, according to law firm Haynes & Boone LLP. EOG, part of Enron Corp. until 1999, now drills horizontal wells in West Texas more than a mile long in 20 days, down from 38 days in 2014. It has done it in as few as 10½ days. It estimates it can get at least a 30% rate of return on wells at $40 a barrel, and that at $50 it can boost oil production at least 15% a year through 2020. The company said it produced roughly the same amount of oil last year as it did in 2014 with a budget that was 67% smaller. The iSteer app and other proprietary programs EOG designed are partly why. EOG uses iSteer to help navigate through rock thousands of feet underground, landing in identified layers with more precision. A device behind the drill bit underground transmits information--including depth and direction but also readings to identify types of rock and the presence of gas--to a geologist at the office. The numbers are crunched, using EOG's databases on the location's rock layers and on previous wells, and course corrections are sent to the driller on the rig. EOG said adjustments can happen in minutes, instead of a process that in the past took at least 30 minutes. The quick modifications keep the drill in a 10-to-15 foot window, which EOG said improves the output and consistency of a well. The apps help employees work at the "speed of thought," said Sandeep Bhakhri, EOG's chief information officer. The company now uses 65 apps it designed after realizing it needed tools with capabilities it couldn't find off the shelf. Along the way, it boosted its staff of data scientists, and over the past three years has hired recent computer-science graduates from the University of Texas at Austin. The apps help EOG answer a range of questions, such as how much pressure to use to crack a particular geologic stratum, to identifying ideal trajectories for drills, to more mundane queries, such as the fastest route to drive from one drilling site to the next. "I look at [the apps] first thing in the morning, on the exercise bike or during breakfast--it gives me a head start on the day," said Ezra Yacob, general manager of EOG's Midland operations. Tinkering, core to the company's culture, was evident on a recent visit to the division office in Midland, a city of about 124,000 at the heart of the oil-rich Permian Basin in West Texas. There, geologists, engineers and technicians could be found constantly on their computers and iPhones using EOG's apps. The company says all workers are encouraged to fiddle and find novel solutions to problems. It's an outgrowth of the company's habit of ignoring conventional wisdom as it looks for ways to become a better producer. In the early 2000s, EOG was determined to show that vast supplies of natural gas could be unlocked by drilling horizontally through shale. It drilled 15 uneconomic wells in the Dallas-Fort Worth-area field known as the Barnett, while its employees experimented to find better techniques, according to former CEO Mark Papa. It succeeded on the 16th. As the shale boom took off, scores of producers borrowed heavily to lease land for drilling. EOG moved in the opposite direction, keeping debt low and favoring technological innovation and returns over rapid growth. When Mr. Papa in 2007 realized gas prices were headed for a drop, he said the company started shifting to oil. At the time, few in the industry thought oil could be economically extracted from shale formations. A bespectacled EOG geologist named Bill Thomas, then the head of the company's Fort Worth office, was among those who did. He became CEO in 2013, and now can often be found in his 35th-floor office at EOG's headquarters in Houston scrutinizing data about well productivity. Instead of a secretary, the assistant outside his office is one of the company's top geo-technicians, responsible for analyzing information. The company's market cap is now $56 billion. Shares closed at $97.17 Thursday, down 18% from their price at oil's mid-2014 peak, beating the SPDR S&P Oil and Gas Exploration and Production ETF, a common industry benchmark, which dropped 56% in that time. EOG regularly solves problems in-house. When, in the early days of drilling for crude in North Dakota's Bakken Shale, the company hit logistical problems getting its oil to market, it built a rail terminal and pipeline to help move it from North Dakota to the trading hub near Cushing, Okla. These days, it designs its own motors to power drill bits, allowing its engineers to constantly incorporate fixes that improve performance. Oil is pumped into olive-green storage tanks made to EOG's specifications, cutting down costs and the number of tanks it needs in the field. It often works with smaller services contractors, instead of giants such as Schlumberger Ltd. and Halliburton Co., so it can negotiate costs and find expertise tailored to its needs. The partnerships save it money and give it more control over the logistics and supplies needed for any given project, EOG said. For example, a larger services company might ask EOG to use a particular sand supplier or employ a standard mix of sand, water and chemicals when fracking a well. With a smaller services company, EOG can potentially use sand from a company-owned mine--it bought one in 2008 when the specialized grains started becoming hard to find--and design fracks to meet specific needs. Heath Work, an EOG drilling manager in Midland, compared the way the company operates to a championship Nascar driver and crew, who make small adjustments that add up over time. "Jimmie Johnson has won seven times and he does it with the same engine as his competitors; he just figures out how to change tires faster," Mr. Work said. Competitors are innovating too, as producing oil for less becomes more important than merely finding and pumping new supplies. Chesapeake Energy recently used a record 50 million pounds of sand to frack a megawell in Louisiana, reaping cost savings via economies of scale. Chesapeake, which some believed was close to bankruptcy in early 2016, said the giant wells are part of its turnaround strategy . Pioneer Natural Resources said it saves money by mining some of its own sand and has been building its own system to transport the water it needs. Chief Executive Tim Dove said those operations are integral to the company's goal of producing one million barrels of oil equivalent a day by 2026 while still having cash to cover expenditures. Critics have questioned EOG's habit of quickly ramping up production from individual wells, arguing that can cause wells to peter out prematurely. The company used the strategy to supercharge returns in the Eagle Ford, an oil-rich region of South Texas where it was ahead of the pack in leasing more than 500,000 acres for a tiny percentage of what others would pay later. Mr. Thomas, the CEO, said trial and error has proven its Eagle Ford wells aren't damaged when allowed to flow aggressively. "You increase your returns because the wells pay out so much quicker," he said. "If you get a higher return and it doesn't damage the well, then why not do it?" EOG expanded in the Permian region by 310,000 acres in October when it acquired Yates Petroleum Corp. for $2.4 billion . Swallowing an entire company was an uncharacteristic move for EOG that will test whether it can export its corporate culture. A day after the deal closed, EOG was already using its apps and data to steer a Yates well. "The whole industry has gotten better, but we've gotten better a bit faster," Mr. Thomas said. Credit: By Erin Ailworth
Subject: Petroleum production; Corporate profits; Crude oil prices; Corporate culture; Cost control; Hydraulic fracturing; Market prices; Energy industry; Bankruptcy; Drilling; Competition; Natural gas
Location: United States--US West Texas
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 30, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882151202
Document URL: http s://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882151202?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil Prices Slip, But Still Holds Above $50; Prices have gained nearly 5% the past three sessions for both West Texas Intermediate and the global Brent benchmark
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. oil futures moderated in Asia early Friday after a second-straight jump overnight. The benchmark however stayed above the $50-a-barrel mark as bullish investors remained upbeat amid last week's slowdown in domestic inventory growth and renewed optimism that producers may extend recent output cuts. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May recently traded at $50.13 a barrel, down 22 cents in the Globex electronic session. May Brent oil on London's ICE Futures exchange shed 13 cents to $52.83. Prices have gained nearly 5% the past three sessions for both West Texas Intermediate and the global Brent benchmark after prices last week hit their lowest levels since before the deal between the Organization of the Petroleum Exporting Countries and heavyweight producers such as Russia. There has been a 94% compliance rate from OPEC members, but doubts on the effectiveness and sustainability of the deal kept prices in a narrow range for much of the year before the breakdown earlier in March. But increasingly supportive rhetoric from OPEC nations to extend the cuts into latter part of 2017 has helped brighten market sentiment. Moreover, in a TV interview Russian Energy Minister Alexander Novak said his country has cut 200,000 barrels a day and is planning to cut more in order to comply with its agreement to cut 300,000 barrels daily. Adding to the bounceback was data showing U.S. crude inventories grew less than expected while oil-products supplies dropped, indicating future demand for crude is set to strengthen. Still, not everyone is convinced the OPEC-led production cuts will send prices much higher because they will entice more producers to crank up their operations, keeping the market oversupplied. "Even though the U.S. production has not replaced the 1.8-million-barrels-a-day void left by OPEC and Russia, the real worry is what if OPEC start producing again after the deal expires?" said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. "Extending the cuts would be just be kicking the can down the road." A murky outlook on demand growth is another fear facing the market. The London-based Energy Aspects pointed out that demand from Asia is "beginning to wobble" as the buying momentum by China's independent refineries, known as teapots, are easing due to the annual maintenance. Several teapots have also maxed out their import quotas, meaning they won't be able to place new orders until it is confirmed they will receive more quotas from the government midyear. Meanwhile, Nymex reformulated gasoline blendstock for April--the benchmark gasoline contract--rose 0.45 cent to $1.6857 a gallon, April diesel gained 0.38 cent to $1.5620 and ICE gas oil fell $1.50 to $468.50 a metric ton. Write to Jenny Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Supply & demand
Location: United States--US Saudi Arabia
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 31, 2017
Section: Markets
Publisher: Dow Jones & Compan y Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882292966
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882292966?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Traders See Output Cuts Being Extended
Author: McFarlane, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]31 Mar 2017: B.11.
Abstract:
The Organization of the Petroleum Exporting Countries is facing a familiar dilemma: limiting its own production to bolster world prices enough that the sacrifice is compensated sufficiently and stored oil is sold, while knowing that rival producers outside the deal are pumping more in response.
Full text: Oil producers' efforts to cut production have fallen short of draining the overhang of stocks to the level they had targeted, meaning cuts are likely to go on longer, oil traders said. The Organization of the Petroleum Exporting Countries is facing a familiar dilemma: limiting its own production to bolster world prices enough that the sacrifice is compensated sufficiently and stored oil is sold, while knowing that rival producers outside the deal are pumping more in response. "Wrestling with that equilibrium, balance, is something that is going to prove testing for those OPEC producers which need a high oil price to balance their budgets," said Mike Muller, vice president of crude-oil trading at Royal Dutch Shell PLC. OPEC's members will meet on May 25 and decide whether a deal to cut 1.2 million barrels a day of output for the first six months of this year should be extended. The group had said they wanted stored oil levels to drop by about 300 million barrels. But U.S. stocks, seen as a bellwether for global inventories, reached an all-time high on Wednesday, weekly data published by the U.S.'s Energy Information Administration showed. Oil prices soared about 20% in the weeks following OPEC's announcement of planned cuts on Nov. 30, only to drop back to around $50 a barrel this month as doubts rose over the group's effectiveness in reducing global stock levels. On Thursday, U.S. crude prices rose 84 cents, or 1.7%, to $50.35 a barrel on the New York Mercantile Exchange. Traders speaking at the FT Commodities Global Summit said that although some oil was being sold out of the most expensive storage, such as oil stored on ships at sea, U.S. supplies remained stubbornly high. "If we're anywhere around here on price, I think they're likely to continue their current strategy of cuts," said Ben Luckock, co-head of Group Market Risk at Trafigura Pte. Ltd. U.S. shale-oil producers have proved quick to respond to higher prices, ramping up output to the highest level in 13 months at more than 9.1 million barrels a day, EIA data showed. This is also capping the market. Credit: By Sarah McFarlane
Subject: Price increases; Crude oil; Petroleum production
Company: Organization of Petroleum Exporting Countries--OPEC
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Mar 31, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882318271
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882318271?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Low Oil Price Ushers in Shale 2.0 --- Texas fracker EOG pioneers way to turn profit by extracting crude faster and at less cost
Author: Ailworth, Erin
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]31 Mar 2017: A.1.
Abstract:
U.S. shale drillers transformed the energy industry over the past decade with hydraulic fracturing and horizontal drilling, in the early days using brute force to unleash a torrent of oil and gas that altered the balance of power among oil-producing nations and triggered a global glut. Now, with oil currently trading near $50 a barrel, these producers are trying to unleash fracking 2.0, the next step in the technological transformation of the sector that is aimed at extracting oil even faster and less expensively to eke out profits at that level. The promise of this new phase is potentially as significant as the original revolution. If more producers can follow EOG's lead and profitably ramp up output from shale drilling even at lower prices, the sector could become a lasting force that challenges the ability of the Organization of the Petroleum Exporting Countries to control market prices.
Full text: MIDLAND, Texas -- Using a proprietary app called iSteer, Brian Tapp, a geologist for EOG Resources Inc., dashed off instructions to a drilling rig 100 miles away. This tool is among the reasons the little-known Texas company says it pumps more oil from the continental U.S. than Exxon Mobil Corp. -- or any other producer. A rig worker received Mr. Tapp's iPhone alert and tweaked the trajectory of a drill bit thousands of feet underground, to land more squarely in a sweet spot of rock filled with West Texas crude. U.S. shale drillers transformed the energy industry over the past decade with hydraulic fracturing and horizontal drilling, in the early days using brute force to unleash a torrent of oil and gas that altered the balance of power among oil-producing nations and triggered a global glut. Now, with oil currently trading near $50 a barrel, these producers are trying to unleash fracking 2.0, the next step in the technological transformation of the sector that is aimed at extracting oil even faster and less expensively to eke out profits at that level. The promise of this new phase is potentially as significant as the original revolution. If more producers can follow EOG's lead and profitably ramp up output from shale drilling even at lower prices, the sector could become a lasting force that challenges the ability of the Organization of the Petroleum Exporting Countries to control market prices. For a sector in which the previous era's success was tied to the rapid expansion of output, the shift toward finding more cost-effective ways to get to that oil and gas is full of challenges. When oil prices dropped, critics wondered if the shale industry -- rife with heavily indebted companies that had never turned a profit -- would collapse. EOG, with its longtime focus on low-cost production, is the producer many hope to emulate because of the iSteer app and dozens of other homegrown innovations. Dubbed the "Apple of oil" by one analyst, EOG made its name as a pioneer in horizontal drilling and in finding ways to get oil out of shale -- often dense layers of rock that hold oil and gas in tiny pores -- a feat many once believed impossible. Competitors such as Chesapeake Energy Corp. and Pioneer Natural Resources Co. also are finding new ways to profit amid low energy prices. Many are experimenting with longer, supersize wells, and fracking them with millions of pounds of sand. Other producers, however, have said the industry needs oil prices of at least $55 to $60 to truly rebound. The price of oil plunged about 75% from its peak of more than $100 a barrel in mid-2014, and the natural-gas price sank by half in the same period. More than 420,000 oil and gas jobs world-wide have been lost, according to energy consulting firm Graves & Co., and, since the start of 2015, more than 200 U.S. energy companies have filed for bankruptcy, according to law firm Haynes & Boone LLP. EOG, part of Enron Corp. until 1999, now drills horizontal wells in West Texas more than a mile long in 20 days, down from 38 days in 2014. It has done it in as few as 10 1/2 days. It estimates it can get at least a 30% rate of return on wells at $40 a barrel, and that at $50 it can boost oil production at least 15% a year through 2020. The company said it produced about the same amount of oil last year as it did in 2014 with a budget that was 67% smaller. The iSteer app and other proprietary programs EOG designed are partly why. EOG uses iSteer to help navigate through rock thousands of feet underground, landing in identified layers with more precision. A device behind the drill bit underground transmits information -- including depth and direction but also readings to identify types of rock and the presence of gas -- to a geologist at the office. The numbers are crunched, using EOG's databases on the location's rock layers and on previous wells, and course corrections are sent to the driller on the rig. EOG said adjustments can happen in minutes, instead of a process that in the past took at least 30 minutes. The quick modifications keep the drill in a 10-to-15 foot window, which EOG said improves the output and consistency of a well. The apps help employees work at the "speed of thought," said Sandeep Bhakhri, EOG's chief information officer. The company now uses 65 apps it designed after realizing it needed tools with capabilities it couldn't find off the shelf. Along the way, it boosted its staff of data scientists, and over the past three years has hired recent computer-science graduates from the University of Texas at Austin. The apps help EOG answer a range of questions, such as how much pressure to use to crack a particular geologic stratum, to identifying ideal trajectories for drills, to more mundane queries, such as the fastest route to drive from one drilling site to the next. "I look at [the apps] first thing in the morning, on the exercise bike or during breakfast -- it gives me a head start on the day," said Ezra Yacob, general manager of EOG's Midland operations. Tinkering, core to the company's culture, was evident on a recent visit to the division office in Midland, a city of about 124,000 at the heart of the oil-rich Permian Basin in West Texas. There, geologists, engineers and technicians could be found constantly on their computers and iPhones using EOG's apps. The company says all workers are encouraged to fiddle and find novel solutions to problems. It is an outgrowth of the company's habit of ignoring conventional wisdom as it looks for ways to become a better producer. In the early 2000s, EOG was determined to show that vast supplies of natural gas could be unlocked by drilling horizontally through shale. It drilled 15 uneconomic wells in the Dallas-Fort Worth-area field known as the Barnett, while its employees experimented to find better techniques, according to former CEO Mark Papa. It succeeded on the 16th. As the shale boom took off, scores of producers borrowed heavily to lease land for drilling. EOG moved in the opposite direction, keeping debt low and favoring technological innovation and returns over rapid growth. When Mr. Papa realized in 2007 that gas prices were headed for a drop, he said the company started shifting to oil. At the time, few in the industry thought oil could be economically extracted from shale formations. A bespectacled EOG geologist named Bill Thomas, then the head of the company's Fort Worth office, was among those who did. He became CEO in 2013, and now can often be found in his 35th-floor office at EOG's headquarters in Houston scrutinizing data about well productivity. Instead of a secretary, the assistant outside his office is one of the company's top geo-technicians, responsible for analyzing information. The company's market cap is now $56 billion. Shares closed at $97.17 Thursday, down 18% from their price at oil's mid-2014 peak, beating the SPDR S&P Oil and Gas Exploration and Production ETF, a common industry benchmark, which dropped 56% in that time. EOG regularly solves problems in-house. When, in the early days of drilling for crude in North Dakota's Bakken Shale, the company hit logistical problems getting its oil to market, it built a rail terminal and pipeline to help move it from North Dakota to the trading hub near Cushing, Okla. These days, it designs its own motors to power drill bits, allowing its engineers to constantly incorporate fixes that improve performance. Oil is pumped into olive-green storage tanks made to EOG's specifications, cutting down costs and the number of tanks it needs in the field. It often works with smaller services contractors, instead of giants such as Schlumberger Ltd. and Halliburton Co., so it can negotiate costs and find expertise tailored to its needs. The partnerships save it money and give it more control over the logistics and supplies needed for any given project, EOG said. For example, a larger services company might ask EOG to use a particular sand supplier or employ a standard mix of sand, water and chemicals when fracking a well. With a smaller services company, EOG can potentially use sand from a company-owned mine -- it bought one in 2008 when the specialized grains started becoming hard to find -- and design fracks to meet specific needs. Heath Work, an EOG drilling manager in Midland, compared the way the company operates to a championship Nascar driver and crew, who make small adjustments that add up over time. "Jimmie Johnson has won seven times and he does it with the same engine as his competitors; he just figures out how to change tires faster," Mr. Work said. Competitors are innovating too, as producing oil for less becomes more important than merely finding and pumping new supplies. Chesapeake Energy recently used a record 50 million pounds of sand to frack a megawell in Louisiana, reaping cost savings via economies of scale. Chesapeake, which some believed was close to bankruptcy in early 2016, said the giant wells are part of its turnaround strategy. Pioneer Natural Resources said it saves money by mining some of its own sand and has been building its own system to transport the water it needs. Chief Executive Tim Dove said those operations are integral to the company's goal of producing one million barrels of oil equivalent a day by 2026 while still having cash to cover expenditures. Critics have questioned EOG's habit of quickly ramping up production from individual wells, arguing that can cause wells to peter out prematurely. The company used the strategy to supercharge returns in the Eagle Ford, an oil-rich region of South Texas where it was ahead of the pack in leasing more than 500,000 acres for a tiny percentage of what others would pay later. Mr. Thomas, the CEO, said trial and error has proven its Eagle Ford wells aren't damaged when allowed to flow aggressively. "You increase your returns because the wells pay out so much quicker," he said. "If you get a higher return and it doesn't damage the well, then why not do it?" EOG expanded in the Permian region by 310,000 acres in October when it acquired Yates Petroleum Corp. for $2.4 billion. Swallowing an entire company was an uncharacteristic move for EOG that will test whether it can export its corporate culture. A day after the deal closed, EOG was already using its apps and data to steer a Yates well. "The whole industry has gotten better, but we've gotten better a bit faster," Mr. Thomas said.
Credit: By Erin Ailworth
Subject: Drilling; Petroleum production; Software; Energy industry; Hydraulic fracturing
Location: West Texas
Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111; Name: Chesapeake Energy Corp; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: EOG Resources Inc; NAICS: 211111, 213112
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Mar 31, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882350769
Document URL: https://login.ezproxy.uta.edu/login?url=https://search.proque st.com/docview/1882350769?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rises, Seeing Best Week Since Autumn; Traders are conflicted about the OPEC-led production cuts amid quarter-end book-squaring
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Mar 2017: n/a.
Abstract: None available.
Full text: U.S. oil prices rose Friday, completing their biggest weekly gains in four months as traders and analysts say the market may have hit a turning point that puts oversupply into retreat. Crude rebounded sharply over four sessions after nearly a month of losses. It erased about half of early March's selloff, blunting oil's drag on a rebounding commodities market and calming fears that a new leg lower for oil might jolt stocks and bonds that were also facing jitters about economic growth. Demand appeared to rebound from a weak winter with falling gasoline and diesel stockpiles in the U.S. leading to a long-awaited drain on total oil inventories. That helped push up the market from Wednesday. Supply disruptions in Libya earlier in the week also eased concerns about the amount of oil coming from the world's biggest exporters. Light, sweet crude for May settled up 25 cents, or 0.5%, at $50.60 a barrel on the New York Mercantile Exchange, its highest settlement since March 7. Brent crude, the global benchmark, lost 13 cents, or 0.2%, to $52.83 a barrel on ICE Futures Europe. Both rose for the week by the largest amount since the week ended Dec. 2. U.S. crude gained 5.5% while Brent gained 4%. Both have been steadily rebounding from the year-to-date lows they hit a little more than a week ago. "It's probably a good chance that...we've seen the lows," said Bart Melek, head of commodity strategy at TD Securities in Toronto. "I wouldn't be surprised...if this goes to $60 in fairly short order." Several analysts have been calling for a seasonal move up as refiners get ready for summer driving season. Those plants have finished a winter slowdown for maintenance and are ramping up crude consumption to pump out more fuel. On Wednesday, data from the U.S. Energy Information Administration showed a larger-than-expected decline in gasoline and distillate stocks, while refiners processed crude oil at a higher rate. Crude inventories rose 900,000 barrels in the week ended March 24, lower than the average forecast from analysts and traders surveyed by The Wall Street Journal. Gasoline stockpiles fell by 3.7 million barrels and distillates dropped by 2.5 million. "Wednesday was turning a corner," said Chris Kettenmann, chief energy strategist at Macro Risk Advisors. "We got what we wanted: A total absolute draw on inventories." Leaders among the Organization of the Petroleum Exporting Countries have also come out with more public commitments to output cuts. OPEC and other exporters including Russia pledged last year to cut combined daily output by 1.8 million barrels a day. Leaders from Kuwait, Venezuela and other members have made pronouncements of support for the deal this week that led more traders to believe the deal could get extended through year's end, analysts said. But some are concerned the agreement may have limited impact. Kuwaiti exports aren't falling, and Venezuelan and Iraqi exports are strong, too, despite the deal, said Matt Smith, director of commodity research at ClipperData. The amount of oil in transport by ship rose 1.8% so far this year to 916 million barrels, according to the data-tracking firm. That is also an increase of nearly 15% from a year ago. "It's indicative of supply not dropping," Mr. Smith said. "There's a lot of contradictory news out at the moment, it feels." Those issues have been dragging on oil all year. Despite the recent gains, both U.S. and Brent crude had their worst month since July, causing losses for the quarter, too. U.S. oil lost 6.3% in March and 5.8% for the quarter. Brent lost 5% in March and 7% this quarter. The rebound may be predicated in part on some OPEC supply streams being less powerful than feared. Many pointed to a sharp drop in Libyan production as a key factor in this week's rally. Sharara, an oil field in the western part of the country, saw pipelines shut by a militia earlier this week, cutting the country's output by a third. "Libyan production was rising. They were talking about getting to one million barrels a day. I'm not sure they were going to get to that (and) the fact that they're down to less than 500,000 barrels, that's a big change," said Amrita Sen, chief oil analyst at Energy Aspects. Gasoline futures gained 1.89 cents, or 1.1%, to $1.7001 a gallon, the highest settlement since August 2015. It is up six straight sessions, leading to the largest weekly gain in four months, 5.9%. It gained 12% for the month and 2.1% for the quarter. Diesel futures gained 1.54 cents, or 1%, to $1.5736 a gallon, its highest settlement since March 7. It also has a six-session winning streak, leading to the largest weekly gains in four months, 5.1%. It lost 2.9% for the month, helping diesel to quarterly losses of 7.7%. Sarah McFarlane contributed to this article Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Price increases; Supply & demand
Location: Russia United States--US Libya
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 31, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882468264
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882468264?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Glencore Sells Oil Storage Assets to China's HNA Group; China's demand for energy storage is ramping up as consumer consumption rises
Author: Patterson, Scott
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Mar 2017: n/a.
Abstract: None available.
Full text: Glencore PLC, one of the world's biggest oil traders, has agreed to sell a majority stake in its petroleum products storage and logistics business for $775 million in cash to Chinese conglomerate HNA Group. The move comes as China's demand for oil storage ramps up amid rising consumption by its expanding urban population. China is the world's second largest oil consumer, behind the U.S. HNA Group will purchase a 51% stake in the petroleum business, which will be called HG Storage International Ltd. The deal is subject to regulatory approvals and is expected to close in the second half of 2017. Switzerland-based Glencore said the joint venture would be present in major trading hubs across the world, including in Europe, Africa and North and South America. The deal appears to allow Glencore traders to continue to benefit from market insights garnered from the company having an oil storage business, while adding to Glencore's cash pile. The company is still trying to cut debt, as it looks to reinstate its dividend and scans the market for potential investments. Earlier in March, Glencore entered a deal to sell stakes in a pair of zinc mines for $400 million. HNA Group, owned by Chinese tycoon Chen Feng, is a sprawling Chinese conglomerate with assets spanning hotel chains, supermarkets and shipping firms. HNA has been active recently, acquiring a sizable stake in Germany's troubled Deutsche Bank. Write to Scott Patterson at scott.patterson@wsj.com Credit: By Scott Patterson
Subject: Consumption; Supply & demand
Location: Africa China Germany Europe
People: Chen Feng
Company / organization: Name: Deutsche Bank AG; NAICS: 522110, 551111; Name: Glencore PLC; NAICS: 211111, 212210, 212234, 311314
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 31, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882590267
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882590267?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 10; The number of oil rigs has climbed by 300 from a year ago
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Mar 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by 10 in the past week to 662, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count has receded. However, the oil-rig count has generally been rising since the summer. The number of oil rigs has climbed by 300 from a year ago. The nation's gas-rig count rose by five to 160 in the past week, according to Baker Hughes. The U.S. offshore-rig count came in up four rigs from last week to 22, which is down four rigs year over year. On Friday, U.S. oil prices were up roughly 4.8% for the week on renewed faith that output cuts and strong demand are ending oversupply in the oil markets. Prices recently edged up 0.7% to $50.42 a barrel in afternoon trading. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Mar 31, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882635660
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882635660?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Glencore Sells Oil Storage Assets to China's HNA Group; China's demand for energy storage is ramping up as consumer consumption rises
Author: Patterson, Scott
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Apr 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Chen Feng is the chairman of HNA Group. A previous version of this article incorrectly said that he was the owner. Glencore PLC, one of the world's biggest oil traders, has agreed to sell a majority stake in its petroleum products storage and logistics business for $775 million in cash to Chinese conglomerate HNA Group. The move comes as China's demand for oil storage ramps up amid rising consumption by its expanding urban population. China is the world's second largest oil consumer, behind the U.S. HNA Group will purchase a 51% stake in the petroleum business, which will be called HG Storage International Ltd. The deal is subject to regulatory approvals and is expected to close in the second half of 2017. Switzerland-based Glencore said the joint venture would be present in major trading hubs across the world, including in Europe, Africa and North and South America. The deal appears to allow Glencore traders to continue to benefit from market insights garnered from the company having an oil storage business, while adding to Glencore's cash pile. The company is still trying to cut debt, as it looks to reinstate its dividend and scans the market for potential investments. Earlier in March, Glencore entered a deal to sell stakes in a pair of zinc mines for $400 million. HNA Group, chaired by Chinese tycoon Chen Feng, is a sprawling Chinese conglomerate with assets spanning hotel chains, supermarkets and shipping firms. HNA has been active recently, acquiring a sizable stake in Germany's troubled Deutsche Bank. Write to Scott Patterson at scott.patterson@wsj.com Credit: By Scott Patterson
Subject: Consumption; Supply & demand
Location: Africa China Germany Europe
People: Chen Feng
Company / organization: Name: Glencore PLC; NAICS: 211111, 212210, 212234, 311314; Name: Deutsche Bank AG; NAICS: 522110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 1, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882803963
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882803963?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Companies' Modest Prize: Breaking Even; Exxon, Shell, Chevron and BP barely cover spending, dividends with cash
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Apr 2017: n/a.
Abstract: None available.
Full text: The world's biggest oil companies are struggling just to break even. Despite billions of dollars in spending cuts and a modest oil-price rebound, Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron Corp. and BP PLC didn't make enough money in 2016 to cover their costs, according to a Wall Street Journal analysis. To calculate each companies' free cash flow--the excess cash remaining after costs--the Journal deducted the firm's dividends and capital expenditures from its cash from operations. All four firms fell short of cash flow for the year, although Exxon said it broke even by its own metrics, which exclude dividends. The analysis also showed that the four companies ended last year with more debt than they began it. The firms are showing signs of improvement. For example, Shell and Exxon notched stronger quarters late last year. However, analysts point to challenges ahead as oil prices hover around $50 a barrel. BP says it will need oil at $60 a barrel to balance cash generation against capital expenditures and dividends, while Chevron is targeting $50 a barrel with the help of asset sales. Investment bank Jefferies estimates neither Shell nor Exxon require more than $50 a barrel, though those companies don't disclose break-even prices. For companies once known as profit machines--whose executives were hauled before Congress in 2005 to explain their enormous earnings--their cash problems demonstrate just how unprepared they were for a historic crash and tepid recovery in oil prices. They have maintained the same large dividends they had when oil prices were over $100 a barrel, piling on debt and selling off assets to prioritize shareholders above all else. The result is that spending on dividends and capital investments has ballooned above cash generated from their businesses. The issue has worried investors who expect those steady dividends because oil giants don't have the capacity to grow much. Exxon, Shell and their competitors are under pressure to show they can drum up cash to keep shelling out dividends. "Since the oil price collapsed, it's been all about who's fastest down the road to breaking even," said Iain Reid, a senior analyst at Macquarie Capital. "In the short term, it's all about cash flow because people are still worried about the dividend." Exxon, Shell and their peers spent much of the past three years scrambling to reassure investors that their dividends were safe amid the oil-price crash. These companies were already struggling to live within their means at elevated oil prices. In response to the tumble in prices, the companies laid off thousands of workers, slashed billions in spending and piled on debt to protect the payouts. Despite disappointing profits last year, they say that medicine is now working. Both Exxon and Shell managed to break even in the final quarter last year. In the fourth quarter, Exxon generated $400 million more than it spent and Shell made $1.2 billion over its outlays, according to the Journal's analysis. However, for the full year, Exxon spent nearly $7 billion more on developing new projects and dividends in 2016 than it generated in cash. Shell's costs last year were around $11 billion above its cash generation, the Journal's analysis shows. "We are right in the middle of transforming the company," Shell Chief Executive Ben van Beurden told the CERAWeek conference in Houston in March. "We are going to be able to produce a free cash flow that is going to be more than twice as high as it was in the $90 era, but this time in a $60 world." In a sign that investors remain fixated on companies' cash flow position, BP's share price tumbled around 4% when the company upgraded its break-even oil price to $60 a barrel in February. International benchmark Brent crude hasn't hit that level since the middle of 2015. "The ultimate goal of the company is to generate excess free cash flow," BP Chief Executive Bob Dudley said in a March interview in Houston. The company has seven new projects starting up this year and nine more under way that will add 800,000 barrels a day of new production by the end of the decade, pushing up returns. BP expects to drive its break-even price back down toward $55 a barrel by the end of the year from about $60 now. "The message going forward is good," Chevron Chief Executive John Watson told analysts in January. "Four years ago, I wouldn't have thought that would be the case at moderate prices." But all of the companies' ability to break even rely on forces outside their control, especially oil prices. In February, investment banks predicted oil prices would average about $57 a barrel this year, according to a Wall Street Journal poll. Analysts said prices could fall short of that mark depending on how quickly U.S. shale producers ramp back up and whether the Organization of the Petroleum Exporting Countries can maintain its agreement with other major oil producers to reduce output. Chevron's $50-a-barrel break-even threshold relies in part on support from asset sales. Shell also is leaning heavily on plans to divest $30 billion of assets by next year to help it bring down its elevated debt levels. At the end of last year, the four companies' combined net debt amounted to $186.3 billion. "This is the year when their credibility will be tested," said Jefferies analyst Jason Gammel, referring to big oil companies. "Some are more capable than others." Even Exxon, the world's biggest publicly traded oil company, is showing rare signs of weakness. The company wrote down the value of more than $2 billion in U.S. assets earlier this year and shaved a chunk off its reserves estimates because of Securities and Exchange Commission rules. It ended 2016 with net debt totaling $39.1 billion--the highest debt level in the company's history. Exxon said its balance sheet remains stronger than those of competitors. Bradley Olson contributed to this article. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Dividends; Investment banking; Crude oil prices; Capital expenditures
Location: United States--US
People: Dudley, Bob
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 2, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1882912720
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882912720?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
As Oil Stands Pat, Saudi Exports Liable to Prove Key
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Apr 2017: n/a.
Abstract: None available.
Full text: Crude-oil futures held still in early Asia on Monday after logging their strongest week of the year last week, bolstered by increasing optimism that major producers will keep output capped in the second half of the year. The bullish sentiment is also driven by views that despite rebounding U.S. production, output growth there isn't fast enough to come close to offsetting the cuts being made by the Organization of the Petroleum Exporting Countries and others. OPEC and powerhouse producers including Russia late last year agreed to pare their output by 1.8 million barrels a day through May, with the aim of reducing global inventories to five-year averages. So far, OPEC's own data indicate a 94% compliance rate. That, coupled with supportive statements from principal players such as Saudi Arabia and Kuwait extend the reductions later into 2017, have boosted prices and brightened sentiment of late after future had fallen to their lowest levels since right before the deals were announced. But some analysts say a closer examination of the deal shows a bumpy road ahead because producers might be tempted to turn their back on it and prices that remain nearly double last year's lows. "It is our base case that cuts will get extended," said Scott Darling, head of regional oil & gas for Asia-Pacific at J.P. Morgan. "However, there are clear risks for intra-OPEC tension respect to the fact that the Saudis have not cut back their exports." While the kingdom's production has decreased, domestic crude demand from power generation has fallen due to ample supply of natural gas. "As Saudis crude exports have remained relatively the same year-on-year, that could be an issue for some of the OPEC members," Mr. Darling said, adding that could prompt the producers to re-engage in a battle for market share. That view isn't universally held, with anticipation of exports sliding ahead of and during the summer, when power demand climbs amid air-conditioning needs. "Saudi Arabia holds the key because most of the other producers actually can't afford to increase their productions without more investments," said Grace Liu, research chief at investment firm Guotai Junan. She added that even though Iran, Libya, and Nigeria were exempt from the production-cut deal, their output growth have been slow. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May was recently down 2 cents at $50.58 a barrel in the Globex electronic session. June Brent crude on London's ICE Futures exchange eased 12 cents to $53.41. Meanwhile, Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--fell 0.23 cent to $1.6978 a gallon and May diesel eased 0.2 cent to $1.5726 and ICE gasoil for April rose $2.50 to $472 a metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Crude oil
Location: Asia
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883007044
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883007044?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Rally Stalls as Libya Production Resumes; Crude-oil futures retreat after output disruptions are resolved in Libya
Author: McFarlane, Sarah; Hsu, Jenny W; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Apr 2017: n/a.
Abstract: None available.
Full text: Crude-oil futures fell on Monday, snapping a four-session winning streak, after the resolution of output disruptions in Libya brought the recent rally in prices to a halt. U.S. crude futures shed 36 cents, or 0.7%, to $50.24 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, lost 41 cents, or 0.8%, to $53.12 a barrel on ICE Futures Europe. The declines came after oil prices logged their strongest weekly gains in four months after local militia in Libya cut oil output by around one-third about a week ago. But Libyan officials said production had restarted on Monday, sparking selling that continued throughout the day. "We've had a big run. The market was due for a correction," said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy trading desk. Bob Yawger, director of the futures division at Mizuho Securities USA Inc., said high stockpiles of crude in storage will limit price increases. "At the end of the day, we still have crude oil at an all--time record storage high. That's the most important factor here," Mr. Yawger said. That adds pressure on the Organization of the Petroleum Exporting Countries and other major producers to continue cutting output in the second half of the year, after the initial term of their production cut agreement ends. OPEC and powerhouse producers including Russia late last year agreed to pare their output by 1.8 million barrels a day for the first six months of 2017, with the aim of reducing global inventories to five-year averages. So far, OPEC's own data indicate a 94% compliance rate with the output cut agreement, but global inventories aren't falling as fast as was hoped. "The front and center question for the oil markets right now is whether or not OPEC and non-OPEC producers extend their production cuts," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA, adding that a failure to extend would be "dire" for oil prices. The cartel will meet on May. 25 and review the deal. Some analysts say a closer examination of the deal shows a bumpy road ahead because producers might be tempted to turn their back on it and prices that remain nearly double last year's lows. "It is our base case that cuts will get extended," said Scott Darling, head of regional oil & gas for Asia-Pacific at J.P. Morgan. "However, there are clear risks for intra-OPEC tension [with] respect to the fact that the Saudis haven't cut back their exports." While the kingdom's production has decreased, domestic crude demand from power generation has fallen due to ample supply of natural gas. "As Saudis crude exports have remained relatively the same year-over-year, that could be an issue for some of the OPEC members," Mr. Darling said, adding that could prompt the producers to re-engage in a battle for market share. Gasoline futures fell 0.93 cent, or 0.6%, to $1.6937 a gallon. Diesel futures fell 1.12 cents, or 0.7%, to $1.5634 a gallon. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com , Jenny W. Hsu at jenny.hsu@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Sarah McFarlane, Jenny W. Hsu and Alison Sider
Subject: Price increases; Crude oil
Location: Iran Kuwait Russia United States--US Libya Asia Saudi Arabia Nigeria
Company / organization: Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N .Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883069675
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Industry Struggles to Break Even --- Despite spending cuts and a modest rebound, top companies fight to keep up with expenses
Author: Kent, Sarah
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Apr 2017: B.1.
Abstract:
Despite billions of dollars in spending cuts and a modest oil-price rebound, Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron Corp. and BP PLC didn't make enough money in 2016 to cover their costs, according to a Wall Street Journal analysis. Exxon, Shell and their competitors are under pressure to show they can drum up cash to keep shelling out dividends. "Since the oil price collapsed, it's been all about who's fastest down the road to breaking even," said Iain Reid, a senior analyst at Macquarie Capital.
Full text: The world's biggest oil companies are struggling just to break even. Despite billions of dollars in spending cuts and a modest oil-price rebound, Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron Corp. and BP PLC didn't make enough money in 2016 to cover their costs, according to a Wall Street Journal analysis. To calculate each companies' free cash flow -- the excess cash remaining after costs -- the Journal deducted the firm's dividends and capital expenditures from its cash from operations. All four firms fell short of cash flow for the year, although Exxon said it broke even by its own metrics, which exclude dividends. The analysis also showed that the four companies ended last year with more debt than they began it. The firms are showing signs of improvement. For example, Shell and Exxon notched stronger quarters late last year. However, analysts point to challenges ahead as oil prices hover around $50 a barrel. BP says it will need oil at $60 a barrel to balance cash generation against capital expenditures and dividends, while Chevron is targeting $50 a barrel with the help of asset sales. Investment bank Jefferies estimates neither Shell nor Exxon require more than $50 a barrel, though those companies don't disclose break-even prices. For companies once known as profit machines -- whose executives were hauled before Congress in 2005 to explain their enormous earnings -- their cash problems demonstrate just how unprepared they were for a historic crash and tepid recovery in oil prices. They have maintained the same large dividends they had when oil prices were over $100 a barrel, piling on debt and selling off assets to prioritize shareholders above all else. The result is that spending on dividends and capital investments has ballooned above cash generated fromtheir businesses. The issue has worried investors who expect those steady dividends because oil giants don't have the capacity to grow much. Exxon, Shell and their competitors are under pressure to show they can drum up cash to keep shelling out dividends. "Since the oil price collapsed, it's been all about who's fastest down the road to breaking even," said Iain Reid, a senior analyst at Macquarie Capital. "In the short term, it's all about cash flow because people are still worried about the dividend." Exxon, Shell and their peers spent much of the past three years scrambling to reassure investors that their dividends were safe amid the oil-price crash. These companies were already struggling to live within their means at elevated oil prices. In response to the tumble in prices, the companies laid off thousands of workers, slashed billions in spending and piled on debt to protect the payouts. Despite disappointing profits last year, they say that medicine is now working. Both Exxon and Shell managed to break even in the final quarter last year. In the fourth quarter, Exxon generated $400 million more than it spent and Shell made $1.2 billion over its outlays, according to the Journal's analysis. However, for the full year, Exxon spent nearly $7 billion more on developing new projects and dividends in 2016 than it generated in cash. Shell's costs last year were around $11 billion above its cash generation, the Journal's analysis shows. "We are right in the middle of transforming the company," Shell Chief Executive Ben van Beurden told the CERAWeek conference in Houston in March. "We are going to be able to produce a free cash flow that is going to be more than twice as high as it was in the $90 era, but this time in a $60 world." In a sign that investors remain fixated on companies' cash flow position, BP's share price tumbled around 4% when the company upgraded its break-even oil price to $60 a barrel in February. International benchmark Brent crude hasn't hit that level since the middle of 2015. "The ultimate goal of the company is to generate excess free cash flow," BP Chief Executive Bob Dudley said in a March interview in Houston. The company has seven new projects starting up this year and nine more under way that will add 800,000 barrels a day of new production by the end of the decade, pushing up returns. BP expects to drive its break-even price back down toward $55 a barrel by the end of the year from about $60 now. "The message going forward is good," Chevron Chief Executive John Watson told analysts in January. "Four years ago, I wouldn't have thought that would be the case at moderate prices." But all of the companies' ability to break even rely on forces outside their control, especially oil prices. In February, investment banks predicted oil prices would average about $57 a barrel this year, according to a Wall Street Journal poll. Analysts said prices could fall shortof that mark depending on how quickly U.S. shale producers ramp back up and whether the Organization of the Petroleum Exporting Countries can maintain its agreement with other major oil producers to reduce output. Chevron's $50-a-barrel break-even threshold relies in part on support from asset sales. Shell also is leaning heavily on plans to divest $30 billion of assets by next year to help it bring down its elevated debt levels. At the end of last year, the four companies' combined net debt amounted to $186.3 billion. "This is the year when their credibility will be tested," said Jefferies analyst Jason Gammel, referring to big oil companies. "Some are more capable than others." --- Bradley Olson contributed to this article. Credit: By Sarah Kent
Subject: Financial performance; Capital expenditures; Petroleum industry
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chevron Corp; NAICS: 211111, 324110; Name: BP PLC; NAICS: 211111, 324110, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Apr 3, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883084350
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883084350?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Hold After Overnight Pullback
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Apr 2017: n/a.
Abstract: None available.
Full text: Crude-oil futures bobbed in a narrow range in Asia trading Tuesday following overnight declines amid renewed concerns of oversupply after Libya resumed operations at its biggest oil field. After last week's stellar performance, oil kicked off this week with a shaky start as Libya announced the production resumption at the Sharara field. Before last week's shutdown, output there was 220,000 barrels a day. Libya's production, modest compared with the daily reduction of 1.8 million barrels of oil under the deal by Organization of the Petroleum Exporting Countries and other heavyweight producers such as Russia, could still stands to frustrate OPEC's effort to drain the glut of oil, said analysts at fuel-oil broker Tradition. Meanwhile, "the concern about rising output outweighed the perception of tightening markets," said ANZ Research. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May recently traded at $50.25 a barrel, up $0.01 in the Globex electronic session. June Brent crude on London's ICE Futures exchange fell $0.02 to $53.10 a barrel. U.S.-priced oil is up nearly 4% week-to-date even with roughly 0.7% declines overnight. Apart from Libya, production from the U.S. is also keeping a cap on oil prices while inventories remain at multidecade high. S&P Global Platts said stockpiles likely fell 200,000 barrels last week while declines in gasoline and distillate inventories also are forecast to have occurred. Government data will come Wednesday. Despite signs of a still-bloated market, several OPEC leaders have offered supportive comment touting the group's 4-month-old cutback plan. Secretary-General Mohammad Barkindo was "cautiously optimistic" the market is already rebalancing and that global inventories are showing signs of abating. According to OPEC's own report, developed economies' commercial oil supplies in January were 278 million barrels above the five-year average. The cartel has publicly said the goal of the cutback deal is to bring inventories to five-year averages. The next OPEC monthly report comes next week. Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--rose 0.10 cent to $1.6947 a gallon, while May diesel eased 0.08 cent to $1.5626. ICE gasoil for April fell 50 cents to $470 per metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Petroleum production; Crude oil
Location: China Hong Kong United States--US Taiwan
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883383344
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883383344?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Rise on Continued OPEC Bet; Traders wagering that oversupply in the market is ending
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices rose to a four-week high as traders continued to bet that cuts from the world's biggest exporters and the coming high-demand season are ending oversupply in the market. Light, sweet crude for May settled up 79 cents, or 1.6%, at $51.03 a barrel on the New York Mercantile Exchange, its fifth gain in six sessions. Brent crude, the global benchmark, gained $1.05, or 2%, to $54.17 a barrel on ICE Futures Europe. Both reached their highest settlement since March 7. It was crude's fourth gain in five sessions, with prices up 7.8% since it fell to a four-month low just two weeks ago. The market flipped higher from overnight losses without any clear sign of new data, news or events behind the move, brokers and analysts said. But it does add further evidence that traders are more committed to rallies than to selloffs, they added. Oil is up more than 40% from a year ago, largely from efforts by the Organization of the Petroleum Exporting Countries to rein in supply. It agreed on Nov. 30 to cut production by 1.2 million barrels a day for the first six months of this year. In December, Russia and other producers outside the group committed to take 558,000 b/d out of the market. OPEC members had cut output by about 94% of their target as of last month and Brent oil prices haven't dropped below $50 a barrel since the deal. Markets did sell off briefly at the start of March, when U.S. stockpiles got large additions at a time many expected the global cuts to cause stockpiles to fall. But those additions have gotten smaller. Many are betting they are ending, with big drawdowns expected in the weeks to come as output cuts continue to take effect and warmer weather leads to more driving and oil consumption, brokers said. "This goes back to the longer game," said Mark Waggoner, president of brokerage Excel Futures. "We're going to edge higher as long as OPEC is compliant." Oil could reach $61 a barrel as summer driving season peaks after Memorial Day, he added. Traders are already on the early stages of that rally because this is the time of year refineries usually ramp up to start producing more gasoline and other auto fuels, Mr. Waggoner and others said. U.S. inventories remain at a multidecade high, but crude storage levels likely fell by 200,000 barrels in the week ended March 31, according to The Wall Street Journal's survey of 13 analysts. They also forecast gasoline stockpiles fell by 1.6 million barrels and stockpiles of distillates, which include heating oil and diesel, fell by 700,000 barrels. "That means the market's going down," said Scott Shelton, broker at ICAP PLC. He said most traders expect even larger draws and that whatever comes out of the report will be their central focus as they keep looking for signs of whether global output cuts will bring down those historically high inventories. "It's everything. Absolutely everything." The U.S. government will release its official data on Wednesday at 10:30 a.m. EDT. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 1.8 million-barrel fall in crude supplies, a 2.6-million-barrel decrease in gasoline stocks and a 2-million-barrel reduction in distillate inventories, according to a market participant. Momentum is also playing a role, said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. Money managers' bullish bets on oil futures outnumbered their bearish bets at a record rate in February, and that crowded trade likely played into last month's selloff because there were so few people left to keep buying. When that selloff slowed dramatically after just three sessions, it likely calmed a lot of momentum-based traders who otherwise might have bet prices would keep falling, Mr. Saucer said. Now there is a clear pattern of buying as prices dip, showing many still believe in the OPEC-related momentum that began late last year, he added. "Once the market showed you it stopped going down, the most likely choices that remain are stay the same or go higher," he said. Gasoline futures rose 2.8 cents, or 1.7%, to $1.7217 a gallon, reaching an 18-month high. Diesel futures rose 2.89 cents, or 1.9%, to $1.5923 a gallon, reaching a four-week high on its largest one-session gain in three months. Both markets have posted gains in seven of eight sessions. Neanda Salvaterra contributed to this article Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Price increases; Crude oil; Supply & demand
Location: Iran Kazakhstan Russia United States--US Libya Qatar
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883576468
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883576468?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Exxon Eyes Brazil Expansion; Oil company in talks to partner with Petrobras on offshore oil projects
Author: Olson, Bradley; Kiernan, Paul
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Apr 2017: n/a.
Abstract: None available.
Full text: Exxon Mobil Corp., the only big oil company without a major foothold in Brazil, is in talks to gain access to the country's prized deep-water resources, according to people familiar with the matter. The talks have included discussions about a joint venture partnership through which Exxon would invest in projects with state-oil firm Petróleo Brasileiro SA, or Petrobras, as well as potentially buying stakes in offshore tracts the Brazilian government plans to lease out this year, the people said. The specific terms of any agreement have yet to be completed. One person cautioned that talks between Exxon and Petrobras remained at a preliminary stage. But Exxon, which has eyed deep water resources in Brazil for at least a decade, is working with Hess Corp. in seeking to expand in the country after Brazil revised its regulations last year to attract greater foreign investment, the people said. Representatives for Exxon, Hess and Petrobras declined to comment. Exxon would join French giant Total SA and Norwegian state-controlled Statoil ASA, both of which have formed partnerships with Petrobras and expanded in Brazil in the past year. Royal Dutch Shell PLC has said it plans to invest $10 billion in the country over the next five years as part of a push to double its global deep water production . The race to expand in Brazil comes as Petrobras is selling tens of billions of dollars in assets in a bid to work off the largest debt burden in the global oil industry. Brazil's conservative government, in power since the impeachment of former President Dilma Rousseff last year, sees foreign investment in the oil sector as key to an economic recovery after Brazil's worst recession on record. Risks abound for the big oil companies. Petrobras, the dominant player in Brazil, is at the center of an epic corruption scandal and is financially crippled by its $118 billion debt load. And while the business environment has improved over the past nine months, political analysts say the 2018 presidential election could easily reverse that trend. Still, Brazil is one of the most important oil frontiers, with as much as 50 billion barrels of recoverable resources. Some analysts say the country has the opportunity to emerge as the world's fifth-largest crude producer by 2025, behind only Saudi Arabia, Russia, the U.S. and Iraq. "Everybody wants to get a piece of the pie," said Kjetil Solbraekke, senior vice president for South America at consultancy Rystad Energy. "These are probably the most prolific, high-returning oil assets available in the world." Exxon's interest in a partnership is the latest example of a strategy the company has pursued in recent years to gain access to state-controlled oil and gas resources. To gain entry to certain areas, the Irving, Texas, company has offered foreign players a chance to diversify their holdings and invest alongside Exxon in other projects around the world. Such a partnership was at the heart of a series of deals between Exxon and Russia in 2011 and 2012 that were later put on hold due to U.S. sanctions. The company has also formed partnerships with Qatar, where it holds a lucrative concession to produce natural gas, to develop gas export projects in the Gulf of Mexico and in Mozambique. Joining forces with Petrobras in a similar fashion on a series of investments may be the only way to build an offshore position in Brazil, analysts said. "If you don't have a relationship with a dominant state player, such as Petrobras in Brazil, it's very difficult to go anywhere," said Ruaraidh Montgomery, an analyst at energy consulting firm Wood Mackenzie. An industry bonanza for Brazilian resources began more than a decade ago with the discovery by Petrobras of the Lula field, which is believed to hold billions of barrels of oil. Named after then-Brazilian President Luiz Inácio Lula da Silva, the field lies below several miles of ocean water and a thick layer of salt that can make drilling risky and expensive. Emboldened by $100-a-barrel oil prices, the left-leaning government that ruled Brazil until last year imposed onerous requirements on the oil industry, making Petrobras the sole operator of oil projects in the prized sub-salt layer on the Brazil continental shelf and demanding high levels of locally produced parts and labor. Brazil's notoriously complex, costly and often unclear operating environment are among the reasons Exxon stayed on the sidelines as other oil majors piled in. Seeking to woo investors, Brazil's new leaders opened up the sub-salt to foreign operators last year and reduced the so-called local-content requirements in February. The country is also likely later this year to auction numerous offshore blocks to companies wishing to drill exploration wells, officials said. Those changes are among the primary reasons Exxon is motivated to expand in Brazil, said people familiar with the company's plans. Exxon holds an interest in two deep-water blocks off Brazil's shores, including more than 160,000 acres, and drilled several dry holes in the country more than five years ago with Hess. Petrobras Chief Executive Pedro Parente said in an interview at a Houston energy conference last month that "We are discussing partnerships and divestments" and that there was a "very high level of interest" in the company's assets. Sarah Kent contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com and Paul Kiernan at paul.kiernan@wsj.com Credit: By Bradley Olson and Paul Kiernan
Subject: Foreign investment; Debt restructuring; Petroleum industry; Offshore; Natural gas
Location: Russia United States--US Saudi Arabia Iraq South America Brazil
People: Rousseff, Dilma
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Statoil ASA; NAICS: 211111, 324110; Name: Petroleos Brasileiro SA; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 4, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883597024
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883597024?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Cargo Owners Complain of 'Total Mess' Shipping Goods to Asia; Launch of new shipping alliances sparks delays in Europe; '19 containers of olive oil stuck in Rotterdam'
Author: Paris, Costas
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Apr 2017: n/a.
Abstract: None available.
Full text: The launch of two global container-shipping alliances this week got off to a rough start, with cargo owners in Europe complaining of long delays to carry goods to Asia. The backlog is especially intense in northern European ports like Hamburg and Rotterdam where shippers say they have been asked by brokers to pay as much three times the agreed freight rates if they want priority handling. "I'll have 19 containers of olive oil stuck in Rotterdam for five weeks," said Panagiotis Eleftheriou, a Greek agricultural-products exporter. "It's a total mess, the worst I've seen in 20 years in this business." The two groupings--Ocean Alliance and THE Alliance--comprise 10 container operators that move close to 60% of all cargo between Asia and Europe; they have made network changes in a move to save costs by sharing vessels and port calls. A third alliance made up of the two biggest players, Maersk Line of Danish conglomerate A.P. Moller-Maersk A/S and Switzerland-based Mediterranean Shipping Co., has been in place since early last year. Industry executives said the current backlog stemmed from a rise in cargo destined for Asia and operators sending empty containers to Asia in anticipation of capacity shortages shortly before the launch of the alliances. "There has been an unexpected increase of cargo from Europe to Asia," said Rainer Horn, a spokesman for Germany's Hapag-Lloyd AG, the leading carrier in THE Alliance, which also includes four Asian operators. "We regret any inconveniences and hope things will return to normal soon." Mr. Horn said many ships are still operating under previous groupings and gradually joining the new alliances, which he expects will fall in place over the next couple of months. France-based CMA CGM, Ocean Alliance's lead carrier, declined to comment. An executive from an Asian operator said the situation is "embarrassing," with many vessels only now starting to make their way to Europe under the new alliance structures. "The Europe side of the equation was not properly assessed," he said. Container ships move 95% of manufactured goods world-wide, but during the past three years freight rates have tumbled amid anemic global trade to around half of break-even levels. The world's top dozen operators reported around $5.5 billion in combined losses last year. "When two groups that move around of two-thirds of cargo decide to reorganize at the same time major problems arise," said Nik Delmeire, general secretary of the European Shippers' Council, which includes thousands of manufacturers, retailers and wholesalers. "There was no decent preparation, not enough communication with cargo owners." Weeks before the alliances began operating, the U.S. Department of Justice opened a probe of the industry's pricing practices, people familiar with the matter said. Investigators crashed a mid-March meeting in California and issued subpoenas to top executives at several companies. Write to Costas Paris at costas.paris@wsj.com Read More * Maersk Line, Hapag-Lloyd Among Carriers Subpoenaed in U.S. Price-Fixing Probe * U.S. Ports Forge Alliances to Keep Their Spots on Trade Map * Shipping Alliances Shore Up Industry, Unsettle Customers Credit: By Costas Paris
Subject: Container ships; Ports; Alliances
Location: California Denmark Asia Germany Europe
Company / organization: Name: Mediterranean Shipping Co; NAICS: 483111, 483113; Name: Ocean Alliance; NAICS: 483111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 4, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883739454
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883739454?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stockpiles Seen Decreasing; Inventories projected down 200,000 barrels
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Apr 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show a decrease in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 13 analysts and traders surveyed showed that U.S. oil inventories are projected to have decreased by 200,000 barrels, on average, in the week ended March 31. Six analysts expect stockpiles to grow and seven expect them to shrink. Forecasts range from a decrease of 3 million barrels to an increase of 3 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to show a decrease of 1.6 million barrels on average, according to analysts. One expects them to rise and 12 expect them to fall. Estimates range from a fall of 3.5 million barrels to an increase of 400,000 barrels. Stocks of distillates, which include heating oil and diesel, are expected to shrink by 700,000 barrels. Four analysts expect an increase, eight expect a decrease and one expects no change. Forecasts range from a decline of 3 million barrels to an increase of 2 million barrels. Refinery use is seen gaining 0.6 percentage point to 89.9% of capacity, based on EIA data. Ten analysts expect an increase, one expects a decrease, and two did not report expectations. Forecasts range from a decrease of 1 percentage point to an increase of 2 points. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 1.8-million-barrel fall in crude supplies, a 2.6-million-barrel decrease in gasoline stocks and a 2-million-barrel fall in distillate inventories, according to a market participant. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Price increases; Supply & demand
Location: United States--US
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883814698
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883814698?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Bankruptcies Enrich Energy CEOs --- Ultra Petroleum is unusually lucrative example of impact of oil-and-gas rebound
Author: Dezember, Ryan
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Apr 2017: B.1.
Abstract:
"In a surprising number of cases, the most lucrative job in the oil-and-gas industry in the last year is a senior executive at a bankrupt company," said Brian Williams, managing director at investment banking and restructuring advisory Carl Marks Advisors.
Full text: When Ultra Petroleum Corp. emerges from bankruptcy protection in coming weeks, as expected, the natural-gas producer's chief executive is on track to be rewarded with roughly $35 million of its stock, more than 10 times his annual compensation in recent years. Michael Watford, the CEO, and other employees at the Houston company are sharing 7.5% of Ultra's new shares, a fairly typical cut awarded to managers of companies emerging from bankruptcy protection to incentivize them to stick around. Companies usually issue new stock when they emerge from bankruptcy, replacing the old shares. What's unusual in Ultra's case is the size of the pie from which that slice is coming: The company's postbankruptcy equity value has been set at about $4 billion, meaning that its employees are due some $300 million of stock, 40% of it to be doled out the day its new shares are launched, according to court filings and people familiar with the matter. The rest would be distributed at the discretion of its board. "In a surprising number of cases, the most lucrative job in the oil-and-gas industry in the last year is a senior executive at a bankrupt company," said Brian Williams, managing director at investment banking and restructuring advisory Carl Marks Advisors. It is rare for an equity pot that size to exist after bankruptcy. It resulted largely from gas prices roughly doubling from a year ago. Ultra filed for bankruptcy protection in April last year after historically low gas prices pushed its earnings relative to debt below thresholds spelled out in agreements with creditors. Mr. Watford declined to comment through a spokeswoman. Ultra has said it expects to emerge from bankruptcy by mid-April. In 2015, the latest figures that are available and before the company filed for bankruptcy, Mr. Watford received compensation valued at $3.06 million. Similar scenarios are playing out among producers of oil, which also is fetching about twice what it did early last year, and at companies that provide drilling and other services to energy producers. Natural-gas prices closed at $3.128 per million British thermal units on Monday, much higher than the price that pushed Ultra into bankruptcy but down about 20% from their 52-week highs. Jerry Winchester, CEO of Seventy Seven Energy Inc., was awarded 440,000 shares in August, valued at about $6.6 million, when the drilling contractor emerged from bankruptcy protection, according to securities filings. The shares immediately climbed from their initial price of $15 and on Dec. 13 made a huge leap above $40 when rival Patterson-UTI Energy Inc. announced a deal to buy Seventy Seven for $1.76 billion. The deal values Seventy Seven's stock higher than it had ever been before its June bankruptcy filing, and it has given Mr. Winchester's shares a value of more than $15 million. Seventy Seven representatives didn't respond to requests for comment. As for Ultra, some of the shares due to be distributed to executives are subject to vesting schedules, and the numbers may change subject to pending litigation. The values also might swing significantly higher or lower depending on how the company's stock trades. The situation shows how timing and the ability to hang on can be everything in the oil industry. Investors in companies that sought bankruptcy protection last year when energy prices were at their lowest levels caught the rebound and have generally fared better, compared with those invested in companies that succumbed to the oil bust early on and grappled with prices that kept plunging even after they had filed. More than 250 U.S. and Canadian oil-and-gas companies have filed for bankruptcy protection since 2014, when a global glut of crude caused energy prices to collapse. Those companies collectively reported about $118 billion of debt, according to law firm Haynes & Boone LLP. Credit: By Ryan Dezember
Subject: Natural gas; Bankruptcy reorganization
Company / organization: Name: Ultra Petroleum Corp; NAICS: 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: Apr 4, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883999788
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883999788?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Hold Four-Week High on Bullish Data
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Apr 2017: n/a.
Abstract: None available.
Full text: Oil futures added to overnight one-month highs in Asia trading Wednesday amid a bullish reading regarding U.S. inventories, adding to sentiment that the oil glut is deflating. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May recently traded up 25 cents at $51.28 a barrel in the Globex electronic session while June Brent oil on London's ICE Futures exchange rose 24 cents to $54.41. Both climbed more than 1.5% during U.S. trading Tuesday as the rebound continues following from March's selloff on worries about things such as U.S. stockpiles and the resolve of countries to maintain production caps. Now, some analysts think $60 oil may come relatively soon--especially if the Organization of the Petroleum Exporting Countries and prominent producers such as Russia agree to roll over a production-cut agreement forged late last year. The group is due to make on a decision on May 25. The pact stipulated signatories sideline collective output by 1.8 million barrels a day, some 2% of global daily production. Output has dropped around 1.5 million barrels while demand likely expanded at a "health clip of above 1.2 million barrels" in the first quarter, said Giovanni Staunovo, energy analyst at UBS. He sees the oil market having already shifted into deficit. While many market watchers expect demand to outstrip supply in the coming months, the rebalancing process will be gradual and any price rally could be short-lived. "Compliance fatigue remains a risk and is heightened by the overweight cuts being borne by Saudi Arabia," said BMI Research. Meanwhile, a new gush of U.S. oil also stands to undercut price gains as number of oil rigs in operation domestically, both onshore and offshore, was 77% higher than prior-year levels in March, according to Platts Rig Data. But Mr. Staunovo from UBS noted, "The estimated lead time from investment decision to production for US shale oil is around six-to-nine months, so US oil production should only start rising from around mid-year onwards." Output, though, has already been rising steadily the past few months. As the summer driving season nears, U.S. oil inventories--though still around multidecade highs--may be set to moderate. Storage levels fell 1.8 million barrels last week, according to a closely watched reading from the American Petroleum Institute industry group, with even-bigger declines seen for gasoline and distillates. Analysts expect smaller supply drops in government data due later Wednesday. Also in Asia, Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--rose 0.43 cent to $1.7260 a gallon, May diesel gained 0.52 cent to $1.5975 and ICE gasoil for April climbed $2.25 to $480 a metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Supply & demand
Location: United States--US
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910; Name: Commonwealth Bank of Australia; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883881516
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883881516?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Brazil's Deepwater Oil Lures Exxon
Author: Olson, Bradley; Kiernan, Paul
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Apr 2017: B.3.
Abstract:
Brazil's conservative government, in power since the impeachment of former President Dilma Rousseff last year, sees foreign investment in the oil sector as key to an economic recovery after Brazil's worst recession on record.
Full text: Exxon Mobil Corp., the only big oil company without a major foothold in Brazil, is in talks to gain access to the country's prized deepwater resources, according to people familiar with the matter. The talks have included discussions about a joint-venture partnership through which Exxon would invest in projects with state-oil firm Petroleo Brasileiro SA, or Petrobras, as well as potentially buying stakes in offshore tracts the Brazilian government plans to lease out this year, the people said. Petrobras Chief Executive Pedro Parente on Tuesday confirmed the talks and Exxon's interest. "This demonstration of interest happened on the part of several companies, including Exxon," he said. "But in terms of work toward a strategic partnership, we still don't have anything concrete with Exxon. But certainly on their part there was a very strong demonstration of interest in exploration in the Brazilian sub-salt." Exxon, which has eyed deepwater resources in Brazil for at least a decade, is working with Hess Corp. in seeking to expand in the country after Brazil revised its regulations last year to attract more foreign investment, the people said. Representatives for Exxon and Hess declined to comment. Exxon would join French giant Total SA and Norwegian state-controlled Statoil ASA, both of which have formed partnerships with Petrobras and expanded in Brazil over the past year. Royal Dutch Shell PLC has said it plans to invest $10 billion in the country over the next five years as part of a push to double its global deepwater production. The race to expand in Brazil comes as Petrobras is selling tens of billions of dollars in assets in a bid to work off the largest debt burden in the global oil industry. Brazil's conservative government, in power since the impeachment of former President Dilma Rousseff last year, sees foreign investment in the oil sector as key to an economic recovery after Brazil's worst recession on record. Risks abound for the big oil companies. Petrobras, the dominant player in Brazil, is at the center of a corruption scandal and is financially crippled by its $118 billion debt load. While the business environment has improved over the past nine months, political analysts say the 2018 presidential election could easily reverse that trend. To gain entry to certain areas, Exxon has offered foreign players a chance to diversify their holdings and invest alongside it in other projects around the world. Joining forces with Petrobras in a similar fashion on a series of investments may be the only way to build an offshore position in Brazil, analysts said. "If you don't have a relationship with a dominant state player, such as Petrobras in Brazil, it's very difficult to go anywhere," said Ruaraidh Montgomery, an analyst at energy consulting firm Wood Mackenzie. --- Sarah Kent contributed to this article.
Credit: By Bradley Olson and Paul Kiernan
Subject: Foreign investment; Acquisitions & mergers; Debt restructuring
Location: Brazil
Company / organization: Name: Petroleos Brasileiro SA; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Apr 5, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1883930387
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883930387?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Pare Gains on U.S. Stockpile Data; U.S. exports dip, production climbs, pushing prices down
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices pared gains Wednesday but still settled higher after U.S. data showed that crude unexpectedly continued to build up in storage, hitting a record last week. U.S. crude for May delivery gained 12 cents, or 0.24%, to settle at $51.15 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 19 cents, or 0.35%, to $54.36 a barrel on ICE Futures Europe. U.S. crude stockpiles surged by 1.6 million barrels to 535.5 million barrels--the seventh record level in the last eight weeks--as exports dipped and production continued to climb, according to the U.S. Energy Information Administration. The buildup came as a surprise to market participants, who had predicted that this would finally be the week that inventories began to decline. The announcement sent prices falling from highs reached in earlier trading, but they recovered somewhat after briefly slipping into negative territory. "It seems as if some of the fears about excess inventories and rising production seem to have disappeared," said Gene McGillian, research manager for Tradition Energy, noting that traders and investors may be banking on the Organization of the Petroleum Exporting Countries to continue cutting production through the rest of the year. "Some of the fear that these guys are not going to get their act together and extend the cuts have subsided," he said. Analysts said rising demand for gasoline will likely begin to make an impact on crude supplies soon. "The leading edge is definitely a lot better," said Sam Margolin, an analyst at Cowen & Co. "There were some one-off demand problems in January and February, but it's getting better quickly." Still, OPEC's efforts are being challenged by a new gush of U.S. oil, which has limited price increases. The EIA reported that U.S. production increased by 52,000 barrels a day to nearly 9.2 million barrels a day. "OPEC underestimated how many rigs and how much U.S. production was going to come on," said Tariq Zahir, managing member of Tyche Capital Advisors. Exports of U.S. crude to foreign markets, which have provided a relief valve for growing supplies, dropped sharply last week. Still, analysts said rising demand for gasoline will likely begin to make an impact on crude supplies soon. "The leading edge is definitely a lot better," said Sam Margolin, an analyst at Cowen & Co. "There were some one-off demand problems in January and February, but it's getting better quickly." Still, market participants are closely watching to see whether OPEC and other prominent producers including Russia will decide on May 25 to roll over a production-cut agreement forged late last year . The pact stipulated signatories eliminate 1.8 million barrels a day, some 2% of global production. Output has dropped around 1.5 million barrels while demand likely expanded at a "healthy clip of above 1.2 million barrels" in the first quarter, said Giovanni Staunovo, energy analyst at UBS. Mr. Staunovo sees the oil market having already shifted into deficit. Gasoline futures fell 0.64 cent, or 0.37%, at $1.7153 a gallon. Diesel futures rose 1.12 cents, or 0.7%, to $1.6035 a gallon Neanda Salvaterra and Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Futures; Stocks; Price increases; Supply & demand
Location: Azerbaijan Russia United States--US North Sea Nigeria
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210; Name: UBS AG; NAICS: 522110, 523110, 523120, 523920, 523930; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884091398
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884091398?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Watchers See Little Price Gains for 2017; The resurgence of U.S. shale oil drillers is leaving OPEC with some delicate decisions to make over output
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Apr 2017: n/a.
Abstract: None available.
Full text: Analysts expect oil prices to stay below $60 a barrel for a third consecutive year as the resurgence of U.S. shale drillers puts OPEC's plans to raise the price through output cuts in jeopardy. When the Organization of the Petroleum Exporting Countries meets in May to decide on an extension of its production deal, the cartel will face a delicate balance: if it continues to limit output and prices rise too fast, U.S. shale drillers would ramp up production. If OPEC scraps the deal, it risks refueling the global crude glut. OPEC's decision has major implications for oil prices. A poll of 14 investment banks, surveyed by The Wall Street Journal in late March, predicted that Brent crude, the international oil-price benchmark, will average at $57 a barrel this year, unchanged from the previous survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $55 a barrel this year. On Wednesday, Brent was changing hands at $54.85 a barrel while WTI was trading at $51.66 a barrel. Oil prices have risen by close to a fifth since OPEC and other major producers decided late last year to cut around 2% from global production in the first half of this year. On May 25, OPEC ministers will meet in Vienna to decide whether to extend that deal for another six months. It's not an easy call, analysts say. "OPEC does not want to cut production too much and push up prices too fast. The risk is that U.S. shale output grows even more quickly than forecast," said Michael Wittner, head of oil market research at Société Générale. But while the resurgence of U.S. drillers means OPEC could lose market share by limiting its own output for longer, the group's efforts are yet to bear fruit. OPEC's goal in agreeing to cut production, along with several major producers outside the cartel, was to see global crude stockpiles fall after nearly three years of market oversupply. But U.S. inventories, seen as a bellwether for global stockpiles, have recently reached an all-time high, which caused prices to drop below $50 a barrel last month. "The original objective of the production cuts...will apparently not be achieved by [May]," say analysts at Commerzbank. "The targeted inventory reduction will only materialize if OPEC output is maintained at its present level right into the fourth quarter" of the year. This would be welcome news for U.S. shale producers. Higher prices since the OPEC deal have already resulted in an increase in U.S. drilling activity. In the first quarter of the year, the number of rigs drilling for crude in the U.S. rose by 137, or 10.5 a week, the steepest quarterly rise in nearly six years, according to Commerzbank. Production itself is also rising. ING Bank estimates that since October 2016 U.S. production has increased by more than 600,000 barrels a day, which is equivalent to nearly 35-40% of OPEC cuts achieved so far. "The OPEC deal has breathed new life into the U.S. [oil sector], which is likely to complicate OPEC's decision in May," Barclays said in a recent report. "If production growth exceeds expectations, it could threaten to undo the work of OPEC members last fall." The bank now forecasts U.S. crude oil production to reach a multidecade high by December, within sights of the all-time high reached in 1970. Looking further ahead, the U.S. shale industry looks set to remain a key factor for prices. The banks in the survey have in recent months been downgrading their expectations for oil prices in the next few years, predicting that Brent crude will average $64 a barrel next year, down $5 in the survey a year ago. For 2019, the banks now see Brent at $68 a barrel, down from a prediction of $76 last March. "Brent at $70 is now the best approximation of a 'Goldilocks price', where U.S. shale grows at a slow enough rate that it does not imbalance the global market and cause further extreme price cycles," Paul Horsnell, head of commodities research at Standard Chartered, wrote in a recent report. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Petroleum production; Crude oil prices; Crude oil
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884091445
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884091445?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Inventories Unexpectedly Rise
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Apr 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil inventories surprisingly increased for the week ended March 31, while gasoline stockpiles declined less than forecast, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles rose by 1.6 million barrels to 535.5 million barrels, and are now above the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would fall by 200,000 barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 1.4 million barrels to 69.1 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 618,000 barrels, to 239.1 million barrels. Analysts were expecting gasoline inventories to fall by 1.6 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 536,000 barrels, to 152.4 million barrels, but are in the upper half of the average range, the EIA said. Earlier in the week, analysts had forecast supplies would decrease by 700,000 barrels from a week earlier. Refining capacity utilization rose by 1.5 percentage points from the previous week, to 90.8%. Analysts were expecting levels to rise by just 0.6 percentage point from the previous week. Credit: By Dan Molinski
Subject: Petroleum products; Price increases; Supply & demand
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884145073
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884145073?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Watchers See Little Price Gains for 2017; The resurgence of U.S. shale oil drillers is leaving OPEC with some delicate decisions to make over output
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Apr 2017: n/a.
Abstract: None available.
Full text: Analysts expect oil prices to stay below an average of $60 a barrel for a third consecutive year as the resurgence of U.S. shale drillers puts OPEC's plans to raise the price through output cuts in jeopardy. When the Organization of the Petroleum Exporting Countries meets in May to decide on an extension of its production deal, the cartel will face a delicate balance: If it continues to limit output and prices rise too fast, U.S. shale drillers would ramp up production. If OPEC scraps the deal, it risks refueling the global crude glut. OPEC's decision has major implications for oil prices. A poll of 14 investment banks, surveyed by The Wall Street Journal in late March, predicted that Brent crude, the international oil-price benchmark, will average $57 a barrel this year, unchanged from the previous survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $55 a barrel this year. On Wednesday, Brent settled at $54.36 a barrel while WTI settled at $51.15 a barrel. Oil prices have risen by close to a fifth since OPEC and other major producers decided late last year to cut around 2% from global production in the first half of this year. On May 25, OPEC ministers will meet in Vienna to decide whether to extend that deal for six months. It isn't an easy call, analysts say. "OPEC does not want to cut production too much and push up prices too fast. The risk is that U.S. shale output grows even more quickly than forecast," said Michael Wittner, head of oil-market research at Société Générale. But while the resurgence of U.S. drillers means OPEC could lose market share by limiting its output for longer, the group's efforts are yet to bear fruit. OPEC's goal in agreeing to cut production, along with several major producers outside the cartel, was to see global crude stockpiles fall after nearly three years of market oversupply. But U.S. inventories, seen as a bellwether for global stockpiles, have recently reached an all-time high, which caused prices to fall below $50 a barrel last month. "The original objective of the production cuts...will apparently not be achieved by [May]," say analysts at Commerzbank. "The targeted inventory reduction will only materialize if OPEC output is maintained at its present level right into the fourth quarter." This would be welcome news for U.S. shale producers. Higher prices since the OPEC deal have already resulted in an increase in U.S. drilling activity. In the year's first quarter, the number of rigs drilling for crude in the U.S. rose by 137, or 10.5 a week, the steepest quarterly rise in nearly six years, according to Commerzbank. Production itself is also rising. ING Bank estimates that since October, U.S. output is up by more than 600,000 barrels a day, which is equivalent to nearly 35% to 40% of the OPEC cuts achieved so far. "The OPEC deal has breathed new life into the U.S. [oil sector], which is likely to complicate OPEC's decision in May," Barclays said in a recent report. "If production growth exceeds expectations, it could threaten to undo the work of OPEC members last fall." The bank now forecasts U.S. crude-oil production will reach a multidecade high by December, within sights of the all-time high reached in 1970. Looking further ahead, the U.S. shale industry appears set to remain a key factor for prices. The banks in the survey in recent months have downgraded their expectations for oil prices in the next few years, predicting Brent crude will average $64 a barrel next year, down $5 from the survey a year ago. For 2019, the banks now see Brent at $68 a barrel, down from a prediction of $76 last March. "Brent at $70 is now the best approximation of a 'Goldilocks price,' where U.S. shale grows at a slow enough rate that it does not imbalance the global market and cause further extreme price cycles," Paul Horsnell, head of commodities research at Standard Chartered, wrote in a recent report. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Petroleum production; Crude oil prices; International markets; Crude oil
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language ofpublication: English
Document type: News
ProQuest document ID: 1884293562
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884293562?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Expected to Remain Under $60 a Barrel for Third Year
Author: Kantchev, Georgi
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Apr 2017: B.11.
Abstract:
A poll of 14 investment banks, surveyed by The Wall Street Journal in late March, predicted that Brent crude, the international oil-price benchmark, will average $57 a barrel this year, unchanged from the previous survey.
Full text: Analysts expect oil prices to stay below an average of $60 a barrel for a third consecutive year as the resurgence of U.S. shale drillers puts OPEC's plans to raise the price through output cuts in jeopardy. When the Organization of the Petroleum Exporting Countries meets in May to decide on an extension of its production deal, the cartel will face a delicate balance: If it continues to limit output and prices rise too fast, U.S. shale drillers would ramp up production. If OPEC scraps the deal, it risks refueling the global crude glut. OPEC's decision has major implications for oil prices. A poll of 14 investment banks, surveyed by The Wall Street Journal in late March, predicted that Brent crude, the international oil-price benchmark, will average $57 a barrel this year, unchanged from the previous survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $55 a barrel this year. On Wednesday, Brent settled at $54.36 a barrel while WTI settled at $51.15 a barrel. Oil prices have risen by close to a fifth since OPEC and other major producers decided late last year to cut around 2% from global production in the first half of this year. On May 25, OPEC ministers will meet in Vienna to decide whether to extend that deal for six months. "OPEC does not want to cut production too much and push up prices too fast. The risk is that U.S. shale output grows even more quickly than forecast," said Michael Wittner, head of oil-market research at Societe Generale. But while the resurgence of U.S. drillers means OPEC could lose market share by limiting output for longer, the group's efforts are yet to bear fruit. OPEC's goal in agreeing to cut production, along with several major producers outside the cartel, was to see global crude stockpiles fall after nearly three years of market oversupply. But U.S. inventories, seen as a bellwether for global stockpiles, have recently reached an all-time high, which caused prices to fall below $50 a barrel last month. "The original objective of the production cuts . . . will apparently not be achieved by [May]," say analysts at Commerzbank. "The targeted inventory reduction will only materialize if OPEC output is maintained at its present level right into the fourth quarter." This would be welcome news for U.S. shale producers. Higher prices since the OPEC deal have already resulted in an increase in U.S. drilling activity. In the year's first quarter, the number of rigs drilling for crude in the U.S. rose by 137, or 10.5 a week, the steepest quarterly rise in nearly six years, according to Commerzbank. Production itself is also rising. ING Bank estimates that since October, U.S. output is up by more than 600,000 barrels a day, which is equivalent to nearly 35% to 40% of the OPEC cuts achieved so far. "The OPEC deal has breathed new life into the U.S. [oil sector], which is likely to complicate OPEC's decision in May," Barclays said in a recent report. "If production growth exceeds expectations, it could threaten to undo the work of OPEC members last fall." The bank now forecasts U.S. crude-oil production will reach a multidecade high by December, within sights of the all-time high reached in 1970. The banks in recent months have downgraded their expectations for oil prices in the next few years, predicting Brent crude will average $64 a barrel next year, down $5 from the survey a year ago. For 2019, the banks now see Brent at $68 a barrel, down from a prediction of $76 last March. Credit: By Georgi Kantchev
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Apr 6, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884337259
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884337259?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Stocks Climb as Energy Shares Follow Rising Oil Prices; Rosy U.S. unemployment data, improving corporate earnings also help to provide support
Author: Otani, Akane; Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Apr 2017: n/a.
Abstract: None available.
Full text: U.S. stock indexes climbed as shares of energy companies rose with oil prices. Stocks traded in a tight range, fluctuating between small losses and gains before ending higher. Reports pointing to strength in the U.S. economy have supported shares recently, even as investors have weighed the possibility that policies such as tax cuts might not be imminent. The Dow Jones Industrial Average rose 14.80 points, or less than 0.1%, to 20662.95. The S&P 500 gained 4.54 points, or 0.2%, to 2357.49, and the Nasdaq Composite added 14.47 points, or 0.2%, to 5878.95. "The economy is getting fundamentally better, even absent any tax reform," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Co. "There's been a lot of skeptics out there throughout the recovery, but in general, the U.S. consumer is in a much more comfortable place." Data released Thursday showed that the number of Americans applying for new unemployment benefits fell sharply last week, according to the Labor Department. Also, corporate earnings have picked up, with analysts expecting companies in the S&P 500 to post their best quarterly results since 2011 , according to FactSet. Still, many investors say they remain cautious. The S&P 500 is up 10% since Election Day. Stocks trading at higher-than-average valuations could be vulnerable to a pullback, especially after an extended postelection rally, they say. "People are calling into question the administration's ability to get all these things done that would justify the higher valuations we're at," said James Norman, president of QS Investors. The S&P 500 and Nasdaq Composite were heading toward weekly losses, while the Dow industrials were little changed from last Friday. Shares of energy companies led gains in the S&P 500 on Thursday, rising 0.8%. Devon Energy added $1.36, or 3.3%, to $42.88. Chesapeake Energy rose 17 cents, or 2.8%, to 6.28 and Newfield Exploration advanced 62 cents, or 1.7%, to 36.79. U.S. crude oil for May delivery gained 1.1% to $51.70 a barrel, notching its third consecutive sessions of gains, after data released Wednesday gave some traders hope that the growing crude inventories in the U.S. might begin falling . Shares of financial companies added to major indexes' gains, rising 0.6% in the S&P 500 after pulling back for four consecutive sessions. MetLife added 77 cents, or 1.5%, to 52.67. Charles Schwab gained 58 cents, or 1.5%, to 40.06 and Navient rose 19 cents, or 1.3%, to 14.62. U.S. government-bond prices edged higher, with the yield on the benchmark 10-year Treasury note falling to 2.343%, from 2.352% on Wednesday. Yields fall as bond prices rise. Elsewhere, European Central Bank President Mario Draghi warned that it was too early to reduce the central bank's huge monetary stimulus . Mr. Draghi also pushed back against suggestions that the ECB might raise interest rates soon. The Stoxx Europe 600 bounced between small losses and gains and ended up 0.2%. The euro fell 0.2% to $1.0645 against the U.S. dollar. Japan's Nikkei Stock Average fell 1.4% Thursday to its lowest close since December. The Shanghai Composite Index rose 0.3%. Write to Akane Otani at akane.otani@wsj.com and Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Akane Otani and Georgi Kantchev
Subject: Stocks; Tax reform; Securities markets; International finance
Location: United States--US Australia China Japan Taiwan South Korea
People: Trump, Donald J Xi Jinping Weston, Chris Ryan, Paul
Company / organization: Name: IG Group; NAICS: 713290; Name: BNP Paribas; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 6, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884351707
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884351707?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Risk-Off Sentiment Pressures Oil Prices
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Apr 2017: n/a.
Abstract: None available.
Full text: Another downturn in risk sentiment had crude futures slipping in Asia on Thursday. Oil settled modestly higher in the U.S., but well off session highs in the wake of the Energy Information Administration reporting a surprise increase in crude supplies last week. The selling continued after Wednesday's settlement as last month's minutes of the Federal Open Monetary Committee included comments which resulted in some investors selling risk assets like stocks and the dollar while buying gold. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May were recently down 30 cents at $50.85 a barrel in the Globex electronic session while June Brent crude on London's ICE Futures exchange dropped 28 cents to $54.07. In the minutes was central-bank officials suggesting that the long-awaited shrinkage to the Fed's $4.5 trillion balance sheet could start by year's end. "I don't think anybody had really thought the Fed had been thinking about that so early on," said Andrew Sullivan, managing director of Haitong International Securities. He added that shrinkage "is effectively a rate rise because you're restricting capital." That helped add to the cooling in recent upbeat sentiment brought on by the weekly U.S. inventory data. That included falling imports, "which means production is picking up fast," said a fuel trader in Singapore. U.S. output has risen seven-straight weeks, to a 14-month high of 9.2 million barrels a day. U.S. production is seen as the biggest threat to a continuing effort by the Organization of the Petroleum Exporting Country and Russia to reduce still-swelled global inventories. Even though most analysts expect the group to extend the cuts deeper into 2017, rising U.S. output stands to snuff out price rallies. A bright spot from the EIA data was increased U.S. refining rates, which indicates fuel sellers are seeking product ahead of the summer driving season, said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. That as crude demand elsewhere is expected to jump near-term as independent refineries in China, the world's second-biggest crude importer, slowly come back online annual maintenance. Research firm ICIS China noted oil imports into the mega oil city Qingdao, where many of the private refiners are near, accounted for one-third of the country's total crude buying in January and February. "China demand will continue to improve as more teapots are expected to receive import quotas in the second half of the year," said Gao Jian, an energy analyst at SCI International. Meanwhile, "unless we get a whiff of gunpowder" from the looming meeting between President Donald Trump and Chinese leader Xi Jinping, "commodities prices are unlikely to move" on it. That as U.S. Census Bureau data show China became the dominant buyer of U.S. crude oil in February, surpassing Canada, amid OPEC's supply cuts, said Gordon Kwan, the head of Asia gas and oil research at Nomura. He added rising Chinese imports and busier U.S. refineries will help set the stage for higher oil prices this quarter. In other energy markets, Nymex reformulated gasoline blendstock for May fell 0.2% to $1.7115 a gallon, May diesel dropped 0.3% to 1.5981 and ICE gasoil for April eased 0.2% to $480.25. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Supply & demand
Location: United States--US
People: Trump, Donald J Xi Jinping
Company / organization: Name: Federal Open Market Committee--FOMC; NAICS: 921130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884369668
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884369668?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Rises as Refiners Pick Up Pace; OPEC is due to meet on May 25 to review whether the production cuts have achieved their aim
Author: Puko, Timothy; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices rose to a one-month high after U.S. data gave hope that the country's building crude stocks would soon reverse direction and begin falling. Refinery activity rose well beyond what analysts had expected, hitting 90.8% of capacity compared with just 89.3% a week ago, the U.S. Energy Information Administration said Wednesday. Traders have focused more on that Thursday than other data in the report that showed surprise increase in crude supplies last week, analysts said. Light, sweet crude for May settled up 55 cents, or 1.1%, at $51.70 a barrel on the New York Mercantile Exchange, its seventh gain in eight sessions. Brent crude, the global benchmark, gained 53, or 1%, to $54.89 a barrel on ICE Futures Europe. Both reached their highest settlement since March 7. "We're beginning to see signs demand is stronger than it was at the beginning of the year," said Gene McGillian, research manager at Tradition Energy. EIA estimates of gasoline demand have risen strongly in recent weeks, calming fears from the winter when government demand estimates and private data on pump sales both plummeted. The amount of crude that refineries are processing should hit about 17 million barrels--up almost 4% from today's levels--by the summer and stay there for three months, according to estimates from data provider Genscape Inc. "This next few months of refinery utilization could help," said Hillary Stevenson, oil markets analyst at Genscape Inc. The data did showed U.S. production has risen for seven straight weeks, however, to a 14-month high of 9.2 million barrels a day. U.S. production is seen as the biggest threat to a continuing effort by the Organization of the Petroleum Exporting Countries and other producers including Russia to reduce large global inventories by cutting output for the first half of 2017. Even though most analysts expect the group to extend the time frame of the cuts, rising U.S. output stands to snuff out price rallies. OPEC is due to meet on May 25 to review whether the cuts have achieved their aim. Prices could be stuck in a range of $47 to $55 a barrel until then, but at least for now it is clear that prices are rising because traders are more convinced OPEC will extend the cuts, Mr. McGillian said. "The next big move will probably depend on what OPEC does in May," said Tom Pugh, commodities analyst at Capital Economics, adding that he expected the deal would be extended for at least three months. Analysts were optimistic about oil demand, with signs of healthy growth so far this year. Independent refineries in China, the world's second-biggest crude importer, are expected to boost demand as they come back online after annual maintenance. U.S. Census Bureau data showed China became the dominant buyer of U.S. crude in February, surpassing Canada, amid OPEC's supply cuts, said Gordon Kwan, the head of Asia gas and oil research at Nomura. He added rising Chinese imports and busier U.S. refineries will help set the stage for higher oil prices this quarter. Gasoline futures rose 1.43 cent, or 0.8%, to $1.7296 a gallon, reaching an 18-month high. Diesel futures rose 0.94 cent, or 0.6%, to $1.6129 a gallon, reaching a one-month high after their ninth gain in 10 sessions. Write to Timothy Puko at tim.puko@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Timothy Puko, Sarah McFarlane and Jenny W. Hsu
Subject: Petroleum refineries; Crude oil prices; Supply & demand
Location: China Russia United States--US Canada Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: UBS AG; NAICS: 522110, 523110, 523120, 523920, 523930; Name: Bureau of the Census; NAICS: 926110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 6, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884430287
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884430287?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Hits One-Month High After U.S. Airstrikes in Syria; Tensions in the Middle East often stoke prices
Author: McFarlane, Sarah; Hsu, Jenny W; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Apr 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Many oil traders shrugged off the geopolitical factor, and said the attack on the Syrian air base would tighten not supply in the market. An earlier version of this article incorrectly stated that they said the attack would tighten supply. Crude prices hit one-month highs Friday as U.S. airstrikes in Syria raised concerns that conflict in the oil-producing region could spread. Oil has been steadily rebounding from its 2017 lows in March. Both U.S. crude and Brent rose more than 3% this week, notching a second consecutive week of gains. On Friday, U.S. crude futures settled up 54 cents, or 1.04%, at $52.24 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 35 cents, or 0.64, to $55.24 a barrel on ICE Futures Europe. Both benchmarks settled at their highest level since March 7. Oil prices shot up shortly after news that the U.S. military had launched nearly 60 Tomahawk missiles against a Syrian air base. Though Syria isn't a major oil producer, tensions in the Middle East often stoke prices as the region produces almost 40% of the world's crude. "Syria isn't a large oil producer, but is located close to large oil-producing countries and hence, fears exist that unrest spreads to the neighboring countries causing supply disruptions," said Michael Poulsen, oil risk manager at Copenhagen-based Global Risk Management. Analysts at Tudor Pickering Holt & Co. said Syrian oil production amounts to "less than a thimbleful" of global capacity. But "the geopolitical calculus is increasingly complicated"--a risk that hasn't been reflected in oil prices recently. Unless the strikes foment hostility between the U.S. and Russia, the impact on global crude supply will be minimal, said Alex Poon, vice president of Hong Kong-based brokerage firm Admis. "We don't expect Russia to respond with any aggressive reaction because Moscow was informed in advance of the strikes," he added. Analysts warned that while the market may rise further on the increased geopolitical tensions, the move could be short-lived. "I think as time goes on, the market will realize the fact that Syria is not a player in the world oil market," said Andy Lipow, president of Lipow Oil Associates in Houston. "The market is going to look ahead to other factors." Many of those factors are looking bullish, said Mark Waggoner, president of Excel Futures. "People are looking at demand numbers for gasoline [with] the driving season coming up," he said, adding he expects crude prices could continue to tick higher. Renewed optimism that major crude suppliers will extend their output cuts into the second half of the year has also bolstered oil prices in recent weeks. The Organization of the Petroleum Exporting Countries will meet at the end of next month to decide whether to continue cuts initially meant only for the first six months of the year. "OPEC's decision and U.S. production pace are the main variables that most people in the market are paying attention to," said Grace Liu, the head of research at brokerage Guotai Junan International. Oil markets shook off the 12th consecutive week of increases in the U.S. oil rig count, which now stands at its highest level since August 2015. Gasoline futures rose 1.66 cents, or 0.96%, to $1.7462 a gallon. Diesel futures rose 1.55 cents, or 0.96%, to $1.6284 a gallon. Dan Molinski contributed to this article Write to Sarah McFarlane at sarah.mcfarlane@wsj.com , Jenny W. Hsu at jenny.hsu@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Sarah McFarlane, Jenny W. Hsu and Alison Sider
Subject: Futures; Military air strikes; Crude oil
Location: Middle East Russia United States--US Syria
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884647909
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884647909?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Crude Oil Rises on Hopes for Supply Cut
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Apr 2017: B.11.
Abstract:
The amount of crude that refineries are processing should hit about 17 million barrels -- up almost 4% from today's levels -- by the summer and stay there for three months, according to estimates from data provider Genscape Inc. "This next few months of refinery utilization could help," said Hillary Stevenson, oil markets analyst at Genscape Inc. The data showed U.S. production has risen for seven straight weeks to a 14-month high of 9.2 million barrels a day.
Full text: Oil prices rose to a one-month high after U.S. data gave hope that the country's growing crude stocks would soon reverse direction and begin falling. Refinery activity rose well beyond what analysts had expected, hitting 90.8% of capacity compared with just 89.3% a week ago, the U.S. Energy Information Administration said Wednesday. Traders focused more on that Thursday than other data in the report that showed a surprise increase in crude supplies last week, analysts said. Light, sweet crude for May settled up 55 cents, or 1.1%, at $51.70 a barrel on the New York Mercantile Exchange, its seventh gain in eight sessions. Brent crude, the global benchmark, gained 53 cents, or 1%, to $54.89 a barrel on ICE Futures Europe. Both reached their highest settlement since March 7. "We're beginning to see signs demand is stronger than it was at the beginning of the year," said Gene McGillian, research manager at Tradition Energy. EIA estimates of gasoline demand have risen strongly in recent weeks, calming fears from the winter when government demand estimates and private data on pump sales both plummeted. The amount of crude that refineries are processing should hit about 17 million barrels -- up almost 4% from today's levels -- by the summer and stay there for three months, according to estimates from data provider Genscape Inc. "This next few months of refinery utilization could help," said Hillary Stevenson, oil markets analyst at Genscape Inc. The data showed U.S. production has risen for seven straight weeks to a 14-month high of 9.2 million barrels a day. U.S. production is seen as the biggest threat to a continuing effort by the Organization of the Petroleum Exporting Countries and other producers including Russia to reduce large global inventories by cutting output for the first half of 2017. Even though most analysts expect the group to extend the time frame of the cuts, rising U.S. output stands to snuff out price rallies. OPEC is due to meet May 25 to review whether the cuts have achieved their aim. Prices could be stuck in a range of $47 to $55 a barrel until then, but at least for now it is clear that prices are rising because traders are more convinced OPEC will extend the cuts, Mr. McGillian said. "The next big move will probably depend on what OPEC does in May," said Tom Pugh, commodities analyst at Capital Economics, adding that he expected the deal would be extended for at least three months. Analysts were optimistic about oil demand, with signs of healthy growth so far this year. Independent refineries in China, the world's second-biggest crude importer, are expected to boost demand as they come back online after annual maintenance. U.S. Census Bureau data showed China became the dominant buyer of U.S. crude in February, surpassing Canada, amid OPEC's supply cuts, said Gordon Kwan, the head of Asia gas and oil research at Nomura. --- Sarah McFarlane and Jenny W. Hsu contributed to this article. Credit: By Timothy Puko
Subject: Commodity prices; Crude oil
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Apr 7, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884699492
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884699492?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Down Slightly Ahead of U.S. Oil-Rig Data
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Apr 2017: n/a.
Abstract: None available.
Full text: Following overnight gains, oil futures are in a lull in early Asian trade. "Oil traders will once again be focused on tonight's U.S. oil-rig data, with another increase likely to stop oil's recent recovery," predicts ANZ. May Nymex stands pat at $51.71 a barrel and June Brent is down 4 cents from the U.S. settlement at $54.85. Credit: By Jenny W. Hsu
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884798701
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884798701?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Syria Airstrikes Unlikely to Be a Game Changer for Oil; The market remains balanced between strong global demand and robust U.S. supply
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Apr 2017: n/a.
Abstract: None available.
Full text: Given the sensitivity of oil prices to Middle East politics, a 2% jump following U.S. missile strikes in Syria isn't a surprise. Yet unless Iran or other regional actors react in a dramatic tension-escalating way, the attack is unlikely to kick prices much higher for long. The fundamental equation in oil markets remains unchanged: Strong global growth is pushing up demand, and U.S. producers are responding by ramping up supply . Periodic swings in sentiment over the past 18 months have failed to wrest oil out of its trading range of $45 to $60 a barrel--roughly where U.S. shale production starts to look a lot more attractive. West Texas Intermediate oil rose 1.2% to $52.33 during Asian trading hours Friday. One reason for skepticism about a sustained leg upward for oil is that the region of ruddiest demand, the U.S., is also where the supply response is ramping up. Weekly demand there in March was up around 0.5% from a year earlier, compared with falls of approximately 1% to 2% in December and January. But over the same period, U.S. production has moved to 2% growth from a 3% to 5% decline, and there are few signs that drilling activity is slowing . And though American drivers remain exposed to Middle Eastern oil, that exposure has lessened dramatically over the past decade. Even after a partial recovery following the 2014 oil crash, Middle East imports are a third lower than their 2003 peak. Across the Pacific, Chinese demand is looking wobbly. The Lunar New Year holiday complicates assessments of data from January and February, but preliminary numbers indicate demand softened after a big rise in the fourth quarter. If that trend is validated in coming months, it will be difficult for oil to climb much higher . As for Syrian oil production, it amounts to only around 30,000 barrels a day, or 0.03% of global output. There may be no end in sight for the country's long tragedy, but for now its effect on oil markets should remain contained. Write to Nathaniel Taplin at nathaniel.taplin@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Nathaniel Taplin
Subject: Petroleum production; Price increases; International markets; Supply & demand
Location: Iran Middle East United States--US Syria
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 7, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New Yo rk, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884904323
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884904323?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
War on Pay: Investors Are Right to Revolt Against Boardroom Excess; Norway's huge oil fund is the latest to take aim at complicated pay deals that don't reflect performance
Author: Davies, Paul J
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Apr 2017: n/a.
Abstract: None available.
Full text: One of the world's biggest investment funds has gone cold on complicated incentive packages for top executives--and other investors should get on board. Norway's sovereign oil fund, which has more than $900 billion in assets and holds stakes in 9,000 companies across 77 countries, wants senior executives to take a large part of their pay in shares that they would hold for at least five, but preferably up to 10 years. Excessive pay awarded through complex schemes that don't reflect company performance have attracted increasing protests from politicians, the public and at times, investors. Two U.K.-based chiefs of global companies-- Bob Dudley of BP and Rakesh Kapoor of Reckitt Benckiser--have had their 2016 awards slashed in recent days in response to investor protests. U.S. proxy advisers have been active too this week. ISS came out against the $3 million 2016 pay increase for Coca-Cola's chief executive, Muhtar Kent , who hasn't met financial goals. Glass Lewis urged investors to reject bonuses at Credit Suisse, the Swiss bank that has endured two years of losses . Bombardier in Canada has faced a storm of protests over its executive pay, too. Rewards for mediocrity or even failure appear common. In part this is because pay benchmarking, which sets packages purely in relation to what other leaders get, has created a ratchet effect whereby long-term pay has been hoisted by its own bootstraps. Legal & General Investment Management, which slammed ever-increasing multiples of long-term packages this week, said arguments about executives defecting to U.S. companies or private-equity firms drove pay higher but never came true. It also noted that U.S. companies with CEOs paid above the median of their peers underperformed those whose CEOs got less. Norway's desire to have executives hold lots of shares is no guarantee of sound long-term decision-making. Lehman Brothers blew that argument up in 2008. But that can be helped by executives taking their pay partly in bonds--an idea that has been discussed lately by bank regulators and might moderate the instinct to increase financial risks to boost equity returns. The time scale for awards is a more difficult question: a fashion retailer lives or dies far faster than a life insurer or derivatives desk. However, keeping executives exposed to a company's performance for several years after they leave should help to ensure they don't tune performance to peak just as they cash out. Too many successors are left with under-invested or financially overstretched businesses. In an age of populism, pay is political. Investors and boards should use their powers for change before someone else does it for them. Write to Paul J. Davies at paul.davies@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Paul J. Davies
Subject: Acquisitions & mergers; Chief executive officers
Location: United States--US Canada Norway
People: Dudley, Bob Kapoor, Rakesh
Company / organization: Name: Legal & General Investment Management; NAICS: 523930; Name: Credit Suisse Group; NAICS: 522110; Name: Reckitt Benckiser PLC; NAICS: 325412, 325611; Name: Lehman Brothers Holdings Inc; NAICS: 523110, 551112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 7, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884913981
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884913981?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Trader Gunvor Approached Competitors Over Possible Sale; Any potential deal would further consolidate sector already dominated by small group of secretive giant trading firms
Author: McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Apr 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Gunvor has discussed a possible sale of the entire company with at least two competitors. An earlier version of this article incorrectly spelled the company's name as Guvnor. (April 7) Gunvor Group, one of the world's largest oil traders, has sounded out competitors over a possible sale, two people familiar with the matter said. A deal would further consolidate a sector that is already dominated by a small group of secretive firms that buy and sell physical oil and ship it around the world. Gunvor has discussed a possible sale of the entire company with at least two competitors, according to the people familiar with the matter. It is unclear what stage those discussions have reached. Gunvor Chief Executive Torbjörn Törnqvist said the company has no sale plans "at this time." Mr. Törnqvist is the majority owner of the closely held Swiss-based firm. "I expect to remain a dominant shareholder in the Group for the foreseeable future," he said in an emailed statement. A person familiar with the company said that Gunvor has had multiple approaches by others to acquire a stake in or the entire company. It would likely be valued in the single digit billions of dollars, according to people who work in the sector. The move comes after several years of strong performance from oil trade houses, which have benefited from massive volatility in the oil market. Gyrations in price create trading opportunities. But in January and February the market was less volatile. Gunvor's trading volumes have remained relatively steady in recent years while the three largest oil traders, Vitol Group, Glencore PLC and Trafigura Group Pte Ltd, have pulled ahead. These traders had also benefited from the crude glut and subsequent fall in prices by buying up oil, putting it into storage and selling futures contracts to lock in an anticipated rise in the price. The start of U.S. oil exports was also a trading opportunity. But those opportunities have most likely waned. The so-called storage trade is no longer as profitable while U.S. exports are expected to see only incremental growth going forward. "If you look at the sources of growth in the past and the prospects for those going forward, that all suggests the industry is at something of a plateau, and when you get into that situation consolidation is quite typical," said Craig Pirrong, a professor of finance at the University of Houston. Mr. Pirrong estimated the top five oil traders shift around 20% of the world's traded oil volumes. Gunvor, which discloses limited financial information, said it had net profit of $315 million after tax in 2016, which was an increase from the previous year's underlying profit, without giving a comparable figure. Revenue for 2016 was $47 billion, a decrease from $64 billion in 2015, reflecting the continued decline in the price of commodities. The company was founded in 2000 by Mr. Törnqvist, a Swedish oil trader, and Russian businessmen Gennady Timchenko. The company soon became one of the top four privately held oil traders, originally through dominating trade in Russian crude. In 2014, Mr. Timchenko sold his 43% stake to Mr. Törnqvist, a day before the U.S. imposed sanctions on him and other allies of Russian President Vladimir Putin, following Moscow's intervention in Ukraine. Mr. Törnqvist now owns 61% of the company while senior employees own the remainder, according to Gunvor's website. The group sold its Russian assets and quickly adapted, opening offices in China and the U.S. "When sanctions were imposed in 2014 the company was under a huge cloud," said Mr. Pirrong. "Against conventional wisdom, they put in place and executed an exit from Russia." Its assets now include oil refineries and a network of infrastructure such as stakes in European pipelines and a storage terminal in Indonesia. Mr. Törnqvist was trading oil in Estonia when he began doing deals with Mr. Timchenko. According to the company's website, Mr. Törnqvist, a keen sailor, has spent more than 30 years in the oil and gas industry, starting his career at British Petroleum. Traders make thin margins when trading oil, meaning they have to increase the amount they buy and sell to increase profits. Last year, Vitol, Glencore and Trafigura, between them added an extra couple of million barrels of oil a day to the total volume they traded. Gunvor trades around 2.5 million barrels a day of crude and refined oil products. In its latest results Gunvor said it traded 187 million metric tons of commodities in 2016, up from 180 million metric tons the previous year. Beyond oil, the company also trades commodities including liquefied natural gas (LNG) and coal. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Sarah McFarlane
Subject: Competition
Location: United States--US Ukraine
People: Timchenko, Gennady Putin, Vladimir
Company / organization: Name: University of Houston; NAICS: 611310
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 7, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1884999599
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1884999599?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited wit hout permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 10; According to weekly figures from Baker Hughes, the gas-rig count rose by five
Author: Moise, Imani
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Apr 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by 10 in the past week to 672, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count has receded. However, the oil-rig count has generally been rising since the summer. The nation's gas-rig count rose by five to 165 in the past week, according to Baker Hughes. The U.S. offshore-rig count was unchanged from last week's count of 22 and down three year over year. On Friday, crude oil futures edged up 0.9% to $52.14 a barrel as traders and investors weighed the impact of U.S. airstrikes in Syria . Write to Imani Moise at imani.moise@wsj.com Credit: By Imani Moise
Subject: Oil service industry; Supply & demand
Location: Syria United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 7, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1885030017
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1885030017?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Executives' Call Offers Inside Look at Bribery Probe; Recorded conversation reveals Anglo-Dutch giant worried Nigerian oil deal could expose it to U.S. investigation
Author: Kent, Sarah; Sylvers, Eric
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Apr 2017: n/a.
Abstract: None available.
Full text: Royal Dutch Shell PLC's top executives last year were worried that a controversial Nigerian oil deal may have violated a U.S. Justice Department agreement with the Anglo-Dutch oil giant and would spark an American probe, according to a recorded phone call between the firm's chief executive and top finance officer at the time. The company is already under investigation in Italy , Nigeria and the Netherlands for a $1.3 billion deal in 2011 with Italian oil firm Eni SpA and the Nigerian government for a lucrative Atlantic Ocean oil license known as OPL 245, according to Italian court documents, Nigerian public records and a statement from the Dutch prosecutor. The controversial oil block--believed to contain billions of barrels of crude--is a valuable prize for the two companies, which already pump huge volumes from oil-rich Nigeria. The Justice Department declined to comment. Italian prosecutors are pursuing criminal charges against Shell and Eni, saying in court records the companies knew the deal's proceeds would be used to pay bribes in Nigeria. Shell and Eni said Friday they paid the Nigerian government for the oil block but didn't believe the money would ultimately be used for bribes. Court documents allege the money went to various executives and Nigerian government officials. An Italian judge has yet to rule on whether a criminal trial will take place. The phone call between Shell Chief Executive Ben van Beurden and then-CFO Simon Henry opens a rare window into the private conversations of the company's top executives and reveals how the Nigeria bribery investigation has become a nagging worry. On the call, they say they are speaking just hours after Dutch police raided Shell's offices in The Hague in February 2016 as part of an investigation into the deal. In response to questions about the call, a Shell spokesman said the company notified U.S. and U.K. authorities about the raid and subsequently turned over the results of its own internal investigation into the Nigerian oil deal to them. Shell said it is cooperating with authorities but doesn't believe there is a basis for the Italian prosecution. The company didn't dispute the authenticity of the recording. On the call, Mr. van Beurden told Mr. Henry that the company's legal team conducting their own investigation had turned up "unhelpful email exchanges" with "loose chatter" from Shell employees about the Nigeria deal, according to a recording heard by The Wall Street Journal that was provided by a person in possession of the recording. The emails, Mr. van Beurden said on the call, included "things like 'Well, yeah, you know, I wonder who gets a payoff here' and whatever." BuzzFeed reported the call on Sunday. Mr. van Beurden said on the call that he didn't believe investigators had found anything incriminating, but he and Mr. Henry wondered whether the Justice Department was working with the Dutch police. "Apparently it was judged to be, you know, just pub talk in emails, which was stupid, but nevertheless, it's there," he told Mr. Henry. Later in the call, Mr. van Beurden said Shell concluded the U.S. wasn't involved in the Dutch raid. Mr. van Beurden, who took over as CEO in 2014 and wasn't involved in the OPL 245 deal, expressed concern that his predecessors hadn't disclosed enough about the deal to the U.S. Justice Department. The Justice Department had already investigated Shell for Nigeria bribery allegations in a separate case and entered a deferred prosecution arrangement with the company in 2010 requiring a $30 million criminal settlement and adherence to what the Justice Department called "enhanced corporate compliance and reporting obligations." "We should have maybe at the time been more open with the DOJ than we now find we have been," Mr. van Beurden said on the phone call, referring to the bribery allegations arising from the subsequent 2011 OPL 245 deal. The U.S. has been a tough enforcer of anticorruption laws and has used the Foreign Corrupt Practices Act to levy huge fines against international companies. The U.K.'s Serious Fraud Office wouldn't confirm or deny its interest in the case. The Dutch Public Prosecutor said Sunday it is working on a joint investigation with Italian authorities into whether Shell bribed Nigerian officials, but wouldn't comment on the Shell executives' conversation. Italian prosecutors didn't respond to requests for comment. Shell pursued the rights to OPL 245 for years before joining with Eni to strike the complicated 2011 deal now under investigation. Under the $1.3 billion arrangement, Eni put $1.1 billion into an escrow account for the Nigerian government. In internal Shell emails obtained by nonprofit Global Witness and reviewed by the Journal, Shell's executives and managers in Africa show the deal was being structured so the government would send the escrow money to a company called Malabu Oil and Gas, which was linked to former oil minister Dan Etete, according to court documents. The deal was intended to settle years of wrangling over the block's ownership. London-based Global Witness has conducted an investigation into Shell's oil deal with Finance Uncovered, a group of investigative reporters and campaigners. Italian prosecutors in court records say Mr. Etete's company then used the money for bribes, with the knowledge of the Nigerian government, Shell and Eni. Malabu couldn't be reached for comment. Nigeria's then-President Goodluck Jonathan "is motivated to see 245 closed quickly--driven by expectations about the proceeds that Malabu will receive and political contributions that will flow as a consequence," Shell manager Peter Robinson said in an August 2010 briefing sent to Malcolm Brinded, then head of exploration and production. Oil-industry corruption allegations helped lead to Mr. Jonathan's defeat in 2015 . Mr. Jonathan has previously denied the bribery allegations in a statement. Attempts to reach Messrs. Etete, Robinson and Brinded were unsuccessful. "This is one of the worst corruption scandals the oil industry has ever seen," said Simon Taylor, director of Global Witness. Aruna Viswanatha in Washington contributed to this article. Write to Sarah Kent at sarah.kent@wsj.com and Eric Sylvers at eric.sylvers@wsj.com Credit: Sarah Kent; Eric Sylvers
Subject: Witnesses; Chief executive officers; Corruption; Bribery; Criminal investigations; Raids
Location: Italy Netherlands United States--US Nigeria United Kingdom--UK Atlantic Ocean
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Eni SpA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 9, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888658784
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888658784?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Global Tensions Keep Oil Prices Elevated
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Apr 2017: n/a.
Abstract: None available.
Full text: Crude-oil futures started the week slightly higher in Asia, coming as Friday's price jump following the U.S. airstrike in Syria moderated some ahead of the weekend. Geopolitics remain front and center, not just in the Middle East but in the Pacific as the U.S. Navy canceled planned port calls to Australia for the USS Carl Vinson carrier group. It will instead be sent toward the Korean Peninsula in the wake of recent missile tests by North Korea. "There is no doubt that oil is rising purely on geopolitical concerns," said Phin Ziebell, an economist at National Australia Bank, citing several bearish factors such as 12-straight weeks of rising U.S. oil-rig counts that should have brought oil prices lower had current tensions not existed. Instead, the U.S. benchmark has risen in eight of the past nine sessions through Friday. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May were recently up 11 cents at $52.35 a barrel in the Globex electronic session while June Brent crude on London's ICE Futures exchange added 7 cents from Friday's U.S. settlement to $55.31. Prices rose some 3% last week, with only a small portion of the gains the result of the U.S. missile launch against Syria. While Syria is a marginal oil producer, the U.S. move has stoked concerns of possible retaliation from Iran and Russia--which both have renewed their support to stand by President Bashar al-Assad's regime. "How this all maps out is anyone's guess," said Stuart Ive, a client manager at OM Financial. For now, "the rally will continue precisely because people don't know what is going to happen," said Mr. Ziebell. A crude trader in Singapore noted his clients aren't placing orders aggressively--prices remain near 1-month highs--but have been expressing concerns of possible supply disruption. "Unless we see more conflicts, the Syria effect will just be a temporary one and the key still lies in OPEC," he added. The Organization of the Petroleum Exporting Countries is due to announce at the end of May whether it will continue output reductions agreed to late last year in hopes of ending a several-year oil glut. Investors this week will be eyeing OPEC's monthly report on Tuesday to gauge the group's compliance to the cutback deal. The U.S. Energy Department will also publish its monthly short-term outlook on domestic oil industry while China, the world's second biggest crude buyer, will release March import figures on Thursday. Nymex reformulated gasoline blendstock for May rose 0.1% to $1.7476 a gallon in recent trading while May diesel added 0.1% to $1.6297 and April ICE gasoil gained 0.3% to $489.25 a metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Geopolitics
Location: Iran Australia Strait of Hormuz Syria United States--US
People: Assad, Bashar Al
Company / organization: Name: Department of the Navy; NAICS: 928110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1885606583
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1885606583?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permis sion.
Last updated: 2018-05-04
Database: The Wall Street Journal
Oil Rises After Syria Missile Strikes
Author: Sider, Alison; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Apr 2017: B.8.
Abstract:
Crude prices hit one-month highs Friday as U.S. missile strikes in Syria raised concerns that conflict in the oil-producing region could spread.
Full text: Crude prices hit one-month highs Friday as U.S. missile strikes in Syria raised concerns that conflict in the oil-producing region could spread. Oil has been steadily rebounding from its 2017 lows in March. Both U.S. crude and Brent rose more than 3% this week, notching a second consecutive week of gains. On Friday, U.S. crude futures settled up 54 cents, or 1.04%, at $52.24 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 35 cents, or 0.64%, to $55.24 a barrel on ICE Futures Europe. Both benchmarks settled at their highest level since March 7. Oil prices shot up shortly after news that the U.S. military had launched nearly 60 Tomahawk missiles against a Syrian air base. Though Syria isn't a major oil producer, tensions in the Middle East often stoke prices. Analysts at Tudor Pickering Holt & Co. said Syrian oil production amounts to "less than a thimbleful" of global capacity. But "the geopolitical calculus is increasingly complicated" -- a risk that hasn't been reflected in oil prices recently. Unless the strikes foment hostility between the U.S. and Russia, the impact on global crude supply will be minimal, said Alex Poon, vice president of Hong Kong-based brokerage firm Admis. "We don't expect Russia to respond with any aggressive reaction because Moscow was informed in advance of the strikes," he added. Analysts warned that while the market may rise further on the increased geopolitical tensions, the move could be short-lived. "I think as time goes on, the market will realize the fact that Syria is not a player in the world oil market," said Andy Lipow, president of Lipow Oil Associates in Houston. "The market is going to look ahead to other factors." Many of those factors are looking bullish, said Mark Waggoner, president of Excel Futures. "People are looking at demand numbers for gasoline [with] the driving season coming up," he said, adding he expects crude prices could continue to tick higher. Renewed optimism that major crude suppliers will extend their output cuts into the second half of the year has also bolstered oil prices in recent weeks. The Organization of the Petroleum Exporting Countries will meet at the end of May to decide whether to continue cuts initially meant only for the year's first six months. --- Dan Molinski contributed to this article Credit: By Alison Sider, Sarah McFarlane and Jenny W. Hsu
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.8
Publication year: 2017
Publication date: Apr 10, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1885652711
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1885652711?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BHP Billiton Urged by Activist Investor to Shed Oil Operations; Elliott Management wants miner to restructure, focus on share buybacks
Author: Patterson, Scott; Benoit, David; Stewart, Robb M
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Apr 2017: n/a.
Abstract: None available.
Full text: MELBOURNE, Australia--Activist investor Elliott Management Corp. on Monday urged BHP Billiton Ltd. to spin off its U.S. petroleum assets and outlined a significant restructuring for the world's largest listed miner. BHP rejected the New York hedge fund's plan as too costly, setting up another fight between a giant international company and the investment firm managed by Paul Singer. Elliott, which manages nearly $33 billion, is known as an aggressive activist investor that doesn't shy away from targeting big companies in places where others have been hesitant to wade into local politics. It has tried to shake up Samsung Electronics Co., a campaign that included a cameo in the rancor that led to the impeachment of South Korea's president and the arrest of a Samsung heir. It is trying to oust the chief executive of Arconic Inc., the former U.S. aluminum giant Alcoa, and push Dutch paint maker Akzo Nobel NV into a $24 billion deal with a rival . In BHP, Elliot has targeted a company that has lagged behind its mining peers during a commodity-price upswing. Elliott took particular aim at BHP's oil-and-gas portfolio in the U.S. and Australia, which produces about 660,000 barrels of oil equivalent a day but has dragged on the company's profit amid a prolonged crude-price downturn. Elliott said BHP's U.S. shale assets are "extremely limited" and take away cash from the company's "world-beating mining assets," especially in iron ore--the price of which has risen in recent months on Chinese demand. Elliott, which initially contacted BHP management last year, also called on the miner to ditch its dual Sydney-London listing and offer its shares only in the U.K., while making its headquarters and tax residences in Australia. BHP's U.K. shares trade at a discount to its Australian shares now, Elliott said, arguing that listing in one place would allow the company to take advantage of certain Australian tax credits. Elliott also said BHP should adopt a consistent plan of buying back shares rather than using cash for what it called "value-destructive" large-scale acquisitions. BHP is a particularly large target and Elliott's stake of 4.1% of the company's London shares, worth about $1.4 billion, is among its largest single bets ever. In response, BHP said its energy business wasn't hurting the company's overall value and was a long-term investment. BHP Chief Executive Andrew Mackenzie has called its oil and gas assets one of the company's four pillars. BHP said its dual-listed structure was under review, but people familiar with the matter said the move would hurt Australian investors in favor those who hold London-listed shares, sparking a political fight in Australia, where BHP is among the largest companies. The company believes Elliott doesn't understand the costs of certain tax issues involved in its proposal, the people said. BHP called Elliott's share-buyback plan "a formulaic approach without regard for the cyclical nature of the resources industry or the returns available from other uses of cash." "After reviewing the elements of Elliott's proposal, we have concluded that the costs and associated risks of Elliott's proposal would significantly outweigh any potential benefits," BHP said. Elliott believes the company is underselling the value the moves could create, according to people familiar with the matter. In several months of high-level discussions, the fund found the company constructive and talked through many issues related to their ideas, the people said. But, nonetheless, the fund believes the math works in their favor and wanted to convince other investors of their plan, as activists do generally to win their ideas. Elliott said it was releasing its ideas to the public so the company "can engage openly with all parties on the plan to unlock shareholder value." Shares in BHP rallied late in the Australian trading day, closing 4.6% higher. In London, they gained 2.2%. Elliott is also the latest big investor with an outsize voice to wade into a resurgent mining industry. Indian billionaire Anil Agarwal last month bought about 12% of British mining giant Anglo American PLC, while Harris Associates, a Chicago hedge fund with a history of activism, took a large stake in Glencore PLC in 2015, just before that miner launched a rescue plan . In its news release, Elliott noted that BHP has underperformed its peers. BHP's London shares are up about 0.73% this year, compared with 3.28% for Rio Tinto PLC, more than 6% for Anglo American and almost 15% for Glencore. Big corporate restructurings aren't unfamiliar to BHP. In 2015, the company spun off a collection of nickel, aluminum, coal and manganese assets into South32 Ltd., one of the largest corporate breakups in mining history. South32's shares are up 8% in 2017. Write to Scott Patterson at scott.patterson@wsj.com , David Benoit at david.benoit@wsj.com and Robb M. Stewart at robb.stewart@wsj.com Credit: By Scott Patterson, David Benoit and Robb M. Stewart
Subject: Securities buybacks; Shareholder activism; Investment advisors
Location: Australia United States--US United Kingdom--UK
People: Mackenzie, Andrew
Company / organization: Name: BHP Billiton; NAICS: 211111, 212231, 212234; Name: Elliott Management Corp; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 10, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Econo mics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1885707111
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1885707111?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Extends Gains on Production Outages, Syrian Strife; Prices hit fresh one-month highs
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices are on their longest winning streak since August as production outages in Libya and Canada, and concerns related to last week's U.S. airstrike in Syria add further fuel to a rally. Prices hit fresh one-month highs, the latest peak in a rally that has gone almost uninterrupted for two weeks. U.S. oil futures have fallen in only one session since March 27. Threats in one of the world's leading region's for oil production are bolstering bullish sentiment among traders that was already high on belief a global glut had peaked and stocks were diminishing. Prices rose last week on the threat of a conflict in Syria spreading to nearby countries that are big oil exporters. On Monday, Libya's largest oil field, Sharara, shut again. And traders are paying more attention to an even larger outage in Canada, analysts said. Light, sweet crude for May settled up 84 cents, or 1.6%, at $53.08 a barrel on the New York Mercantile Exchange the highest settlement since March 7. Brent crude, the global benchmark, gained 74 cents, or 1.3%, to $55.98 a barrel on ICE Futures Europe, its highest settlement since March 6. Both markets have gained in five-straight sessions. In addition to the geopolitical factors, demand for oil-products gasoline and diesel appears to be strong in the U.S., further supporting the chance a longstanding glut is easing. And all those disparate factors have led to a general boost of enthusiasm and focus on bullish news that keeps pulling the market higher, brokers and analysts said. Much of the headline conversation in oil has come from Syria, which the U.S. launched an airstrike against last week following a recent chemical-weapon attack there. While Syria is a marginal oil producer, the U.S. move has stoked concerns of possible retaliation from Iran and Russia--which both have renewed their support to stand by President Bashar al-Assad's regime. "There would seem to be a path of least resistance higher" for oil prices until Secretary of State Rex Tillerson's visit to Russia this week, Chicago brokerage iiTrader said in a note. The market is already losing about 450,000 barrels a day from outages in Canada, according to analysts' estimates. A March 14 fire damaged equipment in the heart of the Albert province's oil industry, which traders are now starting to expect will lead to lower oil imports into the U.S., analysts said. About 25 million barrels total could be out of production through June, according to Standard Chartered, while PIRA Energy Group expects 30 million barrels. Prices had already been moving higher overnight, but rose further in the morning after news local militia blocked the pipeline connects Libya's Sharara to an oil terminal, according to a Libyan oil official. Ongoing civil strife in the country led to it receiving an exemption from output cuts that most of the world's largest exporters agreed to last year, added focus among traders to the country's ability--or inability--to grow production. The shut Sharara oil field normally pumps 200,000 barrels a day from the Western Sahara. An outage there means the country isn't likely to reach its production targets of 800,000 barrels per day by the end of April and 1.1 million barrels per day by August, Commerzbank said. "The market, with all these cuts is pretty darn tight," said Scott Shelton, broker at ICAP PLC. "You subtract 200,000 barrels off the balance sheet...and that's going to decrease the size of the (inventory) draws globally. I don't know how you ignore that." A renewed faith in global inventories falling had been a big factor in the price recovery even before the influence of conflicts in Syria and Libya, said Bjarne Schieldrop, chief commodities analyst at SEB Markets. U.S. inventories have kept rising, but many other storage sites world-wide, especially storage on seaborne tankers, appears to have fallen, at times substantially, according to analysts and data-tracking companies that monitor those sites. That trend accelerated after the Organization of the Petroleum Exporting Countries and other producers including Russia to reduce large global inventories by cutting output for the first half of 2017. OPEC is due to announce at the end of May whether it will continue the cuts beyond June. "Producers will have to extend their production agreement through year-end, to avoid a credibility problem that is already emerging with lagging Russian output curtailment," Citigroup Inc. analysts led by Ed Morse said in a note Monday. Their deal unintentionally led to U.S. storage bloating as oil came out of offshore storage, creating a more bearish perception of oil and a selloff to end the first quarter, they wrote. U.S. producers have also been selling more of their future production and raising output, further adding to a perception that works against OPEC's push for higher prices, they added. Citi analysts forecast that the market is set up for inventory draws coming soon that could push Brent prices above $60 a barrel. But they also warned that prices could fall back to near $40 a barrel by year's end if OPEC and its collaborates don't extend their deal. Gasoline futures rose 1.19 cents, or 0.7%, to $1.7581 a gallon, the latest in a series of fresh 18-month highs. It is up in 10 of the past 12 sessions. Diesel futures rose 1.89 cents, or 1.2%, to $1.6473 a gallon, diesel's highest settlement since Feb. 23. It is up in 11 of the past 12 sessions. Benoit Faucon, Sarah McFarlane, Georgi Kantchev and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Petroleum production; Prices; Supply & demand; Crude oil
Location: Iran Russia United States--US Syria
People: Assad, Bashar Al
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 10, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1885727112
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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Nigerian Oil Deal Was Worry at Shell
Author: Kent, Sarah; Sylvers, Eric
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Apr 2017: B.3.
Abstract:
Royal Dutch Shell PLC's top executives last year were worried that a controversial Nigerian oil deal may have violated a U.S. Justice Department agreement with the Anglo-Dutch oil giant and would spark an American probe, according to a recorded phone call between the firm's chief executive and top finance officer at the time.
Full text: Royal Dutch Shell PLC's top executives last year were worried that a controversial Nigerian oil deal may have violated a U.S. Justice Department agreement with the Anglo-Dutch oil giant and would spark an American probe, according to a recorded phone call between the firm's chief executive and top finance officer at the time. The company is already under investigation in Italy, Nigeria and the Netherlands for a $1.3 billion deal in 2011 with Italian oil firm Eni SpA and the Nigerian government for a lucrative Atlantic Ocean oil license known as OPL 245, according to Italian court documents, Nigerian public records and a statement from the Dutch prosecutor. The controversial oil bloc is believed to contain billions of barrels of crude. The Justice Department declined to comment. Italian prosecutors are pursuing criminal charges against Shell and Eni, saying in court records the companies knew the deal's proceeds would be used to pay bribes in Nigeria. Shell and Eni said Friday they paid the Nigerian government for the oil bloc but didn't believe the money would ultimately be used for bribes. Court documents allege the money went to various executives and Nigerian government officials. The phone call between Shell CEO Ben van Beurden and then-CFO Simon Henry opens a rare window into the private conversations of the company's top executives and reveals how the Nigeria bribery investigation has become a nagging worry. On the call, they say they are speaking just hours after Dutch police raided Shell's offices in The Hague in February 2016 as part of an investigation into the deal. In response to questions about the call, a Shell spokesman said the company notified U.S. and U.K. authorities about the raid and subsequently turned over the results of its own internal investigation into the Nigerian oil deal to them. Shell said it is cooperating with authorities but doesn't believe there is a basis for the Italian prosecution. Shell didn't dispute the recording's authenticity. On the call, Mr. van Beurden told Mr. Henry that the company's legal team conducting its own investigation had turned up "unhelpful email exchanges" with "loose chatter" from Shell employees about the Nigeria deal, according to a recording heard by The Wall Street Journal that was provided by a person in possession of the recording. BuzzFeed reported the call on Sunday. Later in the call, Mr. van Beurden said Shell concluded the U.S. wasn't involved in the Dutch raid. Mr. van Beurden, who took over as CEO in 2014 and wasn't involved in the OPL 245 deal, expressed concern that his predecessors hadn't disclosed enough about the deal to the U.S. Justice Department. The Justice Department had already investigated Shell for Nigeria bribery allegations in a separate case and entered a deferred prosecution arrangement with the company in 2010 requiring a $30 million criminal settlement and adherence to what the Justice Department called "enhanced corporate compliance and reporting obligations." The Dutch Public Prosecutor said Sunday it is working on a joint investigation with Italian authorities into whether Shell bribed Nigerian officials, but wouldn't comment on the Shell executives' conversation. Italian prosecutors didn't respond to requests for comment. --- Aruna Viswanatha contributed to this article. Credit: Sarah Kent, Eric Sylvers
Subject: Bribery; Petroleum industry
Location: Nigeria
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Apr 10, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1885746278
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1885746278?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BHP Needs to Prove Oil and Iron Are Better Together; Elliott Management's plan for BHP to split up has some merit, but the upside appears optimistic.
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Apr 2017: n/a.
Abstract: None available.
Full text: Drilling for oil and digging up minerals are different businesses, and companies should stick to what they do best. So argues hedge fund Elliott Management, which proposed Monday that BHP Billiton, the world's largest mining company, should spin off its U.S. oil assets . Elliott has a point: BHP shares have underperformed those of rival Rio Tinto since the commodity crash in 2011. Stocks of some pure-play North American oil firms such as Anadarko Petroleum have also held up better. But the hedge fund's claim of gains as high as 51% for shareholders look rosy. The crux of Elliott's argument is that BHP's strategy of diversification has failed. BHP and Rio Tinto both produce iron ore, but Rio is much more of a pure iron-ore play: Nonetheless BHP's shares fell nearly 80% in dollar terms from mid-2011 to early 2016 when commodities bottomed out, while Rio's shares fell around 70%. Both firms have seen their stock prices nearly double again as commodities have roared back . The main issue with Elliott's analysis appears to be optimistic projections for BHP's valuation after the reorganization. Elliott notes that after BHP's 2015 spinoff of most of its coking coal and manganese assets into South32, the new firm's shares dramatically outperformed--Elliott puts total shareholder returns at nearly 40% since the spinoff, against a 17% fall for BHP itself. Coal, however, isn't oil. Coking coal was the best-performing industrial commodity of 2016, with futures on China's Dalian exchange nearly tripling. Oil prices, meanwhile, have already nearly doubled since early 2016. Higher oil prices, in other words, may already be baked into BHP's share price, meaning the kind of gains South32 saw after its listing could prove elusive. And BHP gets other benefits from exposure to oil--in its most recent assessment, Moody's noted the firm's diverse product base including oil as one important factor supporting its rating. Given BHP's performance against rivals like Rio, the onus is ultimately on the firm to prove that being in oil is really enhancing shareholder value for a big mining company. But investors watching BHP's shares head higher Monday should take Elliott's projections with a healthy grain of salt. Write to Nathaniel Taplin at nathaniel.taplin@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Nathaniel Taplin
Subject: Prices; Stockholders; Iron; Coal; Spinoffs
Location: China United States--US
Company / organization: Name: Moodys Investors Service Inc; NAICS: 522110, 523930, 561450; Name: Anadarko Petroleum Corp; NAICS: 211111; Name: Rio Tinto Group; NAICS: 212112, 212291; Name: BHP Billiton; NAICS: 211111, 212231, 212234
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 10, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: New s
ProQuest document ID: 1885912728
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1885912728?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Turns Slightly Lower; Forex Cited
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2017: n/a.
Abstract: None available.
Full text: 0441 GMT - Slight moves in the dollar are helping erase what had been tiny morning gains in Asia for oil, says Jonathan Chan at Phillip Futures. "This is mostly a currency-related adjustment, not profit-taking," he contends, adding, "The net longs are still in the game." As the WSJ Dollar Index has been little changed in Asian trading, May Nymex futures are now off 6 cents at $53.02 and June Brent eases 12 cents to $55.86. Write to Jenny W. Hsu at jenny.hsu@wsj.com
Subject: Price increases
Location: Libya
Company / organization: Name: National Oil Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886128157
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886128157?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Extends Gains On Syria Strife, Output Outages
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Apr 2017: B.11.
Abstract:
Threats in one of the world's leading region's for oil production are bolstering bullish sentiment among traders that was already high on belief a global glut had peaked and stocks were diminishing.
Full text: Oil prices are on their longest winning streak since August as production outages in Libya and Canada, and concerns related to last week's U.S. airstrike in Syria add further fuel to a rally. Prices hit fresh one-month highs, the latest peak in a rally that has gone almost uninterrupted for two weeks. U.S. oil prices have fallen in only one session since March 27. Threats in one of the world's leading region's for oil production are bolstering bullish sentiment among traders that was already high on belief a global glut had peaked and stocks were diminishing. Prices rose last week on the threat of a conflict in Syria spreading to nearby countries that are big oil exporters. On Monday, Libya's largest oil field, Sharara, shut again. And traders are paying more attention to an even larger outage in Canada, analysts said. Light, sweet crude for May delivery settled up 84 cents, or 1.6%, at $53.08 a barrel on the New York Mercantile Exchange, the highest settlement since March 7. Brent crude, the global benchmark, gained 74 cents, or 1.3%, to $55.98 a barrel on ICE Futures Europe, its highest settlement since March 6. Both markets have gained in five consecutive sessions. In addition to the geopolitical factors, demand for gasoline and diesel appears to be strong in the U.S., further supporting the chance a longstanding oil glut is easing. All of those disparate factors have led to a general boost of enthusiasm and focus on bullish news that keeps pulling the market higher, brokers and analysts said. The U.S. launched an airstrike against Syria last week following a recent chemical-weapon attack there. While Syria is a marginal oil producer, the U.S. move has stoked concerns of possible retaliation from Iran and Russia, which both have renewed their support to stand by President Bashar al-Assad's regime. "There would seem to be a path of least resistance higher" for oil prices until Secretary of State Rex Tillerson's visit to Russia this week, Chicago brokerage iiTrader said. The market is already losing about 450,000 barrels a day from outages in Canada, according to analysts' estimates. A March 14 fire damaged equipment in the heart of the Alberta province's oil industry, which traders are now starting to expect will lead to lower oil imports into the U.S., analysts said. A total of about 25 million barrels could be out of production through June, according to Standard Chartered, while PIRA Energy Group expects 30 million barrels. Prices had already been moving higher overnight, but rose further in the morning after news local militia blocked the pipeline connecting Libya's Sharara to an oil terminal, according to a Libyan oil official. Continuing civil strife in the country led to it receiving an exemption from output cuts that most of the world's largest exporters agreed to last year, adding focus among traders to the country's ability -- or inability -- to raise production. The shut Sharara oil field normally pumps 200,000 barrels a day from the Western Sahara. Meanwhile, gasoline futures rose 1.19 cents, or 0.7%, to $1.7581 a gallon, the highest close since August 2015. Credit: By Timothy Puko
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Apr 11, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886198402
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886198402?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Flips to Small Gains; Investors earlier cashed out to reposition themselves ahead of supply reports
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2017: n/a.
Abstract: None available.
Full text: Oil futures flipped to small gains Tuesday and extended a lengthy rally after news raised expectations the world's biggest crude exporters will extend an agreement to cut output. The Wall Street Journal reported that Saudi Arabia has told OPEC officials that it wants to extend the cartel's agreement to cut crude-oil production for another six months when the group meets in May, according to people familiar with the matter. Saudi support is essential for the 13-member Organization of the Petroleum Exporting Countries to renew its agreement and the country has been largely responsible for the group nearly meeting its reduction targets during the first three months of the deal. Light, sweet crude for May settled up 32 cents, or 0.6%, at $53.40 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained 25 cents, or 0.4%, to $56.23 a barrel on ICE Futures Europe. Both hit their highest settlements since March 1. Prices jolted higher shortly after the news in the early afternoon though they had been in negative territory nearly all morning. Those gains, though small, extend oil's longest winning streak since August, now to six sessions. U.S. oil has lost ground only once in the past 11 sessions. The earlier fall had largely been just from traders taking profits after the long string of gains, traders and analysts had said. The sheer length of the rally was making it more difficult for traders to keep buying, as many will eventually just want to lock in a profit or avoid a rush of other traders doing so. "That is exactly the type of news that would extend that rally," said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. Saudi Arabia is OPEC's biggest producer and the world's top exporter of oil. It has shouldered the cartel's largest burden, slashing as much as 700,000 barrels a day in some months to make up for shortfalls from other members. The kingdom's energy minister, Khalid al-Falih, has been unwilling to publicly signal that he would support extending the cuts, but he has since decided he would sign off on renewing the agreement, the people familiar with the matter said. Whether OPEC extends its agreement has become one of the major focal points of the market. If OPEC does't agree to an extension, it may face an onslaught of bearish traders and new oversupply that sinks prices back to near $40 a barrel, Citigroup Inc. analysts said on Monday. Extending the deal, however, is likely to push prices to $60 a barrel, they added. "As we have been saying, the rebalancing of the market is under way, while OPEC and nonmembers are likely to fully abide to the production quotas," Peter Cardillo, chief market economist at First Standard Financial in New York, said in a note. "In fact, we think the chance of renewing them in June is a near certainty." Traders are also awaiting reports coming in the next 24 hours on U.S. inventories from industry and government organizations. These reports have taken on even more importance than usual in recent weeks as traders gauge whether OPEC's cuts will cause historically high storage levels to fall in the world's biggest market. Many believe that will happen, but are taking a wait-and-see attitude for now, said Bart Melek, head of commodity strategy at TD Securities in Toronto. Unexpected and large stockpile additions in early March had caused a tumble in oil prices before the recent rebound. "After the rally we had, it's not surprising people would want to take some profits off the table here" ahead of the upcoming data, Mr. Melek said. Crude storage levels likely fell by 100,000 barrels in the week ended April 7, according to The Wall Street Journal's survey of 13 analysts. The analysts also forecast gasoline stockpiles fell by 1.7 million barrels and stockpiles of distillates, which include heating oil and diesel, fell by 1 million barrels. The industry group American Petroleum Institute releases its estimates late Tuesday. The U.S. Energy Information Administration releases its official data on Wednesday at 10:30 a.m. EDT. Some of the most widely watched commodity research teams reiterated forecasts this week that this is the quarter U.S. oil stockpiles stop growing. Citigroup forecasts a drawdown of 300,000 barrels a day, the first fall for any second quarter in at least six years. Standard Chartered expects U.S. crude inventories will "fall sharply" over three months due to refineries running harder and imports falling. PIRA Energy Group said EIA is likely to report only its second weekly drawdown of the year this week. Standard Chartered said seaborne oil, offshore inventories, storage in other industrialized nations, and U.S. gasoline and diesel inventories have all already started to fall. Gasoline futures lost 0.04 cent, or 0.02%, to $1.7577 a gallon. Diesel futures rose 0.33 cents, or 0.2%, to $1.6506 a gallon, reaching a seven-week high after its 12th gain in 13 sessions. Summer Said and Benoit Faucon contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Petroleum production; Futures; Price increases; Crude oil
Location: United States--US New York Canada Libya North America United Kingdom--UK
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886248250
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886248250?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Arabia Readies for Debut Dollar Sukuk Amid Efforts to Diversify Economy; As oil revenues decline, the kingdom is looking to raise funds
Author: Para sie, Nicolas
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2017: n/a.
Abstract: None available.
Full text: RIYADH--Saudi Arabia opened books Tuesday for its U.S. dollar benchmark debut sukuk bond, according to a banker involved in the transaction. The initial price guidance is around 115 basis points over mid-swaps for the five-year tranche and about 155 basis points over mid-swaps for the 10-year tranche. Both tranches are of benchmark size, which is usually at least $500 million. The transaction, under the Saudi Arabia's Trust Certificate Issuance Program, is expected Wednesday. Citi, HSBC and J.P. Morgan have been hired as joint global coordinators. BNP Paribas, Deutsche Bank and NCB Capital, together with the coordinators, are mandated as joint lead managers and bookrunners. Saudi Arabia sold bonds worth $17.5 billion for the first time in the international markets in 2016, in the largest-ever debt issue by a developing country. The kingdom is raising money to boost its finances as income from oil sales declines. Crude prices have fallen sharply since the middle of 2014, pushing Saudi Arabia to pursue an ambitious plan to reshape its oil-dependent economy . Write to Nicolas Parasie at nicolas.parasie@wsj.com Credit: By Nicolas Parasie
Subject: Bond issues; International finance
Location: United States--US Saudi Arabia
Company / organization: Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: BNP Paribas; NAICS: 522110; Name: NCB Capital; NAICS: 523930; Name: Deutsche Bank AG; NAICS: 522110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886248428
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886248428?accou ntid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Congressmen Warn Venezuela Default Could Lead to Russian Control of U.S. Oil Infrastructure; PdVSA owes Rosneft $1.5 billion; its Citgo unit has most foreign ownership of America's domestic refinery capacity
Author: Wernau, Julie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2017: n/a.
Abstract: None available.
Full text: A default by Venezuela could move the Russian government closer to gaining control of U.S. refineries and pipelines, two U.S. Congressmen wrote in a letter urging the Treasury to review the matter. The prospect of a default by the Venezuelan government or Petróleos de Venezuela S.A, the state-owned oil company known as PdVSA, has become an acute issue in the bond markets as expectations grow that the country's cash crunch could lead to a missed payment before year-end. The congressmen's April 6 letter refers to a $1.5 billion loan that state-owned Russian oil giant Rosneft made in November to PdVSA. As collateral, the Venezuelan energy company put up 49.9% of the equity in Citgo Petroleum Corp. Citgo is a PdVSA subsidiary and the largest foreign owner of U.S. domestic refinery capacity, according to the congressmen's letter. It has three refineries in the U.S., and a network of terminals and pipelines running across 24 states. A Venezuela default on the Rosneft loan "would give the Russians more control over oil and gas prices world-wide, inhibit U.S. energy security and undermine broader U.S. geopolitical efforts," Reps. Jeff Duncan (R., S.C.) and Albio Sires (D., N.J.) wrote in a letter to Treasury Secretary Steven Mnuchin. PdVSA officials have said they expect to make a $2.1 billion bond payment due on Wednesday. But the country has spiraled into a crippling economic crisis brought on by lower oil prices. Venezuela has a 41% chance of default or missed payment in the next six months, according to the credit default swap market. That is up from a 34% chance only a month ago. The Congressmen, the two ranking members of the Subcommittee on the Western Hemisphere of the House Committee on Foreign Affairs, asked Mr. Mnuchin to bring the matter before the Committee on Foreign Investment in the United States, or CFIUS. The committee reviews foreign takeovers of U.S. businesses. A spokesman for the U.S. Treasury declined to comment, saying CFIUS investigations aren't public. Rosneft and PdVSA didn't respond to requests for comment. "The Russian entry into the Venezuelan situation was a bit unexpected," said Helima Croft, head of commodity strategy at RBC Capital Markets and a former member of the CIA. "This was not a scenario that was on the horizon." Still, some analysts say that it isn't at all clear that Russia has a path to control of Citgo. Rosneft and its chief executive Igor Sechin, an ally of President Vladimir Putin, are under sanctions by the U.S., which would prevent a legal takeover of U.S. assets even if Rosneft took control of the Venezuelan refiner as long as the sanctions remain in place. Rosneft also has collateral for just less than 50% of Citgo. PdVSA previously pledged the other 50.1% of Citgo's equity as collateral to bondholders who had agreed to swap into longer-dated PdVSA bonds in October. Michael Roche, emerging-market fixed-income strategist at Seaport Global Holdings, said Rosneft has reported that it has about $20 billion in cash. He thinks it is likely that the Russian company has already acquired the approximately $6.7 million of bonds that might gain control of Citgo, if PdVSA were to default on both its loan and bond obligations. At least four times that amount of PdVSA's bonds due 2020 trade on an active day, according to TRACE data, which provides a snapshot of investor bond trading. Moreover, some attorneys say it isn't clear who would be first in line to take control of Citgo in the event that PdVSA defaults on its obligations. Several parties have legal judgments against Venezuela and have been trying to force payment. Canadian mining company Crystallex International Corp. on Monday asked a Delaware federal judge for an injunction to block PdVSA from taking cash or transferring assets from Citgo, Crystallex is trying to enforce a $1.2 billion arbitration award against Venezuela over nationalizations carried out under the country's former president, Hugo Chávez. Alison Sider and Andrew Scurria contributed to this article. Write to Julie Wernau at Julie.Wernau@wsj.com Credit: By Julie Wernau
Subject: Treasuries; Petroleum refineries; Bills; Bond issues; Pipelines; Congressional committees
Location: Russia United States--US Venezuela Western Hemisphere
People: Sires, Albio
Company / organization: Name: RBC Capital Markets; NAICS: 523110; Name: Citgo Petroleum Corp; NAICS: 324110, 447110; Name: OAO Rosneft; NAICS: 324110; Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Committee on Foreign Investment in the United States; NAICS: 926150; Name: House of Representatives-Foreign Affairs, Committee on; NAICS: 921120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 11, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886388558
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886388558?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude Oil Supplies Seen Decreasing in DOE Data
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show a decrease in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 13 analysts and traders surveyed showed that U.S. oil inventories are projected to have decreased by 100,000 barrels, on average, in the week ended April 7. Seven analysts expect stockpiles to grow and six expect them to shrink. Forecasts range from a decrease of 3 million barrels to an increase of 3 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to show a decrease of 1.7 million barrels on average, according to analysts. One expects them to rise, 11 expect them to fall and one expects no change. Estimates range from a fall of 3 million barrels to an increase of 1 million barrels. Stocks of distillates, which include heating oil and diesel, are expected to shrink by 1 million barrels. One analyst expects an increase, and 12 expect a decrease. Forecasts range from a decline of 2 million barrels to an increase of 500,000 barrels. Refinery use is seen gaining 0.2 percentage point to 91% of capacity, based on EIA data. Eight analysts expect an increase, two expect a decrease and three did not report expectations. Forecasts range from a decrease of 1 percentage point to an increase of 1 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 1.3-million-barrel decline in crude supplies, a 3.7-million-barrel decrease in gasoline stocks and a 1.6-million-barrel fall in distillate inventories, according to a market participant. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Price increases; Supply & demand
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 11, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886425750
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886425750?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Outlook for Kenyan Economy Dimmed by Severe Drought; World Bank says potential violence around elections , global rise in oil prices could also have an impact on East Africa's biggest economy
Author: Stevis, Matina
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2017: n/a.
Abstract: None available.
Full text: NAIROBI, Kenya--Kenya's economy, a rare bright spot on a continent battered by plummeting commodities prices, will expand at a slower rate in 2017 at the back of a drought, the World Bank said Tuesday. The impact of the drought that is hitting several parts of the country and causing a devastating hunger crisis across the Horn of Africa could shave 0.6 percentage point off growth in East Africa's biggest and most mature economy, the Bank warned. Elections this year, as well as global events like the rise in oil prices, will contribute to the slowdown, but, at 5.5%, Kenya will still be growing at multiple times the sub-Saharan African average. Violence around elections has in the past dramatically disrupted business for weeks, and economic activity slows down around election time preemptively. The World Bank report said that growth is expected to rebound to 5.8% in 2018 and above 6% in 2019. Still, that may still not be enough to catapult Kenya to "middle-income status," a designation of emerging economies that have grown out of poverty, the report warned. While impressive to Western eyes, the 5%-6% growth rate seen here is trailing East African neighbors like Tanzania and Rwanda, both growing faster than 7% annually; it is also not enough to make up for rapid population growth, which effectively diminishes the impact of fast growth. Kenya's economy is of particular interest to investors: Unlike most major players in Africa, such as Nigeria, Kenya doesn't depend on oil or ores for its revenue. The World Bank said that the country's economic mix, in which services account for the majority of gross domestic product growth, is a boon that stabilizes the Kenyan economy. But the availability of credit remains a key risk to Kenya's aspirations. Credit growth is at its slowest in 13 years, the report said, putting a brake on the growth of all sectors of the economy. The situation has been made worse, some argue, by a law passed in late 2015 capping interest rates against the advice of the local central bank. The International Monetary Fund earlier this year slammed the government's decision , seen largely as a populist attempt to reassure voters of cheap loans ahead of August 2017 elections, and said that it had led to losing 0.8 percentage points of growth. "There is evidence of credit rationing as some banks have announced plans to curtail new unsecured consumer loans," the World Bank report said. "This will impact on durable household purchases [e.g. cars, houses] and firms in manufacturing, construction and real estate industries, all of which will subdue domestic demand and Kenya's growth prospects," it added. Write to Matina Stevis at matina.stevis@wsj.com Credit: By Matina Stevis
Subject: Economic growth; Gross Domestic Product--GDP
Location: Horn of Africa Kenya Nigeria Rwanda Tanzania
Company / organization: Name: International Bank for Reconstruction & Development--World Bank; NAICS: 928120; Name: International Monetary Fund--IMF; NAICS: 522298
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 11, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886449006
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886449006?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Up on Renewed Hopes of Extension to Production Cuts
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2017: n/a.
Abstract: None available.
Full text: Crude prices gained in Asia trade Wednesday, on expectations that major oil producers will shelve more of their production to accelerate a rebalance in the market. The gains come as Saudi Arabia has told the Organization of the Petroleum Exporting Countries it wants to extend the agreement to cut crude-oil production for six more months when the group meets in May, according to people familiar with the situation. Saudi Arabia has been shouldering the bulk of the 1.2 million barrels a day cuts that the oil cartel agreed to in late 2016. Meanwhile, there has been talk among traders and analysts that the group's compliance level has exceeded 100% for March. Official readings will be included in OPEC's monthly oil report due later in the day. "It is increasingly looking like an extension to productions cuts is required to prevent a surplus forming in oil markets," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia, joining a chorus of analysts that expect OPEC to officially announce the extension on the May 25 meeting. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $53.53 a barrel at 0252 GMT, up $0.13, or 0.2%, in the Globex electronic session. June Brent crude on London's ICE Futures exchange rose $0.13, or 0.2%, to $56.36 a barrel. However, higher prices could put the market at risk of another glut, because higher prices could incentivize U.S. shale producers to dig for more oil. In its latest short-term outlook report, the U.S. Energy Information Administration said U.S. crude oil production rose 9.1 million barrels a day in March, the highest level in a year. Production will likely grow by 300,000 a barrels a day this year and another 700,000 barrels a day in 2018, to an average of 9.9 million barrels a day. Goldman Sachs said earlier that the next two years could see the biggest increase in oil and gas projects production in history. That, along with a new shale oil boom that could alone grow 1 million barrels a day year-over-year, could create an oversupply in 2018 and 2019, it said. Still, it was unclear if U.S. shale can upset OPEC's plan to drive global inventories lower, says Grace Liu, head of research at Guotai Junan International. If all the parties of the agreement, which includes the non-OPEC players, stick to the pledge of deleting 1.8 million barrels a day of their combined daily production, and world crude demand grow around 1.4 million barrels a day as expected, production from U.S. won't be sufficient to fill the gap, she explained. Among refined oil products, Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--was up 0.4% at $1.7642 a gallon, while May diesel gained 0.3% to $1.6560. ICE gasoil for April was up 1.1% from Tuesday's settlement to $498.00. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Cartels; Crude oil prices
Location: United States--US Saudi Arabia
Company / organization: Name: Commonwealth Bank of Australia; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 1 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886475947
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886475947?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Worry Over Venezuelan Bonds Expands --- Congressmen warn a PdVSA default could give Russia control of U.S. oil infrastructure
Author: Wernau, Julie
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]12 Apr 2017: B.12.
Abstract:
The prospect of a default by the Venezuelan government or Petroleos de Venezuela SA, the state-owned oil company known as PdVSA, has become an acute issue in the bond market as expectations grow that the country's cash crunch could lead to a missed payment before year-end.
Full text: A default by Venezuela could move the Russian government closer to gaining control of U.S. refineries and pipelines, members of Congress wrote to the Treasury Department this month urging a review of the matter. The prospect of a default by the Venezuelan government or Petroleos de Venezuela SA, the state-owned oil company known as PdVSA, has become an acute issue in the bond market as expectations grow that the country's cash crunch could lead to a missed payment before year-end. An April 6 letter from two members of the House of Representatives refers to a $1.5 billion loan that state-owned Russian oil giant Rosneft made in November to PdVSA. As collateral, the Venezuelan company put up 49.9% of the equity in Citgo Petroleum Corp. Citgo is a PdVSA subsidiary and the largest foreign owner of U.S. domestic refinery capacity, according to the congressmen's letter. It has three refineries in the U.S., and a network of terminals and pipelines running across 24 states. A Venezuela default on the Rosneft loan "would give the Russians more control over oil and gas prices world-wide, inhibit U.S. energy security and undermine broader U.S. geopolitical efforts," Reps. Jeff Duncan (R., S.C.) and Albio Sires (D., N.J.) wrote in a letter to Treasury Secretary Steven Mnuchin. PdVSA officials have said they expect to make a $2.1 billion bond payment due on Wednesday. But the country has spiraled into a crippling economic crisis brought on by lower oil prices. Venezuela has a 41% chance of default or missed payment in the next six months, according to the credit-default swap market, up from 34% only a month ago. The two ranking members of the Subcommittee on the Western Hemisphere of the House Committee on Foreign Affairs asked Mr. Mnuchin to bring the matter before the Committee on Foreign Investment in the U.S., or CFIUS. The committee reviews foreign takeovers of U.S. businesses. Six U.S. senators also submitted a letter on Tuesday requesting that Mr. Mnuchin "proactively monitor the situation" as chairman of CFIUS. The group of senators requested a response by April 28. A spokesman for the U.S. Treasury declined to comment, saying CFIUS investigations aren't public. Rosneft and PdVSA didn't respond to requests for comment. Some analysts say it isn't clear that Russia has a path to control of Citgo. Rosneft and its chief executive, Igor Sechin, an ally of President Vladimir Putin, are under sanctions by the U.S., which would prevent a legal takeover of U.S. assets even if Rosneft took control of the Venezuelan refiner as long as the sanctions remain in place. Also, Rosneft has collateral for just less than 50% of Citgo. PdVSA previously pledged the other 50.1% of Citgo's equity as collateral to bondholders who agreed to swap into longer-dated PdVSA bonds in October. Michael Roche, emerging-market fixed-income strategist at Seaport Global Holdings, said Rosneft has reported that it has about $20 billion in cash. He said it is likely the Russian company has already acquired the approximately $6.7 million of bonds that might gain control of Citgo, if PdVSA were to default on both its loan and bond obligations. Credit: By Julie Wernau
Subject: Bond markets; Treasuries; Credit markets (wsj)
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2017
Publication date: Apr 12, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886562543
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886562543?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Falls After EIA Data Shows U.S. Output Continues Growth; U.S. producers boosted their output by 36,000 barrels a day last week
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices gave up gains after federal data showed that U.S. crude output continued its relentless growth. Prices slid to losses after the U.S. Energy Information Administration reported that U.S. producers boosted their output by 36,000 barrels a day last week, continuing a two monthlong string of weekly increases. That has traders and investors worried that higher prices is sending shale producers rushing back to the oil fields, undermining cuts by the Organization of the Petroleum Exporting Countries. On Wednesday, that concern outweighed a long-awaited drop in U.S. crude supplies--a decline that traders and analysts have been waiting on for weeks--to send prices lower. U.S. crude futures were recently down 12 cents, or 0.22%, at $53.28 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 21 cents, or 0.37%, to $56.02 a barrel. The amount of crude in storage fell by nearly 2.2 million barrels according to the EIA--well above what analysts had been anticipating and more than the 1.3 million barrel drop reported Tuesday by the American Petroleum Institute, an industry group. "I guess to continue this rally, the market was demanding some bigger numbers than what came out. That was a pretty bullish report," said Bob Yawger, director of the futures division of Mizuho Securities USA Inc. "The only bearish element I can see is the domestic production number." Oil prices had been moving higher Wednesday after Saudi Arabia, the world's top crude exporter, told major producers that it favored extending the deal to curtail production beyond its initial six-month term, according to people familiar with the matter. Last year, OPEC and external producers including Russia committed to eliminating about 1.8 million barrels of oil a day in a bid to rebalance the oil market and raise petroleum prices. The kingdom has been shouldering the brunt of the oil cartel's cuts. "Obviously Saudi Arabia supporting an extension of the OPEC deal...provides support for the market," said Amrita Sen, chief oil analyst at Energy Aspects. OPEC said Wednesday that its output continued to fall last month, as members hewed more closely to agreed-upon production targets. But the group is still grappling with how to handle surging output from U.S. shale producers. In its monthly report, OPEC revised upward its U.S. supply growth forecast for this year. The coalition of producers that are willing to extend the cuts may be fraying at the edges, say analysts. Earlier, Russia's Energy Minister Alexander Novak announced that he planned to talk to Russian oil companies about an extension, but analysts are skeptical that Moscow will follow through. "We still believe that it is very unlikely that Russia will sign up to any cuts beyond the middle of the year," said Commerzbank analysts in recent report. Gasoline futures edged down 0.94 cent, or 0.53%, to $1.7483 a gallon. Diesel futures gained 0.36 cent, or 0.22%, to $1.6542 a gallon. Benoit Faucon, Neanda Salvaterra and Jenny W. Hsu contributed to this article Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Petroleum production; Gasoline; Price increases; Supply & demand
Location: Russia United States--US Saudi Arabia
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 12, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886643564
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886643564?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Import Prices Fell in March Due to Lower Oil Prices; The report suggests that underlying inflation pressures continue to rise in the U.S.
Author: Mitchell, Josh; Chaney, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--Overall prices for foreign goods shipped to the U.S. fell last month due to a rare drop in oil prices, but costs for other goods rose steadily in another sign of rising inflation pressures. Import prices fell 0.2% in March from a month earlier, marking the first monthly drop since November, the Labor Department said Wednesday. The decline matched the expectation of economists surveyed by The Wall Street Journal. The fall in import prices reflected a 3.6% decline in the price of imported oil, a rare drop in a year that has seen oil prices climb quickly. Outside of petroleum, import prices grew 0.2% last month from February. The report suggests that underlying inflation pressures continue to rise in the U.S., likely keeping the Federal Reserve on track to raise interest rates further this year. Over the past year, overall import prices have grown 4.2%. Prices excluding petroleum grew 1.2%, the biggest jump for any 12-month period since the year that ended in March 2012. Wednesday's report also showed prices for U.S. exports grew an average 0.2% in March from a month earlier and expanded 3.6% over the past 12 months. Write to Josh Mitchell at joshua.mitchell@wsj.com Write to Sarah Chaney at sarah.chaney@wsj.com Credit: By Josh Mitchell and Sarah Chaney
Subject: Prices; US exports; Inflation; Trade deficit
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 12, 2017
Section: Economy
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886677573
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886677573?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Inventories Fall More Than Expected; Gasoline stockpiles also see bigger-than-expected drop
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil inventories decreased much more than expected for the week ended April 7, while gasoline stockpiles also fell, according to data released Wednesday by the Energy Information Administration. Crude-oil stockpiles fell by 2.2 million barrels to 533.4 million barrels, and are near the upper limit of the average range for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude supplies would fall by 100,000 barrels on the week. Oil stored at Cushing, Okla., the delivery point for U.S. stocks, increased by 276,000 barrels to 69.4 million barrels, the EIA said in its weekly report. Gasoline stockpiles decreased by 3 million barrels, to 236.1 million barrels. Analysts were expecting gasoline inventories to fall by 1.7 million barrels from the previous week. Distillate stocks, which include heating oil and diesel fuel, decreased by 2.2 million barrels, to 150.2 million barrels, but are in the upper half of the average range, the EIA said. Earlier in the week, analysts had forecast supplies would decrease by 1 million barrels from a week earlier. Refining capacity utilization rose by 0.2 percentage points from the previous week, to 91%. Analysts were expecting levels to rise by 0.2 percentage point from the previous week. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Petroleum products; Supply & demand
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 12, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886697947
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886697947?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Arabia Raises $9 Billion in First International Sukuk Issuance; Kingdom pursues ambitious plan to reshape its oil-focused economy
Author: Cui, Carolyn; Lohade, Nikhil
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia has raised $9 billion in its first international sale of Islamic bonds, or sukuk, people familiar with the transaction said Wednesday, as the kingdom rolls out an ambitious plan to reshape its oil-dependent economy. The Saudi bonds will be split equally between five- and 10-year tranches after bankers received orders in total exceeding $33 billion, according to bankers and investors. The Saudi government was able to issue more than the $8 billion it had planned to sell, and yields were lower than initial guidance. The five-year notes were sold at 2.93%, and the 10-year notes were sold at 3.65%. Saudi Arabia, like other energy-exporting countries in the Middle East, is raising money to support its finances as income from oil sales declines. It cut spending and subsidies to rein in its budget deficit, which had ballooned to a record $98 billion in 2015 but shrank last year to about $79 billion as those austerity measures took effect. Saudi Arabia expects to run a deficit of about $53 billion in 2017 and hopes to balance its finances by 2020, its Finance Ministry said in December. "The sukuk should cover about one-fifth of the expected fiscal deficit," according to investors who reviewed the prospectus. Saudi Arabia issued bonds worth $17.5 billion in 2016, tapping for the first time the international markets in the largest-ever debt sale by a developing country, and has said it would continue to tap the markets for its financing needs as it works to diversify its economy by boosting the private sector. "They're kicking the oil barrel down the road; they're buying time on the fiscal deficit," said Patrick Drum, a portfolio manager at Bellingham, Wash.-based Saturna Capital, which runs a sukuk-bond fund. Saudi Arabia's $9 billion bond sale also set the record for this year's emerging-market debt issuance, topping Kuwait's $8 billion deal in March. For the first quarter, government and corporate bonds in emerging markets sold a total of $179 billion in dollar-denominated debt, an all-time high for the period. With bond yields in most of the developed world still near historical lows, global investors have been pouring money into emerging-market debt. Emerging-market debt investors are also attracted by Saudi Arabia's relatively high credit rating and its large proven oil reserves. "It is one of the few countries in emerging markets that have a high investment grade," Mr. Drum said. Fitch Ratings last month downgraded the country's foreign sovereign credit rating by one notch to A-plus, citing the wider-than-expected fiscal deficit in 2016 and continued doubts about the implementation of the government's ambitious reform program. Standard & Poor's has an A-minus rating for Saudi Arabia and Moody's keeps it at A1, both with a stable outlook. Saudi Arabian officials began to meet investors over the weekend and had opened books for the sukuk Tuesday. Sukuk is structured to abide by Islam's ban on interest payments, typically by incorporating assets or cash flow in the underlying transaction. Issuers as a result are able to tap a wider pool of investors than with more conventional bonds. The final spread was one percentage point over the agreed benchmark interest rate for the five-year tranche and 1.4 percentage points over the agreed benchmark rate for the 10-year tranche. The initial price guidance was around 1.15 percentage points over the so-called midswap rate and about 1.55 percentage points over midswaps, respectively, for the two tranches. Citigroup Inc., HSBC Holdings PLC and J.P. Morgan Chase & Co. are the joint global coordinators. BNP Paribas SA, Deutsche Bank AG and NCB Capital, together with the coordinators, have been mandated as joint lead managers and bookrunners. Write to Carolyn Cui at carolyn.cui@wsj.com and Nikhil Lohade at Nikhil.Lohade@wsj.com Related * Financial Advisers Put Faith in Religion-Based Investing * Saudi Aramco Plans to Raise $2 Billion With First Bond Offering Credit: Carolyn Cui; Nikhil Lohade
Subject: Emerging markets; Islamic financing; Bond issues; Budget deficits; International finance; Credit ratings
Location: Kuwait Middle East
Company / organization: Name: Standard & Poors Corp; NAICS: 511120, 523999, 541519, 561450
Publication title: Wall Street Jo urnal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 12, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888655301
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888655301?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Retreats as U.S. Production Damps Sentiment
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Apr 2017: n/a.
Abstract: None available.
Full text: Crude futures pulled a bit further back in Asia following the first declines in more than a week as still-rising U.S. production overshadows ongoing output cuts elsewhere. But analysts say the retreat could also be technical selling ahead of holiday weekend; oil won't trade for Good Friday. As a 6-session rally ended overnight, New York Mercantile Exchange light, sweet crude futures for delivery in May were recently down 6 cents at $53.05 a barrel in the Globex electronic session. June Brent crude on London's ICE Futures exchange fell 7 cents to $55.78. Ending the gains for now was U.S. data showing domestic production jumped to its highest level in more than a year last week. Output has risen for eight-straight weeks now. "The weakness in the market is concerning, seeing that U.S. production alone can offset a number of encouraging news," said Michael McCarthy, a chief strategist at CMC Markets. That other news includes combined production from Organization of the Petroleum Exporting Countries falling an average 153,000 barrels a day last month to 31.9 million. Meanwhile, the group's monthly report said demand for OPEC crude is expected to average 32.2 million barrels a day this year, versus 31.6 million in 2016. Oil prices have jumped around 20% since OPEC and 11 other producers, including Russia, agreed to cut a combined 1.8 million barrels of daily output for six months. Compliance levels have topped 100%, data show. But as prices head north, the chance of signatories falling off the wagon rises as U.S. production intrudes into OPEC's market, analysts say. "History has shows that discipline within OPEC is always difficult to maintain," said Mr. McCarthy. For oil investors in Asia, a possible blowup in the region is also a major focus. On Wednesday, President Donald Trump signed off on a policy approach to North Korea which involves more economic and political pressure while military options remain on the table. "People here are getting nervous," said Gordon Kwan, the head of Asia oil and gas research with Nomura. "If a conflict breaks out in North Asia, it will hurt the region's biggest economies...which means a decline in oil demand." Among refined products, Nymex reformulated gasoline blendstock for May was recently off 0.1% at $1.7406 a gallon while May diesel eased 0.1% to $1.6505 and May ICE gasoil declined 0.2% to $497.75 a metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Futures; Price increases; Supply & demand
Location: United States--US Asia
People: Trump, Donald J
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886855019
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886855019?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
IEA Forecasts Second Straight Year of Slowing Oil Demand Growth; Demand remains well below the 2015 peak of 2 million barrels a day
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Apr 2017: n/a.
Abstract: None available.
Full text: Global oil demand is expected to grow at a slower pace for the second year in a row, the International Energy Agency said Thursday, complicating efforts by big petroleum producers to raise crude prices. In its closely watched monthly oil market report, the IEA reduced its forecast for 2017 demand growth to 1.3 million barrels a day, warning that this outlook could still "prove optimistic." The Paris-based agency monitors energy trends for industrialized countries that consume much of the world's oil. While oil demand is still growing and is expected to do so for decades, it has fallen off from 2015 when a price crash boosted the consumer appetite for oil and sent demand growth to a peak of 2 million barrels a day. The weakening demand picture is a challenge for the Organization of the Petroleum Exporting Countries' efforts to reduce supply and boost prices by bringing an end to the glut that has weighed on the oil market for the last three years. OPEC launched an effort this year to cut almost 1.8 million barrels a day of oil, with help from countries outside the 13-nation cartel, including Russia, the world's largest crude producer. OPEC's oil production fell by 365,000 barrels a day in March, bringing the group's adherence to its supply commitments to 99%, according to the IEA. Non-OPEC producers who agreed to participate in the market action also improved their compliance to 68% in March from a meager 38% the month before, the IEA said. The improved compliance will likely smooth talks as members of the agreement begin to raise the prospect of extending the cuts, despite concerns that other producers will likely benefit from the group's action. But the IEA said the cuts so far had had a limited effect on massive levels of stored oil, which built up in 2015 and 2016 as traders bought cheap crude to sell later at higher prices. One of OPEC's goals with its cuts is to drain storage to more manageable levels. But the IEA said oil storage rose in the first three months of 2017 and began to fall in February in March. The IEA also pointed to another drag on prices: Production in the U.S. American producers are taking advantage of higher prices, increasing output to 9 million barrels a day in March from a trough of 8.6 million barrels a day last September, the IEA said. It said U.S. output would rise by 680,000 barrels a day by the end of the year compared with the end of 2016. Overall, non-OPEC output is expected to rise by 485,000 barrels a day this year. Those gains could help offset any price increase that OPEC producers expect from their production cut. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Petroleum production; Cartels; International markets; Supply & demand
Location: United States--US
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886931670
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886931670?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Settle Higher After Meandering Between Gains and Losses; IEA says market is nearly balanced, but lowered its demand estimates for the year
Author: Sider, Alison; Alessi, Christopher
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Apr 2017: n/a.
Abstract: None available.
Full text: The oil-price rally continued for a third week, but prices were little changed Thursday as investors were still weighing rising U.S. production against the prospect of extended production cuts by OPEC. Both U.S. and global crude benchmarks posted their biggest three-week gains since December, recovering more of their losses from a selloff last month. U.S. crude futures ended the week up 1.8% and Brent, the global benchmark, rose 1.18% during the week. Prices meandered between gains and losses Thursday and settled slightly higher. U.S. crude futures settled up 7 cents, or 0.13%, at $53.18 a barrel on the New York Mercantile Exchange. Brent rose 3 cents, or 0.05%, to $55.89 a barrel on ICE Futures Europe. "We might be witnessing the market starting to approach the upper band of a trading range, up near $55," said Gene McGillian, research manager for Tradition Energy. "From this point on it's going to be tougher sledding to drive the market higher" without a firm agreement by members of the Organization of the Petroleum Exporting Countries to extend their production cuts beyond their initial six-month term, he said. The prospect that rising U.S. output will undermine those production cuts has capped price increases. Prices tumbled on Wednesday after the U.S. Energy Information Administration said American producers had increased output to a 15-month high last week. And production is likely to keep rising. The number of rigs drilling oil wells in the U.S. is at its highest level in two years, and drillers put 11 rigs to work this week, according to oil-field services firm Baker Hughes Inc. That has left market participants trying to gauge whether OPEC's cuts are chipping away global stockpiles or just encouraging more production elsewhere. The International Energy Agency said the oil market is "already very close to balance." But it also reduced its forecast for 2017 demand growth. OPEC released data Wednesday showing that output had further fallen in March, with members subject to production caps cutting more than they had pledged. But its monthly report also highlighted ongoing concern over surging output from U.S. shale producers, and the group raised its U.S. supply growth forecast for this year. Analysts cautioned not to look too much into Thursday's price moves, which were probably being affected by technical factors ahead of the holiday weekend. "There's a tendency for traders to be hesitant about going short into a long weekend," analysts at TAC Energy wrote in a research note Thursday. Now focus is turning to a May 25 OPEC meeting, when the group will decide whether to continue lowering production levels. It remains unclear whether Russia will sign up for a new deal. Officials have indicated in recent days that Moscow would first need to examine market conditions and consult with Russian oil firms before committing to any extension. "We still believe it is very unlikely that Russia will sign up to any cuts beyond the middle of the year," Commerzbank said in a recent report. Gasoline futures fell 0.68 cent, or 0.39%, to $1.7349 a gallon. Diesel futures fell 0.25 cent, or 0.15%, to $1.6495 a gallon. Jenny W. Hsu contributed to this article Write to Alison Sider at alison.sider@wsj.com and Christopher Alessi at christopher.alessi@wsj.com Credit: By Alison Sider and Christopher Alessi
Subject: Geopolitics; Crude oil prices; Price increases; Crude oil
Location: Middle East Russia United States--US Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1886954845
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1886954845?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distributi on is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Climbs by 11; Count is well off its peak from October 2014 but has generally been rising since last summer
Author: Bowdeya Tweh
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Apr 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by 11 in the past week to 683, according to oil-field services company Baker Hughes Inc. The Baker Hughes report was delivered a day early because U.S. financial markets will be closed in observance of Good Friday. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count has receded. However, the oil-rig count has generally been rising since last summer. The nation's gas-rig count fell by three to 162 in the past week, according to Baker Hughes. U.S. crude futures recently were down 13 cents, or 0.24%, at $52.98 a barrel on the New York Mercantile Exchange. The International Energy Agency said Thursday the oil market is "already very close to balance," but the agency also lowered its forecast for demand growth in 2017 . Write to Bowdeya Tweh at bowdeya.tweh@wsj.com Credit: By Bowdeya Tweh
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 13, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1887087565
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1887087565?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Was OPEC Cut-Extension Ever in Doubt? Geneva-based Magma Oil says its renewal was never in doubt
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Apr 2017: n/a.
Abstract: None available.
Full text: 15:54 ET -- A key driver of oil prices over the next six weeks will be constant will-they-or-won't-they chatter about OPEC extending its six-month production-cut agreement at its May 25 meeting. But Geneva-based Magma Oil says its renewal was never in doubt so any price gains based on a deal extension probably isn't warranted. "The agreement would have been useless if it was only ever meant to last six months," the bearish firm says. Instead, it recommends investors keep an eye on rigs and U.S. production data that it says will keep showing an upward trajectory. "At some point, economics will win and prices will come off." Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1887183109
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1887183109?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Crude Oil Posts Its Third Week Of Gains
Author: Sider, Alison; Alessi, Christopher
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Apr 2017: B.12.
Abstract:
"From this point on it's going to be tougher sledding to drive the market higher" without a firm agreement by members of the Organization of the Petroleum Exporting Countries to extend their production cuts beyond their initial six-month term, he said.
Full text: The oil-price rally continued for a third week, but prices were little changed Thursday as investors were still weighing rising U.S. production against the prospect of extended OPEC output cuts. Both U.S. and global crude benchmarks posted their biggest three-week gains since December, recovering more of their losses from a selloff last month. U.S. crude prices ended the week up 1.8% and Brent, the global benchmark, rose 1.2%. Prices settled slightly higher on Thursday. U.S. crude prices settled up 7 cents, or 0.1%, at $53.18 a barrel on the New York Mercantile Exchange. Brent rose 3 cents, or 0.05%, to $55.89 a barrel on ICE Futures Europe. "We might be witnessing the market starting to approach the upper band of a trading range, up near $55," said Gene McGillian, research manager for Tradition Energy. "From this point on it's going to be tougher sledding to drive the market higher" without a firm agreement by members of the Organization of the Petroleum Exporting Countries to extend their production cuts beyond their initial six-month term, he said. On Wednesday, the U.S. Energy Information Administration said American producers had increased output to a 15-month high last week. The number of rigs drilling oil wells in the U.S. is at its highest level in two years, according to oil-field-services firm Baker Hughes Inc. Credit: By Alison Sider and Christopher Alessi
Subject: Commodity prices; Crude oil
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.12
Publication year: 2017
Publication date: Apr 14, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1887290737
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1887290737?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Libya's Oil Comeback Stalls; Disruptions, renewed fighting contribute to rise in oil prices
Author: Faucon, Benoit; Morajea, Hassan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Apr 2017: n/a.
Abstract: None available.
Full text: Libyan oil disruptions are again affecting crude prices, as factional fighting and cash shortages have combined to stall the country's petroleum comeback. Brent crude, the global benchmark for prices, has risen almost 10% since March 28, when a pipeline from Libya's largest oil field was shut down by a militia upset over unpaid wages. The field, known as Sharara, was reopened the next week and then closed again on Monday, keeping 200,000 barrels a day of oil from the export market. Crude prices have also been supported by renewed fighting over Libya's oil ports that involve a dizzying array of foreign-backed militias. Attacks at the ports, along with frequent blockades, have made planned oil deliveries out of Libya unpredictable, with frequent delays or cancellations contributing to build a geopolitical premium into oil prices. Commerzbank said Libya's problems were among the most important reasons crude-oil prices began recovering in late March after falling below $50 a barrel for the first time since November. "At least one potential source of additional supply has fallen away for the time being," the bank said in a note this week. "This is without a doubt bad news for Libya." Libya's nascent oil-industry recovery--once expected to help keep a lid on oil prices by adding to a global glut--has hit a wall. In March, Libyan output fell to 610,000 barrels a day from 670,000 in February, its first month-to-month fall since August, the International Energy Agency said Thursday. Predictions that Libyan output could return to over 1 million barrels a day have turned out to be "wishful thinking," said Commerzbank. The mix of challenges doesn't bode well for Libya's oil industry, said Geoff Porter, president of North Africa Risk Consulting Inc., which advises oil companies in Libya. These factors "will accelerate Libya's descent into instability," Mr. Porter said. To be a sure, a host of variables are lifting oil prices, which were at $55.64 a barrel for Brent crude on Friday, down 0.4% on the day. Prices are up over 11% since Nov. 30, when the 13-nation oil cartel, the Organization of the Petroleum Exporting Countries, decided to cut production collectively to help reduce a global oversupply of crude. Libya, an OPEC member, was except from the agreement. In recent days, other news has pushed oil prices higher, including a Wall Street Journal report that Saudi Arabia wants to renew the OPEC production-cut agreement when the group meets again in May. Libya looked ready for a rebound last year. After years of fighting around its oil ports--key pawns in the battles that have divided the country since the death of former dictator Moammar Gadhafi--a militia leader, Gen. Khalifa Haftar , in September captured what is known as the country's "oil crescent" and reopened it to Western oil traders for the first time in two years. Three months later, Libya's state-run National Oil Co. brokered a deal with militias in the country's desert south to restart a pipeline from the country's largest oil field. Libya's oil production soon began climbing from lows of less than 300,000 barrels a day to over 600,000 barrels a day by the end of 2016. There was hope that oil money could be a salve for the country's political problems. But, with few functioning institutions beyond the National Oil Co. and Libya's central bank, the petroleum-industry revival proved hard to sustain. A United Nations-backed government in Tripoli, the Government of National Accord, hasn't been able to exert power over large swaths of the country's east and south. Much of the country remains under the control of a hodgepodge of militias vying for influence. And banks remain wary of financing Libyan companies and deals because of existing U.N. sanctions on individuals and firms suspected of trafficking weapons into the country. The result has been a cash shortage in recent weeks that stopped the Libyan central bank from being able to pay a militia in the south. In response, the militia shut down a pipeline from the Sharara oil field. Separately, control of Libya's oil ports remains in flux. Gen. Haftar, whose seizure of oil ports last year helped reopen Libya for exports, had to fight off a group called Benghazi Defense Brigades last month. Write to Benoit Faucon at benoit.faucon@wsj.com Related * Saudi Arabia Wants OPEC to Extend Production Cuts (April 11) * Oil Prices Rise as Libya Supply Disrupted (March 28) * Libya Says Oil Sector Open Again for Business (Jan. 24) * Libya Ramps Up Oil Production, Threatening OPEC Plans (Jan. 11) Credit: By Benoit Faucon and Hassan Morajea
Subject: Central banks; Petroleum production; Crude oil prices; Militia groups; Pipelines
Location: Libya Saudi Arabia
People: Heftar, Khalifa Qaddafi, Muammar El
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1887386704
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1887386704?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Arabia, Iraq, Kuwait Aim for $60 a Barrel Oil Price; Three OPEC countries see price level as appropriate to lift their economies without spurring more output from American shale
Author: Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Apr 2017: n/a.
Abstract: None available.
Full text: Some of OPEC's biggest oil producers, including Saudi Arabia, are now targeting $60 a barrel as the level where they want to push crude prices, OPEC officials said, signaling they will support additional production cuts next month. Saudi Arabia, Iraq and Kuwait believe $60 a barrel will lift their economies and allow for more energy-industry investment, the officials said, without jumpstarting too much American shale output, which can be ramped up and down with prices more easily than most oil production. The countries had been targeting $55 a barrel, a level they have largely achieved with an Organization of the Petroleum Exporting Countries production cut of 1.2 million barrels a day. Saudi Arabia, Iraq and other members of the 13-nation cartel have signaled they will push to extend those cuts for another six months on May 25, when they meet in Vienna. "Iraq wants prices to rise to $60. This our aim," said Iraq's oil minister Jabbar al-Luaibi in an interview. People familiar with Saudi and Kuwaiti oil policies confirmed those countries also now want $60 a barrel. OPEC members' ideal price for oil is in some ways symbolic, as there are unpredictable variables that influence crude's price--from Chinese oil demand to supply disruptions in Libya to American oil-drilling technological advances. In 2013, then oil minister for Saudi Arabia, Ali al-Naimi, declared $100 a barrel a "reasonable price" for consumers and producers; the next year, oil prices collapsed. But OPEC members' target price offers a window into how serious they are about using their supply power to affect the market. So far, OPEC members have been more compliant with their oil-production agreement than in years past, with almost all of the cut being carried out. Other OPEC members, including Iran, could upend the plans to reach $60 a barrel. But Saudi Arabia, Kuwait and Iraq--while not always aligned on oil policy--represent oil industries that produce over half of OPEC's total production. Kuwait needs higher prices to stabilize an economy that has suffered during the oil-price downturn. Iraq is looking for more revenue as it fights a war with Islamic State, and $60 a barrel is roughly the level the country needs to cover its expenditure, according to credit agency Fitch Ratings. Saud Arabia is looking for higher and stable oil prices ahead of its initial public offering of its state-owned oil company, Saudi Arabian Oil Co., known as Aramco. The kingdom is planning to offer up to 5% of the company in a public float that will finance a diversification of its economy. "They need this price [$60] for the IPO of Saudi Aramco," said a person familiar with Saudi oil policy. OPEC officials said they are concerned about how $60 a barrel would affect shale producers. The cartel's top official, Secretary General Mohammad Barkindo, traveled to Houston last month to meet shale producers and learn more about how they work and adapt to prices. OPEC officials said they concluded that everyone can co-exist at $60 a barrel. "This level is what we think will encourage investments, but still would not encourage shale producers much to ramp up output," one official said. Write to Benoit Faucon at benoit.faucon@wsj.com and Summer Said at summer.said@wsj.com Credit: By Benoit Faucon and Summer Said
Subject: Petroleum production; Cartels; Crude oil prices
Location: Kuwait Iran Libya Saudi Arabia Iraq
People: Naimi, Ali I
Company / organization: Name: Islamic State of Iraq & the Levant--ISIS; NAICS: 813940; Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 14, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business A nd Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1887386753
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1887386753?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
For Inflation, It's All About Oil; Base effects have had a big part to play in lifting inflation
Author: Barley, Richard
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Apr 2017: n/a.
Abstract: None available.
Full text: Inflation has sprung back to life around the world recently, bringing with it expectations of higher growth and tighter monetary policy. But much of that revival has been caused by the rebound in oil prices from their tumble at the start of last year, and those effects are already fading. The coming months will be a better guide to true inflationary pressures--with potential consequences for markets and monetary policy. U.S. inflation and retail-sales data out Friday show the shift. Headline inflation fell back in March to 2.4% from 2.7% in February due largely to falling gasoline prices. Core prices, which exclude food and energy, were up 2%--their lowest annual reading since November 2015. Separately, a second straight month of falling U.S. retail sales signals that growth hasn't accelerated along with the higher inflation figures. Economists have ratcheted down their growth forecasts, with The Wall Street Journal's Economists Survey showing a decline in first quarter gross domestic product from 2.3% in December to 1.4% this month. Oil's swings have been big in both directions. The persistent decline that started in mid-2014 only hit bottom in early 2016; the recovery to around $50 a barrel from 2016's lows was swift. As a result, on the downward trip oil acted as a protracted drag on headline inflation, but on the rebound it has caused a spike. In January, a barrel of Brent crude was around double the price it was a year earlier; now it is 27% higher than a year ago. If oil prices stick around current levels, then in the next couple of months, much of this effect will wash out. That swing has played out in the inflation numbers. In the U.S., annual energy inflation has moved to 10.9% now from minus 12.6% in March 2016; in the eurozone, it was minus 8.7% in March 2016 and is now 7.3%. Headline inflation has duly risen too. Rising inflation has changed the debate about monetary policy in markets. With the U.S. Federal Reserve already gently moving to tighten policy, the spotlight has fallen on the European Central Bank's exit from unconventional measures , particularly since the ECB's mandate focuses on headline inflation. But the oil peak is old news now. Headline inflation rates in March also fell back versus February in the eurozone, to 1.5%, as the energy push retreated. True, in the U.S., the inflation outlook is much more solid, although there is still a puzzle about the lack of wage pressures given the relative tightness of the labor market. That bears watching closely. In the eurozone, by contrast, the underlying rate of inflation remains weak : Services inflation, a proxy for domestically generated price pressures, was 1% in March and has essentially flatlined a little above that level for more than three years. Market-based measures of medium-term inflation expectations have held up in the U.S.; they have slipped in the eurozone again. The rise in inflation has coincided with a buzz about the prospect of reflation and escape from the ultra-loose monetary policy that has dominated markets in recent years. That buzz is partly relief that deflation didn't take hold, but was just an oil-fueled panic. Headline data in coming months, once the oil rush wears off, will be a better guide to the real picture for inflation. Write to Richard Barley at richard.barley@wsj.com More * U.S. Consumer Prices Fell 0.3% in March * Retail Sales Drop for Second Straight Month * U.S. Consumers Confident But Not Spending Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Richard Barley
Subject: Monetary policy; Central banks; Prices; Inflation; Eurozone
Location: United States--US
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 14, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1887404991
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1887404991?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Aramco CEO Nasser Bullish on oil demand; State-owned company's chief doesn't see demand peaking in the next decade or two
Author: Matthews, Christopher M
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Apr 2017: n/a.
Abstract: None available.
Full text: The chief executive of Saudi Arabia's oil company said Friday that he doesn't believe global demand for oil will plateau soon, and cautioned that producers will eventually have to add capacity to meet rising demand. In a discussion at the Center on Global Energy Policy at Columbia University, Amin Nasser, the top executive of Saudi Arabian Oil Co., known as Saudi Aramco, poured water on predictions by some companies and experts that oil demand could peak in the next decade or two. "Our belief is peak demand is not in sight," he said. As for Saudi Aramco's stated plan for an initial public offering, he gave no new details, saying only that plans to list shares on a western stock exchange remain on track. The company has said the target date for the IPO is the second half of 2018. Mr. Nasser said he believes the oil market is starting to tighten as supply and demand come more in line. He cited draws on global storage and tanker reserves, and continued cuts on production by the Organization of the Petroleum Exporting Countries, which come ahead of increased demand for gasoline in the U.S. during the summer. "We are getting close to rebalancing supply and demand," Mr. Nasser said. Oil prices have rallied for three consecutive weeks, even as investors weigh rising U.S. production against the prospect of extended production cuts by OPEC. Prices meandered between gains and losses Thursday and settled slightly higher. U.S. crude futures settled up 7 cents, or 0.13%, at $53.18 a barrel on the New York Mercantile Exchange. Brent rose 3 cents, or 0.05%, to $55.89 a barrel on ICE Futures Europe. Mr. Nasser said U.S. shale production has the ability to drive prices down in the short term, but Saudi Aramco is focused on what it sees as long-term demand growth. Some analysts have predicted the development of more fuel-efficient automobiles and electric vehicles could eat into the oil industry's largest source of demand, pushing the industry to "peak demand" in the next half-century. Mr. Nasser disagreed, saying that renewable energy sources only make up a small portion of global energy supply and electric vehicles represent a small portion of the global automobile fleet, a trend that will continue for decades. He also forecast additional demand of four to five million barrels of oil a day in coming years and warned that world-wide production capacity has been depleted as oil producers pulled back during the recent decline in oil prices. "It would be imprudent to assume that massive oil producers will simply make the investment needed to bridge all these gaps," he said. Write to Christopher M. Matthews at christopher.matthews@wsj.com Credit: By Christopher M. Matthews
Subject: Production capacity; Electric vehicles; Supply & demand
Location: United States--US Saudi Arabia
Company / organization: Name: Columbia University; NAICS: 611310; Name: New York Mercantile Exchange; NAICS: 523210; Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 14, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1887962850
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1887962850?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Banking & Markets: Saudis, Others Raise Oil Target to $60 --- OPEC members seek a price to lift their economies without spurring U.S. output
Author: Faucon, Benoit; Said, Summer
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]15 Apr 2017: B.9.
Abstract:
OPEC members' ideal price for oil is in some ways symbolic, as there are unpredictable variables -- from Chinese oil demand to supply disruptions in Libya to American technological advances in oil drilling.
Full text: Some of OPEC's biggest oil producers, including Saudi Arabia, are now targeting $60 a barrel as the level to which they want to push crude prices, group officials said, signaling they will support additional production cuts next month. Saudi Arabia, Iraq and Kuwait believe $60 a barrel will lift their economies and allow for more energy-industry investment, the officials said, without jump-starting too much American shale output, which can be ramped up and down more easily than most oil production. The countries had been targeting $55 a barrel for Brent crude, a level they have largely achieved with an Organization of the Petroleum Exporting Countries production cut of 1.2 million barrels a day. Saudi Arabia, Iraq and other members of the 13-nation group have signaled they will push to extend those cuts in output for another six months on May 25, when they meet in Vienna. "Iraq wants prices to rise to $60. This is our aim," said Iraq's oil minister, Jabbar al-Luaibi, in an interview. People familiar with Saudi and Kuwaiti oil policies confirmed those countries also now want $60 a barrel. Brent, the global benchmark, closed at $55.89 Thursday on ICE Futures Europe. OPEC members' ideal price for oil is in some ways symbolic, as there are unpredictable variables -- from Chinese oil demand to supply disruptions in Libya to American technological advances in oil drilling. In 2013, Saudi Arabia's then-oil minister, Ali al-Naimi, declared $100 a barrel a reasonable price for consumers and producers; the next year, oil prices collapsed. But OPEC members' target price offers a window into how serious they are about using their supply power to affect the market. So far, OPEC members have been more compliant with their oil-production agreement than in years past, with almost all of the cut being carried out. Other OPEC members, including Iran, could upend the plans to reach $60 a barrel. But Saudi Arabia, Kuwait and Iraq represent oil industries that produce more than half of OPEC's total production. Kuwait needs higher prices to stabilize an economy that has suffered during the oil-price downturn. Iraq is looking for more revenue as it fights a war with Islamic State, and $60 a barrel is roughly the level the country needs to cover its expenditures, according to credit-rating company Fitch Ratings. Saudi Arabia is looking for higher and stable oil prices ahead of the initial public offering of its state-owned oil company, Saudi Arabian Oil Co., known as Aramco. The kingdom is planning to offer as much as 5% of Aramco in a public float that will finance a diversification of its economy. "They need this [$60] price for the IPO of Saudi Aramco," said a person familiar with Saudi oil policy. OPEC officials said they are concerned about how $60 a barrel would affect shale producers. The cartel's top official, Secretary-General Mohammad Barkindo, traveled to Houston last month to meet shale producers and learn more about how they work and adapt to prices. OPEC officials said they concluded that all those involved can coexist at $60 a barrel. "This level is what we think will encourage investments, but still would not encourage shale producers much to ramp up output," one official said. Credit: By Benoit Faucon and Summer Said
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.9
Publication year: 2017
Publication date: Apr 15, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888163849
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888163849?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
BP Tries to Secure Leaking Oil and Natural Gas Well in Alaska; No reports of injuries or harm to wildlife, company says
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Apr 2017: n/a.
Abstract: None available.
Full text: BP PLC is trying to bring a well in Alaska under control after the site began leaking oil and other hydrocarbons, the company said Saturday. In an emailed statement, BP said the well, located at the Prudhoe Bay oil field on Alaska's North Slope, began to leak Friday. The U.K. company didn't say how much oil or natural gas may have spilled. "Based on an overflight with infrared cameras, the release appears to be contained to a gravel pad surrounding the wellhead and has not reached the tundra," BP said in an emailed statement. "The focus today is on developing plans to fully and safely secure the well." There have been no injuries or reports of harm to wildlife, the company said. BP's operations in and around Prudhoe Bay account for about 55% of Alaska's oil and gas production, according to the company website. Production began at Prudhoe Bay 40 years ago, and it remains one of North America's largest oil fields, having generated more than 12 billion barrels of oil. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Oil fields; Pipelines; Natural gas
Location: North Slope Alaska North America United Kingdom--UK
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 15, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888350675
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888350675?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
BP Tries to Secure Leaking Oil and Natural Gas Well in Alaska; No reports of injuries or harm to wildlife, company says
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Apr 2017: n/a.
Abstract: None available.
Full text: BP PLC was working with authorities in Alaska on Saturday night to stop oil and natural gas leaking from a well in Prudhoe Bay. A joint statement from the oil company as well as from local and federal authorities said the leak on Alaska's frozen North Slope was discovered on Friday morning and that the amount of oil spilled remained unknown. It added that the oil currently leaking was "minor" compared to the release of natural gas from the well. "The well structure is housed in a metal 'well house' which is helping to contain any oil spray," the statement from Unified Command, which includes BP, the U.S. Environmental Protection Agency, the Alaska Department of Environmental Conservation, or ADEC, and a North Slope group said. "Based on an overflight with infrared cameras, the release appears to be contained to a gravel pad surrounding the wellhead and has not reached the tundra," U.K.-based BP said in a separate, emailed statement. "The focus today is on developing plans to fully and safely secure the well." Authorities don't yet know what caused the discharge from the well, which normally produces both oil and natural gas. Attempts to stop the leak have so far failed. "Responders attempted to bring the well under control last night, however, this operation was unsuccessful due to damage on a well pressure gauge," the ADEC said. "Responders have determined that the well has 'jacked up,' or risen, approximately 3-4 feet; this vertical movement of the well caused the pressure gauge to break off and prevented operations from pumping into the well to kill it." There have been no injuries or reports of harm to wildlife, BP said. BP's operations in and around Prudhoe Bay account for about 55% of Alaska's oil and gas production, according to the company website. Production began at Prudhoe Bay 40 years ago, and it remains one of North America's largest oil fields, having generated more than 12 billion barrels of oil. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Environmental protection; Pressure gauges; Natural gas
Location: North Slope Alaska North America
Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888388823
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888388823?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BP Oil Well In Alaska Out Of Control For Third Day; Company says it is still too dangerous for workers to approach the well
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Apr 2017: n/a.
Abstract: None available.
Full text: An out of control oil well on Alaska's North Slope near Prudhoe Bay continues to spray crude and natural gas into the area for a third day, according to BP PLC, which operates the well. The London-based energy company said it couldn't quantify how much oil has spilled in the area, because it was still too dangerous for workers to approach the well. Attempts to stop the leak have failed so far. BP and state and federal authorities continued work on Sunday to try to get a handle on the situation. The amount of oil released from the well is "minor" compared with the volume of natural gas leaking from the well, according to a joint statement by the Unified Command Task Force, which includes BP, the Alaska Department of Environmental Protection, the local government of the North Slope and the U.S. Environmental Protection Agency. "The well structure is housed in a metal 'well house' which is helping to contain any oil spray," said the joint statement released Saturday. So far there have been no injuries or reports of harm to wildlife in the area, according to BP. The leak from the well , located on the frozen tundra of the North Slope, was discovered Friday morning when employees saw crude oil spraying out of the top of it. Natural gas was also being released uncontrollably. Authorities said they don't yet know what caused the well to discharge oil and gas. As of midday Sunday, BP's well was still leaking and authorities hoped to provide an update later in the day on their efforts to contain it, said Candice Bressler, a spokeswoman with the Alaska Department of Environmental Conservation, or ADEC. Responders attempted to bring the well under control at the start of the weekend, but the operation failed because of damage to a well pressure gauge, the Alaska Department of Conservation said. Responders determined that the well "jacked up," rising between three to four feet vertically. That movement caused the pressure gauge to break off and prevented operators from pumping anything down into the well in an attempt to seal it off. BP's operations in and around Prudhoe Bay account for about 55% of Alaska's oil and gas production, according to the company. The oil giant has had several spills and leaks in Alaska over the years. A 2006 spill due to a corroded pipeline released almost 4,800 barrels of crude, making it the worst oil spill on the North Slope up to that point in time. A 2009 pipeline problem at a BP oil field in the state released almost 1,100 barrels of oil; that rupture and spill was a violation of the Clean Water Act, which meant BP had breached the terms of its plea agreement for the 2006 accident. In more recent years, BP has faced intense scrutiny over its role in the 2010 Deepwater Horizon disaster in the Gulf of Mexico that killed 11 workers and created the largest offshore oil spill in U.S. federal waters. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Oil spills; Environmental protection; Oil wells; Pipelines; Natural gas
Location: North Slope
Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 16, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888518236
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888518236?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BP Well in Alaska Stops Leaking Oil, Continues to Release Gas; Crews haven't been able to fully shut down the well, because it is still too dangerous to access the site
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Apr 2017: n/a.
Abstract: None available.
Full text: BP PLC's out of control well on the North Slope of Alaska stopped leaking oil on Sunday but continues to release natural gas, according to the Alaska Department of Environmental Conservation. Crews haven't been able to fully shut down the well, which started leaking Friday morning, because it is still too dangerous to access the site, ADEC said. The amount of oil spilled and whether the crude impacted the snow-covered tundra nearby isn't yet clear, though it appears that the crude contamination is contained within the gravel pad site, according to a person familiar with the matter. So far no injuries or wildlife impacts have been reported, and the mostly Native American community of Nuiqsut, about 50 miles west of the oil well, has been notified of the problem, authorities said. The London-based energy company said it couldn't quantify how much oil has spilled in the area. The leak was initially discovered Friday morning when BP employees saw crude oil spraying out of the top of it. The spray of crude, along with "minor" oil leakage over the past few days may be fairly isolated, according to a statement from ADEC. But the continuing natural gas leak continues to be a problem. BP's local subsidiary "is putting together a plan for plugging the well's top leak that resulted from the damaged pressure gauge; this plan needs to be implemented before well-killing operations can take place," ADEC said. BP's operations in and around Prudhoe Bay account for about 55% of Alaska's oil and gas production, according to the company. The oil giant has had several spills and leaks in Alaska over the years. A 2006 spill due to a corroded pipeline released almost 4,800 barrels of crude, making it the worst oil spill on the North Slope up to that point in time. A 2009 pipeline problem at a BP oil field in the state released almost 1,100 barrels of oil; that rupture and spill was a violation of the Clean Water Act, which meant BP had breached the terms of its plea agreement for the 2006 accident. In more recent years, BP has faced intense scrutiny over its role in the 2010 Deepwater Horizon disaster in the Gulf of Mexico that killed 11 workers and created the largest offshore oil spill in U.S. federal waters. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Oil spills; Pipelines; Natural gas
Location: North Slope United States--US Gulf of Mexico
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888540100
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888540100?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Dragged Lower by Profit Taking; Analysts said buying was suppressed by data showing that U.S. oil rig count rose for the 13th straight week
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Apr 2017: n/a.
Abstract: None available.
Full text: Crude futures fell in Asia Monday as investors booked profits after recent gains and continued upticks in U.S. production fueled selling pressure. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May traded at $52.90 a barrel at 0158 GMT, down $0.28 in the Globex electronic session. June Brent crude on London's ICE Futures exchange fell $0.30 to $55.59 a barrel. Trading will likely be subdued Monday as several major markets in the region are closed due to the Easter holiday. Analysts said buying was suppressed by data showing that U.S. oil rig count rose for the 13th straight week in the week ended April 13. At a total of 683, the current tally is the highest in two years. "U.S. shale oil producers, particularly in the Permian basin, seem well convinced that they can make money at current prices and we're in no position to argue," Timothy Evans, a Citi Futures analyst said in a recent note. The upsurge in U.S. production stands to be a major threat to undercut an effort by the Organization of the Petroleum Exporting Countries to reset the still-oversupplied market to a better balance. The group and 11 other non-OPEC oil producers have agreed to cut production for the first part of the year. Four months into the agreement, OPEC said its latest production fell by 153,000 barrels a day to average 31.93 million barrels a day. Oil prices jumped last week after The Wall Street Journal reported that Saudi Arabia was supportive of extending the cutback pact. The cuts by OPEC members and other non-U.S. producers, combined with seasonal gasoline demand during the summer season, means "the rebalancing story will take place by the year-end," said Barnabas Gan, an economist at Singapore bank OCBC, who expects U.S. oil prices to hit the $55 to $60 range in the next few months. Mr. Gan shrugged off the possibility of OPEC members defaulting on their pledges, saying "they know how fragile the oil market" is and any signs of cheating will wreck their previous sacrifices. Oil investors are also banking on China to prop up global demand. In March, China's crude imports shattered market expectations by rising to 9.2 million barrels a day. Strong refining demand and dwindling domestic production will likely keep China thirsty for foreign crude. Official figures released Monday showed China's crude production was down 6.8% on-year to 3.9 million barrels a day in the first quarter. Meanwhile, crude throughput, or the amount of crude that goes into a refinery before it comes out processed, rose 4.5% on-year to 11.25 million barrels a day in the same period. Nymex reformulated gasoline blendstock for May--the benchmark gasoline contract--fell 79 points to $1.7270 a gallon, while May diesel traded at $1.6442, 53 points lower. ICE gas oil for May changed hands at $496.25 a metric ton, down $1.75 from Friday's settlement. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Price increases; Supply & demand
Location: United States--US Asia
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888544137
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888544137?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices See Biggest Decline Since March; Forecasting agencies are raising their expectations for U.S. production
Author: Sider, Alison; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices had their biggest drop since March, as new government figures stoked worries rising output from shale formations could throw the oil market further out of balance. Output from U.S. shale fields is set to rise by 124,000 barrels a day in May, according to the Energy Information Administration's monthly Drilling Productivity Report. That would be the biggest monthly increase in two years, and with the rig count still rising relentlessly, some traders may be wondering if it is only the beginning. "Big traders are reading into that, putting the pieces of the puzzle together and wondering, are we going to see an accelerated increase in U.S. production from the shale plays?" said Rob Thummel, portfolio manager at Tortoise Capital Advisors. U.S. crude futures fell 53 cents, or 1%, to $52.65 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 53 cents, or 0.95%, to $55.36 a barrel on ICE Futures Europe. For both benchmarks, it was the largest single-day drop since March 21, when oil prices hit a low $47.34. Prices have since clawed their way back with help from rising expectations that the Organization of the Petroleum Exporting Countries will agree to extend its production cuts through the end of the year. But a surge in U.S. production stands to be a major threat to OPEC's effort to reset the still-oversupplied market. Monday's EIA figures are only the latest sign U.S. companies have been quick to jump on higher prices. The U.S. oil rig count has been on the rise 13 weeks and now stands at its highest level in two years, according to oil-field services firm Baker Hughes Inc. The EIA has already forecast U.S. output will rise to a record high of 9.9 million barrels a day next year. "Major forecasting agencies the IEA, EIA and OPEC, are all raising their expectations of U.S. production and I think that is what's hanging over the market," said Edward Bell, analyst at the Dubai-based Emirates NBD bank. And some investors may have been looking for a chance to take profits--another factor behind the sharp price decline Monday. "We were probably due for a little bit of a giveback--it's pretty much gone straight up," said Mark Benigno, co-director of energy trading at INTL FCStone Inc. Light trading volume after the Easter holiday, with some financial markets still closed, likely made the market susceptible to a larger move. "I don't want to put a whole lot of stock in this," Mr. Benigno said. Gasoline futures fell 1.53 cents, or 0.88%, $1.7196 a gallon. Diesel futures fell 1.66 cents, or 1.01%, to $1.6329 a gallon. Write to Alison Sider at alison.sider@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Sarah McFarlane and Jenny W. Hsu
Subject: Futures; Gasoline; Supply & demand
Location: United States--US
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888614847
Document URL: https://login.ezproxy.uta.edu/login?url=https://search. proquest.com/docview/1888614847?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BP's Leaking Oil and Gas Well in Alaska Successfully 'Killed'; Leak was discovered last week when employees saw crude oil spraying out of the top of the well
Author: Molinski, Dan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Apr 2017: n/a.
Abstract: None available.
Full text: BP PLC and local and federal authorities successfully brought under control an onshore well on the North Slope of Alaska that began leaking oil and gas last week , the company said Monday morning. "Overnight the Unified Command achieved source control, and killed the well," Dawn Patience, a BP spokeswoman in Anchorage, said by email, referring to a task force that included BP, the Alaska Department of Environmental Conservation and the U.S. Environmental Protection Agency. The total amount of oil spilled and whether the crude affected the snow-covered tundra nearby isn't yet clear, though authorities have expressed confidence the crude contamination is contained within a gravel area directly surrounding the well site. The spokeswoman for the U.K.-based company said the problems with the well may have a slight impact on production. "The incident is unlikely to noticeably impact overall North Slope production," Ms. Patience said. The leak initially was discovered Friday morning when BP employees saw crude oil spraying out of the top of the well, located at Prudhoe Bay on the North Slope. The spray of crude, along with "minor" oil leakage over the past few days, was fairly isolated and stopped leaking altogether Sunday, according to a statement from the Alaska Department of Environmental Conservation. BP's operations in and around Prudhoe Bay account for about 55% of Alaska's oil and gas production, according to the company. The oil giant has had several spills and leaks in Alaska over the years. A 2006 spill caused by a corroded pipeline released almost 4,800 barrels of crude, making it the worst oil spill on the North Slope up to that point in time. A 2009 pipeline problem at a BP oil field in the state released almost 1,100 barrels of oil. That rupture and spill was a violation of the Clean Water Act, which meant BP had breached the terms of its plea agreement for the 2006 accident. In more recent years, BP has faced intense scrutiny over its role in the 2010 Deepwater Horizon disaster in the Gulf of Mexico that killed 11 workers and created the largest offshore oil spill in U.S. federal waters. Write to Dan Molinski at Dan.Molinski@wsj.com Credit: By Dan Molinski
Subject: Oil spills; Environmental protection; Pipelines
Location: North Slope United States--US Alaska Gulf of Mexico
Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 17, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888713481
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888713481?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited wit hout permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Steady as Market Takes Wait-and See Approach; A market bright spot has been Chinese demand
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Apr 2017: n/a.
Abstract: None available.
Full text: Crude futures paused in Asian trading Tuesday after seeing their biggest decline in a month overnight as investors waver between strong demand from China and rising production in the U.S. After a three-day weekend for Easter, prices fell 1% after the U.S. Energy Information Administration said American shale producers in seven of the country's most-prolific areas could boost average daily output some 2.5% in May from this month's anticipated level. If such an increase happens, it would be the largest monthly increase in two years. "Profit-takers are bit edgy right now," said Ric Spooner, the chief analyst at CMC Markets, saying traders feel recent gains have outpaced improvements in oil's outlook. A number of firms and agencies agree that U.S. shale oil is set to outperform the next two years, especially if prices stabilize in the $55 to $60 a barrel band. RBC Capital Markets projects U.S. upstream players will increase spending 35% to 40% this year, "accompanied by robust growth outlooks for 2017 and 2018." Despite the prospects of even-more production out of the U.S., supplies there could edge lower near-term as refiners increase processing levels in preparation of the summer driving season On the New York Mercantile Exchange, light, sweet crude futures for delivery in May were recently down 9 cents at $52.56 a barrel in the Globex electronic session while June Brent crude on London's ICE Futures exchange fell 8 cents to $55.28. Energy investors also continue to await to see how Organization of the Petroleum Exporting Countries will respond to recent growth in U.S. oil output. The cartel is scheduled to meet May 25 to decide whether to extend current production curtailments. As most markets have priced in an extension, a failure to do so would likely result in a price slide. Meanwhile, a market bright spot has been Chinese demand. Its oil imports hit record highs in March, data last week showed, though many have said that spike was a blip. But the broader trend remains up. "China's crude buying will remain strong as we anticipate rising demand for industrial fuels such as diesel," said a Singapore-based crude trader for a Chinese oil firm. On Monday, China said its economy rose a bit faster than analysts anticipated in the first quarter. Economists expect the momentum to last until at least midyear. Regarding oil products, May Nymex reformulated gasoline blendstock and diesel futures were essentially flat at $1.7203 and $1.6322 a gallon, respectively. May ICE gas oil fell 0.9% to $493.50 a metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Futures; Price increases; Supply & demand
Location: China United States--US
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 18, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888769776
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888769776?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Pressured Lower by Supply Concerns; Saudi Arabia's energy minister says it is too early to decide whether OPEC will extend production cuts
Author: Yang, Stephanie; Cotaga, Olga
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices closed lower on Tuesday, weighed down by concerns over increasing global supply. Light, sweet crude for May delivery settled down 24 cents, or 0.5%, at $52.41 a barrel on the New York Mercantile Exchange, after swinging between gains and losses throughout the session. Prices closed at the lowest level since April 7. Brent, the global benchmark, fell 47 cents, or 0.8%, to $54.89 a barrel. U.S. oil futures slipped after Saudi Arabia's energy minister said it is too early to decide whether the Organization of the Petroleum Exporting Countries will extend production cuts for the rest of the year. Prices rose to the highest level since early March last week, in part because of expectations that Saudi Arabia--the world's biggest exporter of crude--would lobby the cartel to keep curbing its supplies to reduce a global glut. But comments from Saudi Arabian Energy Minister Khalid al-Falih raised some doubts. Mr. Falih told reporters in Riyadh on Monday that "it is premature to talk about extending the cut." OPEC's 13 national ministers are scheduled to decide that question on May 25. "We're going to be [in this range] for a while as the market sorts out how well OPEC continues to do" on cutting production, said Dominick Chirichella from the New York-based Energy Management Institute. However, prices received some support from improved risk appetite and bargain hunting early Tuesday, market participants said. The market has been pulled back and forth between pledges from OPEC to curb production and signs that U.S. shale activity is on the rise. "It seems to be a bit of a bottom-picking scenario here," said Bob Yawger, director of the futures division of Mizuho Securities USA Inc. Record-high crude inventories in the U.S. have come down in recent weeks, reassuring investors that the supply glut is easing. But U.S. drilling is now set to increase by 123,000 barrels a day in May, according to the U.S. Energy Information Administration, the steepest monthly rise since February 2015. The market will be watching weekly inventory data from the U.S. Energy Information Administration on Wednesday to see if the trend of diminishing stockpiles continues. Traders and analysts surveyed by The Wall Street Journal expect on average that inventories will decline by 800,000 barrels in the week ended April 14. "I think we need a little more confirmation before we get a buy in right now," Mr. Chirichella said. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed an 840,000-barrel fall in crude supplies, a 1.4-million-barrel increase in gasoline stocks and a 1.8-million-barrel decline in distillate inventories, according to a market participant. A surge in U.S. production is a major threat to OPEC's effort to reset the still-oversupplied global oil market. The U.S. oil-rig count has been on the rise 13 weeks and now stands at its highest level in two years, according to oil-field services firm Baker Hughes Inc. The number of active drilling rigs in the U.S. rose again last week--by 11 to 683. These figures are the latest sign that U.S. companies have been quick to increase production because of higher prices and has "added another bearish element to the market," said JBC analysts. Gasoline futures settled down 0.5% at $1.7110 a gallon, and diesel futures were down 0.7% at $1.6219 a gallon. Summer Said in Riyadh contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com and Olga Cotaga at Olga.Cotaga@wsj.com Credit: By Stephanie Yang and Olga Cotaga
Subject: Petroleum production; Production increases; Crude oil prices; Economic growth; Cartels; Gross Domestic Product--GDP
Location: Riyadh Saudi Arabia Russia United States--US Saudi Arabia
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: ICE Futures; NAICS: 523210; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 18, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888933580
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888933580?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Cnooc Shakes Up Management; Yang Hua, one of China's best-known oil executives, resigns as CEO, becomes chairman; President Yuan Guangyu becomes CEO
Author: Spegele, Brian
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Apr 2017: n/a.
Abstract: None available.
Full text: BEIJING--Chinese oil-and-gas driller Cnooc Ltd. shook up management following the resignation of Chief Executive Yang Hua, one of China's best-known oil executives globally. In a filing Tuesday with the Hong Kong stock exchange, Cnooc said Mr. Yang--who had steered the company through a period of aggressive cost-cutting--is remaining as chairman, while President Yuan Guangyu takes over as CEO and Vice President Xu Keqiang as president. The company didn't give a reason for the shake-up, and Mr. Yang, a Cnooc veteran who had been CEO for less than a year, couldn't be reached. Mr. Yang, educated at the Massachusetts Institute of Technology, has been a driving force in turning Cnooc into arguably China's most global oil company. In his pre-CEO days he was a key player behind the scenes as Cnooc pursued a takeover of Canada's Nexen Inc., a $15.1 billion purchase that solidified the company's position as an aggressive overseas deal maker. More recently, after oil prices began their steep decline in late 2014, he helped direct cost cuts at the once free-spending Cnooc, whose dependence on pumping and selling crude oil left it potentially more exposed than its state-owned Chinese rivals, which could mitigate losses through higher refining margins. Cnooc won praise from industry observers who said it stood out among state-owned enterprises for its focus on efficiency. It cut capital expenditures by about 25% last year as low oil prices persisted, helping it avoid what many had feared would be its first-ever annual loss. The company says Mr. Yang was born in 1961, making him short of standard retirement age for officials and state-owned company executives, and it isn't clear what role, if any, could be next. Many top oil executives go on to serve as senior officials in China's government after leaving major state-owned companies, which besides Cnooc include PetroChina Co. and China Petroleum & Chemical Corp. Mr. Yang's predecessor as CEO, Li Fanrong, is now deputy head of China's National Energy Administration. Like Mr. Yang, new CEO Mr. Yuan is a Cnooc veteran, with about 35 years there. He has served as chairman of its overseas arm, Cnooc International, since June. After Mr. Yang's cost-cutting, the new CEO is likely to oversee renewed expansion. With global oil prices expected to continue rebounding, the company says it is increasing investment in exploration this year. Write to Brian Spegele at brian.spegele@wsj.com Credit: By Brian Spegele
Subject: Presidents; Appointments & personnel changes; Price increases; Executives
Location: China Hong Kong Canada
Company / organization: Name: Nexen Inc; NAICS: 211111; Name: Massachusetts Institute of Technology; NAICS: 611310; Name: China Petroleum & Chemical Corp; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 18, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1888933749
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1888933749?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Crude-Oil Stocks Seen Decreasing in DOE Data; Gasoline inventories also expected to fall
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Apr 2017: n/a.
Abstract: None available.
Full text: U.S. crude-oil stocks are expected to show a decrease in data due Wednesday from the Department of Energy, according to a survey of analysts and traders by The Wall Street Journal. Estimates from 12 analysts and traders surveyed showed U.S. oil inventories are projected to have decreased by 800,000 barrels, on average, in the week ended April 14. Three analysts expect stockpiles to rise and nine expect them to fall. Forecasts range from a decrease of 2.5 million barrels to an increase of 2 million barrels. The closely watched survey from the Energy Information Administration is due at 10:30 a.m. EDT Wednesday. Gasoline stockpiles are expected to show a decrease of 2 million barrels on average, according to analysts. All 12 analysts expect them to fall. Estimates range from a fall of 3.7 million barrels to a drop of 500,000 barrels. Stocks of distillates, which include heating oil and diesel, are expected to fall by 1.1 million barrels. One analyst expects an increase and 11 expect a decrease. Forecasts range from a decline of 2.5 million barrels to an increase of 290,000 barrels. Refinery use is seen increasing 0.2 percentage point to 91.2% of capacity. Seven analysts expect an increase and three expect a decrease. Two didn't report expectations. Forecasts range from a decline of 0.5 point to an increase of 1 point. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed an 840,000-barrel fall in crude supplies, a 1.4-million-barrel increase in gasoline stocks and a 1.8-million-barrel decline in distillate inventories, according to a market participant. Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Price increases; Supply & demand
Location: United States--US
Company / organization: Name: Department of Energy; NAICS: 926130
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 18, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889049153
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889049153?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
N.J. Lawmakers Seek Probe of YPF for Passaic River Cleanup; Committee claims the Argentine oil company moved to strip assets from unit that owned riverfront site in Newark
Author: King, Kate
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Apr 2017: n/a.
Abstract: None available.
Full text: LYNDHURST, N.J.--New Jersey lawmakers Tuesday blasted Argentina's state-run oil company for what they said was a premeditated plan to use U.S. Bankruptcy Court to shirk its responsibility for the Passaic River cleanup. New Jersey lawmakers on a committee comprising members from both chambers of the state Legislature voted unanimously to approve resolutions asking New Jersey and federal officials to investigate whether the company, YPF SA, has violated state or federal laws. "We want them to pay their fair share of the cleanup of the Passaic River," said State Sen. Bob Smith, a Democrat who presided over a joint committee hearing on the issue in Lyndhurst Tuesday. The issue involves a riverfront site in Newark that, through years of acquisitions, has been owned by YPF unit Maxus Energy Corp. At that site in the 1950s and 1960s, former manufacturer Diamond Alkali produced pesticides and herbicides including Agent Orange. A New Jersey court ruled in 2011 that Maxus and another affiliate were responsible for dumping of dioxin, a highly toxic chemical and likely carcinogen, into the river decades ago. Maxus Energy filed for bankruptcy protection last June after YPF agreed to provide $130 million to the unit and four other affiliates on liabilities related to the Passaic River cleanup. But New Jersey lawmakers accused YPF, which bought Maxus Energy in 1995, of embarking on a decadeslong plan to strip the company of its $2 billion in oil and gas assets and then force it into bankruptcy to avoid the full extent of its environmental liabilities. "It seems our laws exist in a way that allows corporations to have far greater ability to bob and weave around liability," said Democratic Assemblyman John Wisniewski. YPF said in a statement that it has transferred $700 million to Maxus for environmental remediation over the past 20 years and isn't liable for the Passaic River contamination . The U.S. Environmental Protection Agency has designated the Newark property a Superfund site. It has also identified more than 100 companies that are potentially liable for a 10-year, $1.4 billion cleanup of the nearby Lower Passaic River, which is polluted with dioxins and other toxic contaminants. YPF and Maxus aren't included in that list. EPA officials have filed proofs of claim in Maxus Energy's bankruptcy case for liability associated with the Newark site. An EPA spokesman, citing the continuing litigation, declined to provide an estimate of the liability. State lawmakers also said they would ask New Jersey's congressional delegation to send President Donald Trump a letter informing him of the situation ahead of his scheduled April 27 meeting with Argentina's President Mauricio Macri. New Jersey has more than 100 superfund sites, the most of any U.S. state. On Tuesday lawmakers expressed concern over Mr. Trump's proposed 2018 budget, which would reduce EPA funding by 31%. Occidental Chemical, which bought Maxus' chemical business in 1986 and has been involved in litigation with YPF for years, has said the $130 million the company has offered to cover environmental costs is too low. If YPF is allowed to "abandon its environmental liabilities in America, a dangerous precedent could be set," said Frank Parigi, a representative for Occidental Chemical, during testimony to the committee Tuesday. "Other companies--foreign or domestic--would see YPF's scheme as a viable option to manage their balance sheets." In September, Occidental Chemical agreed to spend $165 million on design and engineering work needed to start the Passaic River cleanup. A spokesman for YPF said Occidental is trying to shift the blame to other companies. "Maxus has certain contractual obligations to Occidental related to the Passaic River, and it has fulfilled those obligations, including after Maxus was purchased by YPF," the statement said. "Maxus was forced to seek bankruptcy protection after it exhausted its ability to continue paying." Write to Kate King at Kate.King@wsj.com Credit: By Kate King
Subject: Liability; Committees; Rivers; Bankruptcy; Legislators
Location: Argentina New Jersey
People: Trump, Donald J
Company / organization: Name: Bankruptcy Court-US; NAICS: 922110; Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: YPF SA; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 18, 2017
Section: US
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889152307
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889152307?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-25
Database: The Wall Street Journal
Oil Prices Fall a Bit Further as Supply Worries Persist; Investors are awaiting OPEC's May 25 meeting, at which a decision on output is set to be made
Author: Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Apr 2017: n/a.
Abstract: None available.
Full text: Selling pressure in crude futures continued in Asian trading Wednesday amid renewed concerns about oversupply after weeks of gains on hopes of constrained output. Oil fell for a second session overnight Tuesday, with Saudi Arabia's energy chief saying it is premature to assume the Organization of the Petroleum Exporting Countries will extend ongoing production cuts through the remainder of the year. The remark runs contrary to a report last week that the kingdom was very much behind prolonging the reductions. "The market is getting very mixed signals," said a Singapore crude trader. On the New York Mercantile Exchange, light, sweet crude futures for delivery in May was recently down 9 cents at $52.32 a barrel in the Globex electronic session. June Brent crude on London's ICE Futures exchange fell 14 cents to $54.75. Investors for weeks have been awaiting the cartel's May 25 meeting, at which a decision on output is set to be made. Representatives would then meet with major non-OPEC producers such as Russia a few days later to get their input. Analysts have warned a failure to extend the cuts would sink oil prices given investors have expanded their net-long positions with the assumption of an extension. "Their expectations are now likely to face a renewed test," said Commerzbank, noting that top energy watchdogs such as the International Energy Agency recently lowered their forecast for global oil-demand growth while raising projections of non-OPEC supplies. Moreover, the U.S. Energy Information Administration last week said daily crude production there could rise to 9.9 million barrels a day in 2018, versus March's prediction of 9.7 million. Output last year averaged 8.9 million and is seen by the agency coming in at 9.2 million barrels a day this year. Output has risen for eight straight weeks; the latest data will be out Wednesday as part of the EIA's closely watched weekly inventory data. According to The Wall Street Journal's survey of analysts, the average estimate is for a slight pullback in crude stockpiles last week and a bigger drop in gasoline inventories. However, the American Institute of Petroleum late Tuesday said its data showed an increase in gas supplies for last week. As such, Nymex May gasoline futures have fallen 0.9% from the New York settlement to $1.6961 a gallon. May diesel was recently down 0.2% at $1.6180 and ICE gas oil eased 0.5% to $489 a metric ton. Write to Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Jenny W. Hsu
Subject: Gasoline
Location: United States--US Saudi Arabia
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889181945
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889181945?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Stocks Slide With Oil Prices; Some investors and analysts hope earnings growth will support what they say are elevated equity prices
Author: Gold, Riva; Kuriloff, Aaron
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Apr 2017: n/a.
Abstract: None available.
Full text: Falling energy shares and mixed corporate earnings pressured U.S. stocks on Wednesday. Some investors and analysts are hoping earnings growth will support what they say are elevated stock prices, after signs of economic expansion and expectations for corporate-friendly policies from the Trump administration helped drive major indexes to records. Cooling economic data and concerns about the administration's ability to enact tax cuts and regulatory rollbacks have weighed on major U.S. indexes in recent weeks, along with worries about rising geopolitical tensions. The Dow industrials lost 118.79 points, or 0.6%, to 20404.49 on Wednesday. The S&P 500 slipped 4.02 points, or 0.2%, to 2338.17, and the Nasdaq Composite gained 13.56 points, or 0.2%, to 5863.03. Investors' allocation to U.S. stocks fell to its lowest levels since January 2008, according to an April survey of global fund managers by Bank of America Merrill Lynch, with 83% of investors, the highest ever, saying U.S. stocks are overvalued. Allocation to eurozone equities climbed to a 15-month high in April amid decreasing fears about the impact of European elections. "Investors are expecting another strong earnings season," said Nandini Ramakrishnan, strategist at J.P. Morgan Asset Management. "It would be disappointing if earnings-per-share numbers didn't come out [well]...given the exuberance of markets in the past five or six months." International Business Machines shaved 57 points off the Dow industrials, falling $8.36, or 4.9%, to $161.69, after the technology giant on Tuesday reported that revenue fell from the year-earlier period for the 20th consecutive quarter . It was the stock's biggest one-day percentage decline since June. Morgan Stanley climbed 83 cents, or 2%, to 42.04, after the bank said its quarterly earnings rose 70% . A day earlier, Goldman Sachs Group missed analysts' estimates after a decline in trading revenue. Its shares fell 1.50, or 0.7%, to 214.09 on Wednesday. Yahoo shares were choppy during the session and closed down 56 cents, or 1.2%, at 47, after the company Tuesday released results above expectations and reaffirmed it expects to close its deal with Verizon by the end of June. Declines in energy stocks also dragged on the Dow industrials, with Chevron falling 1.45, or 1.4%, to 104.23, and Exxon Mobil losing 56 cents, or 0.7%, to 80.49. The price of U.S. crude oil slid 3.8% to $50.44 a barrel--its largest decline in more than a month--after the U.S. Energy Information Administration said weekly gasoline supplies rose for the first time since February . Energy shares were among the biggest decliners in the S&P 500, losing 1.4%. Assets that investors consider relatively safe retreated after strengthening on Tuesday. Gold for April delivery fell 0.8% to $1,281.40 a troy ounce after climbing for five straight sessions, while the yield on the 10-year Treasury note rose to 2.202% from 2.177% in the previous session. Yields rise as prices fall. The WSJ Dollar Index rose 0.4%, a day after its biggest daily drop in a month. The Stoxx Europe 600 inched up 0.2%, recovering from its worst session since September. Bank shares led gains as data Wednesday showed the eurozone's trade balance returned to surplus in February, adding to hopes for a modest pickup in growth in the first quarter. The Nikkei Stock Average edged up less than 0.1% Wednesday. The Shanghai Composite Index fell 0.8% to its lowest since February, while Hong Kong's Hang Seng Index shed 0.4%. Australia's S&P/ASX 200 fell 0.6%. Write to Riva Gold at riva.gold@wsj.com and Aaron Kuriloff at aaron.kuriloff@wsj.com Credit: By Riva Gold and Aaron Kuriloff
Subject: Investments; Geopolitics; Prime ministers; Stock exchanges
Location: North Korea Russia United States--US United Kingdom--UK Australia China Hong Kong Syria Asia Europe
People: Li Keqiang
Company / organization: Name: Scotiabank; NAICS: 522110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 19, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889216032
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889216032?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Plummet on EIA Supply Data; Gasoline supplies rose for the first time since February, while crude oil inventories fell by 1 million barrels
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Apr 2017: n/a.
Abstract: None available.
Full text: Crude prices had their worst day in over a month after the U.S. Energy Information Administration reported an unexpected increase in gasoline supplies. The 1.5-million-barrel increase in gasoline stockpiles raised fears that a glut in the fuel would cause refiners to go on a diet, cutting their purchases of crude and sending oil prices lower. U.S. crude futures fell $1.97, or 3.8%, to $50.44 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.96, or 3.6%, to $52.93 a barrel. It was the steepest tumble for both benchmarks since March 8, when oil prices sold off sharply after weekly EIA data showed an unexpected increase in crude supplies. This time the data showed that crude oil inventories fell last week, but the 1-million-barrel decline wasn't big enough to assuage concerns about rising gasoline supplies and a 17,000 barrel-a-day increase in U.S. oil production. Output from U.S. oil fields has been steadily rising--something that could stand in the way of efforts by the Organization of the Petroleum Exporting Countries to bring supply and demand into balance. "It's hard to find anything in the short term that stood out at said 'buy me,'" said Donald Morton, senior vice president at Herbert J. Sims & Co. who runs an energy trading desk. Hedge funds and other speculative investors that had been washed out of the market after the price drop in March had started to make their way back, growing their bullish position for two weeks in a row, according to data from the Commodity Futures Trading Commission. "Today, they all got to take the Tylenol," Mr. Morton said. Gasoline supplies had been on the decline for eight straight weeks prior to Wednesday's data. Analysts and traders surveyed by The Wall Street Journal had predicted that gasoline supplies dropped by 2 million barrels last week. "As we approach the Memorial Day weekend, gasoline numbers are going to have more and more importance," said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. And refiners are running plants hard--their utilization rose to 92.9% of capacity last week, compared with 89.4% a year ago. That means they are soaking up more of the oil that has built up in storage tanks, but it could point to more and more gasoline that could overwhelm demand, Mr. Yawger said. "There's a possibility this is not a one-off," he said. The increase in gasoline stockpiles was largely driven by a jump in imports, said Sam Margolin, an analyst at Cowen & Co. While fuel demand has been relatively strong, consumers weren't able to absorb the additional 355,000 barrels a day of imported fuel that came ashore last week, he said. "People dump gasoline in the U.S. because it's one of the few places in the world where demand has been consistently good," he said. "We just have to watch that. A similar thing happened last year and obviously was not good for oil prices in the second half of the year," he said. Gasoline futures fell 5.2 cents, or 3.0%, to $1.6590. Diesel futures fell 4.06 cents, or 2.5%, to $1.5813 a gallon. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Agreements; Crude oil prices; Supply & demand
Location: Russia United States--US Saudi Arabia
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889355501
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889355501?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon Seeks U.S. Waiver to Resume Russia Oil Venture; Exxon Mobil applied to Treasury for exemption to resume venture with Rosneft forged in 2012 by Rex Tillerson
Author: Solomon, Jay; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Apr 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--Exxon Mobil Corp. has applied to the Treasury Department for a waiver from U.S. sanctions on Russia in a bid to resume its joint venture with state oil giant PAO Rosneft, according to people familiar with the matter. Exxon has been seeking U.S. permission to drill with Rosneft in several areas banned by sanctions and renewed a push for approval in March, shortly after its most recent chief executive, Rex Tillerson, became secretary of state on Feb. 1, according to one of these people. The company originally applied for a waiver to gain access to the Black Sea in July 2015 but its application wasn't approved, the person said. The waiver request is likely to be closely scrutinized by members of Congress who are seeking to intensify sanctions on Russia in response to what the U.S. said was its use of cyberattacks to interfere with elections last year. Congress has also launched an investigation into whether there were ties between aides to Donald Trump and Russia's government during the presidential campaign and the political transition. Mr. Tillerson during his time at Exxon forged a close working relationship with Russian President Vladimir Putin and with Rosneft, a company that is critical to Russia's oil-reliant economy. The State Department is among the U.S. government agencies that have a say on Exxon's waiver application, which was made to the Treasury Department's Office of Foreign Assets Control, according to current and former U.S. officials. Mr. Tillerson is recusing himself from any matters involving Exxon for two years, and won't be involved with any decision made by any government agency involving Exxon during this period, a State Department spokesman said. Before he became secretary of state, Mr. Tillerson said Exxon opposes sanctions when they aren't applied in a uniform way. He testified during his confirmation hearings that neither he nor his former company ever lobbied against U.S. sanctions on Russia. A spokesman for the Treasury Department said it doesn't comment on waiver applications. An Exxon spokesman said the company wouldn't discuss government deliberations on sanctions. Russia's oil resources have long been among the most sought-after prizes by U.S. and European oil companies, and multiple U.S. presidential administrations in both parties have worked to help them enter the country. As much as 100 billion barrels of oil is believed to remain untapped in the country, but many Western companies have been stymied in their attempts to reach those reserves, often by geopolitical risks. The sanctions affecting Rosneft ban U.S. companies from deals in the Arctic, Siberia and the Black Sea, areas that would require the sharing of cutting-edge drilling techniques. The sanctions, instituted after Russia annexed the Crimea region of Ukraine in 2014, also bar dealings with Rosneft's chief executive, Igor Sechin, saying he "has shown utter loyalty to Vladimir Putin--a key component to his current standing." The sanctions effectively sidelined a landmark exploration deal Exxon, under Mr. Tillerson's leadership , had signed with Rosneft in 2012. The deal granted Exxon access to explore in Russia's Arctic waters, the right to drill with new technology in Siberia and the chance to explore in the deep waters of Russia's portion of the Black Sea. Mr. Putin said Exxon and Rosneft might invest as much as $500 billion over the life of the partnership. In 2013, the Russian leader bestowed upon Mr. Tillerson the country's Order of Friendship in part for his role in developing the joint venture. Exxon has reported it is exposed to losses from the Rosneft ventures of up to $1 billion before taxes, although the company has yet to recognize them on its books given its position that sanctions could be lifted. Exxon received a U.S. waiver in September 2014, when the sanctions were first implemented and the company was working on a well in the Russian Arctic. Mr. Tillerson and other Exxon executives asked the Treasury Department and senior Obama administration officials to allow the company to complete the well, saying it wouldn't be safe to leave before it was finished, according to people familiar with the matter. Treasury granted an extension, and the company completed drilling in October and eventually withdrew its employees from the project. Exxon has disclosed that in 2015 and 2016 the company received a license from the Treasury Department allowing the company to undertake "limited administrative actions" in its partnership with Rosneft, according to company documents. Such permission would put Exxon in a position to move more quickly if it gets the green light to drill, according to the person familiar with the matter. Exxon's proposal to drill in the Black Sea has been circulated in various federal departments in recent months, several people said. Exxon is arguing that it deserves a waiver there because under its deal with Rosneft its exploration rights in the Black Sea will expire if it doesn't act, and because some of its top foreign competitors aren't similarly restricted. It is unusual for a company to seek a waiver based purely on future business prospects, according to former U.S. officials. American companies often seek waivers from sanctions citing humanitarian, trade or operational issues, the officials said. Senator John McCain (R-Ariz.), the chairman of the Senate Armed Services Committee and a supporter of a bill that would limit President Donald Trump's ability to waive or weaken U.S. sanctions on Russia, tweeted in response to news of Exxon's waiver request, "Are they crazy? @WSJ: "Exxon Seeks U.S. Waiver to Resume #Russia Oil Venture." Rep. Adam Schiff, the senior Democrat on the House Intelligence Committee investigating Russia's role in the 2016 U.S. presidential election, called on the Treasury to turn down Exxon's request. "The Treasury Department should reject any waiver from sanctions which would allow Exxon Mobil or any other company to resume business with prohibited Russian entities," Mr. Schiff said in a statement. "Until Russia abides by the Minsk accords and ends its illegal occupation of Crimea, the only changes to sanctions should be their intensification, not their dilution." Exxon opposed how the Obama administration applied sanctions on a number of its projects, according to people familiar with the matter, in part because the European Union, which has its own sanctions, granted waivers to its competitors to continue operating. Norway's Statoil ASA has a waiver for Arctic drilling in the Barents Sea. Italy's Eni SpA is allowed to operate in the Barents and Black seas, and has been aggressively exploring in cooperation with Russia. "Exxon is worried it could get boxed out of the Black Sea by the Italians," said a person briefed on the company's waiver application. The Black Sea may hold 30 billion barrels of oil, according to estimates from Russia, Turkey and Romania. Exxon has drilled there off the coast of Romania and holds a license for an area in Ukrainian waters. Although a number of the biggest Western oil companies are seeking opportunities in the Black Sea, it remains a frontier area where few deep-water wells have been drilled, meaning estimates could change as more work is done, according to industry analysts. Under the terms of its deal with Rosneft, Exxon needs an oil discovery in the Black Sea by the end of this year to obtain a Russian government license to drill. Unless Exxon receives approval soon, there might not be enough time to safely drill an exploratory well to be able to develop any discoveries, said oil industry experts. Exxon has continued in recent years to drill and seek to expand its access around Sakhalin Island in Russia's Far East, an area to which sanctions don't apply. As secretary of state, Mr. Tillerson, following through on his pledge to recuse himself from potential Exxon-related matters, stayed out of State Department deliberations on the permit for the Keystone XL project , a proposed pipeline that would carry oil from Canada into the U.S. Due to the sanctions, other major components of the Exxon-Rosneft agreement were put on hold in 2014, shortly before Rosneft revealed that the first well the two companies drilled together in the arctic waters of the Kara Sea may hold as much as 750 million barrels of oil. James Marson in Moscow contributed to this article. Write to Jay Solomon at jay.solomon@wsj.com and Bradley Olson at Bradley.Olson@wsj.com Related reading * Trump's Rapid Rapprochement Plans With Russia Fade * Trump-Russia Collusion Evidence Is 'More Than Circumstantial,' Key Lawmaker Says * Inside Rex Tillerson's Negotiating Style: Cozy With Power, Unbending and Theatrical * Key Findings From Intelligence Report on Russia's Efforts to Influence U.S. Election * Italy's Eni Plans to Pump Arctic Oil, After Others Abandon the Field Credit: By Jay Solomon and Bradley Olson
Subject: Foreign investment; Political campaigns; Sanctions; Waivers; Presidential elections; Drilling; Joint ventures
Location: Arctic region United States--US Black Sea Crimea Union of Soviet Socialist Republics--USSR Siberia Ukraine
People: Putin, Vladimir
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921120; Name: OAO Rosneft; NAICS: 324110; Name: Office of Foreign Assets Control; NAICS: 928110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 19, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889420053
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889420053?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Investors Welcome a Break From Punishing Oil Price Swings; Tightest trading range in nearly 14 years is seen as a bullish indicator for financial markets
Author: Puko, Timothy; Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Apr 2017: n/a.
Abstract: None available.
Full text: The wild price swings that characterized the oil market for much of the past two years have faded in 2017, a welcome development for stock and bond investors whose holdings tend to suffer when crude turns volatile. U.S. oil prices traded in a range of $50.82 to $54.45 a barrel for most of the past four months. No 60-day trading range has been that tight in nearly 14 years. Two opposing forces have trapped oil prices in that narrow band: Production cuts by the major producing nations have limited price declines while growing U.S. supply has held rallies in check. That doesn't mean the market is free from the occasional big price swing. Crude futures declined 3.8% on Wednesday after a surprising increase in U.S. gasoline stockpiles . But even those losses weren't enough to knock prices below $50 a barrel, and traders and investors are still betting that the market will remain stable in coming weeks. The low volatility is a stark change from the previous two years, when prices often swung $10 or more monthly, as the Organization of the Petroleum Exporting Countries ramped up production to compete with U.S. shale drillers. Prices fell from $100 a barrel to less than $30 before rebounding last year after OPEC began to explore reductions to output. Oil-price stability is a bullish indicator for other financial markets, many investors say. Fuel and shipping are major costs for businesses, so big swings in energy prices can impair planning, said David Rolley, co-head of global fixed income for money manager Loomis Sayles & Co., which has $250 billion in assets. A stable price "makes us more optimistic about global growth," Mr. Rolley said, as businesses invest more and energy companies face a lower risk of bankruptcy. Earnings growth for oil-and-gas companies could hit double digits in the first quarter of 2017, said Joseph Tanious, senior investment strategist for Bessemer Trust. "When oil prices were dipping lower, that was having a drag on the overall results for the S&P 500," he said. "Now we're seeing the opposite of that." Energy shares in the S&P 500 rose 24% in 2016. That made them last year's top-performing sector and helped boost the broader market, though these stocks have given back some of those gains this year. Bond markets also have enjoyed a lift from oil. High-yield debt tends to move alongside crude prices because smaller energy companies have issued $190 billion of outstanding junk bonds, accounting for 15% of the U.S. high-yield market, according to research from Bank of America Merrill Lynch. Dozens of these borrowers went bankrupt during the oil-price collapse. The oil crisis forced many of those companies to cut costs, sell future production and assets, raise new equity and refinance debt. Rebounding prices stabilized their finances and steadied the high-yield market. "A lot of the changes done a year ago put the industry on better footing," said Chris Barris, global head of high yield and deputy chief investment officer at Alcentra, a unit of Bank of New York Mellon Corp. that manages $31 billion of debt. Markets have been steadier than they were in early 2016, when stocks and many commodities plunged amid fears that a global recession was at hand. Crude prices dropped 9% over three days in March but otherwise have been largely stable. Options traders are betting that volatility in the next three months will hit its lowest levels since the autumn of 2014. Not everyone has been pleased by the lack of volatility: Executives at Goldman Sachs Group Inc. said during a Tuesday earnings call that stable oil prices meant fewer opportunities to make wagers on large price moves , hitting earnings. And some investors remain unconvinced that volatility is going away. Oil's trading range is pricing in an OPEC decision to extend its production cuts for another six months, brokers and traders said. If OPEC reconsiders, that could send prices back to near $40 a barrel, analysts at Citigroup Inc. said last week. Write to Timothy Puko at tim.puko@wsj.com and Alison Sider at alison.sider@wsj.com Credit: By Timothy Puko and Alison Sider
Subject: High yield investments; Securities markets; Crude oil prices; Energy industry; Natural gas utilities; Volatility
Location: United States--US
Company / organization: Name: Bank of America Merrill Lynch; NAICS: 522110, 551111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 19, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889544291
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889544291?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
China's Oil Refiners Are Coming for Your Market Share; Like steel and aluminum before, Chinese oil refining overcapacity is spilling into global markets and depressing profits
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Apr 2017: n/a.
Abstract: None available.
Full text: Hungry Chinese refineries were once a boon for oil-sector investors. But what China gives, China can also take away: the global refining business is now in the crosshairs of its big oil firms. Chinese oil demand has skyrocketed this century, but its refining capacity has risen faster, tripling to 15% of the global total by the end of 2015, according to BP's annual world energy report, and a level nearly 20% higher than China's annual oil consumption. As a result, diesel and gasoline exports have surged. China National Petroleum Corp., the nation's largest oil firm, predicts a further 5% rise in China's capacity in 2017 and another 55% rise in net diesel exports, following record exports in the second half of 2016. China's rising refining overcapacity has followed a pattern that previously helped sink global margins in steel, aluminum, and solar-panel manufacturing. State-backed firms, who face little problem getting access to credit, pile into what initially look like profitable sectors. Beijing often encourages the build-out because rising competition helps keep inflation down. As long as the economy is humming along, this strategy works fine. But when growth slows, all that new diesel, or steel needs to find a new home. As the Chinese economy slowed sharply in late 2014, China moved from being a net importer of fuel products to one of the world's largest exporters--a position it still holds. The situation was exacerbated last year by a new rule spurring higher output by independent "teapot" refineries, and by Beijing's continuing price controls: While global crude prices rose over 60% in yuan terms, domestic diesel prices rose only 19%. With margins narrowing and the yuan weakening, refiners had a strong incentive to send production abroad , primarily into the Asian market, the world's biggest source of demand. Asian refining margins had plunged 40% by late 2016, thanks largely to the resulting massive diesel and gasoline glut. Things are improving somewhat this year: the yuan has stabilized and so has domestic growth. That won't be enough to erase the now-structural overcapacity in Chinese refining . Along with the rise in U.S. shale oil production, this factor could help keep global crude prices in check: Competing regional firms facing structurally lower margins--including the likes of Korea's SK Innovation and Japan's JX Holdings--will be even less inclined to build up inventories if crude-oil prices start rising. The impact is spreading to European firms like Royal Dutch Shell and Total: McKinsey notes that lower refinery run rates in Europe last year were partly due to a surge in Middle Eastern fuel imports, which had been diverted from Asia as inventories there headed skyward. As Chinese oil products start leaking under the door, Western oil refiners celebrating the prospect of higher global growth this year--including in China--should temper their optimism. Write to Nathaniel Taplin at nathaniel.taplin@wsj.com Credit: By Nathaniel Taplin
Subject: Petroleum production; Aluminum; Wage & price controls; Petroleum refineries; Inventory; Exports; International markets
Location: China Beijing China United States--US Japan
Company / organization: Name: China National Petroleum Corp; NAICS: 211111
Publication title: Wall Street Jour nal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 20, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889584382
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/18895843 82?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon Seeks Waiver for Russia Deal
Author: Solomon, Jay; Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]20 Apr 2017: A.1.
Abstract:
Exxon Mobil Corp. has applied to the Treasury Department for a waiver from U.S. sanctions on Russia in a bid to resume its joint venture with state oil giant PAO Rosneft, according to people familiar with the matter.
Full text: WASHINGTON -- Exxon Mobil Corp. has applied to the Treasury Department for a waiver from U.S. sanctions on Russia in a bid to resume its joint venture with state oil giant PAO Rosneft, according to people familiar with the matter. Exxon has been seeking U.S. permission to drill with Rosneft in several areas banned by sanctions and renewed a push for approval in March, shortly after its most recent chief executive, Rex Tillerson, became secretary of state on Feb. 1, according to one of these people. The company originally applied for a waiver to gain access to the Black Sea in July 2015 but its application wasn't approved, the person said. The waiver request is likely to be closely scrutinized by members of Congress who are seeking to intensify sanctions on Russia in response to what the U.S. said was its use of cyberattacks to interfere with elections last year. Congress has also launched an investigation into whether there were ties between aides to Donald Trump and Russia's government during the presidential campaign and the political transition. Mr. Tillerson during his time at Exxon forged a close working relationship with Russian President Vladimir Putin and with Rosneft, a company that is critical to Russia's oil-reliant economy. The State Department is among the U.S. government agencies that have a say on Exxon's waiver application, which was submitted to the Treasury Department's Office of Foreign Assets Control, according to current and former U.S. officials. Mr. Tillerson is recusing himself from any matters involving Exxon for two years, and won't be involved with any decision made by any government agency involving Exxon during this period, a State Department spokesman said. Before he became secretary of state, Mr. Tillerson said Exxon opposes sanctions when they aren't applied in a uniform way. He testified during his confirmation hearings that neither he nor his former company ever lobbied against U.S. sanctions on Russia. A spokesman for the Treasury Department said it doesn't comment on waiver applications. An Exxon spokesman said the company wouldn't discuss government deliberations on sanctions. Russia's oil resources have long been among the most sought-after prizes by U.S. and European oil companies, and multiple U.S. presidential administrations in both parties have worked to help them enter the country. As much as 100 billion barrels of oil is believed to remain untapped in the country, but many Western companies have been stymied in their attempts to reach those reserves, often by geopolitical risks. The sanctions affecting Rosneft ban U.S. companies from deals in the Arctic, Siberia and the Black Sea, areas that would require the sharing of cutting-edge drilling techniques. The sanctions, instituted after Russia annexed the Crimea region of Ukraine in 2014, also bar dealings with Rosneft's chief executive, Igor Sechin. The sanctions effectively sidelined a landmark exploration deal Exxon, under Mr. Tillerson's leadership, had signed with Rosneft in 2012. The deal granted Exxon access to explore in Russia's Arctic waters, the right to drill with new technology in Siberia and the chance to explore in the deep waters of Russia's portion of the Black Sea. Mr. Putin said Exxon and Rosneft might invest as much as $500 billion over the life of the partnership. In 2013, the Russian leader bestowed upon Mr. Tillerson the country's Order of Friendship in part for his role in developing the joint venture. Exxon has reported it is exposed to losses from the Rosneft ventures of up to $1 billion before taxes, although the company has yet to recognize them on its books given its position that sanctions could be lifted. Exxon received a U.S. waiver in September 2014, when the sanctions were first implemented and the company was working on a well in the Russian Arctic. Mr. Tillerson and other Exxon executives asked the Treasury Department and senior Obama administration officials to allow the company to complete the well, saying it wouldn't be safe to leave before it was finished, according to people familiar with the matter. Treasury granted an extension, and the company completed drilling in October and eventually withdrew its employees from the project. Exxon's proposal to drill in the Black Sea has been circulated in various federal departments in recent months, several people said. Exxon is arguing that it deserves a waiver there because under its deal with Rosneft its exploration rights in the Black Sea will expire if it doesn't act, and because some of its top foreign competitors aren't similarly restricted. It is unusual for a company to seek a waiver based purely on future business prospects, according to former U.S. officials. American companies often seek waivers from sanctions citing humanitarian, trade or operational issues, the officials said. Senator John McCain (R., Ariz.), the chairman of the Senate Armed Services Committee and a supporter of a bill that would limit President Donald Trump's ability to waive or weaken U.S. sanctions on Russia, tweeted in response to news of Exxon's waiver request, "Are they crazy? @WSJ: "Exxon Seeks U.S. Waiver to Resume #Russia Oil Venture." Rep. Adam Schiff, the senior Democrat on the House Intelligence Committee investigating Russia's role in the 2016 presidential election, called on the Treasury to turn down Exxon's request. "Until Russia abides by the Minsk accords and ends its illegal occupation of Crimea, the only changes to sanctions should be their intensification, not their dilution," Mr. Schiff said. Exxon opposed how the Obama administration applied sanctions on a number of its projects, according to people familiar with the matter, in part because the European Union, which has its own sanctions, granted waivers to its competitors to continue operating. Italy's Eni SpA is allowed to operate in the Barents and Black seas and has been aggressively exploring in cooperation with Russia. "Exxon is worried it could get boxed out of the Black Sea by the Italians," said a person briefed on the company's waiver application. The Black Sea may hold 30 billion barrels of oil, according to estimates from Russia, Turkey and Romania. Under the terms of its deal with Rosneft, Exxon needs an oil discovery in the Black Sea by the end of this year to obtain a Russian government license to drill. --- James Marson in Moscow contributed to this article. Credit: By Jay Solomon and Bradley Olson
Subject: Sanctions; Joint ventures; Waivers; Offshore drilling
Location: Black Sea Russia
Company / organization: Name: Department of the Treasury; NAICS: 921130; Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Apr 20, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889637411
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889637411?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Stop Swinging for Now --- Commodity has been volatile in the past two years, but that has changed in 2017
Author: Puko, Timothy; Sider, Alison
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]20 Apr 2017: B.11.
Abstract:
High-yield debt tends to move alongside crude prices because smaller energy companies have issued $190 billion of outstanding junk bonds, accounting for 15% of the U.S. high-yield market, according to research from Bank of America Merrill Lynch.
Full text: The wild price swings that characterized the oil market for much of the past two years have faded in 2017, a welcome development for stock and bond investors whose holdings tend to suffer when crude turns volatile. U.S. oil prices traded in a range of $50.82 to $54.45 a barrel for most of the past four months. No 60-day trading range has been that tight in nearly 14 years. Two opposing forces have trapped oil prices in that narrow band: Production cuts by the major producing nations have limited price declines while growing U.S. supply has held rallies in check. That doesn't mean the market is free from the occasional big price swing. Crude futures declined 3.8% on Wednesday after a surprising increase in U.S. gasoline stockpiles. But even those losses weren't enough to knock prices below $50 a barrel, and traders and investors are still betting that the market will remain stable in coming weeks. The low volatility is a stark change from the previous two years, when prices often swung $10 or more monthly, as the Organization of the Petroleum Exporting Countries ramped up production to compete with U.S. shale drillers. Prices fell from $100 a barrel to less than $30 before rebounding last year after OPEC began to explore reductions to output. Oil-price stability is a bullish indicator for other financial markets, many investors say. Fuel and shipping are major costs for businesses, so big swings in energy prices can impair planning, said David Rolley, co-head of global fixed income for money manager Loomis Sayles & Co., which has $250 billion in assets. A stable price "makes us more optimistic about global growth," Mr. Rolley said, as businesses invest more and energy companies face a lower risk of bankruptcy. Earnings growth for oil-and-gas companies could hit double digits in the first quarter of 2017, said Joseph Tanious, senior investment strategist for Bessemer Trust. "When oil prices were dipping lower, that was having a drag on the overall results for the S&P 500," he said. "Now we're seeing the opposite of that." Energy shares in the S&P 500 rose 24% in 2016. That made them last year's top-performing sector and helped boost the broader market, though these stocks have given back some of those gains this year. Bond markets also have enjoyed a lift from oil. High-yield debt tends to move alongside crude prices because smaller energy companies have issued $190 billion of outstanding junk bonds, accounting for 15% of the U.S. high-yield market, according to research from Bank of America Merrill Lynch. Dozens of these borrowers went bankrupt during the oil-price collapse. The oil crisis forced many of those companies to cut costs, sell future production and assets, raise new equity and refinance debt. Rebounding prices stabilized their finances and steadied the high-yield market. Markets have been steadier than they were in early 2016, when stocks and many commodities plunged amid fears that a global recession was at hand. Crude prices dropped 9% over three days in March but otherwise have been largely stable. Options traders are betting that volatility in the next three months will hit its lowest levels since the autumn of 2014. Not everyone has been pleased by the lack of volatility: Executives at Goldman Sachs Group Inc. said during a Tuesday earnings call that stable oil prices meant fewer opportunities to make wagers on large price moves, hitting earnings. And some investors remain unconvinced that volatility is going away. Oil's trading range is pricing in an OPEC decision to extend its production cuts for another six months, brokers and traders said. If OPEC reconsiders, that could send prices back to near $40 a barrel, analysts at Citigroup Inc. said last week. Credit: By Timothy Puko and Alison Sider
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Apr 20, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889638125
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889638125?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Minister Wants OPEC Oil-Production Deal Extended, Perhaps for Less Than 6 Months; Khalid al-Falih says agreement in the bag though not all of OPEC has signed on
Author: Said, Summer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Apr 2017: n/a.
Abstract: None available.
Full text: ABU DHABI--An extension to an agreement by members of the Organization of the Petroleum Exporting Countries and producers outside the group to cut crude-oil production is most likely needed, but perhaps not for as long as another six months, Saudi Arabia's energy minister Khalid al-Falih said Thursday. A preliminary agreement has been reached, though not all OPEC ministers have signed on, Mr. Falih said at an energy-sector event. Saudi support is essential for the 13-member Organization of the Petroleum Exporting Countries to renew its agreement at its next meeting, scheduled in Vienna on May 25. The group committed last year to cut about 1.2 million barrels of oil a day to bring global oversupply of crude back in line with demand to help raise petroleum prices . Mr. Falih said that reducing oil stocks to the five-year average was the main target of the November deal, but that target has yet to be reached. Saudi Arabia has already told OPEC officials that it wants to extend the cartel's agreement to cut crude-oil production for another six months when the group meets in May, people familiar with the matter have said. Write to Summer Said at summer.said@wsj.com Credit: By Summer Said
Subject: Agreements; Petroleum production; Cartels; Price increases
Location: Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 20, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889664171
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889664171?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Abu Dhabi Sovereign Fund Finds New Cash Source as Oil Prices Slump; Abu Dhabi's Mubadala has agreed to invest in private equity on behalf of another firm in a groundbreaking deal
Author: Clark, Simon
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Apr 2017: n/a.
Abstract: None available.
Full text: An Abu Dhabi sovereign-wealth fund has agreed to invest money for one of Europe's biggest private-equity firms, according to people familiar with the matter, in the latest sign of how weak oil prices are changing the way such funds do business. Mubadala Development Co.'s deal with Paris-based Ardian, valued at as much as $750 million, according to the people, is unusual because Mubadala, which has $67.6 billion of assets, is normally the one providing cash to other firms to invest. "This is the first time I have heard of a sovereign-wealth fund doing this," said Sunaina Sinha, founder of Cebile Capital, which advises private-equity firms on fundraising. "Sovereign-wealth funds are looking for new sources of capital following the decline in oil prices." Since its creation in 2002 by the oil-rich government of Abu Dhabi, Mubadala has become an important source of money for cash-hungry investors, such as Washington-based private-equity firm Carlyle Group LP, in search of backing for funds and takeovers. Until now, Ardian only bought assets from sovereign-wealth funds or raised money from them to invest, rather than providing them money to manage. "It's unusual for a fund like Ardian to give new money to invest to a sovereign-wealth fund," Vincent Gombault, a member of Ardian's executive committee, said in an interview. Ardian will initially give Mubadala's private-equity team, overseen by Hani Barhoush and Adib Mattar, $500 million to invest in new private-equity funds and corporate takeovers, according to people familiar with the transaction. It will also buy $1.75 billion of existing private-equity assets, which Mubadala will continue to manage. If the team reaches agreed performance targets, Ardian will provide a further $250 million to invest in new funds and takeovers, the people said. The funding gives Ardian access to the sovereign-wealth fund's network of contacts, said Mr. Gombault. Private-equity firms often offer sovereign-wealth funds lucrative opportunities to invest directly in companies alongside them. "We are buying access to the network of the sovereign-wealth fund," Mr. Gombault said. "They are good at leveraging relationships with private-equity firms." Oil prices have fallen more than 50% since 2014, prompting oil-rich governments from Norway to Kazakhstan to tap sovereign funds to help patch their strained budgets. Total assets of sovereign-wealth funds rose just 1%, to $6.59 trillion, in the 12 months to March 31, according to the research firm Preqin. Mubadala, whose chairman is the crown prince of Abu Dhabi, is merging with another Abu Dhabi sovereign-wealth fund, International Petroleum Investment Co., or IPIC, which will boost its assets to $125 billion. IPIC is entangled in a legal dispute involving billions of dollars it has said it is owed by a Malaysian state investment fund. Ardian has $60 billion under management, including directly owned stakes in companies and commitments to private-equity funds. It also buys private-equity assets from other investors. It has previously acquired private-equity assets from sovereign-wealth funds, including the Abu Dhabi Investment Authority. The $1.75 billion of assets Ardian is buying from Mubadala include stakes in 14 private-equity funds as well as 14 direct stakes in companies. The funds are managed by companies including Carlyle, BDT Capital Partners LLC and Raine Group LLC, the people familiar with the matter said. Mubadala is also buying stakes in EMI Music Publishing, Burger King owner Restaurant Brands International Inc., Los Angeles-based Lemonade Restaurant Group, Mexican pipeline operator Fermaca, and talent agency WME-IMG, the people said. Write to Simon Clark at simon.clark@wsj.com Credit: By Simon Clark
Subject: Equity; Private equity; Equity funds
Location: Abu Dhabi United Arab Emirates Kazakhstan Norway Europe
Company / organization: Name: Mubadala Development Co; NAICS: 523999; Name: Carlyle Group; NAICS: 523110; Name: Abu Dhabi Investment Authority; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 20, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889670256
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889670256?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
General Electric Earnings: What to Watch; Investors await news on cuts to company's industrial business, future of oil and gas operations
Author: Gryta, Thomas
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Apr 2017: n/a.
Abstract: None available.
Full text: General Electric Co. is set to report first-quarter earnings before the market opens on Friday. Here is what you need to know: EARNINGS FORECAST: Analysts polled by Thomson Reuters expect earnings per share of 17 cents, compared with adjusted earnings per share of 21 cents during the same period last year. REVENUE FORECAST: Analysts project revenue of $26.41 billion, down from $27.85 billion a year earlier. WHAT TO WATCH: --CUTS: Wall Street might look for more details on GE's plans to cut annual costs in its industrial business by $1 billion for each of the next two years. After discussions with activist investor Trian Fund Management, GE came up with bigger, more specific savings targets and tied executive bonuses more closely to core business performance. Analysts have recently warned that GE is unlikely to reach a long-term goal of $2 a share in profit in 2018, which the company has stood behind so far. --STABILITY: The first quarter tends to be relatively slow for GE, with more business later in the year. According to Barclays analysts, however, there is a low bar this time around. "GE will need to show us order stability, margin gains and cash-flow improvement, but sentiment is so toxic it probably won't take much to get the stock to perk up," they wrote in a note to clients this week. GE shares are down 5% so far this year, compared with a 4.4% rise in the S&P 500 in the same period. --OIL & GAS: GE's oil and gas business was hit hard by the decline in crude oil prices, so investors will be listening closely to its outlook. The company expects its tie-up with oil-field service company Baker Hughes Inc. to close midyear, bringing an opportunity to continue its cost-cutting push. GE will own almost two-thirds of the new stand-alone public company. Write to Thomas Gryta at thomas.gryta@wsj.com Credit: By Thomas Gryta
Subject: Financial performance; Stock prices; Investments; Earnings per share; Crude oil prices; Company reports
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 20, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889696023
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889696023?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Political Path Narrows for Exxon Deal With Russian Firm; Bipartisan opposition takes shape; Rubio says waiver sought by oil giant isn't 'in America's national security interest'
Author: Olson, Bradley; Solomon, Jay
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Apr 2017: n/a.
Abstract: None available.
Full text: When President Donald Trump picked Rex Tillerson, the chief executive of Exxon Mobil Corp., to be his secretary of state, some oil analysts assumed the appointment signaled a potential revival of the firm's halted partnership with Russia. Four months later, with Exxon now seeking a waiver from U.S. sanctions to allow it to drill with Russian state-oil giant PAO Rosneft in the Black Sea, the political path for such an opportunity appears to be narrowing significantly. Congress and the Federal Bureau of Investigation continue to probe ties between aides to Mr. Trump and Russia's government. Many lawmakers back expanded sanctions in response to assessments by the U.S. intelligence community that Moscow interfered in the U.S. presidential election. "While a waiver to allow business with prohibited Russian entities may be in Exxon Mobil's interest, it would clearly not be in America's national security interest," Sen. Marco Rubio (R., Fla.) a member of the Senate Foreign Relations Committee, said in a statement to The Wall Street Journal. Mr. Rubio joined other members of Congress--of both parties--in urging the Trump administration to reject Exxon's request to the Treasury Department's Office of Foreign Assets Control, saying Russia hasn't done anything to merit the loosening of sanctions. Exxon's request was floated in 2015 and renewed in March, according to a person familiar with the matter. "Vladimir Putin has taken no steps that would merit the removal of any sanctions," Sen. Bob Menendez (D., N.J.) said in a statement Thursday. "The last thing the United States should be doing is clearing the way for lucrative new business opportunities for Putin and his cronies," said Rep. Eliot Engel (D., N.Y.), the top-ranked Democrat on the House Committee on Foreign Affairs. "Are they crazy?" was the message put up on Twitter on Wednesday by Sen. John McCain (R, Ariz.), the chairman of the Senate Armed Services Committee, in response to the news of Exxon's waiver request. Mr. Rubio and Republican Sens. Lindsey Graham of South Carolina had both expressed reservations about Mr. Tillerson's nomination to be Secretary of State before voting to confirm him. A spokesman for Mr. Graham said he was unavailable. Neither Exxon nor the U.S. Treasury Department would comment on the waiver request. State Department officials noted Mr. Tillerson has pledged to recuse himself for two years from any issue involving his former company. Exxon has sought permission to drill in Russia's Black Sea waters since mid-2015, a request the Obama administration didn't approve. Exxon is wary of the efforts of rivals such as Italian oil company Eni SpA and Norway's Statoil ASA to continue to explore Russian prospects despite European Union sanctions. Exxon has until the end of the year to drill in the Black Sea, according to its agreement with Rosneft. It can obtain a license to operate only if it makes a discovery, a possibility that will become increasingly unlikely if Treasury doesn't grant a waiver soon. Mr. Tillerson said earlier this month that U.S.-Russia relations had reached a "low point," in comments following U.S. bombing of a Syrian air base in response to the regime's apparent use of chemical weapons. Write to Bradley Olson at Bradley.Olson@wsj.com and Jay Solomon at jay.solomon@wsj.com Credit: By Bradley Olson and Jay Solomon
Subject: National security; International relations; Sanctions; Congressional committees
Location: South Carolina Russia United States--US Black Sea
People: Trump, Donald J McCain, John Engel, Eliot L Graham, Lindsey Putin, Vladimir
Company / organization: Name: Senate-Armed Services, Committee on; NAICS: 921120; Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921 120; Name: House of Representatives-Foreign Affairs, Committee on; NAICS: 921120; Name: Office of Foreign Assets Control; NAICS: 928110; Name: Federal Bureau of Investi gation--FBI; NAICS: 922120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 20, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889886838
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889886838?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Stocks Show Gain for Week, Helped by Earnings Reports; Market edges lower Friday, weighed down by energy sector as oil prices extend losses
Author: Gold, Riva Driebusch, Corrie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2017: n/a.
Abstract: None available.
Full text: Encouraging earnings reports from banks and industrial companies lifted the S&P 500 to its first weekly gain of the month. The respite came as investors' waning expectations for corporate-friendly policies from the Trump administration have pressured stocks in April. Many said this earnings season is critical for indexes that have pulled back from record highs hit in March. While only 6% of companies in the S&P 500 have reported results for quarter, three-quarters of them have beaten the mean earnings estimate, according to FactSet. "We're in a market that's consolidating right now, and I think it's healthy," said Francis Gannon, co-chief investment officer at Royce Funds. He added that, especially for small companies, "fundamentals and earnings matter again." Despite weekly gains, stocks slipped Friday, weighed down by falling energy shares. The Dow Jones Industrial Average fell 30.95 points, or 0.2%, to 20547.76. The S&P 500 edged down 7.15 points, or 0.30%, to 2348.69 and the Nasdaq Composite slipped 6.26 points, or 0.1%, to 5910.52. U.S.-traded oil dropped below $50 a barrel , extending declines from earlier in the week. The price of crude fell 2.1% to $49.62, putting its weekly loss at 7.4%. Energy companies in the S&P 500 lost 0.4% on Friday, ending the week down 2.1%. Honeywell International shares rose $3.31, or 2.7%, to $127.08 Friday after the company beat earnings and revenue forecasts. A day earlier, shares of CSX Corp., another industrial, jumped after easily beating analyst expectations for earnings as the railroad company benefited from a recovery of coal shipments. For the week, industrial shares gained 2%, the best-performing sector in the S&P 500. Financial stocks in the index ended the week up 1.1% after several big banks beat first-quarter expectations earlier in the week. Those sectors--and stocks in general--got a boost Thursday after Treasury Secretary Steven Mnuchin said the administration planned to release a tax plan "very soon." The yield on the benchmark 10-year U.S. Treasury note slipped to 2.234% Friday, compared with 2.239% the previous day. Yields, which fall as prices rise, have declined for three consecutive weeks. The Stoxx Europe 600 index rose less than 0.1% on Friday, falling 0.6% in the past week. French stocks lagged behind on the final trading day before the first round of France's presidential election on Sunday. France's CAC-40 index declined 0.4% on Friday and ended the week 0.2% lower. Japan's Nikkei Stock Average rose 1% Friday to end its best week since February. Write to Riva Gold at riva.gold@wsj.com and Corrie Driebusch at corrie.driebusch@wsj.com Credit: By Riva Gold and Corrie Driebusch
Subject: Cable TV; Stock exchanges; Purchasing managers index; American dollar
Location: Australia Hong Kong United States--US Asia Japan
People: Macron, Emmanuel Weston, Chris
Company / organization: Name: IG Group; NAICS: 713290
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 21, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1889938619
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889938619?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall Amid Fears of a New Downtrend; Retreat comes as many predicted oil was beginning slow, steady rally
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices fell sharply Friday, a bearish end to the market's biggest week of losses in a month as traders reconsider the power of global exporters to ease a longstanding storage glut. U.S. futures fell every session this week, shedding 7.8% since they hit a one-month high April 11. Trend spotters piled on Friday, brokers and traders said, extending a selloff that initially caused big losses Wednesday after data showed an unexpected addition to U.S. gasoline stockpiles. The retreat comes at a time when many predicted that oil was beginning a slow, steady rally toward a $60 price that would be much more comfortable for the global oil industry. Many predict oil prices at or above $55 would be healthy for rebounding companies, especially in the U.S., helping highly indebted companies avoid losses and bankruptcy while also preventing an overexpansion. But Friday's selloff shows trend spotters are now trading as though oil's next move is a retreat below $50 a barrel instead of an extended rally from last year's decade lows, brokers and traders said. That would damage prospects for an energy sector that had fed on oil prices that held above $50 a barrel for most of the past five months. Energy companies performed the worst in the S&P 500 this week, down 1.9%, and for this year to date, down 9.9%. Many analysts had said oversupply has already faded, supporting higher commodity prices. Leaders of the Organization of the Petroleum Exporting Countries came out this week to say they are likely to extend output cuts introduced at the start of the year . But high U.S. supply and the market's inability to rally despite sunny forecasts for the future have deepened the futures market's reversal. Light, sweet crude for June delivery settled down $1.09, or 2.1%, at $49.62 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, lost $1.03, or 1.9%, to $51.96 a barrel on ICE Futures Europe. Both had their lowest settlement since the last week of March. Both also lost nearly $4, or more than 7% for the week, their largest weekly decline since the beginning of March. It snapped a three-week winning streak that had made many investors and analysts believe U.S. oil's dip below $50 in March was a temporary setback along oil's path to one of its calmest periods in years. Instead, U.S. supply has stymied the rally for the second time since early March. A surprise addition to U.S. gasoline stockpiles reported Wednesday sent prices down nearly 4% in one session. The report from the U.S. Energy Information Administration also showed slight production increases in the U.S. That reinforced fears that U.S. shale producers are becoming more capable of increasing output even with prices half of what they were three years ago. The market failed to hold small rebounds both Thursday and Friday. Saudi Arabia Energy Minister Khalid al-Falih said Thursday that a handful of OPEC members have reached a tentative agreement to cut more supply . But other statements coming from OPEC leaders equivocated too much to give traders confidence in the cartel's next move, with plenty of wiggle room left for members to agree to output cuts for only another three months--instead of six--or backtrack entirely from an extension, brokers and analysts said. "The ambiguity coming out of OPEC has people scratching. The technicians and the algorithms are all on the sell side," said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. Friday's selloff "is more of the follow through. More of the weakness. More of the same." The technicians and algorithms Mr. Morton alluded to are trend spotters he and others say are now on alert for another leg lower. They move based on chart trends and momentum and are adding to the selloff. May's contract expired Thursday as the front-month futures contract with prices turning lower and falling into expiration, something many see as a bearish sign, especially after several other losing sessions. "If we settle under $50 a barrel today, it could be a risk-off type of thing" and the selling continues, Tariq Zahir, who oversees $8 million as managing member of Tyche Capital Advisors LLC, had said early in the session. It is, however, hard to be aggressively bearish with OPEC members planning to meet and possibly pass an extension just next month, Mr. Zahir added. Many still believe OPEC will extend output cuts until year's end. Others, though, pointed to the market's failed rebounds Thursday and Friday morning as potentially more bearish signs and growing skepticism of OPEC's ability to cooperate or impact the market even if they do, brokers and analysts said. "The [lack of] reaction can either be attributed to saturation, as such news is released on almost a daily basis, or to the fact that the foremost goal of the OPEC agreement--namely to reduce the huge stocks of crude oil and oil products--is still a long way from being achieved, " Commerzbank said in a note. Global crude stockpiles remain above the five-year averages despite OPEC's aim to cut them back to those levels. Many analysts expect those stocks to start draining soon--a delayed effect as OPEC's cuts from the first quarter are likely only now reducing the number of new oil shipments arriving at onshore storage sites. But the fact they are still high could spook the market into a further selloff if OPEC doesn't extend its effort to counter U.S. production, analysts said. "The length of the extension, the number of participating countries and the production to be sidelined remain key unknowns," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. If an extension is only for one quarter, such a move may be moot for the market's long-term health since it means non-U. S. producers will increase output anew, potentially sending stockpiles higher again. Gasoline futures fell 2.6 cents, or 1.6%, to $1.6445 a gallon, the lowest settlement since March 28. It is down in seven of eight sessions. It lost 9.04 cents, or 5.2% for the week, its largest weekly decline in more than five months. Diesel futures lost 5.56 cents, or 1.6%, to $1.5533 a gallon, its lowest settlement since March 29. It is on a six-session losing streak, longest since June. It posted its largest weekly losses since the week ended Nov. 4, 5.8%. Sarah McFarlane and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Futures; Supply & demand; Crude oil
Location: United States--US Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: Commonwealth Bank of Australia; NAICS: 522110; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890062785
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890062785?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
General Electric, Still Weighed by Energy, Boosts Profit Amid Cost Cutting Plan; The Boston-based conglomerate sees a 9% drop in oil-and-gas revenue
Author: Gryta, Thomas; Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2017: n/a.
Abstract: None available.
Full text: General Electric Co.'s first quarter showed strength driven by its core industrial businesses as its oil and gas segment continued to drag on results. Under pressure to cut costs and boost returns, the conglomerate reported higher profit and a 7% jump in organic revenue in the typically sluggish period. Organic revenue excludes currency swings, acquisitions and divestments. Industrial orders--which give a glimpse at future demand for equipment like jet engines, power turbines and oil-related equipment--exceeded expectations, rising 7% excluding deals. "GE had a good quarter in a slow growth and volatile environment," Chief Executive Jeff Immelt said on a conference call Friday. He noted the "resource sector is challenging" but painted an overall positive picture for the rest of the year. "We see global growth accelerating while the U.S. continues to improve." GE continues to forecast full-year organic revenue growth of 3% to 5%. It also backed full-year earnings of $1.60 to $1.70 a share. Shares, which have slipped about 4% year to date, were little changed in early Friday trading at $30.14. Shares of rival Honeywell International Inc. jumped 3% Friday morning after the diversified manufacturer reported higher profits on strength in its aerospace and energy businesses. GE in March pledged to cut $1 billion in annual industrial expenses for each of the next two years, which is twice the level of cuts originally laid out by Mr. Immelt in a January earnings call. The cost-cutting was stepped up following discussions with activist investor Trian Fund Management, which The Wall Street Journal previously reported has been frustrated by missed profit goals. In the first quarter, that savings only reached about $76 million but the company said it expects cuts "to ramp up as we move throughout the year." Notably, GE reported industrial cash flow from operating activities was negative $1.63 billion, compared with positive $402 million a year ago. Citigroup analysts expected a flat performance for the period. Chief Financial Officer Jeffrey Bornstein said the cash flow missed GE's own expectation by $1 billion but was largely related to timing of inventory and orders, and said the company remains on track for $12 billion to $14 billion by year end. In recent years, the company has turned focus to its industrial businesses, shedding low-margin units like home appliances and striking a big oil-and-gas deal with Baker Hughes Inc. last fall. Still, analysts are wary that GE will reach a long-term goal of delivering $2 a share in profit in 2018. A problem for GE during the first quarter continued to be its oil-and-gas business as revenue fell 9% and segment profit fell 33%. Mr. Immelt said he is "encouraged" by a 9% order increase in the segment. Mr. Bornstein said a "large degree of uncertainty remains" around the recovery in the overall oil market as North American onshore rig counts rose 70% compared with 25% last quarter, but offshore activity has stayed weak. "Crude inventory remain at a five-year highs, and markets are closely watching OPEC output for compliance," he said. The division, which makes equipment for petroleum exploration and production, has weighed on GE during the more-than-two-year slump in crude prices as customer cut spending. Plans to combine the business with Baker Hughes into a new majority-owned public company remain on track for mid-year. There were several bright spots in other parts of its business, such as a 22% increase in revenue in the company's renewable-energy business, which includes wind turbine sales. Also, revenue from its largest industrial segment, which makes turbines for power plants, rose 17%. Total industrial profit operating profit rose 11%. Overall for the March quarter, GE reported net income of $653 million, compared with $228 million a year ago. On a per-share basis, which in the latest quarter was aided by a lower outstanding share count, GE earned 7 cents, compared to a year-ago loss of a penny. On an adjusted basis, earnings were 21 cents a share; analysts, polled by Thomson Reuters, projected 17 cents a share. Revenue slipped 1% to $27.66 billion, topping analysts' projections for $26.41 billion. Write to Thomas Gryta at thomas.gryta@wsj.com and Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Thomas Gryta and Joshua Jamerson
Subject: Financial performance; Energy industry; Cost reduction
Location: United States--US
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 21, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890099262
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890099262?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Government Bonds Strengthen Ahead of France Vote; U.S. crude oil futures fall below $50 again, reducing investor worries about inflation
Author: Zeng, y Min
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2017: n/a.
Abstract: None available.
Full text: U.S. government bond prices gained ground Friday following a two-day slide as some investors sought comfort in haven assets ahead of Sunday's presidential voting in France. The yield on the benchmark 10-year Treasury note settled at 2.234%, compared with 2.239% Thursday. Yields fall as bond prices rise. The yield had fallen to 2.209% earlier Friday, near a five-month low set on Tuesday. The bond market's mild price gains suggest there isn't a high level of anxiety. The Dow Jones Industrial Average was little changed while government bond yields in France rose slightly after sliding earlier this week. "The race is neck to neck, so anything could happen,'' Andrew Pace, vice president at Performance Trust Capital Partners LLC, said of the French presidential contest. "It may be wise not to place big bets one way or another" ahead of the weekend. Oil prices provided another boost for bonds. U.S. crude futures fell below $50 on Friday and suffered a 7.4% loss this week. Lower energy prices reduce investors' worries over inflation, a main threat to the value of long-term government bonds. Higher inflation erodes investors' purchasing power from income earned from their bond investments. The yield premium investors demanded to hold the 10-year Treasury note relative to the 10-year Treasury inflation-protected security, known as the 10-year break-even rate, fell to 1.84 percentage point Friday. That was the lowest since Nov. 8, the U.S. election day when it traded at 1.728 percentage point. At its recent level, the break-even rate suggests investors' expectations of 1.84% annualized inflation rate over the next 10 years, moving below the Federal Reserve's 2% target again. A shrinking break-even rate means investors are paring back the inflation trade that had gained momentum after Donald Trump was elected president. In doing so, investors sell TIPS and buy back Treasury debt. The big focus for global markets near term is the first round of the French elections on Sunday. If no candidate wins an outright majority, a runoff between the top two candidates will be held in early May. Polls this week showed Emmanuel Macron, a pro-European former economy minister, maintaining a lead. But analysts said the results are too close to call in one of the most unpredictable races in recent history. Right-wing candidate Marine Le Pen has advocated for France's departure from the eurozone. France is the second-largest economy in the eurozone, raising concerns among investors that an exit could lead to a collapse of the monetary union. A late surge in support for left-wing candidate Jean-Luc Melenchon, who also runs an anti-Europe platform, further complicates the outcome. The biggest risk for investors, traders said, is that Mr. Melenchon and Ms. Le Pen enter the second round. "If there is any upset, we would have an ugly Monday," said Marc Bushallow, managing director of fixed income at Manning & Napier. "There would be flight to safety at least in the short term." Demand for haven bonds would likely retreat if Mr. Macron, a centrist, prevails in the first round. Blake Gwinn, U.S. rates strategist at Natwest Markets, said a large selloff in Treasury debt is unlikely given the uncertainty surrounding the second-round race. Andy Chorlton, head of U.S. multisector fixed income at Schroders, said it is "imprudent" to place big bets in financial markets either way ahead of Sunday's voting. U.S. government bond yields have sunk over the past weeks after a recent rise. The 10-year yield traded above 2.6% in mid-March. The shift has been driven by a confluence of factors including geopolitical tensions over North Korea and Syria as well as political risks in Europe, and a number of disappointing economic releases this month that raised questions about the momentum in U.S. economic growth. On top of that, the Trump trade -- betting on stronger growth and higher inflation driven by the prospect of large fiscal stimulus -- has been retreating. Bets on higher bond yields, or shorts, have been diminishing over the past weeks. Investors unwinding these bets return to the bond market as buyers, driving yields lower. Write to Min Zeng at min.zeng@wsj.com Credit: y Min Zeng
Subject: Bond markets; Health care policy; Government bonds; Economic growth; Elections; Eurozone
Location: North Korea United States--US Syria France Europe
People: Macron, Emmanuel
Company / organization: Name: Schroders; NAICS: 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890207060
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890207060?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Trump Administration Won't Waive Sanctions for Oil Project Exxon Planned in Russia; Exxon Mobil renewed push for waiver to drill in Black Sea in March
Author: Solomon, Jay; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--President Donald Trump, whose family and political aides have faced scrutiny over their ties to Russia, rejected a bid by Exxon Mobil Corp. to sidestep U.S. sanctions against Moscow and resume an oil venture with a politically powerful Russian energy firm. The announcement Friday comes as the White House pushes to firm up the president's foreign-policy and domestic agenda as he nears his 100th day in office next week. Mr. Trump's decision to block Exxon Mobil, until the end of last year headed by Secretary of State Rex Tillerson, also shows how efforts to build bridges with Russian President Vladimir Putin are proving difficult, senior U.S. officials said. Congressional and Federal Bureau of Investigation probes into ties between Mr. Trump's aides and Russian officials continue to dominate Washington's political debate, these officials said. And Mr. Putin repeatedly has made any strengthening of ties harder by maintaining Moscow's support for Syrian President Bashar al-Assad and escalating a crackdown on the Kremlin's political opponents at home, the officials said. The Wall Street Journal reported on Wednesday that Exxon last month sought a waiver on Russian sanctions
for its oil exploration venture with PAO Rosneft, the Russian energy conglomerate closely aligned with Mr. Putin. The company had originally submitted the application in 2015, and revived it in March. The venture was frozen in 2014 after the Obama administration placed sanctions on Rosneft
and its chief executive, Igor Sechin, in retaliation for Russia's annexation of the Crimea region of Ukraine
. "In consultation with President Donald J. Trump, the Treasury Department will not be issuing waivers to U.S. companies, including Exxon, authorizing drilling prohibited by current Russian sanctions," Treasury Secretary Steven Mnuchin said in a statement Friday. U.S. officials said Mr. Trump made the decision after close consultations with Mr. Mnuchin, a former Goldman Sachs executive. The Trump administration's decision likely will make it impossible for Exxon to drill in Russia's Black Sea waters before its agreement with Rosneft expires at the end of this year. Under the companies' agreement, Exxon has until 2023 to explore some of Russia's Arctic waters if sanctions are lifted, the company has said. "We understand the statement today by Secretary Mnuchin in consultation with President Trump," said Alan Jeffers, an Exxon Mobil spokesman. "Our 2015 application for a license under the provisions outlined in the U.S. sanctions was made to enable our company to meet its contractual obligations under a joint venture agreement in Russia, where competitor companies are authorized to undertake such work under European sanctions." News of Exxon's Treasury application drew sharp criticism in Congress over the past two days. Leading Democrats and some Republicans have said the Trump White House should be increasing sanctions on Russia for its alleged effort to interfere in last year's U.S. election
, rather than loosening them. Russia has denied any interference in the election. Lawmakers also raised concerns the Trump administration could face a conflict of interest in ruling on the Exxon application, given Mr. Tillerson's previous position as CEO, a job he held for 11 years. State Department officials said this past week that Mr. Tillerson has recused himself from any issues related to Exxon for two years. "Given Russia's well-documented and troubling activities around the world, it is troubling Exxon Mobil would continue to press for its narrow economic advantage at the expense of our national interests," Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Foreign Relations Committee, said on Friday. "The deals they are seeking would put money in the pockets of Russian oligarchs and the Russian treasury, guaranteed to be used against America, our interests, and our allies." Lawmakers have said they are investigating a string of contacts between Mr. Trump's aides and Russian officials during the campaign and the presidential transition. These include meetings and phone calls between his former national security adviser, Mike Flynn, and Russia's ambassador
to Washington, in which U.S. sanctions on Russia were discussed. They also include meetings that Mr. Trump's son-in-law, Jared Kushner
, held with the head of a state-run Russian bank that is on a U.S. sanctions list. The administration has been in an awkward dance with the Kremlin since Mr. Trump assumed office, after his repeated calls during the campaign for warmer ties. Earlier this month, the Pentagon launched airstrikes
on a Syrian military base believed to have been involved in a chemical-weapons attack against Syrian civilians
. The U.S. missiles risked hitting Russian troops that were stationed at the base, according to U.S. officials. Russia and Syria are allies. Mr. Trump also authorized Montenegro this month to become the 29th member of the North Atlantic Treaty Organization, despite repeated protests by Russia. Mr. Tillerson visited Moscow last week to try to forge a more united front and met with Mr. Putin for more than two hours. But the former Exxon Mobil chief left Russia saying Washington's relations with Moscow were at a "low point." "The problem with sanctions is that they're right there at the center of what went most wrong in Russian-American relations, and that is, of course, the Ukraine crisis," said Stephen Sestanovich, a Columbia University professor and the State Department's ambassador-at-large to the former Soviet Union during the Clinton administration. "There's a low level of trust." Exxon Mobil's failure to win approval for its Black Sea venture marks a blow for the Texas company's hopes for expansion and could aid its rivals. In 2012, Mr. Putin had said the Exxon partnership could eventually spend up to $500 billion together. Although some of the European Union's sanctions were crafted in a similar fashion as those in the U.S., they allowed many existing agreements and plans to proceed. Because they allowed companies with contracts under execution at the time of sanctions in 2014 to continue with operations, Italian oil company Eni SpA is now actively exploring Russia's Black Sea and Barents Sea waters, according to the company. Last year, Norway's Statoil ASA drilled two wells in the Sea of Okhotsk at depths only slightly shallower than the 150-meter limit outlined by the EU. French energy company Total SA in late 2013 launched a giant natural-gas export project in Russia's Yamal Peninsula above the Arctic circle. The country now accounts for about a fifth of Total's reserves, according to Tudor Pickering Holt & Co. Exxon also has projects that were allowed to proceed in Russia, including further developments of its operations on Sakhalin Island in the country's Far East. Because sanctions focused on the transfer of energy technology in the Arctic, deep water or onshore drilling techniques, the Sakhalin operations were exempt. The company has said it is exposed to as much as $1 billion in losses from its investments that have been put on hold by sanctions. Felicia Schwartz contributed to this article. Write to Jay Solomon at jay.solomon@wsj.com and Bradley Olson at Bradley.Olson@wsj.com
Related * Exxon Active in Sanctions Debates, but Rex Tillerson Denies Lobbying
(Jan. 11) * Sanctions Over Ukraine Put Exxon at Risk
(Sept. 11, 2014) Credit: By Jay Solomon and Bradley Olson
Subject: Military sales
Location: Russia United States--US Black Sea
People: Tillerson, Rex W
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 21, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890247450
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890247450?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
U.S. Oil-Rig Count Rises by 5; According to weekly figures from Baker Hughes, the gas-rig count rose by five
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by five in the past week to 688, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. However, the oil rig count has generally been rising since the summer. The nation's gas-rig count rose five to 167 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell one rig from last week to 20, which is down six rigs year over year. On Friday, oil prices fell 2.7% to $49.35, with investors focused on the U.S., where production is growing faster than had been anticipated. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 21, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890261955
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890261955?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Trump Administration Won't Waive Sanctions for Oil Project Exxon Planned in Russia; Exxon Mobil renewed push for waiver to drill in Black Sea in March
Author: Solomon, Jay; Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Apr 2017: n/a.
Abstract: None available.
Full text: WASHINGTON--President Donald Trump, whose family and political aides have faced scrutiny over their ties to Russia, rejected a bid by Exxon Mobil Corp. to sidestep U.S. sanctions against Moscow and resume an oil venture with a politically powerful Russian energy firm. The announcement Friday comes as the White House pushes to firm up the president's foreign-policy and domestic agenda as he nears his 100th day in office next week. Mr. Trump's decision to block Exxon Mobil, until the end of last year headed by Secretary of State Rex Tillerson, also shows how efforts to build bridges with Russian President Vladimir Putin are proving difficult, senior U.S. officials said. Congressional and Federal Bureau of Investigation probes into ties between Mr. Trump's aides and Russian officials continue to dominate Washington's political debate, these officials said. And Mr. Putin repeatedly has made any strengthening of ties harder by maintaining Moscow's support for Syrian President Bashar al-Assad and escalating a crackdown on the Kremlin's political opponents at home, the officials said. The Wall Street Journal reported on Wednesday that Exxon last month renewed a push for approval
of a waiver on Russian sanctions for its oil exploration venture with PAO Rosneft, the Russian energy conglomerate closely aligned with Mr. Putin, according to a person familiar with the discussion. The company had originally submitted the application in 2015. The venture was frozen in 2014 after the Obama administration placed sanctions on Rosneft
and its chief executive, Igor Sechin, in retaliation for Russia's annexation of the Crimea region of Ukraine
. "In consultation with President Donald J. Trump, the Treasury Department will not be issuing waivers to U.S. companies, including Exxon, authorizing drilling prohibited by current Russian sanctions," Treasury Secretary Steven Mnuchin said in a statement Friday. U.S. officials said Mr. Trump made the decision after close consultations with Mr. Mnuchin, a former Goldman Sachs executive. The Trump administration's decision likely will make it impossible for Exxon to drill in Russia's Black Sea waters before its agreement with Rosneft expires at the end of this year. Under the companies' agreement, Exxon has until 2023 to explore some of Russia's Arctic waters if sanctions are lifted, the company has said. "We understand the statement today by Secretary Mnuchin in consultation with President Trump," said Alan Jeffers, an Exxon Mobil spokesman. "Our 2015 application for a license under the provisions outlined in the U.S. sanctions was made to enable our company to meet its contractual obligations under a joint venture agreement in Russia, where competitor companies are authorized to undertake such work under European sanctions." News of Exxon's Treasury application drew sharp criticism in Congress over the past two days. Leading Democrats and some Republicans have said the Trump White House should be increasing sanctions on Russia for its alleged effort to interfere in last year's U.S. election
, rather than loosening them. Russia has denied any interference in the election. Lawmakers also raised concerns the Trump administration could face a conflict of interest in ruling on the Exxon application, given Mr. Tillerson's previous position as CEO, a job he held for 11 years. State Department officials said this past week that Mr. Tillerson has recused himself from any issues related to Exxon for two years. "Given Russia's well-documented and troubling activities around the world, it is troubling Exxon Mobil would continue to press for its narrow economic advantage at the expense of our national interests," Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Foreign Relations Committee, said on Friday. "The deals they are seeking would put money in the pockets of Russian oligarchs and the Russian treasury, guaranteed to be used against America, our interests, and our allies." Lawmakers have said they are investigating a string of contacts between Mr. Trump's aides and Russian officials during the campaign and the presidential transition. These include meetings and phone calls between his former national security adviser, Mike Flynn, and Russia's ambassador
to Washington, in which U.S. sanctions on Russia were discussed. They also include meetings that Mr. Trump's son-in-law, Jared Kushner
, held with the head of a state-run Russian bank that is on a U.S. sanctions list. The administration has been in an awkward dance with the Kremlin since Mr. Trump assumed office, after his repeated calls during the campaign for warmer ties. Earlier this month, the Pentagon launched airstrikes
on a Syrian military base believed to have been involved in a chemical-weapons attack against Syrian civilians
. The U.S. missiles risked hitting Russian troops that were stationed at the base, according to U.S. officials. Russia and Syria are allies. Mr. Trump also authorized Montenegro this month to become the 29th member of the North Atlantic Treaty Organization, despite repeated protests by Russia. Mr. Tillerson visited Moscow last week to try to forge a more united front and met with Mr. Putin for more than two hours. But the former Exxon Mobil chief left Russia saying Washington's relations with Moscow were at a "low point." "The problem with sanctions is that they're right there at the center of what went most wrong in Russian-American relations, and that is, of course, the Ukraine crisis," said Stephen Sestanovich, a Columbia University professor and the State Department's ambassador-at-large to the former Soviet Union during the Clinton administration. "There's a low level of trust." Exxon Mobil's failure to win approval for its Black Sea venture marks a blow for the Texas company's hopes for expansion and could aid its rivals. In 2012, Mr. Putin had said the Exxon partnership could eventually spend up to $500 billion together. Although some of the European Union's sanctions were crafted in a similar fashion as those in the U.S., they allowed many existing agreements and plans to proceed. Because they allowed companies with contracts under execution at the time of sanctions in 2014 to continue with operations, Italian oil company Eni SpA is now actively exploring Russia's Black Sea and Barents Sea waters, according to the company. Last year, Norway's Statoil ASA drilled two wells in the Sea of Okhotsk at depths only slightly shallower than the 150-meter limit outlined by the EU. French energy company Total SA in late 2013 launched a giant natural-gas export project in Russia's Yamal Peninsula above the Arctic circle. The country now accounts for about a fifth of Total's reserves, according to Tudor Pickering Holt & Co. Exxon also has projects that were allowed to proceed in Russia, including further developments of its operations on Sakhalin Island in the country's Far East. Because sanctions focused on the transfer of energy technology in the Arctic, deep water or onshore drilling techniques, the Sakhalin operations were exempt. The company has said it is exposed to as much as $1 billion in losses from its investments that have been put on hold by sanctions. Felicia Schwartz contributed to this article. Write to Jay Solomon at jay.solomon@wsj.com and Bradley Olson at Bradley.Olson@wsj.com
Related * Exxon Active in Sanctions Debates, but Rex Tillerson Denies Lobbying
(Jan. 11) * Sanctions Over Ukraine Put Exxon at Risk
(Sept. 11, 2014) Credit: By Jay Solomon and Bradley Olson
Subject: Agreements; International relations; Political campaigns; Presidents; Sanctions
Location: Russia Arctic region United States--US Black Sea Crimea Ukraine
People: Trump, Donald J Assad, Bashar Al
Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: OAO Rosneft; NAICS: 324110; Name: Federal Bureau of Investigation--FBI; NAICS: 922120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 22, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890434393
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890434393?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2018-01-23
Database: The Wall Street Journal
Oil Prices Fall Amid Fears of a New Downtrend; Retreat comes as many predicted oil was beginning slow, steady rally
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices fell sharply Friday, a bearish end to the market's largest weekly losses in a month as traders were reconsidering the power of global exporters to ease a longstanding storage glut. U.S. futures fell every session this past week, shedding 7.8% since their one-month high on April 11. Trend spotters piled on Friday, brokers and traders said, extending a selloff that initially caused big losses Wednesday after data showed an unexpected addition to U.S. gasoline stockpiles. The retreat comes as many were predicting oil was beginning a slow, steady rally toward a $60 price that would be much more comfortable for the global oil industry. Many predict that oil at or above $55 would be healthy for rebounding companies, especially in the U.S., helping highly indebted companies avoid losses and bankruptcy while also preventing an overexpansion. But Friday's selloff shows that trend-spotters are now trading as though oil's next move is a retreat below $50 a barrel instead of an extended rally from last year's decade lows, brokers and traders said. That would damage prospects for an energy sector that had fed on oil prices that held above $50 a barrel for most of the past five months. Energy companies performed the worst in the S&P 500 this past week, down 2.1%, and for the year to date, down 10%. Many analysts had said oversupply has already faded, supporting higher commodity prices. Leaders of the Organization of the Petroleum Exporting Countries this past week said they are likely to extend output cuts introduced at the start of the year . But high U.S. supply and the market's inability to rally despite sunny forecasts for the future have deepened the futures market's reversal. Light, sweet crude for June delivery fell $1.09, or 2.1%, on Friday to $49.62 a barrel on the New York Mercantile Exchange. Global benchmark Brent lost $1.03, or 1.9%, to $51.96 a barrel on ICE Futures Europe. Both had their lowest settlements since the last week of March. Both also lost nearly $4, or more than 7%, for the week, their largest weekly declines since the week ended March 10. It snapped a three-week winning streak that had made many investors and analysts believe U.S. oil's dip below $50 in March was a temporary setback along oil's path to one of its calmest periods in years. Instead, U.S. supply has stymied the rally for the second time since early March. A surprise addition to U.S. gasoline stockpiles reported Wednesday sent prices down nearly 4% in one session. The report from the U.S. Energy Information Administration also showed slight production increases in the U.S. That reinforced fears that U.S. shale producers are becoming more capable of increasing output even with prices half of what they were three years ago. The market failed to hold small rebounds both Thursday and Friday. Saudi Arabia Energy Minister Khalid al-Falih on Thursday said a handful of OPEC members have reached a tentative agreement to cut more supply . But other statements from OPEC leaders equivocated too much to give traders confidence in the cartel's next move, with plenty of wiggle room left for members to agree to output cuts for only another three months--instead of six--or backtrack entirely from an extension, brokers and analysts said. "The ambiguity coming out of OPEC has people scratching. The technicians and the algorithms are all on the sell side," said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. Friday's selloff "is more of the follow through. More of the weakness. More of the same." The technicians and algorithms Mr. Morton alluded to are trend-spotters he and others say are now on alert for another leg lower. They move based on chart trends and momentum and are adding to the selloff. May's contract expired Thursday as the front-month futures contract, with prices turning lower and falling into expiration, something many see as a bearish sign, especially after several other losing sessions. "If we settle under $50 a barrel today, it could be a risk-off type of thing" and the selling continues, Tariq Zahir, who oversees $8 million asmanaging member of Tyche Capital Advisors LLC, had said early in the session Friday. It is, however, hard to be aggressively bearish with OPEC members planning to meet and possibly pass an extension just next month, Mr. Zahir added. Many still believe OPEC will extend output cuts until year-end. Others, though, pointed to the market's failed rebounds Thursday and Friday morning as potentially more bearish signs and growing skepticism of OPEC's ability to cooperate or affect the market even if they do, brokers and analysts said. "The [lack of] reaction can either be attributed to saturation, as such news is released on almost a daily basis, or to the fact that the foremost goal of the OPEC agreement--namely to reduce the huge stocks of crude oil and oil products--is still a long way from being achieved," Commerzbank said in a note. Global crude stockpiles remain above the five-year averages despite OPEC's aim to cut them back to those levels. Many analysts expect those stocks to start draining soon--a delayed effect as OPEC's cuts from the first quarter are likely only now reducing the number of new oil shipments arriving at onshore storage sites. But the fact they are still high could spook the market into a further selloff if OPEC doesn't extend its effort to counter U.S. production, analysts said. "The length of the extension, the number of participating countries and the production to be sidelined remain key unknowns," said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia. If an extension is only for one quarter, such a move may be moot for the market's long-term health since it means non-U. S. producers will increase output anew, potentially sending stockpiles higher again. Gasoline futures fell 2.6 cents, or 1.6%, to $1.6445 a gallon, the lowest settlement since March 28. It is down in seven of the past eight sessions. It lost 9.04 cents, or 5.2% for the week, its largest weekly percentage decline in more than five months. Diesel futures lost 2.56 cents, or 1.6%, to $1.5533 a gallon, its lowest settlement since March 29. It is on a six-session losing streak, the longest since June. It posted its largest weekly loss, 5.8%, since the week ended Nov. 4. Sarah McFarlane and Jenny W. Hsu contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Algorithms; Trends; Production increases; Crude oil prices; Energy industry; Crude oil
Location: United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 22, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890434603
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890434603?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Trump Rebuffs Exxon on Russia
Author: Solomon, Jay; Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 Apr 2017: A.1.
Abstract:
"Given Russia's well-documented and troubling activities around the world, it is troubling Exxon Mobil would continue to press for its narrow economic advantage at the expense of our national interests," Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Foreign Relations Committee, said on Friday.
Full text: WASHINGTON -- President Donald Trump, whose family and political aides have faced scrutiny over their ties to Russia, rejected a bid by Exxon Mobil Corp. to sidestep U.S. sanctions against Moscow and resume an oil venture with a politically powerful Russian energy firm. The announcement Friday comes as the White House pushes to firm up the president's foreign-policy and domestic agenda as he nears his 100th day in office next week. Mr. Trump's decision to block Exxon Mobil, until the end of last year headed by Secretary of State Rex Tillerson, also shows how efforts to build bridges with Russian President Vladimir Putin are proving difficult, senior U.S. officials said. Congressional and Federal Bureau of Investigation probes into ties between Mr. Trump's aides and Russian officials continue to dominate Washington's political debate, these officials said. And Mr. Putin repeatedly has made any strengthening of ties harder by maintaining Moscow's support for Syrian President Bashar al-Assad and escalating a crackdown on the Kremlin's political opponents at home, the officials said. The Wall Street Journal reported on Wednesday that Exxon last month renewed a push for approval of a waiver on Russian sanctions for its oil exploration venture with PAO Rosneft, the Russian energy conglomerate closely aligned with Mr. Putin, according to a person familiar with the discussion. The company had originally submitted the application in 2015. The venture was frozen in 2014 after the Obama administration placed sanctions on Rosneft and its chief executive, Igor Sechin, in retaliation for Russia's annexation of the Crimea region of Ukraine. "In consultation with President Donald J. Trump, the Treasury Department will not be issuing waivers to U.S. companies, including Exxon, authorizing drilling prohibited by current Russian sanctions," Treasury Secretary Steven Mnuchin said in a statement Friday. U.S. officials said Mr. Trump made the decision after close consultations with Mr. Mnuchin, a former Goldman Sachs executive. The Trump administration's decision likely will make it impossible for Exxon to drill in Russia's Black Sea waters before its agreement with Rosneft expires at the end of this year. Exxon has until 2023 to explore some of Russia's Arctic waters if sanctions are lifted. "We understand the statement today by Secretary Mnuchin in consultation with President Trump," said Alan Jeffers, an Exxon Mobil spokesman. "Our 2015 application for a license under the provisions outlined in the U.S. sanctions was made to enable our company to meet its contractual obligations under a joint venture agreement in Russia, where competitor companies are authorized to undertake such work under European sanctions." News of Exxon's Treasury application drew sharp criticism in Congress over the past two days. Leading Democrats and some Republicans have said the Trump White House should be increasing sanctions on Russia for its alleged effort to interfere in last year's U.S. election, rather than loosening them. Russia has denied any interference in the election. Lawmakers also raised concerns the Trump administration could face a conflict of interest in ruling on the Exxon application, given Mr. Tillerson's previous position as CEO. State Department officials said this past week that Mr. Tillerson has recused himself from any issues related to Exxon for two years. "Given Russia's well-documented and troubling activities around the world, it is troubling Exxon Mobil would continue to press for its narrow economic advantage at the expense of our national interests," Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Foreign Relations Committee, said on Friday. "The deals they are seeking would put money in the pockets of Russian oligarchs and the Russian treasury, guaranteed to be used against America, our interests, and our allies." Lawmakers have said they are investigating a string of contacts between Mr. Trump's aides and Russian officials during the campaign and the presidential transition. These include meetings and phone calls between his former national security adviser, Mike Flynn, and Russia's ambassador to Washington, in which U.S. sanctions on Russia were discussed. They also include meetings that Mr. Trump's son-in-law, Jared Kushner, held with the head of a state-run Russian bank that is on a U.S. sanctions list. The administration has been in an awkward dance with the Kremlin since Mr. Trump assumed office, after his repeated calls during the campaign for warmer ties. Earlier this month, the Pentagon launched airstrikes on a Syrian military base believed to have been involved in a chemical-weapons attack against Syrian civilians. The U.S. missiles risked hitting Russian troops that were stationed at the base, according to U.S. officials. Russia and Syria are allies. Mr. Trump also authorized Montenegro this month to become the 29th member of the North Atlantic Treaty Organization, despite repeated protests by Russia. Mr. Tillerson visited Moscow last week and met with Mr. Putin for more than two hours. But the former Exxon chief left Russia saying Washington's relations with Moscow were at a "low point." "The problem with sanctions is that they're right there at the center of what went most wrong in Russian-American relations, and that is, of course, the Ukraine crisis," said Stephen Sestanovich, a Columbia University professor and the State Department's ambassador-at-large to the former Soviet Union during the Clinton administration. "There's a low level of trust." --- Felicia Schwartz contributed to this article. Credit: By Jay Solomon and Bradley Olson
Subject: Sanctions; Offshore drilling
Location: United States--US Russia
People: Trump, Donald J
Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Apr 22, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890513775
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890513775?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Business News: Industrial Unit Buoys GE --- Core division shows strength, while oil-and-gas business continues to struggle
Author: Gryta, Thomas; Jamerson, Joshua
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 Apr 2017: B.3.
Abstract:
Industrial orders -- an indicator of future demand for GE jet engines, power turbines and oil-related equipment -- exceeded expectations, rising 7% excluding any acquisitions or divestitures.
Full text: General Electric Co. showed first-quarter strength driven by its core industrial businesses, while its oil-and-gas segment continued to drag on results. Under pressure to cut costs and boost returns, the conglomerate on Friday reported higher profit and a 7% jump in organic revenue for what is a typically sluggish period. Organic revenue excludes currency swings, acquisitions and divestments. Industrial orders -- an indicator of future demand for GE jet engines, power turbines and oil-related equipment -- exceeded expectations, rising 7% excluding any acquisitions or divestitures. "GE had a good quarter in a slow growth and volatile environment," Chief Executive Jeff Immelt said on a conference call Friday. He noted that the "resource sector is challenging" but painted a generally positive picture for the rest of the year. "We see global growth accelerating while the U.S. continues to improve." GE continues to forecast full-year organic revenue growth of 3% to 5%. It also backed full-year earnings of $1.60 to $1.70 a share. GE shares fell 2.4% to $29.55 on Friday. Shares of rival Honeywell International Inc. rose 2.7% Friday after the diversified manufacturer reported higher profits on strength in its aerospace and energy businesses. GE in March pledged to cut $1 billion in annual industrial expenses for each of the next two years, which is twice the size of cuts originally laid out by Mr. Immelt in a January earnings call. The cost-cutting was stepped up following discussions with activist investor Trian Fund Management, which The Wall Street Journal previously reported was frustrated by missed profit goals at GE. In the first quarter, such savings reached only about $76 million, but the company said it expects cuts "to ramp up as we move throughout the year." In recent years, the company has turned focus to its industrial businesses, shedding low-margin units like home appliances and striking a big oil-and-gas deal with Baker Hughes Inc. last fall. Still, analysts aren't convinced that GE will reach a long-term goal of delivering $2 a share in profit in 2018. A problem for GE during the first quarter was continued weakness in its oil-and-gas business, which recorded a 9% drop in revenue and a 33% decline in profit. Mr. Immelt said he is "encouraged" by a 9% order increase in the segment. Mr. Bornstein said a "large degree of uncertainty remains" around the recovery in the overall oil market. He noted that North American onshore rig counts rose 70% in the first quarter -- compared with a 25% rise in the preceding quarter -- but that offshore activity has stayed weak. "Crude inventory remain at a five-year highs, and markets are closely watching OPEC output for compliance," Mr. Bornstein said. The division, which makes equipment for petroleum exploration and production, has weighed on GE during the more-than-two-year slump in crude prices as customer cut spending. Plans to combine GE's current business with Baker Hughes into a new majority-owned public company remain on track for midyear. There were several bright spots in other parts of GE's business, such as a 22% increase in revenue in the company's renewable-energy business, which includes production of wind turbines. Overall for the quarter, GE reported profit of $653 million, compared with $228 million a year earlier. Revenue slipped 1% to $27.66 billion. Credit: By Thomas Gryta and Joshua Jamerson
Subject: Financial performance; Company reports
Company / organization: Name: General Electric Co; NAICS: 332510, 334290, 334512, 334519
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.3
Publication year: 2017
Publication date: Apr 22, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890513829
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890513829?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Falls Over 7% for Week
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 Apr 2017: B.2.
Abstract:
The report from the U.S. Energy Information Administration also showed slight production increases in the U.S. The market failed to hold small rebounds both Thursday and Friday.
Full text: Oil prices fell sharply Friday, a bearish end to the market's largest weekly losses in a month as traders were reconsidering the power of global exporters to ease a longstanding storage glut. U.S. futures fell every session this past week, shedding 7.8% since their one-month high on April 11. Trend spotters piled on Friday, brokers and traders said, extending a selloff that initially caused big losses Wednesday after data showed an unexpected addition to U.S. gasoline stockpiles. The retreat comes as many were predicting oil was beginning a slow, steady rally toward a $60 price that would be much more comfortable for the global oil industry. Many predict that oil at or above $55 would be healthy for rebounding companies, especially in the U.S., helping highly indebted companies avoid losses and bankruptcy while also preventing an overexpansion. But Friday's selloff shows that trend-spotters are now trading as though oil's next move is a retreat below $50 a barrel instead of an extended rally, brokers and traders said. That would damage prospects for an energy sector that had fed on oil prices that held above $50 a barrel for most of the past five months. Energy companies performed the worst in the S&P 500 this past week, down 2.1%, and for the year to date, down 10%. Many analysts had said oversupply has already faded, supporting higher commodity prices. Leaders of the Organization of the Petroleum Exporting Countries this past week said they are likely to extend output cuts introduced at the start of the year. But high U.S. supply and the market's inability to rally despite sunny forecasts for the future have deepened the futures market's reversal. Light, sweet crude for June delivery fell $1.09, or 2.1%, on Friday to $49.62 a barrel on the New York Mercantile Exchange. Global benchmark Brent lost $1.03, or 1.9%, to $51.96 on ICE Futures Europe. Both had their lowest settlements since the last week of March. Both also lost nearly $4, or more than 7%, for the week, their largest weekly drop since the week ended March 10. It snapped a three-week winning streak that had made many investors and analysts believe U.S. oil's dip below $50 in March was a temporary setback. Instead, U.S. supply has stymied the rally for the second time since early March. A surprise addition to U.S. gasoline stockpiles reported Wednesday sent prices down nearly 4% in one session. The report from the U.S. Energy Information Administration also showed slight production increases in the U.S. The market failed to hold small rebounds both Thursday and Friday. Saudi Arabia Energy Minister Khalid al-Falih on Thursday said a handful of OPEC members have reached a tentative agreement to cut more supply. But other statements from OPEC leaders equivocated too much to give traders confidence in the cartel's next move, with plenty of wiggle room left for members to agree to output cuts for only another three months -- instead of six -- or backtrack entirely, brokers and analysts said. Credit: By Timothy Puko
Subject: Crude oil; Commodity prices
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.2
Publication year: 2017
Publication date: Apr 22, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890521298
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890521298?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Slides on Signs of Oversupply; Downturn from overnight gains the latest sign oil may continue to fall instead of rising toward $60 a barrel
Author: Puko, Timothy; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices retreated Monday to their lowest point in four weeks, as growing U.S. production and other signs of global oversupply keep thwarting a widely-expected rally. Monday's downturn from overnight gains is the latest sign oil may continue to fall instead of rising toward $60 a barrel as many predicted, brokers and analysts said. Losses Monday mark the sixth down session in a row for U.S. oil. It is now off 8.5% from the one-month high it hit April 11 and starting only its second stretch of the year below $50 a barrel. Light, sweet crude for June settled down 39 cents, or 0.8%, at $49.23 a barrel on the New York Mercantile Exchange. It is the lowest settlement since March 28. What had been a calm time in the crude markets came to an abrupt end last week as data showing growing U.S. production and gasoline stockpiles caused a sharp selloff Wednesday. Money managers ran up a record bullish bet on oil after cuts from the world's big exporters led many to believe stockpiles would shrink--and selloffs have followed this year as U.S. stockpile drains have been limited. A liquidation of some of those bets is probably feeding on itself, brokers said. "The pressure valve was the (speculators) bailing on the market," said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. "Since then we've been pretty much in a death spiral." In addition to the losing streak, the market has now retreated from early gains in each of the last three sessions. That is likely another sign the momentum and sentiment from traders has switched from bullish to bearish, brokers and analysts said. "We're potentially just getting started," said Oliver Sloup, director of managed futures at brokerage iiTrader in Chicago. "What (those exporters) are giving up in market share, it seems the U.S. is stepping in and trying to pick up as much as possible." Traders are still concerned with data from Friday that showed another in a long string of increases to the fleet of working oil rigs, and a growing amount of oil shipments building up off the U.S. Gulf Coast. More data from over the weekend from data-tracking firm ClipperData and the Singapore government show rising stockpiles in Singapore, too, adding to the bearishness, analysts said. Investors are now wondering whether current production cuts by the Organization of the Petroleum Exporting Countries and Russia will ultimately be enough to sufficiently cut into global supplies. "In the second half of the year we will see strong production growth from the U.S., making the job of OPEC more difficult," said Giovanni Staunovo, analyst at UBS. Mr. Staunovo said that when OPEC meets in May they will have to assess whether their cuts have reduced global stocks while also considering what impact reverting to higher output could have on oil prices. "Last year's decision was also related to the weaker OPEC members wanting higher revenues and therefore I think it will be an extension, based on the fact that it generates higher revenues," he said. Oil prices jumped around 20% last year after OPEC and other major producers agreed to cut output by around 1.8 million barrels a day for the first six months of 2017. To date, the cartel has reached a tentative agreement to keep those cuts up till beyond June, but there is no consensus for how long. "What worries the market is what if production cut doesn't work. What else can OPEC do?" said Gao Jian, an analyst at SCI International. Gasoline futures lost 2.31 cents, or 1.4%, to $1.6214 a gallon, the eighth losing session in the past nine. Diesel futures lost 1.06 cents, or 0.7%, to $1.5427 a gallon, extending a losing streak to seven sessions. Both are at their lowest settlement since the last week of March. Write to Timothy Puko at tim.puko@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Timothy Puko, Sarah McFarlane and Jenny W. Hsu
Subject: Petroleum production; Cartels; Crude oil prices; Crude oil; Supply & demand
Location: Russia United States--US
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: UBS AG; NAICS: 522110, 523110, 523120, 523920, 523930; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 24, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1890999078
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890999078?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Halt Downward Slide But Remain Below $50; Investors are concerned about the strength of rebounding U.S. oil production
Author: Sider, Alison; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices halted their downward slide Tuesday but remained below the $50 mark amid doubts that the global crude glut is being drained. U.S. crude futures settled up 33 cents, or 0.67%, at $49.56 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 50 cents, or 0.97%, to $52.10 a barrel on ICE Futures Europe. The move higher came after a six-day losing streak, and reversed losses in earlier trading Tuesday. "We've been down so many days in a row, it doesn't surprise me to see a pop to the upside," said Tariq Zahir, managing member of Tyche Capital Advisors. Still, he said investors would likely have to see a "significant draw" from oil and gasoline stockpiles in data due Wednesday in order to move prices much higher. "I think it's kind of a wait-and-see attitude," he said. The U.S. Energy Information is set to provide its weekly snapshot of oil and fuel inventories Wednesday at 10:30 a.m. Analysts, traders and brokers surveyed by The Wall Street Journal forecast that crude supplies fell by 600,000 barrels last week. They're also predicting that gasoline stockpiles fell by 900,000 barrels. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed an 897,000-barrel increase in crude supplies, a 4.4-million-barrel increase in gasoline stocks and a 36,000-barrel decline in distillate inventories, according to a market participant. Before Tuesday, oil prices had been on the decline since last week, reflecting investor concern about the strength of rebounding U.S. oil production and ebbing faith that the Organization of the Petroleum Exporting Countries can effectively lead the market back into balance after several years of oversupply. "Without signs that the overhang in the market is being eliminated, the market is showing real trouble justifying plus-$50 oil," said Gene McGillian, research manager for Tradition Energy. OPEC and other major producers have agreed to cut production by 1.8 million barrels a day in the first half of 2017. But because stocks have remained high, traders and investors are now watching to see whether the cartel will extend the deal when it meets in May . "Until OPEC announces an official decision on whether to extend the production cuts, the main focus of the market will be on that," said Nelson Wang, an energy analyst at CLSA. And with uncertainty about whether the cuts will continue, market participants have turned their focus to signs that U.S. production will come on strong. Analysts say the recent downtrend may persist as U.S. oilfield-service companies, namely drillers, still have plenty of spare capacity. Mr. Wang estimates only around 70% of available oil rigs in the U.S. are currently in operation despite persistent growth this year in drilling activity there. Baker Hughes's closely watched rig count is at its highest level in nearly two years. "This means there is a lot of upside risk to U.S. supplies," he said. Gasoline futures rose 0.16 cent, or 0.1%, to $1.6230 a gallon. Diesel futures rose 0.25 cent, or 0.16%, to $1.5452. Write to Alison Sider at alison.sider@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Sarah McFarlane and Jenny W. Hsu
Subject: Petroleum production; Stocks; Price increases; Supply & demand
Location: Russia United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 25, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1891381623
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1891381623?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil-Gas Lobby Opposes State Subsidies for Nuclear Power Producers; American Petroleum Institute urges lawmakers in Pennsylvania and Ohio not to create special payments for nuke plants
Author: Gold, Russell
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Apr 2017: n/a.
Abstract: None available.
Full text: Nuclear power plant operators that say they need state subsidies to keep generating electricity have a new foe: oil and gas companies. The American Petroleum Institute, the Washington, D.C., lobbying powerhouse for U.S. oil and gas producers, has waded into local politics in Pennsylvania and Ohio to urge lawmakers not to create special payments for nuclear power plants. "They are going for another public handout," said Marty Durbin, executive vice president of the group. "Let markets make the decisions." A handful of nuclear power plants have shut down in recent years, most of them forced out of service by intense competition from inexpensive, reliable natural gas-fired power plants as well as solar and wind farms, which get federal subsidies. Operators say several more nukes are threatened because they cannot turn a profit. The API sent mailers across Ohio and Pennsylvania asking people to contact their state lawmakers. "Say no to nuclear bailouts," one mailer read. The mailers have all gone out in the past couple of weeks. Gas producers are fighting on what could be friendly territory. Gas production increased in Ohio and Pennsylvania more than any other states during 2016, according to the U.S. Energy Department. The gas boom in these states has created thousands of jobs. In recent months, Illinois and New York passed legislation to provide credits to nuclear power plants. Illinois voted to provide up to $235 million annually to nuclear operators, and New York agreed to pay up to $480 million annually to save three nuclear power plants. Operators in those states argued that nuclear power provides high-paying jobs in rural areas and helps combat air pollution and climate change because they produce emission-free electricity. Nuclear power plants have had a hard time competing in unregulated power markets, because they face stiff competition from low-cost natural gas and subsidized renewable energy. Four power plants are expected to close before 2025, following four that have closed in the past four years. The retirements would leave the U.S. with 61 operating nuclear power plants. Christine Csizmadia, the head of state government affairs for the Nuclear Energy Institute, said that nuclear power plants should be preserved to prevent economic impacts and too much reliance on natural gas. When a nuclear plant closes, "emissions go up, we have grid instability and we get ghost towns. Closures cannot be reversed. They are irrevocable," Ms. Csizmadia said. Some environmentalists are applauding state support for nuclear power. "We need to have a fair system," said Michael Shellenberger, president of Environmental Progress, a pro-nuclear policy center, who first publicized the oil lobby's involvement. Mr. Shellenberger said that if renewable energy gets subsidies because it is clean energy, so should nuclear. "Why are we taking down nuclear plants and leaving coal plants on line? This is completely ridiculous," he said. Power demand in the U.S. has been flat for nearly a decade, creating a battle for market share between different generation sources. Natural gas has displaced a lot of coal generation. With its no-bailouts campaign, the gas industry is also taking aim at nuclear power. Ohio has a bill in the legislature to support nuclear plants. There is no bill in Pennsylvania yet, but Exelon Corp. and others are lobbying for one. "We are proponents of any legislation that recognizes nuclear power's clean benefits," said Exelon spokeswoman Robin Levy. The company operates three nuclear power plants in Pennsylvania. A spokesman for FirstEnergy Corp., which operates two nuclear power plants in Ohio and one in Pennsylvania, said the Akron-based company supports legislation to preserve nuclear power plants. The oil and gas lobby is joining with independent power producers, who are also fighting the state subsidies for nuclear power producers and have filed a lawsuit in New York to roll back its state support. Last year, natural gas generated 33.8% of the electricity in the U.S., according to federal statistics. Nuclear power generated 19.7%. Coal generated 30.4%. The rest came from renewable sources including hydroelectric dams. Write to Russell Gold at russell.gold@wsj.com Related * Exelon Profit Falls 34% on Lower Capacity, Energy Prices * Trump Expected to Name Two Veteran Lobbyists to Advise on Energy Issues Credit: By Russell Gold
Subject: Nuclear energy; Bailouts; Electricity; Subsidies; Legislators; Electric utilities; Legislation; Natural gas utilities; Nuclear power plants
Location: United States--US New York Ohio Illinois Washington DC Pennsylvania
Company / organization: Name: Nuclear Energy Institute; NAICS: 813910; Name: American Petroleum Institute; NAICS: 541820, 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 25, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1891538851
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1891538851?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Mexico's Pemex Takes Out Its Own Oil Hedges; Mexican state oil company taps derivatives markets for the first time in more than a decade
Author: Harrup, Anthony
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Apr 2017: n/a.
Abstract: None available.
Full text: MEXICO CITY--Mexican state oil company Petróleos Mexicanos said Tuesday it has taken out oil price hedges to protect its income this year from a possible decline in prices, tapping derivatives markets for the first time in more than a decade. Pemex, which has been in financial straits as a result of the drop in global oil prices and had to slash spending and investment, said the hedging is its first in 11 years and will protect its finances from oil price declines. The contracts complement those that the federal government uses to protect budget revenue, it added. The program is for up to 409,000 barrels a day from May to December of this year, and covers a price $42 a barrel, which is the estimate used in this year's federal budget. If the price were to fall below $37 a barrel, the company would receive the maximum payout under the contracts, which cost $133.5 million. Under changes in Mexican energy laws, Pemex faces competition from private oil companies for the first time in its 79-year history, and has also begun forming joint-ventures for exploration and production with private partners. "This kind of hedging is common among the world's biggest oil companies, and with it Pemex is aligning its strategy with best international practices," the company said in a statement. Pemex produced little over 2 million barrels a day of crude oil in the first two months of this year, of which it exported 1.15 million barrels a day at an average price of $45.27 per barrel. Mexican crude priced at $42.45 a barrel on Monday. The Mexican government has for years used put options to lock in oil prices and protect the federal budget from price declines. The finance ministry hedged oil for 2017 at $38 per barrel, spending $1.02 billion to cover 250 million barrels. The oil hedging program paid out $2.65 billion in 2016 and a record $6.3 billion in 2015--years when oil prices fell sharply. Write to Anthony Harrup at anthony.harrup@wsj.com Credit: By Anthony Harrup
Subject: Derivatives; Budgets; Crude oil prices; Energy economics
Company / organization: Name: Petroleos Mexicanos; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 25, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1891621974
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1891621974?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Recover After U.S. Stockpiles Data; Data showed refiners continued to gobble up crude oil from storage tanks last week
Author: Sider, Alison
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Apr 2017: n/a.
Abstract: None available.
Full text: U.S. oil futures rose Wednesday after U.S. data showed refiners gobbled up more crude oil than ever from storage tanks, drawing down stockpiles. But prices pared gains and dropped back below $50, as falling fuel prices weighed on the oil market. "What we're seeing is refineries returning from maintenance season, kicking up runs to an all-time modern record for crude processing, and turning the crude oil surplus into petroleum products," said Andy Lipow, president of Lipow Oil Associates. U.S. crude futures settled up 6 cents, or 0.12%, at $49.62 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 28 cents, or 0.54%, at $51.82 a barrel on ICE Futures Europe. The U.S. Energy Information Administration reported that U.S. crude inventories fell 3.6 million barrels last week. The draw was significantly more than analysts and traders were expecting, and a contrast to the nearly 900,000-barrel increase reported Tuesday evening by the American Petroleum Institute, an industry group. That helped eat away at a persistent supply overhang and spurred buying. Oil prices have tumbled recently amid ebbing faith in the ability of the Organization of the Petroleum Exporting Countries to bring supplies back in balance with demand. Refiners processed nearly 17.3 million barrels of oil a day last week--the highest ever in EIA data. Refinery utilization of 94.1% was the highest level for this time of year since April 2001. But their fuel output overwhelmed demand, sending millions of barrels of gasoline and diesel into storage tanks. Gasoline stockpiles grew by 3.4 million barrels last week. Diesel stockpiles also increased unexpectedly, rising by 2.7 million barrels. "As the crude surplus has been narrowing this month, the gasoline supply overhang has been stretching," Jim Ritterbusch, president of Ritterbusch & Associates, wrote in a client note. Gasoline futures fell 3.27 cents, or 2.01%, to $1.5903 a gallon--a fresh one-month low. Diesel futures fell 0.85 cent, or 0.55%, to $1.5367 a gallon. Mark Waggoner, president of Excel Futures, said he is optimistic that positive economic data and a stock market rally indicate that the U.S. economy is strong enough that drivers will take to the roads this summer and soak up the extra gasoline. But some analysts are less confident. "I think this is a very mixed report, and we're advising not to buy the knee-jerk rally," said Chris Kettenmann, chief energy strategist at Macro Risk Advisors. He said a 515,000 barrel-a-day increase in net oil imports is a "pretty damning" signal that the glut of oil isn't easing rapidly enough to justify oil prices above $50 a barrel. "The OPEC-led cuts were supposed to usher in an accelerated drawdown in U.S. inventories," Mr. Kettenmann said. "It's a waiting game. I'm not willing to wait around." Neanda Salvaterra and Jenny W. Hsu contributed to this article. Write to Alison Sider at alison.sider@wsj.com Credit: By Alison Sider
Subject: Futures; Crude oil prices; Price increases; Supply & demand; Crude oil
Location: Russia
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Department of Energy; NAICS: 926130; Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Onli ne); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 26, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1891915111
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1891915111?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Shortage Feared by 2020 as Discoveries Fall to Record Low; International Energy Agency says U.S. shale won't fill the void which could lead to petroleum shortages
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Apr 2017: n/a.
Abstract: None available.
Full text: LONDON--Global oil discoveries fell to a record low in 2016, the International Energy Agency says, raising fresh concerns about the potential for a petroleum-supply shortage as soon as 2020. The IEA--a Paris group that monitors energy trends for oil-dependent places like the U.S. and Europe--is stepping up its warnings about historically low oil-industry investment during the latest price downturn. Oil companies and producing nations curtailed spending by hundreds of billions of dollars during the price rout, resulting in the fewest new conventional oil projects being sanctioned in 2016 since the 1940s, the IEA said. The group's assessment, shared with The Wall Street Journal ahead of a full investment report to be released in July, represents its most comprehensive study yet of how the downturn has already negatively affected spending. The IEA doesn't forecast oil prices, but any shortage would likely cause significant crude-price increases. Don't expect output from U.S. shale producers to fill the void, the IEA said. American shale production is expected to grow by 2.3 million barrels a day or more over the next five years, but that isn't enough to make up for declining output elsewhere. The IEA also doesn't expect global oil demand to stop growing any time soon, potentially turning the current glut of oil into a dearth. "The key question is how long can the surge in U.S. shale supplies make up for the declining pace of growth elsewhere?" said IEA executive director Fatih Birol. "We are worried about historically low discoveries and new projects." A new "boom-and-bust cycle" looks increasingly likely if conventional projects--generally defined as anything that uses traditional methods to extract oil, unlike shale--don't receive greater investments, Mr. Birol said. In 2016, oil discoveries amounted to just 2.4 billion barrels of potential oil, the lowest since the IEA's records began in 1950. That is down from 6.4 billion barrels of discoveries in 2013, when oil prices were consistently above $100 a barrel and 16.3 billion barrels in 2010, the IEA said. The global oil industry greenlighted projects amounting to over 4.8 billion barrels of oil in 2016, down from 21.2 billion barrels in 2014. Offshore drilling, which accounts for a third of global production, is still seeing activity decline. Last year, only 13% of conventional project approvals were offshore, compared with an average of 40% between 2000 and 2015, according to the IEA. In the U.K., spending on offshore drilling is now only slightly higher than spending on offshore wind projects, it said. The Organization of the Petroleum Exporting Countries has also sounded the alarm over the potential for a looming supply gap in the long term. Saudi energy minister Khalid al-Falih told a London energy conference last year that "there will be a period of shortage of supply." According to estimates from The Rapidan Group, a Washington-based energy policy advisory firm, oil prices could hit $100 a barrel in 2022, squeezed by supply constraints and stronger-than-expected demand growth. "If you put those two things together, then you get a boom phase," said Robert McNally, president of the Rapidan Group. But in the near term, the oil industry and traders aren't concerned about a shortage. Many banks have reduced their oil price forecasts for the coming years in recent months, expecting resurgent production from shale drillers. According to a March survey by The Wall Street Journal , analysts expect oil prices to stay below $60 a barrel for the third year in a row in 2017. By 2019, that is expected to rise modestly to $68 a barrel, but that is still much lower than the $76 a barrel banks were forecasting a little over a year ago. Last year, when still chief executive of Exxon Mobil, Secretary of State Rex Tillerson threw cold water on forecasts of a massive supply crunch because of the resilience of the shale industry in the U.S. "Never bet against the creativity and tenacity of this segment of our industry," Mr. Tillerson told the Oil & Money conference in London last October. Certainly costs in the shale industry have come down. The average break even prices for the Permian basin in Texas is now between $40 and $45 a barrel, according to the IEA. The price was near $90 just two years ago. That is helping to drive a booming recovery in activity in the region. But in the 85 million barrel-a-day oil market, shale projects supply just 6.5 million barrels a day. The IEA said the oil industry's massive pullback from exploration and development of new projects will undercut shale. Shale "is not enough by itself," the IEA's Mr. Birol said. To meet rising demand and offset underlying declines, the industry needs to approve production of around 18 billion barrels of new resources each year between now and 2025, according to the IEA. If business doesn't pick up this year, the volume of new conventional oil production that will need approval to keep pace with demand and offset underlying declines rises to just under 21 billion barrels a year. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Petroleum production; Offshore drilling; Petroleum industry; Price increases; Shortages
Location: United States--US Europe
Company / organization: Name: International Energy Agency; NAICS: 541720, 926130, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 26, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892015225
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892015225?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Oil Prices Fall After Mixed U.S. Inventory Data; Investors cautious about a rise in gasoline stocks
Author: Salvaterra, Neanda; Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices edged down on Thursday amid mixed U.S. inventory data and increasing concerns that a supply action by major producers may not be sufficient to clear a global surplus. Brent crude, the global oil benchmark, fell 0.95% to $51.33 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.93% at $49.16 a barrel. Prices rose overnight on data from the Energy Information Administration showing that U.S. crude inventories fell 3.6 million barrels last week. But the positive market sentiment reversed on concerns of an oversupply in petroleum products. Gasoline stockpiles grew by 3.4 million barrels last week. Diesel stockpiles also increased unexpectedly, rising by 2.7 million barrels, as consumer demand failed to absorb a steady stream of petroleum products pumped out by refineries working at almost top efficiency levels. Refinery utilization was 94.1%, the highest level for this time of year since April 2001. Inventories rose because of two weeks of high imports, which reached a six-month high of 916 thousand barrels a day, noted Standard Chartered in a recent report. "There is a deeply bearish market sentiment that is going to pick up on rising gasoline stockpiles despite crude inventories falling," said Paul Horsnell, the head of commodity research at Standard Chartered. "There is impatience that OPEC can't clear the surplus." Last year the Organization of the Petroleum Exporting Countries and external producers such as Russia signed a deal to curtail global production by about 1.8 million barrels a day. The deal helped bolster crude prices but most analysts say the oil cartel needs to extend the agreement to make a dent in global stocks. OPEC is scheduled to decide on whether to extend the deal at its meeting on May 25 in Vienna. Russia may yet throw a wrench in that process. The country's energy minister, Alexander Novak, is reported to have said a decision to prolong the deal was still "under discussion," spooking investors. "There is no obviously bullish factor in the market. I don't see any big change," said Li Li, energy research director at ICIS China. "I think the market will be focusing on the OPEC meeting next month." Over the next month or so, oil prices are likely to continue to trade near $50 per barrel even if the cap is extended, said Li Li. Low oil prices haven't only impacted margins, but also hurt oil exploration. Global oil discoveries fell to a record low last year as companies cut spending, and oil projects sanctioned were at the lowest level in more than 70 years, the International Energy Agency said, warning that the trend would likely continue this year. Oil discoveries declined to 2.4 billion barrels in 2016, compared with an average of 9 billion barrels a year over the past 15 years, while the volume of conventional resources sanctioned for development last year fell by 30% to 4.7 billion barrels last year. Nymex reformulated gasoline blendstock--the benchmark gasoline contract--fell 1.80% to $1.57 a gallon. ICE gasoil changed hands at $460.25 a metric ton, down $7.00 from the previous settlement. Write to Neanda Salvaterra at neanda.salvaterra@wsj.com and Biman Mukherji at biman.mukherji@wsj.com Credit: By Neanda Salvaterra and Biman Mukherji
Subject: Crude oil prices; Price increases; Energy economics; Supply & demand
Location: Russia United States--US
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892318247
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892318247?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall as Concerns Over U.S. Production Mount; Market sentiment hit by fear that supply curbs may not be enough to clear global surplus
Author: Yang, Stephanie; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices fell to a one-month low Thursday amid increasing concerns that attempts to curb supply by major producers may not be sufficient to clear a global surplus. Light, sweet crude for June delivery settled down 65 cents, or 1.3%, to $48.97, closing at the lowest level since March 28 and down seven of the past nine sessions. Brent, the global benchmark, fell for the second day in a row and settled down 38 cents, or 0.7%, to $51.44 a barrel. Prices have come under pressure in recent weeks as a buildup of oil products has signaled ample supply in the U.S. and raised questions over steady demand. While data from the U.S. Energy Information Administration on Wednesday showed crude inventories fell 3.6 million barrels, last week, gasoline and diesel stockpiles rose unexpectedly. The concerns over a flood of gasoline have kept oil trading below $50 a barrel even as some in the market expect the Organization of the Petroleum Exporting Counties to extend production cuts this year. "Gasoline's been really beaten up," said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. "It's throwing people for a loop." Gasoline stockpiles grew by 3.4 million barrels last week and diesel stockpiles increased by 2.7 million barrels, as consumer demand failed to absorb a steady stream of petroleum products pumped out by refineries working at almost top efficiency levels. Refinery utilization was 94.1%, the highest level for this time of year since April 2001. Inventories rose because of two weeks of high imports, which reached a six-month high of 916 thousand barrels a day, said Standard Chartered in a recent report. "There is a deeply bearish market sentiment that is going to pick up on rising gasoline stockpiles despite crude inventories falling," said Paul Horsnell, the head of commodity research at Standard Chartered. "There is impatience that OPEC can't clear the surplus." Last year OPEC and external producers such as Russia signed a deal to curtail global production by about 1.8 million barrels a day. But the initial oil rally has been undermined by a steady build in U.S. shale production. "The problem with the oil market clearly lies with the U.S. oil producer," said Kyle Cooper, a consultant for Ion Energy Group in Houston. "With the fact that OPEC has cut and yet inventories haven't drawn even more, that is a bit concerning." The OPEC deal helped bolster crude prices into the end of 2016, but some analysts say the oil cartel needs to extend the agreement to make a dent in global stocks. OPEC is scheduled to decide on whether to extend the deal at its meeting on May 25 in Vienna. Russia may yet throw a wrench in that process. The country's energy minister, Alexander Novak, is reported to have said a decision to prolong the deal was still "under discussion," spooking investors. The prospect of increasing production in individual countries such as Iran, Iraq and Libya has also threatened to derail the impacts of OPEC's supply cuts. "There is no obviously bullish factor in the market. I don't see any big change," said Li Li, energy research director at ICIS China. "I think the market will be focusing on the OPEC meeting next month." Low oil prices haven't only affected margins, but also hurt oil exploration. Global oil discoveries fell to a record low last year as companies cut spending, and oil projects sanctioned were at the lowest level in more than 70 years, the International Energy Agency said, warning that the trend would likely continue this year. Oil discoveries declined to 2.4 billion barrels in 2016, compared with an average of 9 billion barrels a year over the past 15 years, while the volume of conventional resources sanctioned for development last year fell by 30% to 4.7 billion barrels last year. Gasoline futures fell 2.5% to $1.5500 a gallon, closing at a two-month low. Diesel futures fell 1.9% to $1.5072 a gallon, a one-month low. Biman Mukherji contributed to this article Write to Stephanie Yang at stephanie.yang@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Stephanie Yang and Neanda Salvaterra
Subject: Crude oil prices; Price increases; Energy economics
Location: Russia United States--US
People: Novak, Alexander
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892352735
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892352735?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
U.S. Government Bonds Strengthen as Oil Drops; Markets have already moved on from Wednesday's unveiling of Trump's tax plans
Author: Goldfarb, Sam
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2017: n/a.
Abstract: None available.
Full text: Treasurys strengthened Thursday, pushing the yield on the 10-year note back below 2.3% as a drop in oil prices helped buoy demand from investors. The yield on the benchmark 10-year Treasury note settled at 2.298%, compared with 2.312% Wednesday. Yields fall when bond prices rise. After a quiet overnight session, bonds staged a modest rally in the morning, responding in part to the decline in oil prices, which fell to a one-month low amid increasing concerns of an oversupply in petroleum products, analysts and traders said. Lower oil prices could help keep a lid on inflation, which is a main threat to longer-term government bonds as it erodes their fixed returns over time. Bonds also gained support from continuing skepticism among investors over the prospects for fiscal stimulus, as well as month-end demand as some investors adjusted their portfolios to match changing indexes, analysts said. Though the move in yields was modest, appetite for Treasurys was evident in an auction of seven-year notes, which were sold at an unexpectedly low yield amid signs of intense interest from foreign buyers. Earlier in the day, the European Central Bank, at the conclusion of its latest policy meeting, said its main interest rate charged on regular loans, would remain at zero while the rate on overnight deposits would stay at a minus 0.4%. It also maintained its bond-buying program at [euro]60 billion a month. The ECB's asset purchases have been one factor that have depressed bond yields over the past two years, making bonds more scarce and sending European investors into the U.S. market in search of higher-yielding debt. The ECB is expected to preserve its bond-buying program through the end of the year before gradually tapering its purchases next year. Treasury yields had also fallen Wednesday after administration officials formally announced their plan to cut taxes for individuals and businesses. Though the promise of tax cuts helped buoy yields after last November's election, many investors and analysts found the administration's plan unconvincing, given its lack of technical details or clear path to being passed by Congress. Expansionary fiscal policies, such as tax cuts, could potentially boost economic growth, leading to higher inflation and interest rates that would diminish the value of outstanding government debt. The bond market registered a "pretty muted response to the Trump administration's outline tax proposal," which "still needs a lot of details filled in," said Timothy High, senior U.S. interest-rate strategist at BNP Paribas. After a period of volatility, the yield on the 10-year Treasury note now stands at the bottom end of a range of 2.3% to 2.6%, which has held for much of the year. The yield broke out of that range last week, falling to a month low of 2.177%. But it rebounded this week, partly due to the results of last Sunday's first-round presidential vote in France, which established the centrist, pro-European Union candidate Emmanuel Macron as the clear favorite heading into the final round of voting on May 7. Write to Sam Goldfarb at sam.goldfarb@wsj.com Credit: By Sam Goldfarb
Subject: Tax rates; Bond issues; Government bonds; Tax cuts
Location: United States--US
People: Trump, Donald J
Company / organization: Name: BNP Paribas; NAICS: 522110; Name: Congress; NAICS: 921120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892353013
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892353013?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Norway Sounds Alarm on Oil-Industry Safety; Well-control incidents, leaks from oil-and-gas facilities in Norway last year reached highest levels in at least five years
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2017: n/a.
Abstract: None available.
Full text: Norway's oil-industry regulator on Thursday raised fresh concerns about safety standards slipping in the North Sea during the competition to cut costs forced by a two-year oil-price slump . While Norway accounts for just over 2% of global crude-oil production, the country has some of the strictest safety regulations in the world, and its warnings carry weight in the industry. The world's biggest oil companies operate there, including Royal Dutch Shell PLC and Norway's own state-oil giant, Statoil ASA. The number of well-control incidents and leaks from oil-and-gas facilities in Norway increased last year to their highest levels in at least five years, said the Norwegian Petroleum Safety Authority in its annual report on Thursday. A well-control incident occurs when drillers lose control of the fluids in a well and can result in a blowout. The regulator called the trend for major accidents "worrying" and called on companies working in the North Sea to do more to prevent accidents and take care of workers. "Over the past couple of years, we've witnessed a number of serious incidents in the Norwegian petroleum sector," said Petroleum Safety Authority Director General Anne Myhrvold. "We've seen growing pressure on basic aspects of the Norwegian safety regime." Shell declined to comment. Statoil didn't immediately respond to requests for comment. The oil-and-gas industry has come under extraordinary pressure from a painful and lengthy slump that has cut prices in half since the summer of 2014. Companies have laid off thousands of workers and slashed spending, but executives say they haven't sacrificed their emphasis on safety. In 2016, Norway recorded 11 oil and gas leaks and 14 well-control incidents--the highest number since 2011 and 2010, respectively. Norwegian regulators noted improvements in other areas, including a positive trend in the number of serious personal injuries. Safety concerns in Norway were heightened last October when Statoil experienced a series of significant incidents in quick succession, including a gas leak at its Mongstad refinery and a blowout on the Troll field, one of the biggest gas basins in the North Sea. Under slightly different circumstances, both could have led to much more severe accidents, Norway's oil-safety regulator said in its investigations. Statoil conducted its own investigations and concluded the incidents weren't linked to cost-cutting. The Petroleum Safety Authority has said that the industry's squeeze on spending seems to be one factor contributing more broadly to the decline in safety standards. This year, it is running a campaign aimed at reversing that shift. "We're expecting to see concrete results," Ms. Myhrvold said. Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Petroleum production; Accident prevention; Cost reduction
Location: North Sea Norway
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Statoil ASA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 27, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892366088
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892366088?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Libya's Oil Chief Rebukes U.N.-Backed Government; National Oil Co. Chairman Mustafa Sanallah says Government of National Accord is trying to wrest control of petroleum deals
Author: Faucon, Benoit
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2017: n/a.
Abstract: None available.
Full text: PARIS--A rift has opened between Libya's U.N.-backed government and its powerful National Oil Co., threatening the fractured country's political cohesion and its nascent petroleum-industry recovery. Libya's oil-industry chief , Mustafa Sanallah, on Thursday openly criticized the Government of National Accord, a United Nations-backed government whose formation last year raised hopes of political unity in Libya after five years of strife following the 2011 ouster and death of Moammar Gadhafi . But the country remains divided between dozens of militias and two rival governments to the GNA. Mr. Sanallah said the GNA was trying to wrest control of petroleum deals from the National Oil Co., of which he is chairman. The company generates 90% of Libya's export revenue and is state owned but says it is maintaining its independence from various factions vying to run the country until elections are held. "The Libya state has all but disintegrated," Mr. Sanallah told a Paris energy conference on Thursday. "The GNA has become part of the problem rather than its solution." A GNA spokesman declined to comment. The GNA issued a decree in March, saying it would now make decisions on oil matters such as who gets to invest in Libya . The government argued that the UN-backed agreement that created the GNA implied it would takeover the oil industry. The National Oil Co. is challenging the decree in Libya's courts. The company has tried to steer a neutral course between the country's competing, often violent factions, and argues the GNA is a caretaker government until a constitution uniting the country is agreed to. Mr. Sanallah said the GNA's involvement in the oil industry could lead to more disruptions in production "and a lot of guns." Factions in the east, including Gen. Haftar, would likely frown on the GNA's direct involvement in Libyan oil deals -- which generate revenue for all sides, not just the GNA. The dispute between the GNA and the National Oil Co.--one of the last functioning institutions in Libya -- is already complicating the oil company's attempt to get new government funding to maintain oil fields, a Western diplomat who follows Libya closely said this week. It also gives international oil companies a lack of clarity about who runs the energy industry in Libya . Two years ago, the rival government in the east tried to start its own oil company, sparking warnings from the U.N. to companies against doing business with it. Now, the east is again examining whether to start making its own deals, the Western diplomat said. Libya's oil industry has fallen into disarray as militias looking for payouts take back control of pipelines and oil fields. There has also been renewed fighting around Libya's oil ports, which were opened last year by a group calling itself the Libya National Army, led by a former Gadhafi general, Khalifa Haftar, who is supported by Egypt and Russia. Mr. Sanallah said the country's oil production had fallen to 491,000 barrels a day, down from nearly 700,000 barrels a day earlier this year. There was some good news for Libya on Thursday: the National Oil Co. said oil from a big oil field called Sharara was flowing again . Mr. Sanallah's anger with the GNA spilled into the open on Thursday after private disputes. According to people familiar with the matter, Mr. Sanallah was upset about payments the GNA made to convince militias to stop blockading some oil facilities. The National Oil Co. opposes paying off militias, arguing it just encourages them to hold facilities hostage. Hassan Morajea contributed to this article. Write to Benoit Faucon at benoit.faucon@wsj.com Credit: By Benoit Faucon
Subject: Petroleum production; Oil fields; Petroleum industry; Energy industry; Militia groups
Location: Libya
People: Qaddafi, Muammar El
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 27, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892388005
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892388005?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Treasurys Rise as Oil Falls
Author: Goldfarb, Sam
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Apr 2017: B.10.
Abstract:
The bond market registered a "pretty muted response to the Trump administration's outline tax proposal," which "still needs a lot of details filled in," said Timothy High, senior U.S. interest-rate strategist at BNP Paribas.
Full text: Treasurys strengthened Thursday, pushing the yield on the 10-year note back below 2.3% as a drop in oil prices helped buoy demand from investors. The yield on the benchmark 10-year Treasury note settled at 2.298%, compared with 2.312% Wednesday. Yields fall when bond prices rise. After a quiet overnight session, bonds staged a modest rally in the morning, responding in part to the decline in oil prices, which fell to a one-month low amid increasing concerns of an oversupply in petroleum products, analysts and traders said. Lower oil prices could help keep a lid on inflation, which is a main threat to longer-term government bonds as it erodes their fixed returns over time. Bonds also gained support from continuing skepticism among investors over the prospects for fiscal stimulus, as well as month-end demand as some investors adjusted their portfolios to match changing indexes, analysts said. Though the move in yields was modest, appetite for Treasurys was evident in an auction of seven-year notes, which were sold at an unexpectedly low yield amid signs of intense interest from foreign buyers. Earlier in the day, the European Central Bank, at the conclusion of its latest policy meeting, said its main interest rate charged on regular loans, would remain at zero while the rate on overnight deposits would stay at a minus 0.4%. It also maintained its bond-buying program at 60 billion euros a month. The ECB's asset purchases have been one factor that have depressed bond yields over the past two years, making bonds more scarce and sending European investors into the U.S. market in search of higher-yielding debt. The ECB is expected to preserve its bond-buying program through the end of the year before gradually tapering its purchases next year. Treasury yields had also fallen Wednesday after administration officials formally announced their plan to cut taxes for individuals and businesses. Though the promise of tax cuts helped buoy yields after last November's election, many investors and analysts found the administration's plan unconvincing, given its lack of technical details or clear path to being passed by Congress. Expansionary fiscal policies, such as tax cuts, could potentially boost economic growth, leading to higher inflation and interest rates that would diminish the value of outstanding government debt. The bond market registered a "pretty muted response to the Trump administration's outline tax proposal," which "still needs a lot of details filled in," said Timothy High, senior U.S. interest-rate strategist at BNP Paribas. After a period of volatility, the yield on the 10-year Treasury note now stands at the bottom end of a range of 2.3% to 2.6%, which has held for much of the year. The yield broke out of that range last week, falling to a month low of 2.177%. But it rebounded this week, partly due to the results of last Sunday's first-round presidential vote in France, which established the centrist, pro-European Union candidate Emmanuel Macron as the clear favorite heading into the final round of voting on May 7. Credit: By Sam Goldfarb
Subject: Treasuries; Bond markets
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.10
Publication year: 2017
Publication date: Apr 28, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892559304
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892559304?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Tech Lifts Stock Indexes --- Dow adds 6.24, as earnings reports continue to sway shares; oil falls 1.3%
Author: Otani, Akane; Gold, Riva
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Apr 2017: B.11.
Abstract:
Elsewhere, the Stoxx Europe 600 fell 0.2% after the European Central Bank left its policy unchanged and said interest rates would remain at present or lower levels well past the horizon of asset purchases by the ECB.
Full text: U.S. stock indexes edged higher as gains in the shares of technology companies offset losses in the energy sector. Stocks have generally risen in recent sessions, buoyed by corporate-earnings reports pointing to health in U.S. companies. While bets on tax cuts from the Trump administration helped major indexes surge after the election, many investors say future stock gains are likely to be driven by earnings, not policy bets. The Dow Jones Industrial Average rose 6.24 points, or less than 0.1%, to 20981.33 on Thursday. The S&P 500 rose 1.32 points, or less than 0.1%, to 2388.77, and the Nasdaq Composite gained 23.71 points, or 0.4%, to 6048.94, hitting a fresh closing high. "At the end of the day, the market is always about earnings and growth," said JJ Kinahan, chief market strategist at TD Ameritrade. "If your earnings are good and the economy is performing, that makes up for a lot of other things." Technology shares in the S&P 500 rose 0.6% and were among the best performers in the broad index Thursday. Class A shares of Comcast advanced 80 cents, or 2.1%, to $39.59 after the company reported growth in revenue and profit that topped analysts' estimates. Class A shares of Under Armour, which posted its first-ever quarterly loss as a public company, rose 1.96, or 9.9%, to 21.67. Demand cooled for sneakers and athletic apparel, but results beat analysts' expectations. Southwest Airlines fell 1.19, or 2.1%, to 55.75 after the carrier said rising costs outpaced revenue growth for its latest quarter. Energy shares slid with oil prices, falling 1.1% in the S&P 500. U.S. crude for June delivery lost 1.3% to $48.97 a barrel, its lowest settlement since March 28, as investors weighed concerns of a surplus in petroleum products. Government bonds rose, with the yield on the 10-year U.S. Treasury note falling to 2.298% from 2.312% Wednesday. Yields fall as bond prices rise. Elsewhere, the Stoxx Europe 600 fell 0.2% after the European Central Bank left its policy unchanged and said interest rates would remain at present or lower levels well past the horizon of asset purchases by the ECB. With the second round of the French election less than two weeks away and no updates to economic forecasts on the docket, few investors had expected ECB President Mario Draghi to signal a major shift in his policy stance. "As usual, Mario Draghi was trying not to be too exciting, particularly at a time when there are still some uncertainties," said Stephanie Flanders, chief market strategist for the U.K. and Europe at J.P. Morgan Asset Management. "By and large, the low-key expectations we had going into the meeting were realized." Markets across Asia ended mixed after the Bank of Japan indicated it is unlikely to move away from easy-money policies, saying inflation lagged behind an earlier forecast. Early Friday, Japan's Nikkei Stock Average was down 0.2%. Hong Kong's Hang Seng Index, which Thursday rose 0.5% to its highest close since July 2015, was down 0.3%. Credit: By Akane Otani and Riva Gold
Subject: Dow Jones averages; Stock prices; Daily markets (wsj)
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.11
Publication year: 2017
Publication date: Apr 28, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892561057
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892561057?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Edges Up as Investors Cash Out After a Weak April; Not a good month for crude
Author: Puko, Timothy; Salvaterra, Neanda; Mukherji, Biman
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2017: n/a.
Abstract: None available.
Full text: Oil prices rebounded on Friday as traders appeared to be closing out a recent raft of bearish bets. April turned out to be a bad month for oil, with stockpiles still growing at times despite widespread expectations that global output cuts would start causing them to drain. U.S. crude finished the month down 2.5%, causing back-to-back monthly losses for the first time since last summer. With both the trading week and month ending Friday, and the contracts for both gasoline and diesel expiring, many traders took the moment to recalibrate, analysts said. Oil markets had all had at most just two winning sessions in the past two weeks, and many of the traders who sold contracts during that time are likely to want to close out those positions to square their trading books, analysts said. Light, sweet crude for June delivery settled up 36 cents, or 0.7%, at $49.33 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained 29 cents, or 0.6%, to $51.73 a barrel on ICE Futures Europe. For the month, Brent ended down $1.10, or 2.1%, for the month, its fourth losing month in a row, the worst such stretch since early 2016. "There's been such a consecutive down streak...you are potentially oversold," said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. He added that many traders will be extra sensitive to weekends and expirations now because the next meeting of the Organization of the Petroleum Exporting Countries is now just weeks away, potentially creating market-moving headlines. The market lately has been dominated by OPEC. The cartel agreed late last year with other big global exporters to curtail global production by about 1.8 million barrels a day. Although some crude stocks globally have fallen, some U.S. stocks have been resilient, thwarting a larger rally. That has put OPEC and oil bulls into a position now that they cannot get the rally they hoped for unless OPEC agrees to extend its cuts during their coming meeting on May 25, analysts at TD Securities in Toronto said in a note late Friday afternoon. The exporters may not need to really cut output through the rest of the year, but traders could very well lose faith the cuts will make their impact if OPEC doesn't at least say it will keep cutting, the TD analysts said. "Prices will be range-bound for the most of May--but volatile," said TD's team, led by Bart Melek, head of commodity strategy. "They will test the lower bound on negative news and bounce higher on any hope that producers' supply adjustments will continue for the balance of the year." Some cartel members have come out with potentially worrying statements about the conditions they require for OPEC's supply action to be extended. Iraq Oil Minister Jabbar al-Luaibi has said his country wants to be able to produce more, while "Iran is demanding that it be allowed to 'significantly' increase its oil production," according to Commerzbank. However, Tehran is already producing close to its maximum capacity of 4 million barrels a day, analysts say. Meanwhile, rebounding U.S. oil output means crude prices could remain range-bound a bit longer. The number of rigs drilling for oil in the U.S. rose by nine in the past week to 697, now double from the low it fell to less than a year ago, according to data oil-field services company Baker Hughes Inc. on Friday. "We don't expect prices to rise too much before the OPEC meeting next month," said Daniel Hynes, commodities analyst at ANZ Bank. But if the output ceiling is extended, oil could move back toward $55 and possibly reach $60 a barrel in the second half of 2017, he added. Gasoline futures lost 0.2 cent, or 0.1%, to $1.548 a gallon, lowest settlement since Feb. 28. It lost ground in 11 of the last 13 sessions, leading to its biggest declines in one month since July, that being 15.21 cents, or 8.9%. It has also now posted three straight losing weeks, losses of 11% over that span, its worst three-week stretch since November. Diesel futures lost 0.32 cent, or 0.2%, to $1.504 a gallon, its lowest settlement since March 27. It has lost ground in 10 of 11 sessions, causing the worst two-week stretch since January 2016. It lost 8.8% over that span, including losses this week of 4.93 cents, or 3.1%. For April, it lost 6.96 cents, or 4.4%. Austen Hufford contributed to this article. Write to Timothy Puko at tim.puko@wsj.com , Neanda Salvaterra at neanda.salvaterra@wsj.com and Biman Mukherji at biman.mukherji@wsj.com Credit: By Timothy Puko, Neanda Salvaterra and Biman Mukherji
Subject: Petroleum production; Crude oil prices; American dollar
Location: Iran Russia United States--US Iraq
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: New York Mercantile Exchange; NAICS: 523210; Name: Australia & New Zealand Banking Group Ltd; NAICS: 522110, 523120, 551111; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892695586
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892695586?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon, Chevron Earnings Point to Sign of Strengthening Oil Industry; Gains reflect a rally in oil prices from 2016 lows and revenue from new projects
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2017: n/a.
Abstract: None available.
Full text: The world's biggest oil companies are seeing their highest profits in more than a year, an early signal that they may be turning a corner on their long path to recovery. Exxon Mobil Corp. on Friday reported its best quarter since 2015, more than doubling profit from the first three months of 2016 when crude prices fell to the lowest level in more than a decade. The company also generated enough cash to pay for new investments and dividends, an increasingly important measure of resilience for big oil companies, which have been piling on debt. Chevron Corp., which reported a quarterly loss last year, on Friday posted a profit of $2.7 billion. The rosy results came a day after French energy company Total SA reported a 77% rise. Royal Dutch Shell PLC and BP PLC, which will report next week, are expected to show sharp increases. The improvements are the latest in a winning run of first-quarter earnings this month for large companies, including Google parent Alphabet Inc., which reported a 29% jump in profit Thursday; and General Motors Co., which on Friday reported a 34% increase , thanks in part to strong U.S. sales of pickup trucks and sport-utility vehicles. Financial companies also generally had strong quarters including Bank of America Corp., which earlier posted a 40% profit increase. For the big oil companies, the gains reflect a rally in oil prices from last year's lows, and revenue from new projects that have come online after years of multibillion-dollar investments in far-flung places including Angola, Qatar, Australia, Canada and Russia. They also highlight severe belt tightening by companies that have been retooling strategies as they brace for a potentially extended period of challenging oil prices. "These companies are cutting their cost structures," said Brian Youngberg, an energy analyst at Edward Jones. "They are leaner and have managed to get more out of each dollar they spend, and it is showing in their results." Earnings growth for oil-and-gas companies could have hit double digits in the first quarter of 2017, said Joseph Tanious, senior investment strategist for Bessemer Trust. "When oil prices were dipping lower, that was having a drag on the overall results for the S&P 500," he said. "Now we're seeing the opposite of that." In the U.S., companies also face the prospect of less burdensome regulations under President Donald Trump, who signed an executive order on Friday to ease restrictions on offshore drilling . That order, however, is expected to have limited immediate impact, experts said, because current prices still make drilling in the Arctic Ocean and other affected areas economically unattractive. Still, major oil companies face significant challenges as they attempt to repair the damage done by the worst price crash in a generation. Among the five largest Western energy giants, net debt more than tripled in the past five years to about $214 billion as they borrowed to make ends meet . Balance-sheet woes were among the reasons many were downgraded by ratings firms. Exxon, for instance, lost its triple-A rating from S&P Global Ratings last year for the first time since the Great Depression. Chevron sold assets to generate enough cash to pay for new spending and dividends, but new projects are likely to bring the company closer to Exxon's performance later in the year. As more money flows in, Chevron is likely to spend it reducing its debt ratio of about 24%, Chief Financial Officer Pat Yarrington said Friday. "It's an OK place to be," she said. "Over time, I'd like to see us move a little lower in the debt profile." Optimism from the relatively strong quarter has been tempered by growing concerns over whether a frenzied return to U.S. drilling will once again swamp markets. As oil prices recovered in the past year to prices above $50 a barrel, U.S. oil companies returned to shale fields at a breakneck pace. The number of rigs operating has more than doubled from a year ago, according to RigData. U.S. production has risen to about 9.3 million barrels a day, just 3% shy of the 2015 peak, according to Rystad Energy. The increase has been driven in part by lower costs that have improved drilling prospects in a number of fields, as well as positive sentiment stemming from a production cut from the Organization of the Petroleum Exporting Countries. Still, some investors and market analysts are concerned the pace of the U.S. return to drilling has been too hot, raising the prospect that new shale production could bring so much new supply, prices will remain mired around $50 a barrel for years. "Volumes are growing, particularly driven by North America," said Jeff Woodbury, Exxon's vice president of investor relations. That factor and others "indicate the need to be cautious going forward." While a number of companies have managed to generate enough cash at that price to pay for new investment and dividends, executives have acknowledged it will be difficult for them to grow significantly unless oil prices rise further. The pipeline of new projects has dwindled significantly as the companies put the brakes on spending, a step that has the potential to limit growth opportunities within several years. To make up the difference, Exxon and Chevron are turning for the most part to the Permian Basin in West Texas and New Mexico, an area of great promise in the industry that so far has generated little in the way of profits for many operators. Both companies have unveiled dramatic growth plans for the area. Chevron said its U.S. production operations earned $80 million in the quarter. Exxon lost money for the ninth straight quarter in its U.S. drilling business, losing $18 million. That was an improvement from a loss of more than $800 million a year ago. Still, the continued struggle to turn a profit in that business has troubled some investors, given that Exxon and Chevron have made shale operations a major focus for future growth and profitability. Shares of Exxon, down 9% so far this year, rose slightly to $81.65. Chevron shares climbed about 1% to $106.70. Anne Steele and Erin Ailworth contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com Related * Cost Cuts, Higher Oil Prices Lift Chevron * Put a Kitten in Your Tank: Big Oil Gets Less Bold Credit: By Bradley Olson
Subject: Profits; Financial performance; Energy industry; Natural gas utilities
Location: United States--US
People: Trump, Donald J Woods, Darren Tillerson, Rex W
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140
Publication title: Wall Street Journ al (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 28, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892729612
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892729612?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Chevron Swings To Profit On Cost Cuts, Higher Oil Prices; The oil-and-gas giant reports a profit of $2.68 billion as progress continues on reducing its workforce and capital expenditures in response to market conditions
Author: Steele, Anne
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2017: n/a.
Abstract: None available.
Full text: Chevron Corp. swung to a profit in the first quarter as the oil-and-gas giant's expense-slashing efforts pay off and a tough pricing environment shows signs of softening. Shares in the No. 2 energy company in the U.S., down 11% so far this year, gained 1.7% premarket Friday to $107.21. Pressured by the prolonged swoon in oil prices cutting into profitability, the San Ramon, Calif.-based company has launched efforts to slash thousands of jobs and cut billions of dollars from its capital-spending budget. Chevron said it had 55,200 employees at the end of 2016, down 15% from the end of 2014. "We continue to make good progress on reducing our spend," said Chief Executive John Watson. In the latest period, operating expenses were 14% percent lower than a year ago and capital spending declined more than 30%. The company's average sales price per barrel of crude oil and natural gas liquids was $49, up from $29 in the year-ago period. In all for the March quarter, Chevron reported a profit of $2.68 billion, or $1.41 a share, compared with a loss of $725 million, or 39 cents a share, the year before. Analysts polled by Thomson Reuters expected Chevron to report earnings of 86 cents a share. Revenue surged 42% to $33.42 billion, topping the average analyst estimate of $33.3 billion. Profit in Chevron's downstream, or refining, operations jumped 26% to $926 million in the quarter. Upstream operations, which include exploration and drilling, meanwhile, in the U.S., swung to an $80 million profit from a $850 million loss a year earlier. Higher crude oil prices and lower depreciation and operating expenses fueled the swing to profitability. Rival Exxon Mobil Corp., the largest U.S. oil company, on Friday said its profit more than doubled in the first quarter, signaling a strengthening in business amid a reprieve in commodity price depression. Write to Anne Steele at anne.steele@wsj.com Credit: By Anne Steele
Subject: Corporate profits; Crude oil prices; Profitability; Energy economics; Crude oil; Natural gas
Location: United States--US San Ramon California
Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 28, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892767971
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892767971?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Donald Trump Signs Executive Order Easing Offshore-Drilling Regulations; Order will likely have limited immediate impact due to low oil prices
Author: Ailworth, Erin
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2017: n/a.
Abstract: None available.
Full text: President Donald Trump signed an executive order Friday to ease regulations on offshore drilling and eventually allow more to occur, particularly in the Arctic Ocean. The order, which takes aim at last-minute Obama administration actions restricting drilling in the Arctic and Atlantic oceans, will likely have limited immediate impact owing to low oil prices, which make drilling in the affected areas economically unattractive. It specifically directs Interior Secretary Ryan Zinke to consider leasing in the Chukchi and Beaufort seas, the Atlantic, and other areas. In a signing ceremony, Mr. Trump touted the order as a way to move the country toward energy independence and lift restrictions that have curtailed job and economic growth. "It's going to lead to a lot of great wealth for our country, and a lot of great jobs," he said. Environmentalists decried his action as a damaging and politically motivated reversal of necessary protections for sensitive federal waters. "Some places are too precious to drill, foremost among them all the Arctic Ocean," said Jamie Williams, president of the Wilderness Society. "The Arctic Ocean itself is too fragile to develop safely for oil and gas." Given low energy prices--after a more than a 2½-year bust, U.S. crude is trading under $50 a barrel--it is unclear how much immediate interest oil and gas producers have in developing such expensive-to-drill areas. But given the nation's continued dependence on fossil fuels, companies need to be planning long term to meet future energy needs, said Erik Milito, director of upstream and industry operations at the American Petroleum Institute, an oil and gas trade association. "There could be huge potential in places like Alaska, the Atlantic, the eastern Gulf," Mr. Milito said. "While there may not be a company wanting to go out and drill tomorrow in the Atlantic, over time it's going to be important." Dan Naatz, senior vice president of government relations and political affairs at the Independent Petroleum Association of America, said offshore investment by independent U.S. producers has been shown to generate thousands of jobs, as well as billions of dollars in economic benefits, tax revenues and royalties. He lauded the action by the Trump administration "as a step in the right direction for America's energy economy and national energy security." Mr. Trump said the order directs Mr. Zinke to allow "responsible development" of offshore areas "that will bring revenue to our treasury and jobs to our workers". It also orders him to reconsider "burdensome regulations" that slow job creation, including a proposed offshore air rule and a well control rule. The directive also calls for Mr. Zinke to implement a streamlined permitting process for the privately funded collection of seismic data needed to assess potential offshore resources. Environmentalists say the president's order will likely face legal challenges. Peter Shelley, senior counsel at the Conservation Law Foundation, said the Obama administration's moves to restrict oil and gas drilling along the East Coast and in the Atlantic had "huge support from fishing communities, from beach communities, from tourists, and businesses." Billy Keyserling, mayor of Beaufort, S.C., said he worked with other local leaders and businesses for several years to protect the state's coast from offshore drilling. He called Mr. Trump's directive terrible, and said area leaders were already regrouping to resume their fight against offshore drilling. "We're not happy with it and we think it's the wrong decision," Mr. Keyserling said. Jason Bordoff, director of the Center on Global Energy Policy at Columbia University and a former Obama administration adviser, said it would take time for any challenges to play out. Meanwhile, he estimates that redoing the five-year plan that guides offshore lease sales is likely to take at least two years. As such, Mr. Bordoff said he sees little immediate impact from the Trump administration's executive order. "In today's lower oil price environment, there will be much less interest from oil companies in going back into high-cost, complex areas in the Arctic," he said. But the executive order creates "the option for companies to go and explore in the Arctic when market conditions make that favorable." Friday's order followed a Trump administration directive made earlier in the week to review national monuments created by the Antiquities Act since the start of 1996 that are more than 100,000 acres. That review may eventually open federally protected land to oil and gas drilling and development of other natural resources. Michael C. Bender contributed to this article Write to Erin Ailworth at Erin.Ailworth@wsj.com Related * Trump's First 100 Days: Full Coverage Credit: By Erin Ailworth
Subject: Prices; Presidents; Executive orders; Drilling; Environmentalists
Location: Arctic Ocean United States--US Alaska
People: Zinke, Ryan
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: Independent Petroleum Association of America; NAICS: 813910; Name: Wilderness Society; NAICS: 813410
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 28, 2017
Section: Politics
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892788013
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892788013?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Put a Kitten in Your Tank: Big Oil Gets Less Bold; Exxon Mobil and Chevron quarterly results show a shifting emphasis that will affect big oil's results in future commodity cycles
Author: Jakab, Spencer
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2017: n/a.
Abstract: None available.
Full text: "Big Oil," the moniker attached to the giant, multinational energy companies, is slightly less apt than it was a year ago even as the industry's financial fortunes have improved. Exxon Mobil Corp. and Chevron Corp. reported first-quarter earnings on Friday that, collectively, were $5.6 billion, or 416%, higher than a year earlier, driven by a big rise in crude prices. But they were both less oily and less international than in the past. Crude output fell at both companies, reflecting a major retrenchment in capital expenditures and a greater reliance on natural gas. Overall hydrocarbon production was down for Exxon and roughly flat for Chevron, but both companies only saw growth domestically, largely from shale formations . The change reflects a deliberate shift in strategy. While neither company has abandoned mammoth, technically challenging international projects, unconventional U.S. production is attracting more of their money even as overall spending has plunged. The key attraction of doing this is the much lower exploration, political and financial risk since there are no dry holes, a capricious government won't nationalize fields and the investment spigot can be turned off if commodity prices tumble. The downside is that much smaller companies can do the same thing, often with less financial discipline . For now the news is good for both Exxon and Chevron. They are finally generating enough cash to rebuild their weakened balance sheets and to perhaps resume their once-prodigious share buybacks. In the longer run, though, big oil's resemblance to small shale may mean skimpier returns across the next cycle. Write to Spencer Jakab at spencer.jakab@wsj.com Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast. Credit: By Spencer Jakab
Subject: Financial performance
Location: United States--US
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 28, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892791856
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892791856?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Rises by Nine; Gas-rig count rose by four in the past week, according to Baker Hughes
Author: Hufford, Austen
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose by nine in the past week to 697, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count is typically viewed as a proxy for activity in the sector. After peaking at 1,609 in October 2014, low oil prices put downward pressure on production and the rig count receded. However, the oil-rig count has generally been rising since last summer. The nation's gas-rig count rose by four to 171 in the past week, according to Baker Hughes. The U.S. offshore-rig count fell three rigs from last week to 17, which is down eight rigs year over year. On Friday, oil prices rose 0.5% to $49.21. Write to Austen Hufford at austen.hufford@wsj.com Credit: By Austen Hufford
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 28, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1892806957
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892806957?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Exxon, Chevron Earnings Point to Industry Recovery
Author: Olson, Bradley
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Apr 2017: A.1.
Abstract:
Exxon Mobil Corp. on Friday reported its best quarter since 2015, more than doubling profit from the first three months of 2016 when crude prices fell to the lowest level in more than a decade.
Full text: The world's biggest oil companies are seeing their highest profits in more than a year, an early signal that they may be turning a corner on their long path to recovery. Exxon Mobil Corp. on Friday reported its best quarter since 2015, more than doubling profit from the first three months of 2016 when crude prices fell to the lowest level in more than a decade. The company also generated enough cash to pay for new investments and dividends, an increasingly important measure of resilience for big oil companies, which have been piling on debt. Chevron Corp., which reported a quarterly loss last year, posted a profit of $2.7 billion. The rosy results came a day after French energy company Total SA reported a 77% rise. Royal Dutch Shell PLC and BP PLC, which will report next week, are expected to show sharp increases. For the big oil companies, the gains reflect a rally in oil prices from last year's lows, and revenue from new projects that have come online after years of multibillion-dollar investments in far-flung places including Angola, Qatar, Australia, Canada and Russia. They also highlight severe belt tightening by companies that have been retooling strategies as they brace for a potentially extended period of challenging oil prices. "These companies are cutting their cost structures," said Brian Youngberg, an energy analyst at Edward Jones. "They are leaner and have managed to get more out of each dollar they spend, and it is showing in their results." Earnings growth for oil-and-gas companies could have hit double digits in the first quarter of 2017, said Joseph Tanious, senior investment strategist for Bessemer Trust. "When oil prices were dipping lower, that was having a drag on the overall results for the S&P 500," he said. "Now we're seeing the opposite of that." In the U.S., companies also face the prospect of less burdensome regulations under President Donald Trump, who signed an executive order on Friday to ease restrictions on offshore drilling. That order is expected to have limited immediate impact, experts said, because current prices still make drilling in the Arctic Ocean and other affected areas economically unattractive. Still, major oil companies face significant challenges as they attempt to repair the damage done by the worst price crash in a generation. Among the five largest Western energy giants, net debt more than tripled in the past five years to about $214 billion as they borrowed to make ends meet. Balance-sheet woes were among the reasons many were downgraded by ratings firms. Exxon, for instance, lost its triple-A rating from S&P Global Ratings last year for the first time since the Great Depression. Chevron sold assets to generate enough cash to pay for new spending and dividends, but new projects are likely to bring the company closer to Exxon's performance later in the year. As more money flows in, Chevron is likely to spend it reducing its debt ratio of about 24%, Chief Financial Officer Pat Yarrington said Friday. "It's an OK place to be," she said. "Over time, I'd like to see us move a little lower in the debt profile." Optimism from the relatively strong quarter has been tempered by growing concerns over whether a frenzied return to U.S. drilling will once again swamp markets. As oil prices recovered in the past year to prices above $50 a barrel, U.S. oil companies returned to shale fields at a breakneck pace. The number of rigs operating has more than doubled from a year ago, according to RigData. U.S. production has risen to about 9.3 million barrels a day, just 3% shy of the 2015 peak, according to Rystad Energy. The increase has been driven in part by lower costs that have improved drilling prospects in a number of fields, as well as positive sentiment stemming from a production cut from the Organization of the Petroleum Exporting Countries. Still, some investors and market analysts are concerned the pace of the U.S. return to drilling has been too hot, raising the prospect that new shale production could bring so much new supply, prices will remain mired around $50 a barrel for years. "Volumes are growing, particularly driven by North America," said Jeff Woodbury, Exxon's vice president of investor relations. That factor and others "indicate the need to be cautious going forward." While a number of companies have managed to generate enough cash at that price to pay for new investment and dividends, executives have acknowledged it will be difficult for them to grow significantly unless oil prices rise further. The pipeline of new projects has dwindled significantly as the companies put the brakes on spending, a step that has the potential to limit growth opportunities within several years. To make up the difference, Exxon and Chevron are turning for the most part to the Permian Basin in West Texas and New Mexico, an area of great promise in the industry that so far has generated little in the way of profits for many operators. Both companies have unveiled dramatic growth plans for the area. Chevron said its U.S. production operations earned $80 million in the quarter. Exxon lost money for the ninth straight quarter in its U.S. drilling business, losing $18 million. That was an improvement from a loss of more than $800 million a year ago. --- Anne Steele and Erin Ailworth contributed to this article. Credit: By Bradley Olson
Subject: Investments; Crude oil prices; Natural gas utilities; Financial performance; Business conditions; Corporate profits; Petroleum industry; Industrywide conditions
Location: United States--US
People: Trump, Donald J
Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Total SA; NAICS: 447190, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: A.1
Publication year: 2017
Publication date: Apr 29, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
Document feature: Graphs
ProQuest document ID: 1892896366
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892896366?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Iran Signals It Is Prepared to Extend Oil-Production Cap; Oil minister's comments come less than a month before OPEC officials meet in Vienna
Author: Peker, Emre
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Apr 2017: n/a.
Abstract: None available.
Full text: TEHRAN--Iran signaled its readiness to cap its oil output until the end of the year in order to extend an OPEC-led agreement to cut production, backing Saudi Arabia's push to raise prices. Despite wanting to boost output, Petroleum Minister Bijan Zanganeh said Saturday that Iran has kept its oil production at 3.8 million barrels a day under an agreement brokered last year by the Organization of the Petroleum Exporting Countries and joined by some critical non-OPEC members including Russia. Saudi Arabia has told OPEC officials that it wants to extend the cartel's agreement to cut crude-oil production for another six months when the group meets on May 25 in Vienna. OPEC member Iran, which was allowed to limit rather than reduce its output under the deal, was seen as a potential obstacle. There have been positive signals that the oil exporters would support the Saudi proposal, Mr. Zanganeh said. Separately, Tehran's oil chief accused Washington of preventing energy investments in Iran, saying major oil-and-gas firms with sizable investments in the U.S. were concerned by American retribution and have stayed away. Since Iran and world powers in 2015 agreed on curbing the country's nuclear program in exchange for the lifting of international sanctions, many global energy firms have been eager to enter one of the world's biggest oil-and-gas markets. But while Western companies from industries including automotive and aviation have completed deals in Iran , the country has yet to ink a major energy deal. "The major thing is the political limitation for them and pressure on them in the United States," Mr. Zanganeh said on the sidelines of meetings among Iranian and European Union officials in Tehran. He dismissed concerns about financing and continued U.S. sanctions against Iranian banks, which energy firms cite as leading reasons for holding out on the lucrative market. Iran developed its South Pars gas field despite sanctions, he said, adding that the Trump administration might be able to slow investments but would ultimately fail to curb growth in the oil-and-gas industry--a key driver of the country's economy. European and Asian firms have poured into Iran since sanctions were lifted. American companies, however, have largely held back, unsure about whether President Donald Trump--a sharp critic of the nuclear deal on the campaign trail--would try to alter the pact or otherwise discourage closer business ties. Write to Emre Peker at emre.peker@wsj.com Credit: By Emre Peker
Subject: Petroleum production; Agreements; Political campaigns; Foreign investment; Sanctions; Cartels
Location: Iran Russia United States--US Saudi Arabia
People: Trump, Donald J
Company / organization: Name: European Union; NAICS: 926110, 928120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: Apr 29, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893006703
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893006703?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Tumbles Under Weight of Growing U.S. Output; Market is caught between rising U.S. production and curtailed output from OPEC, Russia
Author: Sider, Alison; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 May 2017: n/a.
Abstract: None available.
Full text: Crude futures tumbled Monday, weighed down by falling gasoline prices and by concerns about increasing U.S. oil being pumped into the still-oversupplied market. U.S. crude futures fell to a fresh one-month low, dropping 49 cents, or 0.99%, to $48.84 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 53 cents, or 1.02%, at $51.52 a barrel on London's ICE Futures Europe. U.S. refiners have ramped up their output and have been processing more crude oil than ever before. But the result has been big increases in gasoline stockpiles, which could become a drag on crude. Gasoline futures fell to their lowest level since Feb. 28, dropping by 2.09 cents, or 1.35%, to $1.5272 a gallon. "The gasoline situation is very negative here, and getting worse by the minute," said Bob Yawger, director of the futures division of Mizuho Securities USA. "There are big amounts of gasoline, and not necessarily a big demand number on the other side of the equation to wipe it out." Production cuts by the Organization of the Petroleum Exporting Countries haven't cleared a glut of crude as quickly as many expected, and analysts said the market is caught between OPEC's curtailed production and rising U.S. output. The OPEC-led effort to tighten the oil market has slowed the growth of global inventories but stocks are still nowhere near five-year averages, a level for which OPEC is striving. At the same time, U.S. output continues to steadily increase, with the latest data from industry group Baker Hughes on Friday showing rigs drilling for oil in the U.S. rose again by nine last week. At 697, the volume is double from the low it fell to less than a year ago. "You have a well-established recovery in U.S. shale sector that is most certainly diluting the impact of OPEC's efforts," said Harry Tchilinguirian, head of commodity strategy at BNP Paribas SA. That adds to the pressure on OPEC to agree to extending its cuts when it meets May 25. Iran on Saturday joined the growing circle of OPEC members indicating they would support an extension. For its part, Iran agreed to cap its production at 3.8 million barrels a day in the first half of 2017, which was slightly higher than its October baseline. Nigeria and Libya were also exempt from the cuts. Libya's output is ramping up. The country's state-run National Oil Corp. said Monday that its output has reached 760,000 barrels a day--its highest level since 2014--which also weighed on oil prices Monday, analysts said. The general market expectation is for the consortium to further curtail production after June, but several questions still loom, including the length of the extension, quotas for the individual producers and the continuing support of non-OPEC members such as Russia. "Iran wasn't really the hurdle, when you look at the other OPEC members and how they discussed the extension, what is more important is Russia," Mr. Tchilinguirian said. In the initial agreement Russia agreed to cut output by 300,000 barrels a day. "If an extended production agreement is reached...then the market would remain supported in the second half of the year," said Stuart Ive, a client manager at the New Zealand-based OM Financial. Write to Alison Sider at alison.sider@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Sarah McFarlane and Jenny W. Hsu
Subject: Futures; Cartels; Crude oil
Location: Middle East Russia United States--US Libya Nigeria Iran Asia Europe
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893492127
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893492127?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Company Permian Resources Reaches Debt-Restructuring Deal; OnyxPoint to forgive $300 million debt for stake in Permian Resources
Author: Jarzemsky, Matt
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 May 2017: n/a.
Abstract: None available.
Full text: Permian Resources LLC, an oil producer with ties to late wildcatter Aubrey McClendon, reached a debt-restructuring deal with a key creditor meant to relieve its heavy debt burden. The Oklahoma City company late Monday announced a deal under which energy-focused private-equity firm OnyxPoint Global Management LP will forgive more than $300 million in debt in exchange for a stake in the company. OnyxPoint and other investors, including Permian Resources owner Energy & Minerals Group, or EMG, also will provide more than $700 million in new equity capital that will be used to pay down debt and fund operations. The deal puts OnyxPoint in control of Permian Resources alongside EMG, which is contributing to the equity funding. The company will be renamed Sable Permian Resources LLC. OnyxPoint is a new firm led by Shaia Hosseinzadeh, the former head of energy investing at WL Ross & Co. WL Ross's founder, distressed investor Wilbur Ross, recently resigned from the firm to join President Donald Trump's administration as Commerce secretary. The deal was first reported by The Wall Street Journal. Permian Resources is one of several energy producers Mr. McClendon helped form several years ago with financial backing from EMG. The ventures marked Mr. McClendon's return to the business after he was ousted from Chesapeake Energy Corp. He died in a car wreck in March 2016. Permian Resources, which has some $3 billion in debt, ran into trouble after oil and gas prices tumbled more than two years ago. Some 119 oil-and-gas companies have filed for bankruptcy protection in the U.S. and Canada since 2014, according to the law firm Haynes & Boone LLP. The industry's crisis has abated since prices rose from last year's lows, but some energy companies remain unprofitable and overly indebted. The downturn attracted hedge funds and private-equity firms that invest in downtrodden assets. In recent years, Apollo Global Management LLC, WL Ross, Oaktree Capital Group LLC and other distressed investors have snapped up Permian Resources' discounted debt, angling to take ownership of the company in a bankruptcy or out-of-court restructuring. The Permian Resources restructuring isn't expected to affect the legal wrangling among creditors of Mr. McClendon's estate. EMG and OnyxPoint will name directors to Permian Resources' board, and they have tapped former Plains Exploration & Production Co. Chief Executive James Flores to lead the company. Mr. Flores was CEO of Plains Exploration during its $6.3 billion tie-up with mining giant Freeport-McMoRan Inc. in 2013. Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com Credit: By Matt Jarzemsky
Subject: Acquisitions & mergers; Debt restructuring; Equity
Location: Oklahoma
People: Trump, Donald J Ross, Wilbur L Jr McClendon, Aubrey
Company / organization: Name: W L Ross & Co; NAICS: 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 1, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893601414
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893601414?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distributi on is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Middle Class Needs to Live Without State Help, IMF Says; IMF says sharing oil wealth through government jobs and lavish subsidies no longer sustainable for MENA oil exporters
Author: Lohade, Nikhil
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 May 2017: n/a.
Abstract: None available.
Full text: DUBAI--The sharing of oil wealth through government jobs and lavish subsidies is no longer sustainable for Saudi Arabia and its neighbors in the Middle East, the International Monetary Fund said, urging the countries to focus on rolling out ambitious diversification plans . "The challenge, therefore, is to develop a new model of economic growth that is both resilient and inclusive," the IMF said in its latest outlook report for the Middle East, North Africa, Afghanistan and Pakistan. "In particular, there is a need to reduce the dependence on oil and generate private sector jobs for the rapidly growing labor force." In recent years, Saudi Arabia and several other Gulf states cut spending to cope with a sharp drop in oil income, which accounts for a major portion of government revenue. Saudi Arabia, for instance, canceled bonus payments and curbed allowances for state employees in September, months after cutting subsidies for fuel, electricity and water. But in a surprise move late last month, King Salman reinstated allowances and bonuses for state employees, citing an increase in revenue and a decline in the kingdom's budget deficit. Members of Saudi Arabia's working middle class--a majority of whom are employed by government related entities and accustomed to generous state assistance--had become more conscious about their spending in recent months. Usually reluctant to grumble about economic hardships, many Saudi nationals criticized the reduction in public welfare, especially as the cuts didn't appear to affect the wealthy. The restoration of allowances and bonuses to state employees is expected to bolster consumer spending and help revive growth in the kingdom. It will also help calm nerves as Saudi Arabia continues to spend billions abroad, including on a costly and unpopular war in Yemen. Like many countries in the Middle East and North Africa region, Saudi Arabia unveiled last year an ambitious plan to reshape its oil-dependent economy, known as Saudi Vision 2030. The overhaul is being led by Deputy Crown Prince Mohammed bin Salman, King Salman's son and a possible successor. As those austerity measures took effect, Saudi Arabia's budget deficit shrank last year to about $79 billion from a record $98 billion in 2015. Saudi Arabia expects to run a deficit of about $53 billion in 2017. The impact of the resumption of perks to state employees and the kingdom's plans to balance its finances by 2020 weren't immediately clear. Jihad Azour, director for the IMF's Middle East and Central Asia Department, told reporters on Tuesday that some fine-tuning of measures is allowed from time to time, given the magnitude of adjustments made and planned to reduce the Saudi deficit to almost zero. He noted that the Saudi government has said it remains committed to achieving a balanced budget by 2020. An IMF mission is in Saudi Arabia this month to review the kingdom's economy. "Countries need to maintain their focus on implementing their economic diversification plans--and the supporting structural reforms--to strengthen economic resilience," the IMF said in the report. They should prioritize growth-friendly measures such as further energy-price reforms, additional cuts to current spending and measures to increase revenues, including via improved tax administration, the IMF added. The IMF expects Saudi Arabia, the largest economy in the Middle East, to grow 0.4% this year and 1.3% in 2018, down from its January estimate of 2.3% for next year, due to lower oil production and the continuing austerity drive in the kingdom. This dip in growth is expected for most energy-selling countries in the region, the IMF added, after Saudi Arabia last year agreed with other major crude exporters to cut production in an effort to lift prices. The production cuts have helped oil prices stabilize in recent months after they fell by about half since the middle of 2014. Saudi Arabia expects that agreement to be extended by another six months when the Organization of the Petroleum Exporting Countries meets in May. The production-cut agreement has helped improve the outlook for oil in the near term, but prices over the medium term are expected to remain low and highly uncertain, the IMF said. "So further sustained fiscal adjustment remains critical," it added. Write to Nikhil Lohade at Nikhil.Lohade@wsj.com Credit: By Nikhil Lohade
Subject: Petroleum production; Prices; Budget deficits; Subsidies; State employees
Location: North Africa Middle East Pakistan Yemen Saudi Arabia Afghanistan
People: Mohamed bin Salman, Prince of Saudi Arabia
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 2, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893778023
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893778023?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Shares Are Running Low on Energy --- Slumping crude prices sink valuations even as many producers are posting profits again
Author: Otani, Akane
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 May 2017: B.14.
Abstract:
Exxon Mobil Corp. and Chevron Corp., the U.S.'s biggest oil companies, reported their highest quarterly profits in more than a year last week, driven by the recovery in oil prices from their 2016 lows, revenue from new projects, and cost-cutting measures.
Full text: Energy shares have been the stock market's worst-performing sector this year, weighed down by slumping crude prices even as many oil-and-gas companies return to profitability. Shares of energy companies are down 10% in 2017, making the sector one of only two S&P 500 groups posting losses this year, along with the telecommunications sector. The broader index has risen 6.7%. Oil-and-gas companies' laggard performance marks a reversal from last year, when these companies gained more than any group in the S&P index. A doubling in oil prices from their February lows helped propel the sector 24% higher in 2016, while supply cuts from OPEC members and other major oil-producing nations set a bullish tone going into 2017. But oil prices have slipped 9.1% this year as shale producers have ramped up production, raising angst again about an oversupplied market. Investor concerns that energy stocks look overvalued after last year's big run is also hurting shares, analysts said. Sluggish oil prices can affect a broad range of companies beyond the major oil producers. Long slumps can hurt profits for those dependent on spending by the oil industry, such as steel, equipment and machinery companies, said Mike Wilson, chief U.S. equity strategist at Morgan Stanley. Many investors have been counting on strong corporate earnings for the first quarter to reverse the recent share price skid. Exxon Mobil Corp. and Chevron Corp., the U.S.'s biggest oil companies, reported their highest quarterly profits in more than a year last week, driven by the recovery in oil prices from their 2016 lows, revenue from new projects, and cost-cutting measures. But strong initial results that have mostly beaten analyst expectations have done little to lift energy stocks, and the group's shares were mostly flat on Monday. The S&P energy sector slid 0.2%, while Exxon shares were up 0.5% and Chevron fell 0.7%. U.S. crude prices lost 1% to $48.84 a barrel and are now down 3.6% over the past 30 days. "The uncertainty of the outlook for oil has really put pressure on energy stocks," said Karyn Cavanaugh, senior market strategist at Voya Investment Management. Oil prices rallied late last year after the Organization of the Petroleum Exporting Countries reached a November deal to cut production, with U.S. crude jumping 8.7% between the agreement and year-end. But this year U.S. refiners have ramped up output and are processing more crude oil than ever before. That has led to big increases in gasoline stockpiles, which could become a drag on crude and could undermine OPEC's attempts to combat a global supply glut. The number of rigs drilling for oil in the U.S. remains double the low it fell to less than a year ago, according to data from industry group Baker Hughes. High valuations for oil-and-gas companies also have weighed on sentiment. Energy stocks in the S&P 500 trade at 28 times the profits analysts expect companies to earn over the next 12 months, according to FactSet. The broader S&P 500 trades at 18 times earnings estimates, according to FactSet. Credit: By Akane Otani
Subject: Profits; Crude oil prices; Stock prices; Earnings; Stock exchanges; Profitability; Energy industry; Natural gas utilities
Location: United States--US
Company / organization: Name: Morgan Stanley; NAICS: 523110, 523120, 523920; Name: Voya Investment Management LLC; NAICS: 523920; Name: Chevron Corp; NAICS: 324110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.14
Publication year: 2017
Publication date: May 2, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893782169
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893782169?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
BP Swings to Profit as Oil Sector Shakes Off Woes; Oil majors are reporting a sharp improvement after a multi-year slump in crude prices
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 May 2017: n/a.
Abstract: None available.
Full text: LONDON--BP PLC was the latest big oil company to report a sharp increase in profit Tuesday, adding to optimism that the sector may have passed the worst following the dramatic slump in energy prices. The British oil giant said it swung to profit in the first quarter, benefiting from a roughly 60% increase in prices since the first quarter of 2016 and higher production volumes. The results were the latest in a flurry of upbeat earnings from the world's biggest oil companies, several of which have enjoyed their most successful quarter in more than a year. The improvement has left investors hopeful that the sector may be recovering following the tumble in oil prices after the summer of 2014. Last week, Exxon Mobil Corp. reported its best quarter since 2015 . Chevron Corp. posted a profit of $2.7 billion, after reporting a loss for 2016 and France's Total SA said its profit surged 77% in the first three months of 2017. Royal Dutch Shell PLC is due to report later this week. BP said Tuesday its replacement cost profit--a number analogous to the net income that U.S. oil companies report--was $1.4 billion in the first quarter, compared with a loss of $485 million in the comparable period a year earlier. The results were some of the company's strongest since it announced a massive $20 billion deal to settle outstanding claims relating to its Gulf of Mexico blowout. The company's share price jumped 2.4% in early London trading as investors reacted positively to the results. The pretax bill for the 2010 disaster that killed 11 workers and spilled millions of barrels of oil into the sea has reached nearly $63 billion, BP said. The payments relating to the spill are expected to total between $4.5 billion and $5.5 billion in 2017, before falling to around $2 billion in 2018. The company reported robust operating cash flow in the first quarter, which is expected to continue to improve. Excluding payments related to the oil spill, the company's cash flow from operations improved to $4.4 billion in the first quarter, helping it maintain a dividend of 10 cents a share. This will reassure investors, who received a jolt in February when the company said it needed oil prices to rise to $60 a barrel to break even. That number is expected to drift closer to $55 a barrel in 2017. Cash flow is also seen strengthening as part of BP's plan to bring on seven new projects this year. The company sees oil trading at $50-$55 a barrel in 2017, likely capped by stronger shale production in the U.S., Chief Financial Officer Brian Gilvary said, despite efforts by the Organization of the Petroleum Exporting Countries to curb output and boost prices . Write to Sarah Kent at sarah.kent@wsj.com Credit: By Sarah Kent
Subject: Financial performance
Location: United States--US France
People: Gilvary, Brian
Company / organization: Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 2, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893786378
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893786378?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Fall Sharply on Output Concerns; Momentum, resilient production and stockpiles keep feeding selloff
Author: Puko, Timothy; Salvaterra, Neanda
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 May 2017: n/a.
Abstract: None available.
Full text: Oil prices took some of their biggest losses of the year Tuesday, with concerns about rebounding output from Libya and oversupply in the U.S. pushing prices to new lows. Brent crude, the global benchmark, fell to its lowest point since Nov. 29. U.S. oil is at its second-lowest settlement since then, and Tuesday's losses were its third-biggest of any session in 2017. Most of the losses came in a steep drop late in the afternoon, but spotting its trigger was difficult. Some noted live comments on Saudi television from the country's deputy crown prince, but little of what he said about oil would affect near-term markets. The drop is likely from the same trends that have often weakened oil prices since March: resilient stockpiles and production at a time many expected output cuts to cause a rally, brokers said. "This is just more people stopping out," said Scott Shelton, broker at ICAP PLC. "There's a general jitteriness about a couple things." Light, sweet crude for June settled down $1.18, or 2.4%, at $47.66 a barrel on the New York Mercantile Exchange. It is the lowest settlement since March 21. Brent lost $1.06, or 2.1%, to $50.46 a barrel on ICE Futures Europe. The latest losses are the ninth in 12 sessions, with resilient stockpiles, especially in the U.S., waylaying a widely expected rally. U.S. prices are now down nearly 11% from April's high and have been plumbing new lows for about a week. Oil markets have been prone to selloffs this spring largely because U.S. stockpiles haven't fallen sharply as many have expected. That trend is likely continuing according to The Wall Street Journal's weekly survey of 10 analysts and traders. The group expects crude storage levels likely fell by 1.8 million barrels in the week ended Friday but that gasoline stockpiles rose 700,000 barrels and stockpiles of distillates, which include heating oil and diesel, rose by 600,000 barrels. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 4.2 million-barrel decrease in crude supplies, a 1.9-million-barrel decline in gasoline stocks and a 436,000-barrel decline in distillate inventories, according to a market participant. There are concerns that a production cut led by the Organization of the Petroleum Exporting Countries may not make a dent in global oil stocks as producers such as Libya that were exempt from the deal are ramping up their output. Libya's National Oil Company said Monday that production is currently above 760,000 barrels a day. The country's authorities said earlier that production at the Sharara and El Feel fields may soon restart. That is still weighing on the markets Tuesday, analysts said. OPEC's supply action, which took effect in January, will be reviewed at the end of May. Recent comments from OPEC officials suggest that, four months into the deal, the cuts haven't materially reduced global inventories and the market remains bloated. "The fundamental picture does not point to strength, it points to weakness," said Gene McGillian, research manager at Tradition Energy. "Until we get signs these guys are going to remove these excess barrels from the markets, signs do not point to $50 barrel." Deputy Crown Prince Mohammed bin Salman said his country's optimistic economic scenario for oil prices is $55 a barrel and the lowest is $45 a barrel. But he said few other things about current prices or oil markets, speaking more on how the country plans to handle revenue from Saudi Arabian Oil Co. and its initial public offering, targeted for next year. Adding to the negative market sentiment is rising U.S. output and anemic demand for petroleum products. Gasoline futures in the U.S. hit two-month lows this week. Recent data from the Energy Information Administration showed that over the prior four weeks, gasoline demand was 1.8% lower than a year earlier. Despite that, refiners barely slowed from a recent breakneck pace, according to the Journal's survey. Its participants estimate that refinery utilization fell just 0.4 percentage point to 93.7% in the week ended Friday. Traders who move based on momentum have also piled on in recent days, brokers said. In addition to all the concerns about oversupply, the 50-day-moving-average price for June futures recently crossed below the 200-day trend line, which momentum traders consider one of the strongest signs that further losses will follow. "There's a question on whether there's another leg down coming," said Ric Navy, senior vice president for energy futures at brokerage R.J. O'Brien & Associates LLC. Gasoline futures lost 1.36 cents, or 0.9%, to $1.5136 a gallon, the 13th losing session in the past 15. It is at its lowest settlement since Feb. 28 and has shed 14% since hitting the high point of the past year on April 10. Diesel futures lost 1.98 cents, or 1.3%, to $1.468 a gallon, its 12th losing session of the past 13. It is at its lowest settlement since Nov. 29 Write to Timothy Puko at tim.puko@wsj.com and Neanda Salvaterra at neanda.salvaterra@wsj.com Credit: By Timothy Puko and Neanda Salvaterra
Subject: Futures; Crude oil prices; Supply & demand; American dollar
Location: United States--US Libya
People: Mohamed bin Salman, Prince of Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893833883
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893833883?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Newport Mansion Asks $12 Million; 'Ker Arvor' is owned by Maureen Donnell, widow of John R. Donnell, whose family founded Marathon Oil.
Author: Taylor, Candace
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 May 2017: n/a.
Abstract: None available.
Full text: One of the historic mansions in Newport, R.I. is going on the market for $12 million. "Ker Arvor," a restored Louis XV Revival-style house measuring about 12,500 square feet, was built in the 1930s, according to listing agent Kate Leonard of Lila Delman Real Estate International. With roughly 21 rooms, the house sits on 9.1 acres across from the Newport Country Club. The U-shaped home took its inspiration from the "La Lanterne" hunting lodge in Versailles, France, said Ms. Leonard. The main gates open to reveal a long driveway leading to a motor court in front of the house, which has nine bedrooms and a wine cellar. A curtained terrace opens to formal gardens, which contain a fountain from the 1840s. The grounds include a heated outdoor pool and a pool house with a kitchen and men's and women's changing rooms, as well as a barn and a children's playhouse with its own porch. The owner is Maureen Donnell, widow of John R. Donnell, whose family founded Marathon Oil. Mrs. Donnell said when she and her husband bought Ker Arvor about 30 years ago, the house was in disrepair, and they spent more than two years restoring the house, repairing items such as the original wallpaper, which was hand-painted in China. Mrs. Donnell splits her time between Newport and Palm Beach, although she said she has spent less time in Newport since her husband's death in 2004. She said she's selling because she plans to travel more often and wants to downsize to a smaller home in Newport. "I feel like I want a change," she said. Newport has seen several of its mansions change hands in recent years. The haircare-and-tequila tycoon John Paul DeJoriabought "Ocean Lawn" for $11.65 million earlier this year . Another mansion, Fairholme, sold in February of last year for $16.1 million, less than a year after trading for $15 million . Write to Candace Taylor at Candace.Taylor@wsj.com Credit: By Candace Taylor
Subject: Gardens & gardening
Location: China France
Company / organization: Name: Marathon Oil Corp; NAICS: 211111, 213112, 324110, 486110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 2, 2017
Section: Real Estate
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893971008
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893971008?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Government Bonds Strengthen on Weak Auto Sales; Lower oil prices also boost Treasurys
Author: Zeng, Min
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 May 2017: n/a.
Abstract: None available.
Full text: U.S. government bonds strengthened Tuesday as weak U.S. auto sales boosted demand for haven assets. Car makers General Motors Co. and Ford Motor Co. reported April declines of 5.8% and 7.1%, respectively, compared with the same month last year. "It is an indication of a slowdown in domestic economic growth and consumption," said Larry Milstein, head of government and agency trading at R.W. Pressprich & Co. Lower oil prices also contributed to the bond market's price strength, as U.S. crude oil futures fell by more than 2% Tuesday. A slide in energy prices reduce expectations on the inflation that would erode the fixed returns investors obtain from Treasury debt investments. The yield on the benchmark 10-year Treasury note settled at 2.296%, compared with 2.327% Monday. Yields fall as bond prices rise. The 10-year yield had risen to 2.34% earlier in the session, driven by the strongest level in three years for an index measuring the health of the U.K. manufacturing sector. The gyration in the bond market came as the Federal Reserve started its two-day policy meeting Tuesday. It's scheduled to release an interest-rate statement Wednesday afternoon. The central bank is widely expected to keep its key short-term policy rate unchanged after raising it by a quarter of a percentage point in March. A key focus is how recent weakness in economic releases may affect the Fed's plan in raising interest rates as soon as next month. Traders said Treasury yields could slide if the Fed shows more caution in its statement. Yields are likely to rise if the statement suggests policymakers are not overly concerned about the growth momentum, thus raising market expectations on a rate increase next month. Some analysts said a big selloff is unlikely given that the derivative market has priced in a high probability of a Fed move. Fed-funds futures, used by investors to bet on the Fed's rate outlook, showed Tuesday a 66% probability that the Fed would tighten monetary policy again in June, according to CME Group. Blake Gwinn, U.S. rates strategist at NatWest Markets, said it would be hard for the 10-year Treasury yield to rise to 2.6% again unless the Fed shocks the bond market. The yield traded above 2.6% shortly before the Fed's decision to raise rates in March, but has since pulled back. A number of economic releases have disappointed over the past weeks, raising some concerns over the growth momentum. Friday's report showed the U.S. economy grew at the slowest pace in three years between January and March. On Monday, a gauge of U.S. manufacturing pulled back. Inflation pressure has eased after a recent rise, making it less urgent for the Fed to tighten monetary policy. The Fed's favorite gauge of inflation retreated when released Monday, pointing to deceleration of inflation pressure. Crude oil prices and a number of other commodities have fallen over the past weeks, reducing inflation expectations in the bond market. "The Fed will have a challenge on its hands in terms of raising rates until the economic fundamentals improve," said Kevin Giddis, head of fixed-income capital markets at Raymond James. John Canavan, market analyst at Stone and McCarthy Research Associates, said he expects the Fed to raise rates in June as he believes the U.S. economy was in a temporary soft patch during the first quarter. Friday's nonfarm employment report is the key data point for investors to gauge the growth outlook. Economists expect the U.S. economy added 188,000 new jobs in April, up from 98,000 in March. Wage inflation, via the average hourly earnings from the jobs report, will also be scrutinized. Financial conditions remain loose, which also gives the Fed some breathing room in tightening policy. U.S. stocks were near record highs. Both Treasury bond yields and the U.S. dollar have retreated from their 2017 peak. The yield premium that investors demanded to own U.S. junk bonds relative to Treasurys remains near the smallest since 2014. Write to Min Zeng at min.zeng@wsj.com Credit: By Min Zeng
Subject: Monetary policy; Manufacturing; Interest rates; Government bonds; Automobile sales
Location: United States--US United Kingdom--UK
Company / organization: Name: Ford Motor Co; NAICS: 333924, 336111, 336390; Name: CME Group; NAICS: 523210; Name: General Motors Corp; NAICS: 333415, 336111, 336390
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 2, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1893971419
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1893971419?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Royal Dutch Shell Earnings: What to Watch; Focus will be on Shell's profit as oil prices are significantly higher than a year ago
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 May 2017: n/a.
Abstract: None available.
Full text: Royal Dutch Shell PLC is set to announce its first-quarter earnings on Thursday before the market opens in London. Here's what you need to know: EARNINGS FORECAST: The oil giant is expected to report a net income of $3.3 billion for the first quarter, compared with a profit of $484 million in the same period a year earlier, according to consensus estimates published by S&P Global Market Intelligence. WHAT TO WATCH: --PUMPED UP PROFITS: Oil prices were roughly 60% higher in the first quarter of 2017 compared with the first three months of last year, when they fell to the nadir of their recent slump. The higher-price environment has boosted profits at other major oil companies, and Shell is expected to be no exception. --SETTLING UP: Shell announced a number of significant divestments in the first quarter that have accelerated its efforts to sell off $30 billion of assets by next year. The massive sale target is needed to reduce the company's debt pile following its acquisition of BG Group last year and reassure investors of its dividend should prices fall back once more. --BREAKING EVEN: Shell has drawn praise for managing to cover its dividends and capex from the company's cash flow for the last two quarters, but as the business environment improves, the company will have to show it can continue to do this while reducing its debt pile and ultimately conducting a share-buyback program. Write to Sarah Kent at sarah.kent@wsj.com Read More * Shell's Titanic Bet: Can Deep-Water Drilling Be Done on the Cheap? * Shell Seeks to Streamline in 2017 * Shell to Sell Canadian Oil-Sands Businesses for $7.25 Billion Credit: By Sarah Kent
Subject: Corporate profits; Financial performance; Prices
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: BG Group PLC; NAICS: 211111, 221210, 486210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 2, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894042514
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894042514?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Saudi Prince Defends Renewal of State Perks but Warns of Further Belt-Tightening if Oil Prices Fall; In rare interview, kingdom's powerful deputy crown prince also defends decision to list Aramco
Author: Said, Summer; Stancati, Margherita
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 May 2017: n/a.
Abstract: None available.
Full text: Saudi Arabia's powerful deputy crown prince defended a decision to reverse a contentious government austerity program by reinstating perks for state employees, but cautioned more belt-tightening could follow if oil prices dropped. Prince Mohammed bin Salman, the second-in-line to the throne, was speaking in a rare televised interview that aired on Tuesday. The 31-year-old royal is the driving force behind the ambitious plan for economic change unveiled a year ago aimed at ending the kingdom's dependence on oil revenues. A year on, the Saudi monarchy is under growing pressure to show that its plan is working. The slump in oil prices that began in 2014 forced the government to cut public spending and to fundamentally rethink the country's economic model. The austerity measures introduced so far have succeeded in reducing the kingdom's budget deficit to around $79 billion last year from a record $98 billion the previous year. But in a country where citizens have long benefited from generous government spending, the transition has been painful. In recent weeks, many Saudis turned to social media to air their discontent. Then, in a surprise U-turn, the government late last month restored bonus payments and allowances for public-sector employees that it had canceled months earlier. Prince Mohammed in the interview ruled out that the benefits were reinstated because of popular pressure. "The decision to stop them was temporary," he said. "It was reviewed after the economic performance improved." The International Monetary Fund said in a report that the sharing of oil wealth through government jobs and lavish subsidies is no longer sustainable for Saudi Arabia and its neighbors in the Middle East. "There is a need to reduce the dependence on oil and generate private sector jobs for the rapidly growing labor force," the IMF said in its latest outlook report for the Middle East, North Africa, Afghanistan and Pakistan. The IMF expects Saudi Arabia's economy to grow 0.4% this year down from 1.4% last year. In Saudi Arabia, oil income still contributes to more than 60% of government revenues. Central to the success of the kingdom's economic transformation is the initial public offering of up to 5% of Aramco, the state-owned oil giant formally known as Saudi Arabian Oil Co. The proceeds of that share sale, planned for next year , will be transferred to the kingdom's sovereign-wealth fund, the Public Investment Fund, so that it can build a war chest for investments in non-oil sectors at home and abroad. Prince Mohammed said the fund will invest at least 50% of the money it receives from the Aramco IPO inside the kingdom, in sectors including mining, defense and car manufacturing. He estimated domestic investments will total around 500 billion Saudi riyals ($133 billion) in the first three years after the Aramco IPO. Currently, about 90% of Aramco's profit goes to the state, including a fraction to members of the royal family, according to people familiar with the country's finances. The rest gets reinvested in the company. Last year, Prince Mohammed said he expected the IPO would value Aramco at $2 trillion at least. However, officials at Saudi Aramco have told their superiors that the firm is likely worth at least $500 billion less than the government previously suggested. Saudi Arabia will still be in charge of policy and decide on oil-production levels for the kingdom even after the Aramco IPO, Prince Mohammed said in the interview. The prince also stressed that the kingdom's oil fields will be owned by the state and not by investors following the sale. The prince defended the government's decision to list part of Aramco, and dismissed opposition to the sale as "socialist and communist ideas." "Listing Aramco will give us a shortcut...to develop other sectors and create jobs," he said. Prince Mohammed, the second-in-line to the throne, has risen to a position of almost unrivaled power since his father, King Salman, assumed power in early 2015. As the country's defense minister, he is also behind Saudi Arabia's costly and increasingly unpopular war in Yemen . The prince in the interview dampened hopes that relations between Saudi Arabia and its regional rival, Iran, would improve in the near future . He said it was impossible to have dialogue with a country guided by the religious belief that it should expand its control of the Muslim world while it awaits for the so-called Hidden Imam, a relative of the Prophet Muhammad whom Shiite Muslims believe will eventually return to rule. "How can you have a dialogue with this?" the prince said. Riyadh severed diplomatic relations with Tehran in early 2016 and has said it wants Iran to stop interfering in Arab affairs through Shiite proxies as a condition for improved relations. Dahlia Kholaif in Cairo and Nikhil Lohade in Dubai contributed to this article. Write to Summer Said at summer.said@wsj.com and Margherita Stancati at margherita.stancati@wsj.com Related * Saudi Middle Class Needs to Live Without State Help, IMF Says * Saudi Aramco IPO Could Be 5% of Value * Hurdles Mount for Saudi Aramco's IPO * Saudi Arabia, Iraq, Kuwait Aim for $60 a Barrel Oil Price Credit: Summer Said; Margherita Stancati
Subject: Prices; Budget deficits; State employees
Location: North Africa Middle East Pakistan Afghanistan
Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 2, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894941860
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894941860?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or dis tribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Forecast to Fall Sharply if OPEC Doesn't Extend Production Cuts; Analysts agree the markets have largely priced in an extension to the deal reached last year
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 May 2017: n/a.
Abstract: None available.
Full text: The price of oil is susceptible to a swift selloff should OPEC and other major producers not agree to an extension of crude production cuts this month, analysts say. Oil markets have largely priced in an extension to the deal struck between OPEC, Russia and other producers late last year. If that deal isn't extended, prices could drop below $40, a level not seen for over a year, some analysts say. If the output cuts are extended when the Organization of the Petroleum Exporting Countries and other suppliers meet on May 25, oil prices would rise to $60 a barrel by the end of the year. "The market appears to have largely priced in an extension to the output-cut deal," said Warren Patterson, commodity strategist at ING Bank. "This is a significant risk for the market, with no deal likely to lead to an aggressive selloff." Brent crude will average at $57 a barrel this year, reaching $60 in the fourth quarter, according to a poll of 14 investment banks surveyed by The Wall Street Journal in late April. That is broadly unchanged from the previous survey. The banks expect West Texas Intermediate, the U.S. oil gauge, to average $55 a barrel this year. In early Wednesday trade, Brent was trading at $50.80 a barrel, while WTI was changing hands at $47.90 a barrel. Oil prices have risen by close to a tenth since OPEC and other producers agreed to cut around 2% from global production late last year. These producers will now meet in Vienna to decide whether to extend that deal for another six months. Most analysts expect the producers will agree to do that. The nearly three-year old oil glut continues to weigh on the market, which has traded mostly above $50 a barrel this year but is still down more than a half from its levels in mid-2014, when the downturn began. Saudi Arabia's energy minister Khalid al-Falih last month said that a preliminary agreement to extend the cuts had been reached, but it still needed a final signoff from some OPEC members. But renewing the agreement is far from a done deal. The fact that it encompasses so many countries represents its 'Achilles' heel,' analysts at J.P. Morgan say. If even one OPEC member rejects the extension the rest of the group would quickly shift their strategy to increase output. That would have "dramatic implications for price levels," according to the bank. And even if OPEC does reach a consensus, the deal will still hinge on whether 11 suppliers from outside the cartel will join in, as they did last December. If the negotiations fail, analysts at Citigroup and J.P. Morgan both predict that oil prices will fall below $40 a barrel. All these producers also face a challenge from a party that won't be present in Vienna: U.S. shale producers . If a renewed deal sends oil prices higher, shale producers would be incentivized to ramp up activities, adding new barrels to the glut. U.S. oil production has been on the rise since September and the U.S. Energy Information Administration expects the country's output to rise to 9.9 million barrels a day next year, the highest level on record. "Today's [OPEC] actions in support of prices are laying the foundation for tomorrow's oversupply," J.P. Morgan said. The speed with which shale drillers can ramp up activities is faster than most oil production and this will provide a cap to prices going forward, analysts say. The banks in the Journal survey expect Brent to rise to an average of $62 a barrel next year and $65 a barrel in 2019. "The unconventional revolution looks unstoppable," said Citigroup. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Petroleum production; Crude oil prices; Crude oil
Location: Russia United States--US Saudi Arabia
Company / organization: Name: Citigroup Inc; NAICS: 551111; Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894324894
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894324894?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Edges Higher Despite Disappointing Inventory Data; Prices bounce slightly after hitting bottom of trading range
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 May 2017: n/a.
Abstract: None available.
Full text: Oil prices inched higher Wednesday, rebounding from one-month lows despite U.S. stockpiles failing to show the major changes and easing oversupply some had expected. Oil initially dipped on data showing higher gasoline stockpiles. But it has been stuck in a range between $47 and $54 a barrel for two months and rebounded to finish with small gains after hitting the bottom of that range. Light, sweet crude for June delivery settled up 16 cents, or 0.3%, at $47.82 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, gained 33 cents, or 0.7%, to $50.79 a barrel on ICE Futures Europe. The rebound was likely from hitting the bottom of the range, traders said. Some might be anticipating that the low end of the range would be widely seen as support and lead to new buying. Others likely closed out winning bets that prices would fall after the market was down a full 11% at Wednesday's low compared to the spring high from less than a month ago, said Donald Morton, senior vice president at Herbert J. Sims & Co., who runs an energy-trading desk. "All bear markets bounce," he added. "This has been one very serious, quick, nasty selloff that has not seen any stability other than a minor amount here and there. It's very much due for a bit of a...rally." Some, however, are still more concerned about resilient stockpiles in the U.S. Crude storage levels fell by 930,000 barrels in the week ended Friday, less than a fourth of the draw estimated by the American Petroleum Institute, the U.S. Energy Information Administration said Wednesday morning. Gasoline stockpiles also grew by 191,000 barrels, compared with API's estimate of a 1.9-million-barrel fall. It was the latest setback for oil markets that have foundered at a time when many had expected them to rally. Output cuts from the Organization of the Petroleum Exporting Countries and other major exporters were supposed to ease oversupply and send prices well beyond $50 a barrel, many traders and analysts had said. Instead, Wednesday's data are the latest to throw into question whether the cuts will have their intended effect of lowering high inventories, said Chris Kettenmann, chief energy strategist at Macro Risk Advisors. Gasoline stockpiles are central to oil markets right now because strong demand in the U.S. during the coming summer driving season is essential to balancing the market, Mr. Kettenmann said. Those gasoline stockpiles need to start a steady string of strong draws to show that is happening, he added. "This is telling me we're not going to see the same demand response from the consumer that you've seen in (recent years) that would right-size the market," Mr. Kettenmann said. "We remain firmly in a cautious stance on oil prices." Gasoline futures pared gains, though it did rebound to about where it was before EIA's data release. Gasoline futures gained 2.02 cents, or 1.3%, to $1.5338 a gallon, snapping a five-session losing streak. The draw from crude inventories not only missed API estimates, it was also half of the 1.8-million-barrel drawdown predicted by analysts and traders surveyed by The Wall Street Journal. Production grew another 28,000 barrels a day to 9.3 million, now up 5.3% from a year ago. But traders shouldn't get overly worried, said Ryan McKay, commodity strategist at TD Securities in Toronto. His firm is one that has been calling for $60 oil by the end of summer and recently reiterated that call. It isn't uncommon for there to be a lull in demand at this time of year, and the coming summer driving season should help the market when it arrives soon, Mr. McKay said. "People are expecting the demand to keep going strong into the summer, but it has just leveled off a bit," he said. "A draw would have been great, but I think they're definitely going to be coming soon." Distillates in storage, including heating oil and diesel, declined by 562,000 barrels, compared with expectations for a 600,000-barrel increase. API had estimated a 436,000 fall. Diesel futures gained 0.56 cent, or 4%, to $1.4736 a gallon, snapping a five-session losing streak. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Petroleum production; Crude oil prices; Price increases; Energy economics; Crude oil
Location: Brazil Russia United States--US Libya
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 3, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspaper s
Language of publication: English
Document type: News
ProQuest document ID: 1894463938
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894463938?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Rising Interest Rates May Trip Oil Companies; New study warns that rate increases could erase efficiency gains made by shale producers
Author: Olson, Bradley
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 May 2017: n/a.
Abstract: None available.
Full text: U.S. oil companies have proven remarkably resilient even during a prolonged season of lower oil prices, but a looming threat could limit their growth and profitability: rising interest rates. A new Columbia University study warns that higher borrowing costs, such as an increase of two percentage points to global interest rates, could essentially erase the efficiency gains that many shale producers have achieved. That represents a potential problem for U.S. drillers in coming years, as the Federal Reserve ponders gradual rate increases. "Low interest rates have been a major contributor to the shale boom," said the author of the study, Amir Azar, an energy banker and fellow at Columbia's Center on Global Energy Policy. Higher rates may not "reverse the boom, but it could make a lot of shale production uneconomic." Most small- and medium-size shale producers rely extensively on debt, borrowing amounts double or triple their annual earnings primarily through high-yield bond issuance to finance drilling operations across the country. Their cost of borrowing goes up as interest rates such as the London interbank offered rate, which is used as the benchmark reference in the study, rise. Many U.S. companies have sought to address this vulnerability by reining in spending to levels that are in line with costs, something few did when oil sold for more than $100 a barrel two years ago. The new strategy of living within their means, which the industry has termed "cash flow neutrality," has attracted significant attention from investors, but remains an elusive goal for most producers. Cash has become king for executives wishing to prove their resilience in the face of low prices, and many are likely to focus on the issue this week as earnings season begins in earnest for smaller U.S. companies. As oil prices remain mired around $50 a barrel, only a few companies have hit the mark in the past year. ConocoPhillips, one of the largest U.S. producers, did so in the first quarter, the company said Tuesday, generating about $500 million more in cash than it spent on new investments and dividends. "Our focus on free cash flow generation and the lowering of our break-even price is showing up in our financial performance for the third straight quarter," Donald Wallette, chief financial officer of ConocoPhillips told investors Tuesday in a conference call. Range Resources Co. and Cabot Oil and Gas Corp., two companies that specialize in natural gas production, also generated more cash than capital expenditures in the first quarter. The largest U.S. shale producer, EOG Resources Inc., which reports next week, kept spending below cash flow for the final two quarters of 2016. Apache Corp., which reports Thursday, did so for the last nine months of the year. Others who exercised financial discipline last year already returned to spending more. Whiting Petroleum Corp., one of the largest producers in North Dakota, spent about $1.68 in the first quarter for every $1 it took in from operations, according to S&P Global Market Intelligence. In 2016, they spent 92 cents for every dollar they took in after outspending at nearly a two to one ratio in 2014 and 2015. A Whiting spokesman said that the company generated cash "in line" with its spending in the first quarter when the effects of working capital are excluded. To make ends meet in the past two years, companies such as Whiting have either borrowed heavily or issued new shares to be able to continue drilling. While some companies continue to rely heavily on new infusions of cash from Wall Street to make ends meet, the industry as a whole has come a lot closer to balance, according to an analysis last month by Tudor Pickering Holt & Co. A group of almost 50 exploration and production companies, the primary engines of the boom, are set up to outspend their cash flow by about $4 billion this year if oil prices average about $55 a barrel. That is down from about $15 billion in 2016, according to a study last month by energy analysts at Tudor Pickering Holt & Co. In 2018, the producers are poised to generate more cash than they spend by more than $2 billion if prices are at that level, a sign of dramatic improvement given that before the 2014 crash, most spent $2 or $3 for every $1 they generated from operations. Mr. Azar said he doesn't foresee a huge production decline even if prices remain low and rates rise quickly. Instead, consolidation is a far more likely outcome, as companies that have generated cash and reduced debt can buy struggling producers, he said. The impact of higher rates on shale producers may be uneven. Some have reduced debt and hold investment-grade credit ratings, which means their interest expenses would be lower and they are likely to be able to function with less debt. "Shale is here to stay, and I don't see anything that would stop prices immediately," he said. But higher debt costs will make "a lot of shale production uneconomic for small producers. Then, larger producers will be able to scoop them up." Erin Ailworth contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com Credit: By Bradley Olson
Subject: Corporate profits; Prices; Costs; Investments; Interest rates; Debt management; Capital expenditures
Location: United States--US
Company / organization: Name: Columbia University; NAICS: 611310; Name: ConocoPhillips Co; NAICS: 211111; Name: EOG Resources Inc; NAICS: 211111, 213112
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 3, 2017
Section: Business
Publisher: Dow Jones & Comp any Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894464005
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894464005?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-23
Database: The Wall Street Journal
Drop in Commodities Damps U.S. Stocks; U.S. crude oil falls, and iron ore slumps in Asian trade; copper, gold decline
Author: Otani, Akane; Gold, Riva
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 May 2017: n/a.
Abstract: None available.
Full text: The S&P 500 inched higher Thursday, as gains in shares of consumer companies offset a slide in the energy sector. Major indexes have climbed over the past few weeks as quarterly earnings results have pointed to health among U.S. corporations. The U.S. posted the biggest improvement in its revision ratio--which measures the ratio of upward and downward earnings estimates by analysts--of all regions in April, according to Bank of America Merrill Lynch. Solid earnings could help stocks continue advancing, investors and analysts say, even as some have expressed concerns about recent weakness in inflation, consumer spending and economic growth . "The earnings story is still very robust, and that's why investors have been able to look through some of the softer economic data," said Jason Draho, head of tactical asset allocation Americas at UBS Wealth Management. The Dow Jones Industrial Average fell 6.43 points, or less than 0.1%, to 20951.47. The S&P 500 edged up 1.39 points, or less than 0.1%, to 2389.52 and the Nasdaq Composite rose 2.79 points, or less than 0.1%, to 6075.34. The S&P 500 consumer staples sector rose 0.8% on Thursday, boosted by a rise in Kellogg shares. The cereal maker's stock jumped $1.46, or 2.1%, to $70.40 after it posted quarterly earnings that beat expectations. Commodity prices slid across the board, putting pressure on shares of energy companies. U.S. crude oil for June delivery declined 4.8% to $45.52 a barrel, settling at its lowest level since November . Energy shares in the S&P 500 fell 1.9%, with Dow component Chevron falling 1.91, or 1.8%, to 104.81. Metals slid amid concerns about Chinese demand for commodities such as steel and iron. Copper for May delivery fell 1.2% to $2.5020 a pound, its lowest settlement since January, while gold for May delivery slid 1.6% to $1226.50 an ounce in its biggest one-day slide since December. Government bonds slipped Thursday , with the yield on the 10-year U.S. Treasury note rising to 2.354% from 2.309% on Wednesday. Yields rise as bond prices fall. The Stoxx Europe 600 rose 0.7%, closing at its highest level since August 2015, after a measure of activity in the eurozone's manufacturing and services sectors rose to a six-year high and retail sales figures improved. The Shanghai Composite Index fell 0.3%, ending lower for a third straight session, after service-sector activity in China hit its lowest level in nearly a year for April. South Korean equities powered to fresh highs, adding 1% Thursday, while Japan's markets were closed for a holiday. Write to Akane Otani at akane.otani@wsj.com and Riva Gold at riva.gold@wsj.com Related * Treasury Sets Sales of $134 Billion in Debt * Dollar Slips as Traders Weigh Economic Data, Commodity Selloff * Heard: Curiously Converging Yield Curves * U.K. Clearinghouses May Be Forced to Move Credit: By Akane Otani and Riva Gold
Subject: Securities markets; Stock exchanges; American dollar
Location: Australia United States--US New York France North America Japan
People: Weston, Chris
Company / organization: Name: IG Group; NAICS: 713290
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 4, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894706169
Document URL: https://login.ezproxy.uta.edu/log in?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894706169?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Shell Profit Soars as Oil Sector Bounces Back; Oil major's performance reflects cost cuts and a recovery in crude prices following slump
Author: Kent, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 May 2017: n/a.
Abstract: None available.
Full text: LONDON--Royal Dutch Shell PLC Thursday capped a bumper set of results for the world's biggest oil companies, reporting its highest quarterly profit since mid-2015 and illustrating how a fragile oil-price recovery and years of cost-cutting are buoying big crude producers. Results from Shell and Norway's state-controlled Statoil ASA--which also reported a big rise in profits Thursday--came after U.S. giant Exxon Mobil Corp. last week reported its best quarter since 2015, and Chevron Corp., France's Total SA and BP PLC said profits increased sharply for the first quarter. Beyond the rising profits, analysts lauded oil companies' better-than-expected cash generation--a metric that has become increasingly important as the businesses scrambled to bring their costs into balance with lower oil prices over the last two years. Since prices slumped in 2014, large producers in many quarters have had cash flow that is lower than their spending, forcing them to borrow money to pay dividends to investors. The recent results show how billions of dollars of cost cuts across the industry have begun to pay off, adding to optimism that even if prices don't recover beyond their current levels in the near term, the companies have weathered the worst of the market rout. "Are we out of the woods? Yeah, absolutely," said Oswald Clint, an analyst at Bernstein, highlighting the benefits of the companies' efforts to streamline since oil prices began to fall. Shell said its first-quarter profit more than quadrupled from a year earlier to $3.4 billion. Quarter-on-quarter, the company saw higher earnings in all business segments. Shell's cash flow from operating activities grew to $9.5 billion, up from $700 million in the first quarter of 2016, covering the company's cash dividends for the three months. Statoil reported net first-quarter earnings of $1.06 billion, up from $611 million a year earlier. But analysts warn the recovery could prove fragile. Much of the rebound is due to higher oil prices, and that may not be sustainable. International benchmark Brent crude dipped below $50 a barrel Thursday for the first time since March. Shell Chief Financial Officer Jessica Uhl said the company has been restructuring so it can better maintain profits in the face of oil-price declines. Shell has sold some businesses that don't match its focus on deep-water drilling and liquefied natural gas, and cut costs across the business following its roughly $50 billion acquisition of BG Group last year. Shell also made progress in lowering debt, which rose sharply last year when the company turned to financing to pay for the BG deal. It is now more than two-thirds of the way through a $30 billion divestment program crucial to its plan to streamline its portfolio by next year as part of efforts to reduce debt. "This is about transforming the company for the future," Ms. Uhl said. "We're not waiting for prices to increase." There are signs that the oil price may remain depressed. While the Organization of the Petroleum Exporting Countries has imposed production limits to boost prices, U.S. shale producers have kept pumping at high volumes, holding back the rebound. Over the past week, executives repeatedly stressed they expect continued uncertainty and they remain conservative on spending. "We are facing a volatile environment." Total's Chief Financial Officer Patrick de la Chevardière told investors last week. "It is not, today, the appropriate time to reduce our effort." Write to Sarah Kent at sarah.kent@wsj.com Related * Exxon, Chevron Earnings Point to Sign of Strengthening Oil Industry (April 28) * Shell Executives' Call Offers Inside Look at Bribery Probe (April 9) * Shell's Titanic Bet: Can Deep-Water Drilling Be Done on the Cheap? (March 20) Credit: By Sarah Kent
Subject: Financial performance; Investments
Location: United States--US France
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 4, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894809102
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894809102?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Big Oil Gets In Early on Argentina Shale; Shell, Exxon Mobil and others, who came late to the U.S. boom, are making a go at taking shale global
Author: Kent, Sarah; Turner, Taos
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 May 2017: n/a.
Abstract: None available.
Full text: NEUQUÉN, Argentina--Around 5,000 miles from the booming oil towns of West Texas, some of the world's biggest oil companies are trying to do what they failed to do with U.S. shale: Get in first and early. Royal Dutch Shell PLC, Exxon Mobil Corp. and others are making another go at taking the shale industry global, starting with a grand experiment here in a desolate swath of western Argentina. This sprawling piece of Patagonia, known as Vaca Muerta, which means "dead cow," potentially has as much oil and gas as the biggest basins in Texas or North Dakota. Replicating the U.S. fracking boom elsewhere has taken on fresh urgency in an era of stubbornly low and volatile oil prices. Outmaneuvered early on in the U.S. by smaller companies, Exxon, Shell, Chevron Corp. and others see Argentina as one of their best opportunities to expand shale, which generally features projects that can be ramped up or down with prices. The Vaca Muerta has long been a focus of this sometimes quixotic quest, but a business-friendly government at all levels that is actively working to encourage drilling is fueling optimism that shale development in the region could finally begin to take off. Hurdles still remain and costs in Argentina are significantly higher than the U.S. But this time around, the big-oil company executives are determined not to miss out, hoping to leverage their big balance sheets and experience with foreign governments to make international shale work. And they want to prove wrong critics who say they can't drill shale as well as specialists in the U.S. "Our position is: Hell no! We will show that we can drill and complete wells better than the best," said Andrew Brown, Shell's head of exploration and production. "We're showing it in Argentina." This year, Exxon is expected to move from experimental pilot to proper development in the region, taking a step toward investments that former Chief Executive Rex Tillerson last year said could exceed $10 billion in the coming decades. France's Total SA--which has repeatedly said that expanding its foothold in U.S. shale is too expensive--is also planning to ratchet up production in the Vaca Muerta. Chevron has made investments of over $1 billion in Argentine shale projects and BP PLC is in the country through its joint venture Pan American Energy. Last month, Shell started up a new treatment plant on the Vaca Muerta's dusty plains with the capacity to process 10,000 barrels a day of shale oil and six million cubic feet of gas daily. On a recent windswept afternoon, a Shell oilman stood atop a 560-ton rig, hauled over from the Permian plains where it had recently been in use. Sporting a red fire-safety suit and protective yellow gloves, he pointed to a series of computer screens that spewed out data on the rig's effort to push thousands of feet of steel casing deep into the earth below. Senior drilling engineer Wouter Miedema, who has worked in shale projects in the U.S. and Canada, said he was struck by the similarities between the geology of the Vaca Muerta and the most productive shale fields of North America. "It's amazing to think that on the other end of the planet you've got shale like this," he said. The expanse of iron-toned dirt into which he was drilling is thought to hold 27 billion barrels of technically recoverable oil and 802 trillion cubic feet of gas embedded in a layer of shale that is up to 1,700 feet thick, according to the U.S. Energy Information Administration. That ranks its geology up there with some of the best fields in the U.S., executives and analysts say. For now, Shell is investing under $200 million a year to see if it can make shale work in Argentina. It isn't enough to reach a level comparable with U.S. shale, though Shell executives say the region could be a big producer. Major companies like Shell were late to get in to shale production in the U.S. When they did venture in, they found the process to be different than the engineering feats that characterized other oil exploration and output. Still, companies want to take it slow in Argentina, because they have been burned in the past. Their previous wildcatting attempts in shale from Europe to Russia and China have been stymied by a variable cocktail of poor drilling results, political opposition, regulatory hurdles and the dramatic drop in oil prices that began in 2014. Argentina's shale is no sure thing. Companies have to spend more time and money figuring out the best places to drill in Argentina, where the Vaca Muerta is still relatively unexplored territory compared with the U.S. shale patch. On cost, infrastructure and manpower, it can't yet compete with the U.S. According to Shell, steel casing here costs 40% more than it does in Texas, even though it is made in Argentina. Casing accounts for up to 25% of well costs, so that price difference makes drilling here much more expensive, Shell says. In March, Exxon told analysts that it currently costs two to three times more to drill a well in the Vaca Muerta than it does in the U.S. Recent progress on costs has infused oil companies with hope about the Vaca Muerta, including agreements with local unions and a government pledge to keep natural-gas prices high. Shell's local well costs, including drilling and completion, have plummeted from about $35 million for their first well in 2012 to under $10 million now. In February, the company drilled a five-kilometer horizontal well for roughly $5 million. The company said it was the cheapest of its kind ever tapped in Argentina. "This will take off," Shell CEO Ben van Beurden said. "It's just a matter of lining everything up." Write to Sarah Kent at sarah.kent@wsj.com and Taos Turner at taos.turner@wsj.com Related * Gas Pangs Pressure Crude * Growth Concerns Put Dent in Metals Credit: By Sarah Kent and Taos Turner
Subject: Prices; Costs; Drilling; Natural gas
Location: North Dakota United States--US Argentina France West Texas
People: Tillerson, Rex W
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 4, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894840725
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894840725?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
How Oil, Coal and Wal-Mart Became Part of 'Socially Responsible' ETFs; 'Ethical' funds are on the rise, but how they use environmental, social and governance criteria remains murky
Author: Loder, Asjylyn
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 May 2017: n/a.
Abstract: None available.
Full text: State Street Corp. launched its SPDR S&P 500 Fossil Fuel Free exchange-traded fund with much fanfare in December 2015, its debut timed to coincide with the Paris climate talks and its credibility burnished by support from the Natural Resources Defense Council, one of the most prominent environmental lobbying groups in the U.S. Despite the ETF's name, it owned stakes in, for example, Transocean Ltd., the offshore-drilling company implicated in the Deepwater Horizon oil spill; Southern Co., a utility that relies on coal and natural gas for 80% of its generating capacity; and Valero Energy Corp., a major gasoline refiner. As demand for do-gooder investing increases, particularly among women and millennials, fund managers are retooling their lineups to include funds that appeal to a wider audience. These loosely defined strategies offer a feel-good tilt while still preserving broad market exposure, which muddies the difference between responsible funds and their plain-vanilla peers. The lack of industrywide definitions makes reliable statistics hard to come by. The Global Sustainable Investment Alliance estimates that assets pegged to environmental, social and governance strategies, or ESG, ballooned to a record $22.9 trillion at the start of 2016, making up 26% of professionally managed money world-wide. Yet many asset managers disclose few details about how they use ESG criteria, according to a report from the alliance's U.S. organization. Some analysts include solar- and wind-energy funds. Others don't. Some funds adhere to "biblical" values that critics call homophobic. Some funds, like the State Street ETF, own stock in companies that are blacklisted by competitors. "It's a very slippery space," said Elisabeth Kashner, head of ETFs for FactSet, a data and analytics firm. "There's no consensus on what's ultimately good or bad, nor is there consensus on how to measure it." Last August, State Street changed the name to clarify the fund's strategy of avoiding firms with coal, gas and oil reserves such as Exxon Mobil Corp. It is now called the SPDR S&P 500 Fossil Fuel Reserves Free ETF. "There is no ironclad, crystal-clear, broadly consensual, industry definition of how to invest, or not invest, in fossil fuels," said Chris McKnett, head of ESG investments at State Street, who said the change was made for the sake of "precision and clarity." ESG investing traces its modern roots to the antiapartheid divestiture campaign of the 1980s, which prodded companies to withdraw from South Africa to protest the country's institutionalized racial segregation. After apartheid was dismantled, ethical investing focused on boycotting heavy polluters and human-rights violators. As concerns about climate change increased, investors began looking for ways to reduce the carbon footprint of their portfolios without sacrificing diversification and performance. ESG became an increasingly popular solution. Instead of using market value to determine how much to allocate each company, like most traditional indexes, the strategies weight their investments based on how a company performs on ESG criteria. Some funds go a step further, using financial criteria like revenue or dividends combined with ESG scores. Since the start of 2016, the ETF industry has launched 26 new ESG funds, according to FactSet and XTF. Firms, including Goldman Sachs Group Inc., State Street and OppenheimerFunds, have also published research touting the performance-enhancing benefits of ESG screening. Some fund managers believe that ESG screening can weed out companies with simmering scandals, said Sharon French, head of beta solutions for OppenheimerFunds. She cited MSCI's July 2013 ESG downgrade of Volkswagen AG due to corporate-governance problems, more than two years before the Environmental Protection Agency announced its investigation into emissions cheating. Such strategies preserve diversification, but can make for strange bedfellows. For example, the Columbia Sustainable Global Equity Income ETF includes Valero Energy and Marathon Petroleum Corp. among its top 20 investments; and, at one point, the single largest holding of Oppenheimer's Global ESG Revenue ETF was Wal-Mart Stores Inc., a company excluded from other ESG strategies because of its history of labor problems, though that may change as the company improves its ESG performance. The fund liquidated its Wal-Mart stake in February after MSCI noted "significant concerns" related to labor unions and an ongoing bribery case against its Mexican subsidiary, Oppenheimer's Ms. French said. "Companies are the most powerful entities in the world, and they can do harm or they can do good," said Mike Jantzi, chief executive of Sustainalytics, a company that provides ESG analysis to fund managers. "But good and bad with nothing in between wasn't useful." Write to Asjylyn Loder at asjylyn.loder@wsj.com Credit: By Asjylyn Loder
Subject: Fossil fuels; Climate change; Coal; Investment advisors
Company / organization: Name: Transocean Ltd; NAICS: 213111, 213112; Name: Southern Co; NAICS: 221112, 221122; Name: Valero Energy Corp; NAICS: 211111, 324110, 486210; Name: Natural Resources Defense Council; NAICS: 813312
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894840805
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894840805?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Slides 4.8% to Five-Month Low as U.S. Production Builds; Recent selloff in oil has erased most of the gains made after OPEC agreed in November to cut output
Author: Yang, Stephanie; McFarlane, Sarah
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 May 2017: n/a.
Abstract: None available.
Full text: Oil prices fell to a five-month low Thursday, as investors have become increasingly skeptical of OPEC's abilities to ease a global supply glut amid elevated U.S. crude production and inventories. Light, sweet crude for June delivery fell $2.30, or 4.8%, to $45.52 a barrel on the New York Mercantile Exchange, the lowest settlement since Nov. 29. Brent, the global oil benchmark, fell $2.41, or 4.7% to $48.38 a barrel. The recent selloff in oil has erased most of the gains made after the Organization of the Petroleum Exporting Countries agreed in November to cut production . Other non-OPEC producers, including Russia, joined the deal late last year , bringing expected cuts to about 1.8 million barrels a day. However, growing activity from U.S. shale producers has sparked concerns among investors that the rebalancing of the oil market won't come as quickly, or easily, as many analysts had forecast. "There's just been a real loss of confidence of the effectiveness of the OPEC and non-OPEC deal," said John Kilduff, founding partner of Again Capital. "You're seeing a lot of supply still around the world." Meanwhile, inventories of crude oil and products in the U.S. have remained at high levels. Data from the U.S. Energy Information Administration on Wednesday showed a modest decline in crude stockpiles and an increase in gasoline supplies. "It was somewhat disturbing that gasoline inventories went up yet another week, counter-seasonally, and of course we saw continued increasing U.S. crude-oil production," said Bjarne Schieldrop, chief commodities analyst at SEB Markets. With a large amount of oil and gasoline in storage, market participants are also worried about weakening demand from U.S. consumers, particularly going into the summer season when demand usually rises. Over the past four weeks, gasoline sales fell 2.7% from a year earlier, according to EIA data. Lower-than-expected growth in gross domestic product in the first quarter may also be contributing to concerns about demand, said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. "It certainly may have reinforced people's negative expectations for U.S. oil demand going forward," Mr. Saucer said. "That just feeds into that negative spiral. This is going to be a rough week." Dismal demand signals led to a broad drop in commodities Thursday, as metal prices also fell on lackluster economic data from China, a major commodities consumer. As U.S. producers continue to unleash a steady, and strong, stream of shale oil into the market, it intensifies pressures on OPEC and Russia to continue keeping their output capped to prevent further price erosion. An official decision on whether to extend cuts will be announced when the group meets later this month. Rising production in Libya, which is exempt from the OPEC cuts, added to the bearish sentiment in the market on Thursday, RBC Capital Markets analysts said. However, the change in supply may be short-lived, given the geopolitical unrest in the country. Gasoline futures fell 3.4% to $1.4812 a gallon and diesel futures lost 4.2% to $1.4123 a gallon, both closing at the lowest level since November. Jenny W. Hsu contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com and Sarah McFarlane at sarah.mcfarlane@wsj.com Credit: By Stephanie Yang and Sarah McFarlane
Subject: Petroleum production; Futures; Inventory; Investments; Supply & demand
Location: Middle East Russia United States--US Asia Dubai United Arab Emirates
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1894871194
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894871194?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Deepening Gasoline Glut Pushes Oil to a Five-Month Low; Refiners step up production to highest rate in more than 30 years
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 May 2017: n/a.
Abstract: None available.
Full text: U.S. refiners are flooding the market with gasoline, intensifying oil prices' spring decline. Refiners are turning crude oil into gasoline and diesel at the highest rate in at least 34 years, according to data from the U.S. Energy Information Administration. One reason: The spread between what it costs refiners to buy crude and the price at which they can sell gasoline recently reached its highest point in nearly a year. That encouraged these companies to operate at a higher rate last month than during any April since 2001. Now, gasoline stockpiles are building during a season when inventories typically decline. Stockpiles added 191,000 barrels last week, according to EIA data released on Wednesday. That was the third straight week of increases and a sharp contrast with the American Petroleum Institute's earlier estimate of a decline of 1.9 million barrels. Gasoline futures fell 3.4% to a five-month low on Thursday. On Thursday, crude oil dropped 4.8% to a five-month low at $45.52, dragged down by the ample gasoline supply, analysts say. New York crude is down 15% for the year. Until recently, U.S. crude prices traded within a narrow range of about $50 to $55 a barrel. Production cuts by the major oil-producing nations had limited price declines, while growing U.S. shale output held rallies in check. But the unexpected fuel surplus was a big reason why oil broke through the $50 a barrel late last month and has stayed below that level, traders said. "Gasoline going forward from here is going to be a big issue," said Bob Yawger, director of the futures division of Mizuho Securities USA. "It looks pretty grim." Refineries were comfortable producing more gasoline in part because they believed driver demand would soak up any excess as more people take to the road in warmer weather, Mr. Yawger said. But so far this year, demand has been declining as prices at the pump have been rising. Retail gasoline prices averaged $2.417 in April, the highest since August 2015, according to EIA data. More expensive gasoline prices reflect higher oil prices this year and a seasonal shift to products used in the summer. Even though gas prices are still cheap by historical standards, the increase over last year has a number of drivers rethinking their trips and how much to drive. Some said in interviews that they are using rewards points to fill their tanks. Slade Sizelove, a retired air-traffic controller in Alaska, said higher gas prices meant fewer trips this year to the ski resort, which is about 90 miles away from his home. "I'm hopeful this is the top for gasoline, but we usually don't see that until September," he said. Travis Ross, a 22-year-old YMCA sports assistant from Missouri City, Texas, said he and his friends have been carpooling more in response to rising prices at the pump. Filling-station companies have noted a decline in first-quarter business. Marathon Petroleum Corp., which owns Speedway LLC gas stations and convenience stores, reported a 2.3% decline in same-store gasoline sales in April compared with a year earlier. "You've got to see some uptick now in the summer driving season" to work off the excess supply, said Phillips 66 President Timothy Garth Taylor on the company's first-quarter earnings call last week. More gasoline exports would help, Mr. Taylor added. But analysts say production from European and Asian refineries also has climbed, which has led to a well-supplied global market for gasoline. A development that could further damp fuel demand: President Donald Trump said recently he would consider raising the federal gas tax to help fund his infrastructure plan. Still, the outlook for gasoline looks better than the beginning of the year, when storage reached its highest levels since 1990 and consumption fell to near a 15-year low. If drivers flock back to the road, a jump in summer demand could reduce a budding glut. Some investors expect consumption to climb this summer, building on a record high from 2016 that helped work through a similar flood of oil products last year. "I'm optimistic that we should be able to get back" to previous levels, said Ebele Kemery, head of energy investing at J.P. Morgan Asset Management. Driving demand projections for the coming months look good, she added, "but thus far we aren't there yet." Alison Sider contributed to this article. Write to Stephanie Yang at stephanie.yang@wsj.com Related * Big Oil Jumps on Argentina Shale * Growth Concerns Put Dent in Metals Credit: By Stephanie Yang
Subject: Petroleum refineries; Crude oil prices; Summer; Gasoline prices
Location: New York United States--US Alaska
Company / organization: Name: American Petroleum Institute; NAICS: 541820, 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 4, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895025976
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895025976?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
China Commodities Slump Weighs on Stocks; A drop in oil prices spooks investors
Author: Machado, Kenan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 May 2017: n/a.
Abstract: None available.
Full text: Commodities took center stage in Asia Friday, with a slump in Chinese metals prices and weakness in crude oil sending equity markets across the region lower. A drop in oil around midday in Asia--with prices tumbling 3% from Thursday's settlement in New York--spooked investors, while trading sentiment was already weak amid fears that Beijing's crackdown on speculation and borrowing could hurt metals demand . The Shanghai Composite Index was down 0.7% at the midday break, while Hong Kong's Hang Seng Index extended losses near the end of the morning session to fall 1.2%, and the Hang Seng subindex that tracks Chinese shares also widened losses, to a 1.9% decline. Markets in Japan and South Korea were closed for holidays. Brent crude futures, a benchmark for international oil prices, fell 2.6% at $47.11 a barrel in Asian trade after earlier testing a low of $46.64 a barrel. Meanwhile, U.S. WTI crude oil futures fell about 3% to $44.18 a barrel. "There are a lot of concerns out there on [oil] oversupply," said Andrew Sullivan, managing director of sales trading at Haitong International Securities in Hong Kong, noting the risk that lower oil and energy consumption could indicate slack demand, threatening the global economic recovery. "Markets are nervous ahead of the [U.S.] jobs data and there is a fear that there might be knee-jerk reaction when Europe comes online," he said. Weighing on the Hang Seng Index were declines in key Chinese oil firms, with PetroChina falling 3.2%, while Sinopec slumped 2.8% and offshore oil producer Cnooc declined 1.8%. In Australia, Santos and Woodside Petroleum were down around 3% each. Meanwhile, investor worries of China's regulatory crackdown on speculative trading sent commodity futures prices sharply down for a second straight session The most actively traded iron-ore futures contract was down 7.7% on the Dalian Commodity Exchange, after tumbling by the 8% daily limit on Thursday. Meanwhile, in Shanghai, hot-rolled coil futures prices fell 4.2% with steel-rebar futures off 3.1%. Rubber prices were down 4.7%. On Thursday, already weak investor sentiment got a fresh hit after six Chinese government agencies pledged to curb local-government debt by increasing oversight of the projects they are pumping money into. "Financial market regulatory scrutiny certainly appears to be driving liquidation across a range of asset classes onshore," said Bill Bowler, a Chinese equities trader at Forsyth Barr in Asia. There was also some anticipation that the efforts could continue to tighten bank credit and impede growth, he said. Weaker commodities prices were also dragging down stocks in Australia, with the S&P/ASX 200 extending losses to trade down 0.7%. Among the index heavyweights, BHP Billiton was off 3%, Fortescue fell 2.9% and Rio Tinto lost 2.6%. Bucking the trend, shares of Macquarie were up 3.3%, after net profit for the Australian banking group rose 7.5% in the last fiscal year, beating analysts' forecasts. Still, analysts expect that fears of any hard landing in China driven by the deleveraging move may be short-lived. Tim Condon, head of research for ING in Asia, said he expects the People's Bank of China to have learned from its June 2013 experience, when the introduction of measures to curb the growth of shadow banking caused the interbank market to seize up. Yifan Xie, Lucy Craymer and Biman Mukherji contributed to this article. Write to Kenan Machado at kenan.machado@wsj.com Credit: By Kenan Machado
Subject: Futures; Crude oil prices; Commodity prices; Banking
Location: Australia China Hong Kong Asia Japan South Korea
Company / organization: Name: Rio Tinto Group; NAICS: 212112, 212291; Name: BHP Billiton; NAICS: 211111, 212231, 212234; Name: Woodside Petroleum Ltd; NAICS: 211111; Name: Dalian Commodity Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 5, 2017
column: U.S. Markets
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895114036
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895114036?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Stems Some Losses in Volatile Trading; Prices bounce back after dropping sharply in Asian trading but remain down 5% on the week
Author: McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 May 2017: n/a.
Abstract: None available.
Full text: Crude futures posted a small rebound on Friday, recovering from a sudden 3% fall in Asian trade and following a week of steep losses globally as investors continue to worry about brimming crude inventories. Even with Friday's rebound, prices have tumbled around 5% this week, putting oil at its lowest levels since late November, when the Organization of the Petroleum Exporting Countries and other big oil producers agreed to cut output for six months . Most of the losses came after data on Wednesday showed a smaller-than-expected fall in U.S. oil inventories and rising production. Brent crude, the global oil benchmark, rose 0.3% to $48.52 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 0.04% at $45.53 a barrel. The swift decline in Asia followed an overnight drop of 5% in New York. Goldman Sachs put the dramatic fall down to, in part, follow-through on falls in other commodities including copper and iron ore this week, as concerns over China's economic growth weighed. Analysts said that OPEC would look beyond weekly gyrations when it meets on May 25 to decide whether it will extend its production cuts. "OPEC have a longer time frame in mind, the whole point of their production curtailing was to do with removing this supply overhang, until evidence of that comes through then the whole point of the production cut hasn't been realized," said Emily Ashford, director of energy research at Standard Chartered. The OPEC-led production cuts haven't made as big a dent in global inventories as intended. Expectations that production caps will be extended this month also haven't offered much support to prices. Analysts had expected the cuts to prompt U.S. shale producers to pump more crude, but the rebound in output has surpassed expectations. U.S. production averaged 9.3 million barrels a day last week, its highest since August 2015. "OPEC's failure to raise oil prices is fundamentally linked to their failure to bring down petroleum inventories," said analysts at brokerage Bernstein in a note. The cartel aims to reduce global stockpiles to their five-year average, a goal that is only attainable if the cuts continue, industry insiders say. As such, most believe an extension is a foregone conclusion. The pressing question is for how long and who is on board. Some analysts argue that those cuts will start showing in the price. Bernstein said investors should be patient because the effects of the cuts will soon materialize. Already, there are signs that stockpiles in developed economies declined in April. Meanwhile, a significant drop in oil exports from OPEC members should also "result in meaningful inventory drawdowns over the coming months," the firm added. The current rate of cuts, said Citi Futures analyst Tim Evans, is sufficient to result in demand outstripping global output by 1 million barrels a day in the second half of 2017 as seasonal demand picks up. Nymex reformulated gasoline blendstock--the benchmark gasoline contract--rose 0.1% to $1.48 a gallon. ICE gasoil changed hands at $430.25 a metric ton, up $2.50 from the previous settlement. Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Sarah McFarlane and Jenny W. Hsu
Subject: Cartels; Crude oil prices; Supply & demand; Crude oil
Location: Russia United States--US New York Asia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895131536
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895131536?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Big Oil Jumps on Argentina Shale --- Shell, Exxon and others that were late to U.S. boom grab at new opportunities
Author: Kent, Sarah; Turner, Taos
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 May 2017: B.1.
Abstract:
The expanse of iron-toned dirt into which he was drilling is thought to hold 27 billion barrels of technically recoverable oil and 802 trillion cubic feet of gas embedded in a layer of shale that is up to 1,700 feet thick, according to the U.S. Energy Information Administration.
Full text: NEUQUEN, Argentina -- Around 5,000 miles from the booming oil towns of West Texas, some of the world's biggest oil companies are trying to do what they failed to do with U.S. shale: Get in first and early. Royal Dutch Shell PLC, Exxon Mobil Corp. and others are making another go at taking the shale industry global, starting with a grand experiment here in a desolate swath of western Argentina. This sprawling piece of Patagonia, known as Vaca Muerta, which means "dead cow," potentially has as much oil and gas as the biggest basins in Texas or North Dakota. Replicating the U.S. fracking boom elsewhere has taken on fresh urgency in an era of stubbornly low and volatile oil prices. Outmaneuvered early on in the U.S. by smaller companies, Exxon, Shell, Chevron Corp. and others see Argentina as one of their best opportunities to expand shale, which generally features projects that can be ramped up or down with prices. The Vaca Muerta has long been a focus of this sometimes quixotic quest, but a business-friendly government at all levels that is actively working to encourage drilling is fueling optimism that shale development in the region could finally begin to take off. Hurdles still remain and costs in Argentina are significantly higher than the U.S. But this time around, the big-oil company executives are determined not to miss out, hoping to leverage their big balance sheets and experience with foreign governments to make international shale work. And they want to prove wrong critics who say they can't drill shale as well as specialists in the U.S. "Our position is: Hell no! We will show that we can drill and complete wells better than the best," said Andrew Brown, Shell's head of exploration and production. "We're showing it in Argentina." This year, Exxon is expected to move from experimental pilot to proper development in the region, taking a step toward investments that former Chief Executive Rex Tillerson last year said could exceed $10 billion in the coming decades. France's Total SA -- which has repeatedly said that expanding its foothold in U.S. shale is too expensive -- is also planning to ratchet up production in the Vaca Muerta. Chevron has made investments of over $1 billion in Argentine shale projects and BP PLC is in the country through its joint venture Pan American Energy. Last month, Shell started up a new treatment plant on the Vaca Muerta's dusty plains with the capacity to process 10,000 barrels a day of shale oil and six million cubic feet of gas daily. On a recent windswept afternoon, a Shell oilman stood atop a 560-ton rig, hauled over from the Permian plains where it had recently been in use. Sporting a red fire-safety suit and protective yellow gloves, he pointed to a series of computer screens that spewed out data on the rig's effort to push thousands of feet of steel casing deep into the earth below. Senior drilling engineer Wouter Miedema, who has worked in shale projects in the U.S. and Canada, said he was struck by the similarities between the geology of the Vaca Muerta and the most productive shale fields of North America. "It's amazing to think that on the other end of the planet you've got shale like this," he said. The expanse of iron-toned dirt into which he was drilling is thought to hold 27 billion barrels of technically recoverable oil and 802 trillion cubic feet of gas embedded in a layer of shale that is up to 1,700 feet thick, according to the U.S. Energy Information Administration. That ranks its geology up there with some of the best fields in the U.S., executives and analysts say. For now, Shell is investing under $200 million a year to see if it can make shale work in Argentina. It isn't enough to reach a level comparable with U.S. shale, though Shell executives say the region could be a big producer. Major companies like Shell were late to get in to shale production in the U.S. When they did venture in, they found the process to be different than the engineering feats that characterized other oil exploration and output. Still, companies want to take it slow in Argentina, because they have been burned in the past. Their previous wildcatting attempts in shale from Europe to Russia and China have been stymied by a variable cocktail of poor drilling results, political opposition, regulatory hurdles and the dramatic drop in oil prices that began in 2014. Argentina's shale is no sure thing. Companies have to spend more time and money figuring out the best places to drill in Argentina, where the Vaca Muerta is still relatively unexplored territory compared with the U.S. shale patch. On cost, infrastructure and manpower, it can't yet compete with the U.S. Credit: By Sarah Kent and Taos Turner
Subject: Drilling; Oil shale
Location: United States--US Argentina
Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: May 5, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895139021
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895139021?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil-Plunge Explanation Isn't That Scary; Commodity investors have awakened from their sweet postelection, post-China-stimulus dream
Author: Taplin, Nathaniel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 May 2017: n/a.
Abstract: None available.
Full text: Markets are supposed to predict the future, but as on your local weather channel, the noise often overwhelms any real useful information. For six months commodity markets have focused on the plentiful noise from the new U.S. administration, but with grandiose fiscal-stimulus plans running into hard reality--and the boost from China's big 2015-16 stimulus fading--they are correcting, as they should: Iron ore has given up all its postelection gains and Brent oil fell a further 5% Thursday, taking it back below $50 a barrel. Oil was on track for another 1% loss during Asian trading hours Friday. As the noise recedes, investors should focus on the signal. Global growth lost some momentum in early 2017, but factory activity and trade volumes started recovering before Mr. Trump's surprise election, and they remain near multiyear highs. Barring a big policy mistake in China or a war in Northeast Asia, that will probably help prevent a 2014-style commodity collapse . In the most important market for metals, China, real-estate investment and credit growth are slowing, but not abruptly--and given a key Communist Party meeting this fall, too-sharp monetary tightening remains unlikely . And while global factory activity has retreated in early 2017, it remains markedly stronger than in mid 2016: The purchasing managers index for the eurozone hit another multiyear high last month , and those for Japan and China remain just below recent highs. The signals for energy are more disconcerting, though those markets have yet to correct to the same extent as iron ore. Shale producers are ramping up oil production with apparent abandon, OPEC has clearly lost control of the market--again--and U.S. gasoline demand is phlegmatic . If U.S. consumers don't show up for the summer driving season in force, oil will be in trouble. Nonetheless, there are reasons for guarded optimism. For one, the quick falloff in output from shale wells after completion means drillers can ramp production up and down relatively quickly. That is one reason oil prices have been range-bound since the initial recovery in mid-2016. If prices continue to fall toward $40 a barrel, the big surge in U.S. drilling activity will run out of steam quickly. On the demand side, lower prices may tempt thrifty U.S. consumers back into their SUVs this spring. Commodity investors have awakened from their sweet postelection, post-China-stimulus dream. Yes, reality is harsh, but it shows few signs of devolving into a nightmare. Credit: By Nathaniel Taplin
Subject: Petroleum production; Noise; Commodities; Iron compounds; Purchasing managers index; Supply & demand
Location: China Northeast Asia United States--US Japan
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 5, 2017
column: Heard on the Street
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895186579
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895186579?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
What Selloff? Wall Street Still Bullish on Oil After This Week's Plunge; Goldman analysts expect 'inventory draws to accelerate' and 'robust demand growth'
Author: Yang, Stephanie
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 May 2017: n/a.
Abstract: None available.
Full text: Wall Street analysts are keeping their bullish forecasts for oil prices, despite a 13% plunge in crude over the past three weeks. A production cut by the major oil-producing nations has yet to bring about the significant drawdown in oil storage that many analysts expected. But banks are still betting that the oil glut will ease this year. Goldman Sachs analysts wrote Friday that fundamental supply and demand continued to improve in April. The bank attributes the recent selloff to bearish momentum and a broader commodity drop led by metals and Chinese demand concerns. Oil futures fell to a five-month low on Thursday, trading down more than 6% for the week. Prices recovered slightly on Friday, gaining about 1.5% to trade at $46.22 a barrel. Expectations for the Organization of the Petroleum Exporting Countries to extend cuts later this month have added to an upbeat perspective from many analysts. OPEC members are scheduled to meet to discuss rolling over the production deal into the second half of the year on May 25. "We further expect inventory draws to accelerate, supported by our expectation for robust demand growth, despite recent concerns and potentially further helped later this year by the building consensus among OPEC producers on extending the cuts," Goldman said in the Friday report. The market has yet to react to that possibility, as oil has given up its gains since the initial OPEC agreement in November. Instead, traders are focusing on increasing U.S. shale activity and high levels of crude and products in storage. "Patience was already wearing thin" this week, Credit Suisse analysts said in a Friday note. "However, we think fundamentals are looking incrementally constructive... it is too early to throw in the towel." Write to Stephanie Yang at stephanie.yang@wsj.com Credit: By Stephanie Yang
Subject: Price increases; Crude oil; Supply & demand
Location: United States--US
Company / organization: Name: Credit Suisse Group; NAICS: 522110; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895653024
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895653024?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Odebrecht Testimony in Brazil Points to Pemex Bribe in Mexico; Ex-official of Brazilian construction firm testified he was asked to pay $5 million to then-chief of Mexican oil company
Author: Montes, Juan
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 May 2017: n/a.
Abstract: None available.
Full text: MEXICO CITY--A former top official of Brazilian construction giant Odebrecht SA testified that he was asked in 2014 to bribe the then-head of Mexican state oil firm Petróleos Mexicanos, according to a document filed with Brazil's Supreme Court as part of a broader corruption investigation. In the document, a copy of which was reviewed by The Wall Street Journal, Brazilian prosecutors informed the court that Hilberto Mascarenhas, who was head of Odebrecht's Structured Operations division, said he received a request to pay a bribe of $5 million to Emilio Lozoya, then-chief executive at Pemex, at a meeting also attended by another Odebrecht official. The document was earlier reported by the nonprofit organization Mexicans Against Corruption and Brazilian news magazine Veja. It doesn't say whether it was Mr. Lozoya himself who requested the bribe or whether the money was actually paid. Odebrecht, Latin America's largest construction firm, admitted in December it paid some $800 million in bribes to win contracts in 12 countries across four continents. Mr. Lozoya, a former investment banker, has said since the testimony emerged in April that he never requested or received bribes from Odebrecht or any other company and that he always acted with honesty while the head of Pemex from December 2012 to February 2016. Pemex's former communications director said Mr. Lozoya was traveling and couldn't immediately respond to a request to comment from the Journal. Mr. Mascarenhas couldn't be reached to comment. Mr. Lozoya has encouraged authorities to investigate and punish any corrupt practice inside the state-owned company, which had sales of $52 billion last year and provides around 16% of the Mexican government's revenue. Mexico's Attorney General's Office hasn't filed charges against any former or current Pemex officials. An official of the office said Brazilian prosecutors had shared relevant aspects of their investigation with their Mexican counterparts, whose own investigation was continuing. Pemex has also opened an internal investigation of Odebrecht's contracts but hasn't announced any results. During his time at Pemex's helm, Mr. Lozoya became one of the main promoters of Mexico's historic effort to open its oil industry to private investors for the first time in eight decades. Any evidence of impropriety on his part could undermine the credibility of the energy-sector overhaul, the flagship economic initiative of President Enrique Peña Nieto. The government promised in 2013 when the overhaul was enacted that the oil opening would bring more transparency and less corruption inside the state oil firm. "You add it to the other issues of corruption and lack of transparency the Peña Nieto's government has had and it would be just one more chink in the armor and further erodes their credibility across the board," said Jeremy Martin, director of the energy program at the Institute of the Americas, a think tank in San Diego. Mr. Peña Nieto, his wife and a member of his cabinet were cleared in 2015 by Mexico's federal comptroller after being investigated over conflict-of-interest allegations linked to their buying properties from a prominent government contractor. Mr. Lozoya's dismissal from Pemex in February 2016 was related to the firm's financial struggles after the fall in oil prices and his inability to fight deeply rooted corruption and runaway spending at Pemex, a government minister said in December. Mr. Lozoya has said he ran the company honestly. As a part of the anticorruption settlement between Odebrecht and authorities from the U.S., Brazil and Switzerland, the Brazilian company admitted paying a total of $10.5 million in bribes to Mexican officials from 2010 to 2014. Between December 2013 and late 2014, Odebrecht said, it paid bribes of $6 million to a top official at an unnamed Mexican state company to help secure projects. Pemex was the only Mexican federal entity that signed contracts with Odebrecht in that period, according to Mexican public records. In 2014 and 2015, during Mr. Lozoya's tenure as chief executive, Odebrecht won four engineering and construction contracts from Pemex totaling around $1.5 billion, including upgrading refineries and building a major gas pipeline in northern Mexico, according to public records. All the contracts were awarded directly without a public bidding contest. Previously, the company had won only one construction contract from Pemex. Odebrecht might have had further dealings with Pemex over that period. Subsidiaries of the construction company, under different names, won 11 additional contracts with the Mexican company, according to a top Pemex official with knowledge of the situation. When those are counted in, the total amount of contracts likely came to more than $2 billion. The largest Pemex contract of the four Odebrecht won in that period was the engineering and construction of a major gas pipeline in northern Mexico to bring natural gas from the U.S. In May 2013, Pemex sought international bids for building and operating the pipeline. A consortium formed by Spain's Enagas SA and France's GDF Suez, two global gas operators, offered Pemex to transport the gas for a fee that was 8% lower than what the Mexican regulator considered a fair price. The regulator approved the bid. Months later, Pemex declared the tender void, alleging the offer had technical and economic flaws. Pemex decided to build and operate the pipeline through subsidiaries and it handed the construction contract of the northern part of the pipeline to Odebrecht. Odebrecht Mexico didn't respond to requests for comment. A Pemex spokesman declined to comment on the contract process. Write to Juan Montes at juan.montes@wsj.com Related * U.S. Cuts Its Share of Odebrecht Penalty at Sentencing (April 17) * Odebrecht Probes Proliferate in Latin America (March 8) * Odebrecht to Pay Up to $4.5 Billion to Settle Bribery Case (Dec. 21, 2016) Odebrecht's Pemex Deals * 2005 Upgrading Lazaro Cardenas refinery along with several partners: $317 million * 2010 Gas-supply gas contract under which Pemex would supply natural gas to Odebrecht's petrochemical plant in Mexico * February 2014 Upgrading Tula refinery: $76 million. Amount of the contract was increased by $19 million in November of that year * July Construction contract to build a major pipeline in northern Mexico: $1.2 billion * November Upgrading Salamanca refinery: $85 million * November 2015 Upgrading Tula refinery in Hidalgo state: $102 million Credit: By Juan Montes
Subject: Petroleum refineries; Corruption; Construction contracts; Pipelines; Natural gas
Location: United States--US Latin America
Company / organization: Name: Odebrecht SA; NAICS: 211111, 237310; Name: Petroleos Mexicanos; NAICS: 211111
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 5, 2017
Section: World
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895708111
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895708111?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
U.S. Oil-Rig Count Rises by Six; Oil-rig count is viewed as a proxy for activity in the sector
Author: Jamerson, Joshua
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 May 2017: n/a.
Abstract: None available.
Full text: The number of rigs drilling for oil in the U.S. rose six to 703, according to oil-field services company Baker Hughes Inc. The U.S. oil-rig count typically is viewed as a proxy for activity in the sector. After the count peaked at 1,609 in October 2014, low oil prices put downward pressure on production, and the rig count receded. However, the oil-rig count generally has been rising since last summer. The nation's gas-rig count rose two to 173 in the past week, according to Baker Hughes. The U.S. offshore-rig count rose two rigs from last week to 19 and down five rigs year over year. On Friday, crude futures bounced back from five-month lows following a week of steep losses globally due to investor investor worry about brimming crude inventories. U.S. oil was up 1.1% to $46.03 in afternoon trading. Write to Joshua Jamerson at joshua.jamerson@wsj.com Credit: By Joshua Jamerson
Subject: Oil service industry; Supply & demand
Location: United States--US
Company / organization: Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 5, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895764088
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895764088?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil ETFs Draw the Brave; Investors are betting on oil futures with leveraged ETFs
Author: Akhtar, Tanzeel
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 May 2017: n/a.
Abstract: None available.
Full text: When it comes to oil, there are plenty of investors who are eager to play the bounceback game with leveraged ETF products. One futures-based ETF that has seen huge flows from investors, both out and in, is the $2.8 billion U.S. Oil Fund (USO). From early April to early May, had net outflows of $36 million. Earlier this year, the ETF attracted huge flows. From Feb. 20 to March 20, USO took in $230 million, according to Bloomberg data. Todd Rosenbluth, director of ETF and mutual-fund research at CFRA, says: "Oil ETFs were highly volatile in April, but investors still like to bet on this space." He says leveraged ETFs will incur greater risks the longer they are held. But what is behind the bull case for oil? Tamar Essner, head energy analyst at Nasdaq, says, "The single biggest factor underpinning the bull case for oil has been the OPEC cuts and the belief that this would meaningfully reduce global inventories and, critically, that the cuts would be extended for the second half of the year." And that can change at a moment's notice. A decision on whether to extend the production cuts is expected at a May 25 meeting in Vienna. Paul Weisbruch, analyst at Street One Financial in Huntingdon Valley, Pa., says volatility has everything to do with crude. Mr. Weisbruch says: "Year to date, I now see USO only attracting about $8 million in net assets, which is basically flat, and losing assets in the trailing one-month period." Mr. Weisbruch warns: "USO has been challenged with well-known and documented issues having to do with 'contango'...in the futures [a situation when futures several months out are trading at a steep premium to near-term prices]. It invests in front-month futures only, and investors are often giving up substantial upside by investing in this fund instead of utilizing futures themselves and/or...a methodology that uses a blended-futures approach such as say USL or a DBO for example." The USL ETF is U.S. 12 Month Oil Fund LP, which tracks crude-oil spot prices using an average of the 12 nearest-month Nymex crude contracts. The latter, DBO, is PowerShares DB Oil Fund, which tracks an index of crude-oil futures contracts. Investors can probably continue to expect high short-term volatility in oil ETFs for the rest of 2017. Ms. Akhtar is a writer in London. She can be reached at reports@wsj.com . Journal Report * Insights from The Experts * Read more at WSJ.com/FundsETFs More in Investing in Funds & ETFs * Six Questions for Bond Investors * What's My Investing Fee? Grrr! * U.S.-Stock Funds Rose 1.0% in Month * Do You Know Gold Investing? * Don't Give Up on Stock Buybacks Credit: By Tanzeel Akhtar
Subject: Exchange traded funds; Crude oil
Location: United States--US
Company / organization: Name: Organization of Petroleum Exporting Countries--OPEC; NAICS: 813910
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895750012
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895750012?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Despite Sanctions, Russia's Oil Industry Powers On; Russian crude output is at historic highs; European firms are still investing
Author: Olson, Bradley; Solomon, Jay
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 May 2017: n/a.
Abstract: None available.
Full text: Exxon Mobil Corp. is suffering from sanctions on Russia. The same can't be said for other big Western energy companies, or for Russia's oil production. The sanctions, put in place by the U.S. and European Union in 2014 after Russia's annexation of the Crimea region of Ukraine, were meant to limit Russia's pursuit of new technology for extracting more crude oil and natural gas. The measures specifically targeted deepwater drilling planned in the Black Sea, Arctic operations and the use of fracking technology in Siberia. The terms were a blow to Exxon because drilling in those areas was at the heart of a landmark deal the company struck a few years before to partner with state oil firm PAO Rosneft. The company sought a waiver from U.S. sanctions to drill in the Black Sea, but was rejected last month by the Trump administration. At the same time, some of the company's European rivals are moving ahead with projects in Russia, many under partnerships begun before the sanctions. BP PLC was allowed to keep its nearly 20% stake in Rosneft, which contributed $590 million to its net earnings in 2016. Italy's Eni SpA is preparing to drill a Black Sea well later this year as part of a partnership with Rosneft, and also plans to explore the Arctic waters of Russia's Barents Sea. The company has proceeded because the EU allowed partnerships in place at the time of sanctions to continue, Eni has said. The U.S. didn't grant exemptions for existing partnerships, as Exxon's experience showed. An EU spokeswoman said that while some differences exist between how sanctions have been applied by different countries, these have been limited and don't undermine the overall impact of the restrictions. Other European companies proceeding with projects in Russia include Norway's Statoil ASA, which has another pre-existing venture with Rosneft in Russia's Samara region that will require advanced drilling techniques similar to modern fracking in the U.S.--wherein sand, water and other chemicals are blasted into layers of dense rock to release oil and gas. The company also continues an oil-drilling project in Siberia. France's Total SA, together with a Russian partner subject to sanctions, is building a massive natural-gas export plant, a project that advanced in spite of financing limitations related to sanctions by turning to China. The companies have said they obtained clearance from the EU to proceed. Sanctions didn't prevent Royal Dutch Shell PLC and four other European companies last month from announcing $10 billion in financing for a natural-gas pipeline to Germany that the EU opposes. While some diplomatic and oil-industry experts believe the sanctions have crimped Russia's oil progress, the uneven application of the restrictions has led to questions about how effective they have really been. "When sanctions are not uniform across the board, you get unintended consequences," said Bill Arnold, a former Shell executive and senior vice president of the U.S. Export-Import Bank who teaches about the geopolitics of oil at Rice University. "If the ultimate objective was to curb Russian industry, it isn't clear that's taken place." The sanctions weren't specifically designed to curb current Russian oil production, and they haven't. Output rose above 11 million barrels a day last year, the highest level in decades. That reflects more than the limits of sanctions. Other economic forces, such as a sharp devaluation of the ruble, played a role. Companies in the country have been able to sell oil in dollars and pay for drilling with Russia's currency, allowing them to reduce costs and invest more toward boosting output. By design, the U.S. and EU sanctions on Russia were far less extensive than those placed on Iran, given the complete dependency of some European countries on Russia for natural-gas supplies. In the case of Iran, the U.S. levied billion-dollar fines and tried to make it impossible for companies that did business with sanctioned Iranian enterprises to access the U.S. financial system. Although President Donald Trump spoke of loosening sanctions on Russia during his campaign, political resolve to keep the U.S. sanctions in place has hardened in recent months. Last month, Secretary of State Rex Tillerson, Exxon's former chief executive, said relations between the countries had reached "a low point" after the Pentagon launched airstrikes on a Syrian military base believed to have been involved in a chemical-weapons attack against civilians. Russia has supported the regime of Syrian President Bashar al-Assad. Analysts expect the EU sanctions to be renewed before they expire in July. However, they are reviewed every six months, and debate on whether to keep them could be fiercer by year's end given new elections, burgeoning energy needs and other factors. In seeking a waiver from the U.S. sanctions, Exxon was motivated by a desire to maintain a foothold in one of the world's last remaining oil frontiers. Executives feared the loss of their competitive advantage, winning a hard-fought battle in 2011 to access Russia's vast resources , the first such deal under Russian President Vladimir Putin. The Trump administration on April 21 rejected the request , which originally had been made when Barack Obama was president. Recently, the proposal had been circulated among various federal departments, according to people familiar with the matter. An Exxon spokesman said the company sought permission to drill in the Black Sea to "meet its contractual obligations under a joint venture agreement in Russia, where competitor companies are authorized to undertake such work under European sanctions." Igor Yusufov, a former Russian energy minister, said sanctions have forced Russian producers to use Chinese equipment, which was cheaper than U.S. or Western equipment but more prone to breakdowns in Russia's extreme conditions. Sanctions also limited the flow of money to Russian companies, and they have at times upended European companies' projects. Sanctions disrupted Shell's plan to form a strategic alliance with Russian gas giant Gazprom and forced the company to put on hold efforts to develop Siberia's shale fields. They also appear to have curbed some of Mr. Putin's military ambitions voiced after the Crimea annexation, said Edward Chow, a former Chevron Corp. executive and now an energy fellow at the Center for Strategic and International Studies. "They have certainly had an impact," he said. Nathan Hodge, Sarah Kent and Laurence Norman contributed to this article. Write to Bradley Olson at Bradley.Olson@wsj.com and Jay Solomon at jay.solomon@wsj.com Credit: By Bradley Olson and Jay Solomon
Subject: Petroleum production; Deepwater drilling; Political campaigns; Presidents; Sanctions; Energy industry; Natural gas
Location: Italy Russia United States--US Arctic region Black Sea Crimea Barents Sea Iran China Siberia France Ukraine Norway
Company / organization: Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Eni SpA; NAICS: 211111, 324110; Name: Statoil ASA; NAICS: 211111, 324110
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 8, 2017
Section: Business
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895880030
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895880030?accountid=7117
Copyright: (c) 2017 Dow J ones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Edge Higher Amid Expectations of Supply Cuts; Markets remain cautious on continued concerns about high global inventories
Author: Sider, Alison; McFarlane, Sarah; Hsu, Jenny W
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 May 2017: n/a.
Abstract: None available.
Full text: Crude futures edged higher Monday, amid expectations that major producers will cut their supplies for longer in a bid to reduce high global inventories. Prices were supported by comments from Saudi Arabia's Energy Minister Khalid Al-Falih, who Monday said he was confident production cuts led by the Organization of the Petroleum Exporting Countries will be extended into the second half of the year or even longer. The election of Emmanuel Macron, a pro-free trade centrist, as France's next president also helped to assuage concerns that the European economy may see further headwinds. U.S. crude futures rose 21 cents, or 0.45%, to $46.43 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, rose 24 cents, or 0.49% to $49.34 a barrel on ICE Futures Europe. Oil prices have fallen more than 5% in the last week and are still hovering around their lowest levels since November, before OPEC and other major producers struck their production cut agreement. The selling pressure last week was ignited by concerns that global oil stocks weren't falling as quickly as was hoped, especially amid relentlessly rising U.S. output. But prices rose Friday and Monday, leading some investors to believe the selloff is finished. "I think the market is going to recover. This is the heavy demand season--we shouldn't really be going down," said Mark Waggoner, president of Excel Futures. Mr. Waggoner said he believes oil prices will soon be on their way up. Once oil futures hit about $47.20, he's likely to start buying, he said. "Personally, I think the bottom is in," he said. OPEC and other major producers including Russia agreed to cut production by 1.8 million barrels a day in the first half of the year in an attempt to drain large global stocks. The cartel is due to meet on May 25 to decide whether to curb output for longer, and market participants are increasingly banking on the group to extend the cuts. "The oil cartel will be committing commercial suicide if it fails to extend output cuts and provide the energy complex with a much-needed pillar of price support," analysts at the brokerage PVM wrote in a research note. "As such, the OPEC meeting scheduled for May 25 is increasingly shaping up as a 'now or never' moment for the organization." Given that, some analysts said that investors have become overly negative. "Sentiment on the oil market is meanwhile worse than the fundamental situation," analysts at Commerzbank wrote in a research note. Inventories are falling and an extension of OPEC's production cuts would likely lead to tighter supplies in the second half of the year, they said. "Even rising U.S. oil production would do nothing to change this," the analysts wrote. Gasoline futures rose 1.32 cents, or 0.88%, to $1.5178 a gallon. Diesel futures rose 1.9 cents, or 1.32%, to $1.4556 a gallon. Write to Alison Sider at alison.sider@wsj.com , Sarah McFarlane at sarah.mcfarlane@wsj.com and Jenny W. Hsu at jenny.hsu@wsj.com Credit: By Alison Sider, Sarah McFarlane and Jenny W. Hsu
Subject: Futures; Inventory; Supply & demand; Crude oil
Location: Russia United States--US Saudi Arabia China France Asia
People: Macron, Emmanuel Al-Falih, Khalid
Company / organization: Name: ICE Futures; NAICS: 523210; Name: New York Mercantile Exchange; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1895880340
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895880340?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Investors Cut Their Bets on Higher Oil Prices; Increased oil production from the U.S. and Libya has offset the cuts to OPEC production
Author: Kantchev, Georgi
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 May 2017: n/a.
Abstract: None available.
Full text: Investors cut their bullish bets on the oil price to the lowest level since OPEC reached a deal to cut output last year, amid continued doubts about the effectiveness of that agreement. Hedge funds and other big money managers slashed their net long position, a bet on rising prices, in benchmark Brent oil by 10% in the week until May 2, data from the Intercontinental Exchange Inc. showed Monday. Funds also cut their net long position in West Texas Intermediate, the U.S. price gauge, according to the U.S. Commodity Futures Trading Commission. The Organization of the Petroleum Exporting Countries and other heavyweight producers meet later this month to decide whether to extend their deal to cut around 2% from global production. Crude prices rose after the agreement was forged late last year but fell to a five-month low last week as the global glut, which the cuts were aimed at tackling, shows few signs of abating. "With scant evidence that OPEC production cuts are actually tightening oil markets as expected, the capitulation of [bullish bets] has seemingly dominated price action," David Martin, analyst at J.P. Morgan, said in a note. On Monday, Brent was trading down 0.1% at $49.06 a barrel, while WTI was changing hands down 0.04% at $46.20 a barrel. Investors raised their bullish bets to a record high following OPEC's deal. The past few weeks, however, saw funds cutting their long positions and raising their shorts, or bets that prices will fall. In the latest week, managed-money accounts cut the number of long positions in Brent to the equivalent of 450 million barrels of crude, the lowest since Nov. 29, according to the Commitment of Traders report from ICE. They raised the number of short positions to 128 million barrels. This mirrored developments in the WTI, where money managers shrunk their net long position on crude by more than 20%, CFTC data showed Friday. Most analysts expect OPEC and suppliers outside the group, including Russia, to agree to extend their agreement for another six months when they meet in Vienna on May 25. If they fail to achieve consensus, prices could drop below $40, a level not seen for over a year, some analysts say. Even if OPEC comes through, the oil price faces further obstacles. In the U.S., rigs drilling for oil continue to increase, pointing to the resilience of the shale industry . On Friday, oil-field services company Baker Hughes Inc. reported the rig count rose by 6--its 16th-straight week of increases. The count has increased by 7.3 rigs a week on average over the past year, making this the strongest recovery of the last 30 years, Martijn Rats, analyst at Morgan Stanley, wrote in a report Monday. Rising production in conflict-stricken Libya , which is exempt from the OPEC cuts, also added to the bearish sentiment in the market. J.P. Morgan expects the country to raise its production to 750,000 barrels a day by early next year, from 660,000 barrels a day this year. Write to Georgi Kantchev at georgi.kantchev@wsj.com Credit: By Georgi Kantchev
Subject: Agreements; Petroleum production; Crude oil prices; Crude oil
Location: Russia United States--US Libya
Company / organization: Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: Baker Hughes Inc; NAICS: 213112, 333132, 333249; Name: Intercontinental Exchange Inc; NAICS: 523210; Name: Commodity Futures Trading Commission; NAICS: 926140, 926150
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 8, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuestdocument ID: 1895931459
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895931459?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
S&P 500 Turns Down; Oil prices slide, weighing on energy stocks
Author: Otani, Akane; Gold, Riva
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 May 2017: n/a.
Abstract: None available.
Full text: Corrections & Amplifications Earlier versions of this article and a photo caption incorrectly stated Credit Suisse's share price move. (May 9, 2017) Falling energy shares pressured the S&P 500, which snapped a three-session winning streak on Tuesday. Major stock indexes have risen the past few weeks as stronger-than-expected corporate earnings have helped offset a steep decline in commodity prices. With the bulk of the S&P 500 having reported earnings, companies have largely beat analysts' expectations for the first quarter, according to FactSet. "There is a strong economic backdrop and robust earnings: That environment is conducive to being invested [in stocks]," said Mouhammed Choukeir, chief investment officer at Kleinwort Hambros. The Dow Jones Industrial Average fell 36.50 points, or 0.2%, to 20975.78 on Tuesday. The S&P 500 fell 2.46 points, or 0.1%, to 2396.92 and the Nasdaq Composite gained 17.93 points, or 0.3%, to 6120.59, posting its 30th record close of the year. Major indexes have had few large swings in recent weeks. Some analysts attribute the relative calm in markets to data pointing to health in the U.S. economy, which they say should keep stocks climbing. The CBOE Volatility Index, a measure of expected turbulence in the S&P 500 over the next 30 days, closed Monday at its lowest level since 1993 and edged up slightly Tuesday. "We've waded through a lot of economic and political concerns over the last year and now investors are catching their breath," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. U.S. crude for June delivery fell 1.2% to $45.88 a barrel on Tuesday, its second lowest settlement of the year. Energy stocks in the S&P 500--the worst-performing sector in the broad index in 2017--fell 0.9%, deepening their losses for the year. Consumer-discretionary shares in the S&P 500 rose 0.5% and were among the biggest gainers in the broad index. Marriott International shares jumped $6.13, or 6.4%, to $102.50, Class A shares of Under Armour added 86 cents, or 4.2%, to 21.39 and Hanesbrands rose 86 cents, or 4%, to 22.49. As stocks rose, government bonds slipped, with the yield on the 10-year U.S. Treasury note rising to 2.405% from 2.376% Monday. Yields rise as bond prices fall. Elsewhere, the Stoxx Europe 600 added 0.4%, settling at its highest level since August 2015. Australia's S&P ASX 200 fell 0.5% as underwhelming results from Commonwealth Bank of Australia and reports that the Australian government would introduce a bank tax weighed on shares of lenders. Hong Kong's Hang Seng Index rose 1.3%, supported by a recovery in shares of gambling companies. Japan's Nikkei Stock Average pulled back 0.3% after government data showed Japanese wages fell for the first time since last May. Write to Akane Otani at akane.otani@wsj.com and Riva Gold at riva.gold@wsj.com Credit: By Akane Otani and Riva Gold
Subject: Bond issues; International finance; Stock exchanges
Location: United States--US Singapore Australia China Hong Kong Macao Taiwan Japan
People: Macron, Emmanuel
Company / organization: Name: ChiNext; NAICS: 523210; Name: BNP Paribas Inves tment Partners; NAICS: 523920
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 9, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1896169748
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1896169748?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Sanctions Fail to Curb Russian Oil
Author: Olson, Bradley; Solomon, Jay
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 May 2017: B.1.
Abstract:
Other European companies proceeding with projects in Russia include Statoil ASA, which has a venture with Rosneft that will require advanced drilling techniques similar to fracking -- wherein sand, water and other chemicals are blasted into rock to release oil and gas.
Full text: Exxon Mobil Corp. is suffering from sanctions on Russia. The same can't be said for other Western energy companies, or for Russia's oil output. The sanctions, put in place by the U.S. and European Union in 2014 after Russia's annexation of Crimea, were meant to limit Russia's pursuit of new energy technology. The measures specifically targeted deep-water drilling planned in the Black Sea, Arctic operations and fracking in Siberia. The terms were a blow to Exxon because drilling in those areas was at the heart of a landmark deal the company struck a few years before with state oil firm PAO Rosneft. Exxon sought a waiver from U.S. sanctions to drill in the Black Sea, but the Trump administration last month rejected the request. At the same time, some of the firms's European rivals are moving ahead in Russia, many under partnerships begun before the sanctions. BP PLC was allowed to keep its nearly 20% stake in Rosneft, which contributed $590 million to its net earnings in 2016. Italy's Eni SpA is preparing to drill a Black Sea well this year as part of a partnership with Rosneft, and plans to explore the Arctic waters of Russia's Barents Sea. The company has proceeded because the EU allowed partnerships in place at the time of sanctions to continue, Eni has said. The U.S. didn't grant exemptions for existing partnerships, as Exxon's experience showed. An EU spokeswoman said that while some differences exist between how sanctions have been applied by different countries, these have been limited and don't undermine the overall impact of the restrictions. Other European companies proceeding with projects in Russia include Statoil ASA, which has a venture with Rosneft that will require advanced drilling techniques similar to fracking -- wherein sand, water and other chemicals are blasted into rock to release oil and gas. France's Total SA, together with a Russian partner subject to sanctions, is building a massive natural-gas export plant. The companies have said they obtained clearance from the EU to proceed. While some diplomatic and oil-industry experts believe the sanctions have crimped Russia's oil progress, the uneven application of the restrictions has led to questions about how effective they have really been. "When sanctions are not uniform across the board, you get unintended consequences," said Bill Arnold, a former Royal Dutch Shell PLC executive who now teaches at Rice University. "If the ultimate objective was to curb Russian industry, it isn't clear that's taken place." The sanctions weren't specifically designed to curb current Russian oil production, and they haven't. Output rose above 11 million barrels a day last year, the highest level in decades. Although President Donald Trump spoke of loosening sanctions on Russia during his campaign, political resolve to keep the U.S. sanctions in place has hardened in recent months. Analysts expect the EU sanctions to be renewed before they expire in July. In seeking a waiver from the U.S. sanctions, Exxon was motivated by a desire to maintain a foothold in one of the world's last remaining oil frontiers. The Trump administration on April 21 rejected the request, which originally had been made when Barack Obama was president. An Exxon spokesman said the company sought permission to "meet its contractual obligations under a joint-venture agreement in Russia, where competitor companies are authorized to undertake such work under European sanctions." Igor Yusufov, a former Russian energy minister, said sanctions have forced Russian producers to use Chinese equipment, which was cheaper than U.S. or Western equipment but more prone to breakdowns in Russia's extreme conditions. Sanctions also limited the flow of money to Russian companies, and they have at times upended European companies' projects. Sanctions disrupted Shell's plan to form a strategic alliance with Russian gas giant Gazprom. --- Nathan Hodge, Sarah Kent and Laurence Norman contributed to this article. Credit: By Bradley Olson and Jay Solomon
Subject: Sanctions; Petroleum production
Location: Russia
Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: European Union; NAICS: 926110, 928120
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.1
Publication year: 2017
Publication date: May 9, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1896218330
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1896218330?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Falls Again as Oversupply Jitters Persist; Stockpiles in the U.S. are holding near historic highs
Author: Puko, Timothy
Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 May 2017: n/a.
Abstract: None available.
Full text: Crude futures slid Tuesday, with a slate of factors including a rising dollar, momentum trades and skepticism about OPEC's influence continuing to batter oil. The drop was the 11th in 17 sessions and brought oil prices down to their second lowest settlement of 2017. Prices are down more than 14% year to date, primarily from stockpiles in the U.S. holding near historic highs and waylaying a rally many had expected after the world's biggest exporters pushed a historic deal to cut output. Light, sweet crude for June delivery settled down 55 cents, or 1.2%, at $45.88 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, lost 61 cents, or 1.2%, to $48.73 a barrel on ICE Futures Europe. Oil markets have been prone to selloffs this spring largely because U.S. stockpiles haven't fallen sharply as many expected. Until recent weeks, they spent most of the year rising to record highs despite a deal from the Organization of the Petroleum Exporting Countries, Russia and other exporters to cut total output by 1.8 million barrels a day. Saudi Arabia's Energy Minister Khalid al-Falih on Monday said that the continuing production curtailments agreed by more than 20 producers last year are working, and he signaled that the cuts could be extended into 2018. But participants are expecting that, said Michael Hiley, a trader at LPS Futures LLC. He also noted big production gains from the U.S. and Libya--which has an exemption from the OPEC deal--and the return of Canadian output after brief outages earlier this year. That fills a lot of the gap created by the OPEC cuts. "It feels like OPEC needs to do more than just rollover the deal," Mr. Hiley said. The market has posted such consistent losses in recent weeks that momentum-based traders are piling in, brokers and analysts said. It has failed to rally hard and often sold-off on several developments that would typically be considered bullish for prices, including Mr. al-Falih's comments. That is a sign that a lot of trend followers, especially computer-algorithm-based trading systems, are locked in on selling crude, brokers and analysts said. "It's damaged goods," said John Saucer, vice president of research and analysis at Mobius Risk Group in Houston. Once one or two big position-holders sell, it can bring down prices through points at which other funds will also be forced to sell, said J. Alexander Blackman, an executive at Standard Delta Co., a commodities-trading firm. That has been part of the problem in oil lately, with money managers severely paring down what had been a crowded trade, Mr. Blackman and several analysts have said. "It starts consuming itself like a snowball," Mr. Blackman said. A rising dollar probably hurt on Tuesday too, said Bart Melek, head of commodity strategy at TD Securities in Toronto. An appreciating dollar makes dollar-denominated commodities like oil more expensive for traders who are based in countries using other currencies, and those commodities often fall as the dollar rises. The Wall Street Journal Dollar Index, which tracks the greenback against a basket of other currencies, recently gained 0.5% to 90.46. Its gains accelerated about the same time oil's losses accelerated. TD is one of several firms to claim prices should be rising soon because of a better supply-and-demand balance in oil markets. If OPEC extends its cuts as it is suggesting, that would further the case for easing oversupply and rising prices, Mr. Melek said. "I wouldn't get too excited" about what he characterized as small losses Tuesday, he said. "Unless there's some sort of demand-side meltdown, this market is poised for a rebound." Total stockpiles, including gasoline, diesel, other products and crude stored away around the world, have been falling this year, according to several accounts. That was likely the case in the U.S. last week, too, according to The Wall Street Journal's weekly survey of 12 analysts and traders. The group expects crude storage levels likely fell by 1.7 million barrels in the week ended Friday. Their consensus average also forecasts a gasoline-stockpile decline of 400,000 barrels and stockpiles of distillates, which include heating oil and diesel, to drop by 800,000 barrels. The U.S. Energy Information Administration puts out the official government estimates on Wednesday mornings. The American Petroleum Institute, an industry group, said late Tuesday that its own data for the week showed a 5.8-million-barrel decrease in crude supplies, a 3.2-million-barrel increase in gasoline stocks and a 1.2-million-barrel decline in distillate inventories, according to a market participant. Gasoline futures lost 2.83 cents, or 1.9%, to $1.4895. Diesel futures lost 1.35 cents, or 0.9%, to $1.4421 a gallon. Both hit their third-lowest settlement of the year. Sarah McFarlane contributed to this article. Write to Timothy Puko at tim.puko@wsj.com Credit: By Timothy Puko
Subject: Agreements; Futures; Stocks; Supply & demand
Location: Russia United States--US Saudi Arabia
Company / organization: Name: New York Mercantile Exchange; NAICS: 523210; Name: ICE Futures; NAICS: 523210
Publication title: Wall Street Journal (Online); New York, N.Y.
Pages: n/a
Publication year: 2017
Publication date: May 9, 2017
Section: Markets
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1896296989
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1896296989?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
Oil Prices Continue To Sink
Author: Puko, Timothy
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 May 2017: B.18.
Abstract:
Oil markets have been prone to selloffs this spring largely because U.S. stockpiles haven't fallen sharply as many expected. [...]recent weeks, they spent most of the year rising to records despite a deal from the Organization of the Petroleum Exporting Countries, Russia and other exporters to cut total output by 1.8 million barrels a day.
Full text: Crude prices slid, with a slate of factors including a rising dollar and skepticism about OPEC's influence continuing to batter oil. The drop was the 11th in 17 sessions and brought oil prices to their second lowest settlement of 2017. Prices are down more than 14% year to date. Light, sweet crude for June delivery settled down 55 cents, or 1.2%, at $45.88 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, lost 61 cents, or 1.2%, to $48.73 a barrel on ICE Futures Europe. Oil markets have been prone to selloffs this spring largely because U.S. stockpiles haven't fallen sharply as many expected. Until recent weeks, they spent most of the year rising to records despite a deal from the Organization of the Petroleum Exporting Countries, Russia and other exporters to cut total output by 1.8 million barrels a day. A rising dollar probably hurt on Tuesday, too, said Bart Melek, head of commodity strategy at TD Securities in Toronto. Credit: By Timothy Puko
Subject: Crude oil; Commodity prices
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.18
Publication year: 2017
Publication date: May 10, 2017
column: Commodities
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Languageof publication: English
Document type: News
ProQuest document ID: 1896759246
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1896759246?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
S&P 500 Ends Win Streak --- Energy stocks, the worst-performing sector in the index, follow oil prices lower
Author: Otani, Akane; Gold, Riva
Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 May 2017: B.19.
Abstract:
Major stock indexes have risen the past few weeks as stronger-than-expected corporate earnings have helped offset a steep decline in commodities prices.
Full text: Falling energy shares pressured the S&P 500, which snapped a three-session winning streak on Tuesday. Major stock indexes have risen the past few weeks as stronger-than-expected corporate earnings have helped offset a steep decline in commodities prices. With the bulk of S&P 500 companies having reported earnings, they have largely beat analysts' expectations for the first quarter, according to FactSet. "There is a strong economic backdrop and robust earnings: That environment is conducive to being invested" in stocks, said Mouhammed Choukeir, chief investment officer at Kleinwort Hambros. The Dow Jones Industrial Average fell 36.50 points, or 0.2%, to 20975.78 on Tuesday. The S&P 500 fell 2.46 points, or 0.1%, to 2396.92, while the Nasdaq Composite gained 17.93 points, or 0.3%, to 6120.59, posting its 30th record close of the year. Major indexes have had few large swings in recent weeks. Some analysts attribute the relative calm in markets to data pointing to health in the U.S. economy, which they say should keep stocks climbing. The CBOE Volatility Index, a measure of expected turbulence in the S&P 500 over the next 30 days, closed Monday at its lowest level since 1993 and edged up slightly Tuesday. "We've waded through a lot of economic and political concerns over the last year, and now investors are catching their breath," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. U.S. crude for June delivery fell 1.2% to $45.88 a barrel, its second-lowest settlement of the year. Energy stocks in the S&P 500, the worst-performing sector in the broad index in 2017, fell 0.9%, deepening their losses for the year. Consumer-discretionary shares in the S&P 500 rose 0.5% and were among the biggest gainers in the broad index. Marriott International shares jumped $6.13, or 6.4%, to $102.50, Class A shares of Under Armour added 86 cents, or 4.2%, to 21.39, and Hanesbrands rose 86 cents, or 4%, to 22.49. As stocks rose, government bonds slipped, with the yield on the 10-year U.S. Treasury note rising to 2.405%, from 2.376% Monday. Yields rise as bond prices fall. Elsewhere, the Stoxx Europe 600 added 0.4%, settling at its highest level since August 2015. Australia's S&P/ASX 200 was up 0.50% intraday Wednesday. Hong Kong's Hang Seng Index rose 0.52% early Wednesday. Japan's Nikkei Stock Average was up 0.36%. Credit: By Akane Otani and Riva Gold
Subject: Dow Jones averages; Stock prices; Daily markets (wsj)
Location: United States--US
Publication title: Wall Street Journal, Eastern edition; New York, N.Y.
Pages: B.19
Publication year: 2017
Publication date: May 10, 2017
Publisher: Dow Jones & Company Inc
Place of publication: New York, N.Y.
Country of publication: United States, New York, N.Y.
Publication subject: Business And Economics--Banking And Finance
ISSN: 00999660
Source type: Newspapers
Language of publication: English
Document type: News
ProQuest document ID: 1896761527
Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1896761527?accountid=7117
Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.
Last updated: 2017-11-24
Database: The Wall Street Journal
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